Buying property in Spain
If you are a first time buyer you may be unfamiliar with the property purchase process in Spain. Below is a general guide to your property purchase, which outlines the steps taken and what you are required or advised to do at each stage.
THE SPANISH PROPERTY BUYING PROCESS AND PRACTICAL INFORMATION.
We, at Open Frontiers, will guide you before, during and after the purchase and will assist you with required documents and administration of the property, and the costs involved.
Once you have chosen your new home, the first step is to lodge a holding deposit with the Estate Agent or your lawyer (usually €6000) and sign a reservation document.
Costs to Consider
Allow approximately an additional 11 -15 % of the purchase price for costs and expenses. (The Spanish national average is 13%).
Property transfer tax or VAT
For resales you need to pay a transfer tax of 8% by sales prices up to 400.000 €, 9% between 400.000 and 700.000 €, and 10% once above 700.000 € (In Andalucia). If you buy a new property from a developer you pay 10% VAT. If you buy a plot of land from a developer you pay 21% VAT. (This tax is obligatory and it can vary quickly as it’s regulated by the ‘Junta de Andalucia’).
Stamp duty and notary costs
this is variable but mainly between 1,8% and 2,2 % of the purchase price.
If you use a lawyer, the cost is normally 1% of the purchase price, but can be discussed individually with the lawyer.
If a mortgage is needed, the bank will charge their additional costs. We do not offer mortgages but can introduce you to some of the local banks.
Normally this is included in the purchase price, with the exception of bank repossessions. In this case, a commission of average 2,5% can be charged to the buyer, but this will be discussed and agreed with the buyer before any deposit is paid.
Registration of the property.
Normally carried out by a lawyer or accountant, but we advise you that the Notary takes care of the registration and any transfer tax payments and stamp duty payments involved. Any notary has direct access to the land registry office and can take care of these payments easily at an extra cost. This mentioned registration and the payment of these taxes needs to be done within 30 days after completion, penalties WILL incur if this 30 day deadline is not met.
Documents needed by the buyer
Your passport or ID emitted by your country of nationality.
National registration number. Emitted by the national police.
Open Frontiers can help you with this administration, our fee is 180€/NIE.
A national fiscal number (N.I.F.), this can be applied for by a local accountant or lawyer.
The average cost: 1.200 €.
A local accountant can set up the company and the average cost is approx. 2.200 €.
After Sales services
Once the property purchase is completed, there are some important steps that need to be taken care of which Open Frontiers can assist you with. Below is a list of those transactions with our fees for each one:
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Open Frontiers History
About The Team
Selling Property Guide
About Sotogrande/Selling Property Guide
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