Buying a Property in Spain

Buying a Property in Spain

Appointing a Local Lawyer

Once you have found the property you would like to buy, and we have successfully negotiated a deal on your behalf, we shall prepare a “letter of intent”. This document clearly states the agreed price, exchange and completion dates, and what is to be included. At the same time, we recommend that you instruct a local lawyer to represent you in the purchase. Choosing a reliable lawyer is not always easy but any lawyer practising in Spain should be registered with the local bar association (Colegio de Abogados). They will have a registration number that you can verify with the bar association.

We can help you choose a lawyer if you wish. Your signed letter of intent will be sent to your lawyer as a reference to the agreed terms.

Your lawyer will then prepare a preliminary contract (contrato privado de compravento) and you pay a deposit (typically 10% of the purchase price). If a mortgage is required, you should make sure that this has been arranged beforehand with your mortgage provider. Again we have many useful contacts with local banks and can advise you of the best course of action.

The final contract of sale (escritura de compravento) is signed in front of a notary, at which point the full sale price, taxes and other costs become due.

So Who Pays What?

You are responsible for the property purchase tax which varies according to the price of the property. Up to 400.000€ it’s 8%; between 400.000-700.000~it’s 9% and over 700.000€ it’s 10%. You are also required to pay the fees for the Notary and the Land registry fee.

Your Lawyer’s fees are usually 1% of purchase price but can be negotiated.

In total, and as a rough guide, if you purchase a property below a million euros you should expect to pay approximately 10% of purchase price for a total of all costs but this should be verified by your lawyer.

The seller is responsible for all other costs including Plus Valia tax, Capital Gains Tax, Agents Commission and his lawyer’s fee