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Property purchase

Buying steps: checks

The buying process depends on whether the property is bought off plan or as a resale. However, everything up to the point of paying the deposit is the same. The buyer should first employ a lawyer who will make the necessary checks with the land registry. This may include ensuring the land belongs to the developer, that no debts on the property exist and that the development complies with the regional urban plan.

Buying steps: private purchase contract

The next step is the reservation. On new properties this is normally 10% and usually non-refundable. Thirty days later the private purchase contract will be signed. This is 20 - 30% of the purchase price plus IVA (VAT at 7%, or 16% for land). The contract will include a schedule of payments, including an estimated date for signing of public deeds and final payment.

From private purchase contract to completion on a resale property can take from one to three months, with no stage payments.

Buying steps: final checks

On a new property, the buyer must make the stage payments from this point until completion. When nearing completion, the buyer’s lawyer will make final checks, such as ensuring the property has an architect’s seal of approval and licence of occupation, that there are no embargoes, debts or unpaid taxes, and that the developer has divided the land into the size and quantity of properties promised.

Buying steps: signing of deeds

The final step (for off plan and resale) is to sign the deeds before a notary, and supply a bank-guaranteed cheque to show that the funds are in place. Both parties sign, the lawyer then submits the deeds to the land registry for tax purposes and the buyer officially takes possession of the property.

Purchase fees

The following is a general guide to the costs involved with purchasing a property in Spain:

• Property transfer tax – around 6 – 7% of the purchase value
• Notary and land registry fees – combined should not generally exceed 1%
• Title deed tax – around 0.5% of the purchase value
• Legal fees – should not generally exceed 1 – 1.5% (plus 16% VAT) of the purchase value
• Agent’s fees – fees are normally included in the purchase price, so it is worth finding out the proportion of the price that is actually agent’s fees to ensure you are not paying over the odds for the property. The commission can range from 5% to as high as 10%.

Related items

Documents and Reports

	Spain property investment report (418Kb)
	Spain country guide (999Kb)
	Spain property buying guide (965Kb)
Documents and Reports

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