Once you have found your ideal property you need to find a Spanish “ English speaking” lawyer. We can certainly recommend a lawyer to use.

You, or your lawyer, will then need to sign a purchase contract called Contracto de Compraventa. This will be pre approved by your lawyer and must be agreed by both buyer and seller. Within this contract the date is set for completion.

The buyer pays a deposit when signing the compraventa. This in general is 10% but can be negotiated subject to buyer and seller approval.

This contract is binding for both parties and there are penalty clauses should either party not proceed to completion.

You must then  

• Apply in person for your NIE number at the local police station. The Notary will request to see this on day of completion.

• Open a Spanish bank account. You must transfer your money to purchase the property either to your lawyer´s client account or to your own bank. The bank then produces a bank certified cheque in the names of the owners for completion.

 Buying Costs.  

Estimate approx 10% of the purchase price as your buying costs if purchasing with cash.

Estimate approx 14% of the purchase price of buying with a mortgage.

These buying costs include:-

Notary expenses
The amount you have to pay will depend on the purchase price declared on the title deed.

•  Value Added Tax (I.V.A.) for new properties only
If you have bought a new home (with garage) you must pay to the builder 7% I.V.A. of the price declared on the title deed.
If you have bought a business or a garage without a home you must pay to the builder 16% I.V.A. It will show in the title deed that you have paid this amount to the builder.

•  Stamp Duty
Resales and plots of land – if you have bought a resale property or a plot of land you will have to pay 7% tax based on the price that appears on the title deed.
New buildings – if you have bought a newly constructed property and you have already paid the I.V.A. you must also pay 1% tax based on the price that appears on the title deed.

•  Land Registry Fees
The amount you have to pay will depend on the purchase price declared on the title deed.

•  Land Value Tax (Plusvalía)
This is a town hall tax which is paid once the property has been sold. It is calculated on the increase of the value of the property since it was last sold. Strictly speaking, the vendor should pay this tax but, in Andalucia, the buyer usually pays it.

•  Lawyer fees.
In general this fee is 1% of the purchase price plus V.A.T with a minimum fee set of 1,000 euros. 50% of this fee is generally paid at the initial signing of the compraventa-purchase contract and the final 50% paid upon completion.

Please note. If the property you are buying does not already have a registered title deed, this does not necessarily mean that you should not buy it. This is a situation very similar to a first registration in the UK. The property may have been in the same family for many years and now that it is being sold the registration can be done.

Your Lawyer will still carry out searches, but instead of the Note Simple-(a document confirming the vendor is the registered owner and all taxes have been paid) the lawyer will contact the “Catastro” for a certificate relating to the property. Completion of the purchase and obtaining the new title deed will generally take longer, as your lawyer will need to gather all of the documentation relating to the property.