WEST COAST’S BUYING IN SPAIN GUIDE


How much is it going to cost?

Generally, the costs are a total of 10% of the purchase price including:

• 7% VAT for both new build properties and resale properties
• 1% notary and land registry
• 1% stamp duty and property registration fees
• 1% lawyers fees

N.B: The VAT on land and building plots comes to 16%


Place a deposit on the property (La Señal)

If you are sure interested in purchasing a property then you have to put down a deposit. The deposit can be anywhere between 3-10% of the subject property depending on whether it is off-plan (usually 3-5%) or from a private owner who may demand a 5-10% deposit. On placing the deposit, the property comes off the market, and is reserved until the private purchase contract is signed. The deposit is not usually refundable however, if the seller finds another buyer, the first buyer can claim back twice the amount of the deposit.


Private Purchase and Sale Contract (Contrato de Compra-Venta)

 

This contract is normally written up and signed within 4 weeks of placing the deposit and consists of:

• Amounts and terms of the deposit
• The cost of the property
• The date for final completion/required fees and taxes
• Who pays what fees and taxes


Title Deeds (Escritura de Compra-Venta)

The signing by both the seller and the buyer in the notary’s office completes the buying procedure and all outstanding payments are settled.


Buying Off-Plan

• A deposit of approximately 3,000 euros usually reserves subject property
• 10-20% is normally paid within 4 weeks and the Private Contract is then signed
• 15-30% is normally paid during the construction/development stage
• The remaining balance is paid on completion in the notary’s office.


Additional Requirements

• Spanish bank account and NIE number
• It is a requirement to open a bank account on purchasing any type of property
• It is also mandatory to acquire a NIE number/certificate (foreign identification number)

(Do not worry, West Coast Properties will gladly assist in these matters)