Buyers Costs Guide
1/ Its always best to know where in spain you wish to purchase your property holiday home or permanent, so once you have made up your minds to the type of property and the area you wish to buy in then you can start your search.
Location
2/ Once decided where to buy start you search enter your search estate agent in the area, you should find the local agents selling in this area. always see established estate agents as property sellers pop up fast when the market is good.
Budget
3/ Know your budget and what you expect from the area you wish to buy in, properties that are priced well do sell and sometime faster then expected, so being in a position to move on a property if you find the right one.
Bank Account / NIE Number
6/ Open a spanish bank account and obtain your N.I.E. Number for tax payments deposit payments can be done using your own countries, banks but for completion it better to use a spanish bank account.
Costs when buying a property in Spain
When buying your property and estimating the purchase expenses we always suggest you add 11% to 12% on top of the purchase price to cover these costs.
Estate Agent Fees in Spain
Estate agents charge a commission based on the sale price. This fee is 2% on the sell price agreed, Each agent sets their own fees, Alpujarra Houses commissions Fees are 2% plus v.a.t . Or a minimum fee for property up to €25.000 is €500 plus v.a.t. The important thing is to establish this from the outset and not to sign anything you do not fully understand.
Notary and Land Registry Fees
The scale is fixed by law and ranges from around €300 to €1,000 depending on the price of the property. Notary fees Normally split 50/50 with the seller.
Your Agent /Lawyer
4/ once you found you property and your agent has negotiated the price for you with the seller and its agreed the next step is for your lawyer to check out the paperwork for you that the property is legal and all papers are in order he will check that there no debt on the property before he draws up a deposit contract any problems he will add clauses to cover you in the contract. Lawyers Preliminary check on the property with a nota simple from the Property Registry (Registro de la Propiedad), you'll find out if the property is free of debt, if it really belongs to the seller, and if the description of the property matches what the buyer has seen and been told.
Lawyers Fee
Normally 1% of the purchase price.
Deposit Contract - Pre-Agreement
Between the seller and the buyer, it's best to have a contract in place until the public deed of purchase is ready. It's usually a simple document in which the seller expresses their intent to transfer the property to the buyer, and the buyer expresses their intent to buy at the price and conditions agreed upon. At this time, the buyer also gives to the seller a percentage of the agreed-upon price, typically 10%. The typical agreement in Spain (called contrato de arras) is if the buyer backs out of the contract, they lose the deposit; if the seller backs out, they have to pay double.
Completion of the sale
The property transfer must be certified by a notary. The deed of purchase will be given to the buyer after the notary reads it and the parties present agree to the contents of the deed. The following must then be presented: proof of identity or power of attorney of both parties, the seller's title of property (a form that reports the investment to the Central Register), and the buyer's payment. The buyer and seller sign the contract; beneath their signature, the notary signs using his firma protoclizada and the deed is ready for taxes.
Spanish Transfer Tax (ITP)
This only affects resale properties; it doesn’t apply to new build purchases. It is payable by the buyer. The rate at present is 7% of the purchase price. However, if the minimum fiscal value of the property, set by the local autonomous government, is higher than the agreed purchase price then it is this higher figure that is used to calculate the transfer tax due