Sales Information

Appointing a lawyer

It is important to appoint a Spanish lawyer who is fluent in both Spanish and your native language to act on your behalf and to guide you through the proper procedures. The lawyer will outline the services that he provides and give you a breakdown of all the costs involved.

Land Registry Searches

Before signing any contract your lawyer should undertake a search of the Land Registry This search, the "Nota simple", shows all previous transactions and indicates who is the legal registered owner of a property and whether the property has any incumbrances, mortgages or liens registered against it or is subject to any other legal procedure.

Professional and personal advice

Your lawyer will advise you on the simplest and most financially viable way to buy your dream apartment ie privately, through a private national or international firm or in conjunction with your spouse. Furthermore, your legal team will advise you the best way to transfer the funds so that they can be repatriated properly should you decide to sell in the future. They will also help you apply for your fiscal number to enable the property to be registered in your name.

Property Reservation

In some cases the vendor may require a reservation document. Paying a small non-refundable fee means your property will be secured at an agreed fixed price and will immediately take it off the market.

Private Purchase Contract - Contrato de arras.

Once you have signed the reservation document and your deposit has been paid you will be expected to pay a larger deposit normally 10% of the full purchase price within an agreed amount of time (usually 7-10 days) At this stage your lawyer will also draw up a private  purchase agreement which reflects all the conditions of the purchase such as the definitive price of transaction, details of the property, all details of both parties and determine the sufficient time to arrange payment of the balance and other conditions.

Completion of the purchase deed and registration - Escritura de Compraventa.

Once you have checked the Land Registry and are confident that the property is free of outstanding debts and incumbrances, you can then reach an agreement with the seller on the terms of the transaction. To complete the transaction and become the legal owner, the buyer and the seller must execute a Public Document of Purchase called "Escritura de Compraventa"
before a Spanish Notary Public. A private purchase agreement creates rights and obligations between the seller and the buyer. Once signed, this deed will be sent by the Notary to the Land Registry who will immediately make a preventative inscription in your name, thereby ensuring no charges relating to the previous owner can be made against your new property.

Power of Attorney

If for any reason you are unable to be present for the signing of the contract, you can grant Power of Attorney to someone else to attend and sign on your behalf. Your lawyer will be happy to advise you how to obtain one for your country of origin.

Overview of Legal Fees

As well as the purchase price you must be aware of all the additional costs involved in the transaction and as a general guide you should budget for an amount equivalent to about 10-12% of the purchase price.

Notary's fees

The Notary's fees for the execution of the Escritura are fixed by a sliding scale established by law and are dependent on the value of the property / transaction.

Land registry fees

For the registration of the Escritura at the Land Registry, again a sliding scale is applicable dependant on the purchase price.

Transfer Tax

Impuesto de Transmisiones Patrimoniales If the seller is a private individual and not a property Developer, the sale is subject to a transfer tax of 7% levied on the purchase price as declared in the Escritura. If the seller is a company or developer, VAT (Spanish IVA Impuesto sobre Valor Añadido) at the rate of 7% will be levied on the purchase price.

Stamp duty

Charged at 1% of the value of the property/transaction.

Municipal Plusvalia Tax.

A tax on the increase in the rateable value of the property since the last transaction and paid to local authorities.

Having completed your purchase and the deeds have been presented to the Land registry your legal team will be able to give your further help and advice with issues such as arranging contracts with local utility companies. They will also advise you on necessary tax returns you are required to make each year now that you are a Spanish property owner.