The Legal Process for Buying a Property in Spain.
As soon as you decide to buy a property in Spain it is always recommended that a Spanish-speaking Lawyer acts on your behalf.
The first thing they will do is consult the Land Register, which details the property and records all financial charges made against it or any other matters that effect the title. Additionally, building permits and planning permissions should be in order and newly completed buildings must have a First Occupancy License.
It is also very important to verify the legal vendor / owners of a property. Obtaining a ‘Nota Simple’ will clarify not only the legal owner but also whether there are any outstanding mortgages or debts.
Stage 1: Preliminary Contract (Private Sales Contract)
Once a price has been agreed and clarification of the legal owner and that the property is debt free, both parties are best advised to sign a preliminary Private Sales Contract.
The private preliminary sales contract will contain all the details such as a description of the property, purchase price and date of
completion. At this stage you will be expected to pay a deposit of 10% of the purchase price and the lawyer will hold these funds in a bonded client account.
Stage 2: Final Contract (Escritura de Compraventa)
On the completion date the balance of the purchase price (sales price minus deposit) and all fees must be payable by the purchaser.
The vendor and purchaser then sign the Escritura de Compraventa Contract, which is equivalent to the Title Deeds of a property.
The purchaser is at this stage issued with the Public Deed of Conveyance (Escritura) in front of a Public Notary and copy will then be passed to the tax office and onto the property registry.
After the Title Deeds are signed
The original copy is lodged at the registry office by the Notary and the new owner’s name is entered on the registry deed.
The purchaser must pay the Notary’s legal fees and property sales taxes, which are:
Taxes when purchasing
Resale Tax:
From 0 to 400.000 Euros the tax is 8%
From 400.000 to 700.000 the tax is 9%
From 700.000 above the tax is 10%
Buying from a new developer
Tax: 8%
Vat: 10%
Stamp duty: 1,2%
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