You are interested in buying a property in Spain but you have no idea how to start the process, who do need to trust? the real estate agent? the friend? the lawyer..? is the price of the sale are above the market? is it an opportunity for the seller or for me?..
Obviously, there are severals and many questions will appear in your mind, but we we help you to make it easy and simple.
If you have been in one of the cities of Spain close to the Beach or far from it, and you have decided to get a second residence for your holidays, first of all, you may need to contact a serious Real Estate. Once the property is selected, the steps are the following:
Valuation and the price of the property in the market:
You should realise a valuation in order to make sure the real price of the property in the market, The banks in Spain, are leaders in this type of procedures, it takes only one week to get the completed report. This report will be important to get it, so you can find out all the information and in details about the apartment you want to acquire, such as the first licence of occupancy, charges or taxes non paid, embargos...etc or any other incidence.
Reservation contract
Once you get the report with the valuation of the property, then you can decide to leave an advance ( between 3000€ and 6000€) by bank draft cheque signing a reservation contract or private agreement for the purchase of the property. In this contract you need to establish the next percentage to pay to acquire the property, 10% (the usual percentage established in these cases) after 15 days. Then the final amount after a month.
The time is determined by you, depending of your economical situation,you will decide to make the final payment in one week or 3 months. Some of the Non residents, they established 90 days in the reservation contract, in order to apply for the mortgage in a Spanish Bank, the Spanish Entities usually can not provide more than 70% for those whom come from EU and 50% for the rest of the nationalities.
Notary, Register Office fees and VAT:
Whether you apply for a mortgage or not, you may know that the price of the property will be added the VAT which is 10% for a new real estate plus the Stamp duty 1,5% and transfer tax from 6 to 11% for non new residential property. Additionally to this, you should pay the notary fees, and register office fees.
PURCHASE DEEDS AND MORTGAGE TITLE DEED:
It takes around 2 months to get the original documentation from the notary, after signing the purchase of the property you may take a copy of the deeds. The notary has the obligation to register the apartment in the Register office, so they will transfer the new ownership to you and to pay the corresponding taxes. this procedure could take around 2 months.
It will be obligatory to visit the notary in order to collect your original documentation that prove you are the owner of the new residential property.
Electricity, water, community fees, utility taxes:
After singing in the notary you should provide a copy of the title deed in the Local tax office in order to modify in their Data Base the personal information of the new owner, as the account number, name , surname, and You Identification number. this is necessary to pay annually you local taxes.
To set up a new contract of the Electricity and water, you have 2 options:
- To be present in the office providing you documentation and account number to modify the contract in your name.
- To call to the community of the urbanisation to provide you personal details in order to set up as direct debits the payment of the corresponding fees.
All this process could be done by you, or by a “Gestoría” or any tax advice office. Is not necessary a lawyer for this type of management.
THE POWER OF THE INTENTION.
When you really decide to start any action, reaction, idea or project, be sure that if you really want to go for it, with all the good intention and I stop in this point, named, "intention". The quality of the intention itself will be transparent appassionate and no with objective to provoque a damage to anybody.
The Universe then, accompany you to achieve step by step all