How do I buy property in Spain?
The costs and legal side of buying property in Spain can be a little confusing with all information about the legalities, fees and taxes, and the mortgage process.
Once you have found the right property for you the next thing to do is find a local lawyer who can pursue legal searches on the property for any outstanding debts, tax arrears and unpaid bills. There are now several English-speaking lawyers in the area, all of whom have vast experience in local Spanish property law. They will charge around 1000 Euros, depending on the amount of work involved.
The costs involved when buying a property in Spain will be around 18% of the purchase price of the property. This will include lawyer fees around 1,000€, transfer tax of 9% is applied to re-sale properties in Spain.
Newly built Spanish properties pay IVA (VAT) charged at 10% of the contract price, plus IAJD (A Tax on documental legal acts of 0.5-1.5%). Gestoria costs of 250-500€.
Notary fees are charged according to a fixed scale ranging from 600 to 1,000€, depending on the sale price for signing of the Title Deeds.
Land registry fees will be between 400 and 600€, depending on the amount of work involved at the Registry office. This is to have the Spanish property Deeds changed to your name at the Registrar and is due within 30 days of signing the Deeds.
For those who take out a Mortgage there will be a Property Valuation Cost of around 800€.
How do I get a mortgage in Spain?
Many banks here in Spain offer morgages with low interest rates, bank commissions with favourable cancellation conditions, variable payment rates and interest-only based mortgages.
You will need to open an account with them, for which you will need to present your passport. The bank will need proof of income by way of pay slips from the last 3 months and the latest P60 although some banks also require copies of bank statements from the previous 6 months. If you are self-employed, you will need to provide the last 3 years accounts as well as copies of bank statements (both business and personal). The bank will give a provisional agreement if you are eligible for a mortgage. This will be approved once the bank has seen an official valuation of the property.
The Title Deeds (Escritura) must be registered so that the bank can obtain a copy of the Nota Simple, which states the size and type of property registered giving details of any debts which may be outstanding on that property. Once the bank have a copy of the Nota Simple an independent valuer will visit the property and make a detailed valuation report.
The cost of a valuation is around 300€ and will need to be in your account prior to the valuation. The bank will then make a mortgage offer.
Most banks offer up to 70% of the independent valuation for non-residents and up to 80% for residents.
What will I pay the agent?
The buyer will be asked for a 3,000€ non refundable deposit to show their commitment to the property which will be held by us as part of the final commission.
A 10% holding deposit is required once the Purchase Contract (compra-venta) is signed minus the 3,000€. This Contract is usually valid for 90 days.
The Title Deeds (Escritura) should be signed over by this point and the outstanding payment made at the Notary minus the 3,000€ and the 10%.
Our fees are 2% Sole Agency or 3% Multi Agency of the property purchase price or a minimum fee of 3,000€.
What do I need to consider when living in Spain?
So, in no particular order here are some things to think about if you are planning a move to Spain:
- Language: Do you speak Spanish? In general, you need to learn Spanish if you want a successful life in Spain. Do not expect people to speak English. No problem anyway, learning Spanish is fun!
- Expat guilt: Are you leaving people behind? This isn’t the case for everyone, but some things might tug at your heartstrings later.
- Work What are you going to do for a living in Spain? Working in Spain is not that easy. Spain has very high unemployment at the moment. So make sure you think ahead, or better still, have something lined up for when you arrive.
- Responsibilities Will you be bringing a spouse, or children, that depend on you? Then things get a LOT more complicated. You need to work out what they are going to do in Spain too, work-wise or school-wise. Moving to Spain long term will almost certainly make you more independent, broaden your horizons, and will enrich and stimulate you mentally and culturally.
- Leaving your comfort system behind. You will be leaving established work channels, friends, support systems and the weather! Stepping out of your comfort zone. Make sure you are feeling good, fit, mentally strong, and up for an amazing challenge.
- Get everything in order on arrival. Look in to Taxes, Insurances, Builders, Funeral cover (a must here), leisure activities, driving & car stuff & a place to get things done.
How do I find a good reliable builder?
It can be very difficult to find an experienced, friendly, trustworthy builder who can do those little jobs that you can’t do yourself. Maybe you need a wall building or some metalwork making. Whatever you need CONTACT US NOW and we can put you in touch with the right man for the job at an honest price.
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What happens if I die in Spain?
Have you gone through your checklist of moving to Spain?
One of the most important things to remember when you arrive is to think about what would happen in the event of your death here. It is not something we like to think about but believe me it can be a very traumatic experience. Far better you get it organised as soon as possible.
Avalon help people throughout Spain every day With over 20 years’ experience organising pre-paid funerals, Avalon is the market leading provider of funeral plans in Spain and the Canaries.
Rising funeral costs, the language barrier and an unfamiliar Spanish funeral system can make it difficult for your loved ones to make funeral arrangements. With escalating funeral costs and the significant differences that exist between a funeral in Spain compared to the UK, using Avalon to organise your funeral is a sensible decision.
Most funerals in Spain take place within 48 hours and have to be paid for in advance. Any delay may incur more costs. All of this can mean that arranging a funeral without a plan comes with real difficulties for those who live or spend time in Spain.
Ensure You Have The Protection Of A Funeral Plan (0034) 631047573