Buying in a different country can be a daunting experience but with Real Homes in Real Spain to guide you through the process it couldn’t be simpler. We are an established, professional, legal, licensed Spanish estate agent with over ten years of experience in providing property advice and help to clients.
Once you have found your ideal Spanish property, you will need to secure it by signing a contract and paying a deposit. The deposit is usually 3,000€ followed by the balance of the 10% of the purchase price, approximately two weeks after signing the contract, once initial legal checks on the property have been completed. The deposit is refundable if there are issues which cannot be resolved at or before completion.
The “CompraVenta” (Purchase Contract) is published by your estate agent and is confirmation of the property you are buying, agreed buying price, details of the Buyer and Seller and also the latest completion date. All our contracts are published in English and Spanish, ensuring that there can be no ambiguity. Once you sign the contract and pay the deposit, the contract is legally binding, and we remove the property from the for sale listings.
Whilst it is not a legal requirement in Spain, we recommend that you appoint an independent legal representative to carry out the conveyance of the property and manage other legal matters. Not all Spanish lawyers specialise in rural property laws, but we can recommend a reputable local English speaking lawyer. Unlike the UK, all documentation is presented to a Spanish Notary for legally notorising.
Notaries are legally trained and mandatory for any property transaction in Spain, they are employed by the government and therefore do not act for either the buyer or seller. The role of a notary is to oversee and sign and rubber-stamp the paperwork in a property transaction, check all necessary fees are paid and register the property with the Spanish land registry.
Power of Attorney
Often buyers (and sellers) are unable to be present for the completion of the purchase/sale, and in this case it is normal to delegate a Power of Attorney (PoA) for someone to sign for you.
You may choose whomever you wish to represent you, or delegate this task to our senior partner who will attend the completion on your behalf. We do not charge for this as it is a part of our service.
Mortgage / Finance
If you require a mortgage to purchase your property, we can help you by arranging one here in Spain. We will help you with the entire application as part of our service, liaising between yourself and the bank as required, from opening a bank account through to completion.
Alternatively, you can arrange a mortgage yourselves in the UK.
National Identification Number
You are required by law to obtain a National Identification Number (NIE), enabling you to buy your property, (also needed to sign a mobile phone contract, pay by credit card etc). We can arrange NIE numbers as part of our service at the time of signing the contract or remotely on your behalf.
It is necessary for you to open up a bank account in Spain in order to complete on a house purchase. We can arrange an appointment for you with a local branch or open an account for you remotely in time for the completion.
Transfer of Title Deed
Full payment is required before the escritura (title deed) can be transferred into your name.
This is done in the Notary’s office at the point of completion and as the full payment passes to the seller. Both parties sign the new deed and the ownership title passes to you, the buyer.
Property Registry Fees
To register the new deed to the new owner at the registry office the fee for this service is normally paid by the buyer and is calculated by percentage against the buying price.
You must pay this tax before the escritura (title deed) can be registered in your name. In the case of a resale property the impuesto transmisiones patrimoniales (the transfer tax) is 8% of the buying price. In new build property the IVA (VAT) tax is 10% of the buying price.
The Notary's fees are usually paid by the buyer and are calculated by percentage against the buying Price.
Transferring Funds from the UK to Spain
We recommend using the services of a currency exchange specialist such as Moneycorp (world top three) who will guarantee the best commercial transfer rate for you and take care of all necessary legalities and security checks. For more information visit http://www.moneycorp.com/UK/currency-zone/?rp=10435050
Taking Possession of Your New Property
Handing over ownership of the property and the keys will normally take place once the full purchase price has been paid and the deed signed in the Notary’s office on the day of completion.
Transfer of Services
Having completed the purchase, it is necessary to connect or transfer the utility services. Both electricity and water accounts need to be transferred into your name and paid by automatic bank standing order. The utility transfers are carried out by us as part of our service.
Insurance becomes your responsibility upon possession of the property and can be arranged either in Spain or the UK. To avoid any potential problems we recommend using Mapfre who are one of the largest insurance companies in Spain and have a local branch office here in Blanca. We can obtain very competitive quotes from on your behalf.
You are not required to become a tax resident in Spain to purchase a property. However, there are advantages to having 'Residencia' including having a Spanish resident bank account, which means you will be charged lower interest rates. It can also reduce the amount of Capital Gains Tax you might pay when you come to sell your property in Spain. For more information on this we recommend you seek specialist legal and tax advice.
The inheritance laws in Spain are different to the UK. To avoid being caught out we advise that you speak to your Spanish lawyer about arranging your Spanish Will.