Purchasing in Spain
Do it right first time!
Ensure the estate agent you are using is Spanish Registered and a qualified Asesoria (qualified property consultant). Always ask this question before providing any personal information, to ensure you are covered by the Data Protection Act and that the agent you are using has carried out a course on this subject. If they do not have an office, it probably means they have never been inspected or audited. If the agent has an office that means they have registered with the local council and are registered and liable for tax.
Legal Matters - The Olive Tree Pinoso recommends that all clients appoint a Spanish solicitor or Asesoria to act on their behalf, to give you peace of mind with your purchase. If you do not have a Spanish solicitor or Asesoria, we can recommend a reputable local one for you, who speaks English.
Wills - UK inheritance laws are different here in Spain and we would advise you to speak to a Spanish solicitor or Asesoria about providing you with a Spanish Will.
N.I.E. (Your Spanish Identification Number) - All foreigners are required, by law, to obtain their own N.I.E number if they wish to open a bank account, purchase a property or take out insurance. Spanish people have an equivalent but it is called a D.N.I number. The Olive Tree Pinoso, or your Spanish solicitor/Asesoria can help obtain this for you.
Bank Account - It is essential that you to open a bank account here in Spain in order to purchase a property. The Olive Tree Pinoso can again help you with this.
Deposit - Once The Olive Tree Pinoso has helped you find your dream home or land, you will be required to pay a deposit; the amount is normally 10% of the purchase price. The Olive Tree Pinoso holds the deposit until such time that a Solicitor or Asesoria confirms that all the paperwork is acceptable and legal. The deposit is refundable if there are any problems with the paperwork which cannot be resolved before the mutually agreed sale date.
Purchase Contract - A purchase contract/agreement will be drawn up by your Solicitor/Asesoria. It is important that both parties agree on a deposit amount, purchase price, completion date, any financial penalties if the purchase date is not met and any other relevant information that both parties may want to include. Once a deposit is taken and the agreement/contract is signed it is legally binding for both parties.
Finance - Should you require a mortgage to purchase or build the property this can be arranged in Spain or in the UK. We can help you through the entire Spanish application as part of our service and can obtain Spanish mortgage quotes for you in advance of your purchase.
Deeds Transfer -Full payment must be received before the Escritura can be transferred into your name, which is always carried out at the Notary Office.
Registry Costs - The registry costs are normally between 250€ and 750€ and are based on the registered value of the property, so will vary.
What is ITP? - Before the Escritura / Deeds can be put in your name, you must pay the ITP (transfer tax). The ITP varies from region to region, but is usually between 8-10% of the declared purchase price.
Notary Fees - The Notarys' fees differ from area to area, but it is normally between 450€ to 1000€
Transferring Funds - We recommend that you use a currency exchange specialist. The Olive Tree Pinoso can help you obtain the very best rates, if you require assistance in this area.
Ownership - Taking ownership of your home or land is usually done once the full purchase price has been paid at the Notary Office and deeds signed over.
Utilities - Once the property is yours, you will need to transfer the services into your name. It is important to set up a direct debit to ensure your bills are paid on time.
Insuring you home - It is no different than the UK, once your take ownership the insurance becomes your responsibility. If you require assistance with your insurance, The Olive Tree Pinoso can help you.