Easy Buyers Guide
Standard documents
There are several standard documents that are required by law and need to be in order for a purchase to proceed, they are:
Escritura Pública
The registered title deed for the property which should be inscribed at the Property Register(Registrode la Propiedad) and a report from the Property Registry called a Nota Simple.
Impuesto sobre Bienes Inmuebles
The paid up receipt for the owner’s annual property tax, the IBI. The IBI receipt will also show the property’s catastral reference number and also the valor catastral, which is the official assessed value of the property.
Catastral certificate
The catastro is a second system of property registration, it will describe the exact location, physical description and the square metres of the land included with the property.
There are two taxes to pay – the first is the Andalucian transfer tax (known as Impuesto de Tranmissiones Partrimoniales). This is charged on all private re-sale properties and equates to 7% (8% from July 2010) of the declared value within the contract. The second tax is the plus valia – Arbitrio sobre el Incremento del Valor de los Terrenos, the municipal tax assessed on the increase of the value of the land since its last sale.
Notary fees are fixed with an official scale of charges. The fees will vary according to the amount of land, the size of the property and the price at which the property is being sold. Generally speaking the fees vary Between 350 € and 600 €
Choose a spanish lawyer
There are many Spanish Lawyers based on the Costa del Sol, who speak excellent English and other languages.
Do be sure to choose one who does speak English well, so that you can communicate comfortably during the purchase of your Spanish property.
If you can find a lawyer via a personal recommendation from friends, so much the better, if you need help finding a lawyer, we can recommend several firms in Antequera who specialise in property purchase and speak English.
To purchase a Spanish property you will need to obtain a NIE, which is an identification document and a bank account with a Spanish bank. Both of these can be obtained easily. For your NIE Number you must go to a local police station with your passport and 3 passport size photographs.
You will be given a form to fill in and normally will receive your NIE certificate the same day. With this document, we can go to a bank of your choosing and open an account.
Formalising the sale
Reservation deposit
Normally 3,000 €. This deposit should be paid to the vendor’s lawyer to ensure the property is withdrawn from the market. Normally for a period of 30 days. This will give your lawyer time to check all paperwork relating to the property. Title deeds etc.
Private Sales Contract
This private contract will state the terms and condition of the sale And will include details such as the sale price, the inclusion of any fixtures and fittings and Date of completion. Until this contract has been signed the buyer can withdraw, but will Loose the reservation deposit. Upon signing the private contrac, the buyer will be Required to pay a 10% deposit (minus initial deposit) to the vendor’s lawyer.
Completion of the Purchase
The final completion of your purchase takes place in the Notary’s office, where the title deeds are signed and transferred to your name in front of the Notary. The deeds will then be sent to the Land Registry to be re registered in your name, after which you will receive an Escritura (Title deed) If you are transferring monies from outside Spain to complete your purchase, you should allow several weeks to transfer funds.
Your lawyer will of course explain the process of purchase to you fully.
Transfer Costs - who pays what
There are no hard and fast rules about who pays what, the seller and buyer are free To decide whatever terms they wish. Traditionally the seller pays the Notary,s fees and the plus valia tax, whilst the buyer pays the Impuesto de Transmisiones and the registry fee. But in reality it is more usual for the buyer to pay all the costs.
The taxes and fees are going to cost your somewhere in the region of 10% of the purchase price. There are two taxes and two fees to pay. The two fees are for the registry of the sale in the Property Register and for the notarisation of the deed.
The two taxes to pay are – the Andalusian transfer tax (known as Impuesto de Tranmissiones Partrimoniales). This is charged on all private re-sale properties and equates to 7% (8% from July 2010) of the declared value within the contract. The second tax is the plus valia – Arbitrio sobre el Incremento del Valor de los Terrenos, the municipal tax assessed on the increase of the value of the land since its last sale.
