Buyers guide
Once you have decided to buy one of our homes, we write a purchase agreement with the help of a lawyer. We can recommend attorneys but if you have your own, it is excellent. The contract includes the price and date of access. When signing you also pay the 10% deposit. The deposit can be credited to a clients account if you want to be completely separated from our accounts until access occurs. It is also important to arrange your funding.
The next step is the date of access, but before that you must have applied for a tax identification number, a so-called NIE number for individuals or a NIF number for companies, so that your acquisition can be registered in the law register. This can be done advantageously from the spanish embassy in your country but is also something our lawyers here in Spain can help you with.
On the day of completion we meet with the Notary, who produce the public letter of purchase (Escritura Pública de Compraventa) and verifies the identity of the parties and the legal status of the residence. The notary and the lawyer will charge you as a buyer and estimate about 12-15% on the purchase price in the form of taxes and fees. See more about this below.
What costs are incurred in an acquisition?
Tax on new production. When buying newly created residential properties, a state VAT, "Impuesto de Valor Añadido", is added to 10% of the purchase price. In addition, a stamp duty of 1-1.5% is added in Spain, depending on the region.
Tax on used homes. When buying used homes in Spain, a transfer tax, "Impuesto de Transmisiones Patrimoniales", amounts to 8-10% depending on the region and the size of the purchase price. However, no stamp tax is payable.
Notary. The buyer is also responsible for the fee of the notary when the parties exchange the purchase contract. The real cost here can be difficult to estimate in advance as a number of factors are involved, but a fairly good rule of thumb is that it is about 500-1 500 €.
Registration fees. The registration in the property register under the new owner also entails certain costs. Again, it is a cost that is difficult to give an exact value depending on the purchase price, but as a rule of thumb you can count on a few hundred euros.
Connection fees. Access is subject to connection fees and / or subscription fees for water and sewage, electricity, and maybe gas.
Financial costs. If you choose to partially finance your purchase with the help of bank loans, additional costs will be added for upfront fees, mortgages, etc. Calculate about 3-5% depending on the loan amount and the terms you negotiate with your bank. Normally, a loan is amortized in Spain of 25-30 depending on your age etc. Normal loan ratio is at most 60-70% of the value of the property as a non resident and up to 80% of the value of the property if you are resident.
The next step is the date of access, but before that you must have applied for a tax identification number, a so-called NIE number for individuals or a NIF number for companies, so that your acquisition can be registered in the law register. This can be done advantageously from the spanish embassy in your country but is also something our lawyers here in Spain can help you with.
On the day of completion we meet with the Notary, who produce the public letter of purchase (Escritura Pública de Compraventa) and verifies the identity of the parties and the legal status of the residence. The notary and the lawyer will charge you as a buyer and estimate about 12-15% on the purchase price in the form of taxes and fees. See more about this below.
What costs are incurred in an acquisition?
Tax on new production. When buying newly created residential properties, a state VAT, "Impuesto de Valor Añadido", is added to 10% of the purchase price. In addition, a stamp duty of 1-1.5% is added in Spain, depending on the region.
Tax on used homes. When buying used homes in Spain, a transfer tax, "Impuesto de Transmisiones Patrimoniales", amounts to 8-10% depending on the region and the size of the purchase price. However, no stamp tax is payable.
Notary. The buyer is also responsible for the fee of the notary when the parties exchange the purchase contract. The real cost here can be difficult to estimate in advance as a number of factors are involved, but a fairly good rule of thumb is that it is about 500-1 500 €.
Registration fees. The registration in the property register under the new owner also entails certain costs. Again, it is a cost that is difficult to give an exact value depending on the purchase price, but as a rule of thumb you can count on a few hundred euros.
Connection fees. Access is subject to connection fees and / or subscription fees for water and sewage, electricity, and maybe gas.
Financial costs. If you choose to partially finance your purchase with the help of bank loans, additional costs will be added for upfront fees, mortgages, etc. Calculate about 3-5% depending on the loan amount and the terms you negotiate with your bank. Normally, a loan is amortized in Spain of 25-30 depending on your age etc. Normal loan ratio is at most 60-70% of the value of the property as a non resident and up to 80% of the value of the property if you are resident.
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