- Spanish property buyers guide
To answer the most common question beforehand please read the following BUYER'S GUIDE:
1. Congratulations you have found your place in the sun.
Once you have chosen the property we reserve it for 24 hours.
In this time we draw up the private purchase contract (Contrato de compra-venta). This contract will be in Spanish and your native language English/German/…. On signing the contract you pay a first deposit of 3.000 €, a further, bigger deposit (up to 10% of the total amount) must be transferred in a time of approx. 10 days.
The time before signing the title deed before the notary will be 1-3 months after this initial payment. The property is then legally yours, you receive the keys and can start to enjoy what in sometimes is a new holiday home but in many other cases a new period in your live. In any case the exact details e.g. amount of deposit, time until final payment are subject to your and the owners preferences.
2. Legal security
All properties you buy with Mevilla C.B. have been checked for their full legal correctness before being put on offer. We make sure that they are correctly registered at the land registry and that all legal worries you might have have been answered before you make any deposit payment. How ever for additional security we can put you in contact with a reliable lawyer to assist and rest assures you in your purchase.
3. Taxes and fees
All property purchases are subject to a tax of 7% of the declared value in the title deeds for the buyer. A non-resident seller needs to pay 5% of this value as a first tax-payment, after that the seller should make an tax-declaration and, depending on the value declared and the years of ownership he needs to pay some extra tax or he will recieve a refund. (If you want to sell more information will be given on a personal meeting).
Apart from this a buyer has to pay notary and land registry fees. All together you can take 9% of the house value as a guideline for these taxes and fees.
Please note that in many cases some money is paid in cash for furniture and other equipment which is sold with the property, as it does not form part of the actual building which is sold with the title deed. The ammount is subject to negotiation.
4. Banking and Mortgages
Mevilla will accompany you and help you open a Spanish bank account. We deal with 4 of the largest Spanish Banks. Independent mortgage advice can be arranged, should you require this service. As a non resident in Spain you can apply for a mortgage of up to 70 %.
In order to apply for a mortgage you will have to supply:
- Last 3 wage slips
- P60 for your last tax year
Please bring required paperwork with you on your purchase trip in order to save you and the bank time.
When self employed please contact us before your visit to discuss Bank requirements.
5. Appointing a solicitor
You are able to use a local English speaking solicitor of your choice or if you prefer we can help you to appoint one. He would carry out the following:
- Checking of the purchase contract.
- Investigating the property, check that the seller is the owner and that there is legal authorization for selling and make sure there are no encumbrances or outstanding debts on the property, free of tenants, ensure permits and planning permissions are in order, arrange warranties etc.
- Liaise with the building company or private owner during the purchase period through to completion.
- Make transfers on your behalf when necessary
- Accompany you to the Public Notary office on completion to sign the Title Deeds/ Escritura and arrange necessary registration of ownership. (If you are not in the position to do the completion yourself you can grant power of attorney to your solicitor).
Arrange water and electricity contracts & payment of bills by standing order from your Spanish bank account.
- Arrange tax numbers (N.I.E numbers) wills etc. You will also need to supply 4 passport size photographs.
- After completion you could also appoint your solicitor to arrange payment of annual rates and taxes, inc. income tax - Declaracion de la renta - wealth tax -Impuesto de Patrimonio-
6. Yearly running costs:
As a property owner in Spain you will have running costs in accordance with the property purchased (you will be given examples of these costs during your visit
Example Running costs: Property 100.000€
- URBAN TAX CONTRIBUCION TERRITORIAL URBANA aprox: 250.05 € per year
- WATER (INCLUDING RUBBISH COLLECTION) 3 Monthly Min. 25.48€ + usage
- ELECTRICITY 2 Monthly Min. 31.85 € + usage
- GAS BUTANE (Per cylinder of 25 kg) 7.95 €
- aprox. COMMUNITY CHARGES 199.09 € per year
- WEALTH TAX 144.00 € per year
- INCOME TAX 122.00 € per year
The information we have given to you in this guide will be explained in more detail during your visit with us.
