The three simple steps to buying your Spanish home
1. Choose a property and put down a deposit Your lawyer will hold the deposit for you, which is normally about €6,000. He will also undertake "due diligence" (legal checks) on the property, and your money will only be passed to the vendor once completed and at your instruction. It is recommend that you engage the services of English-speaking lawyers who specialise in property conveyancing.
2. Sort out the mortgage At this point there's normally a "private purchase contract", which covers any payment made to the vendor that's outside of the amount of the mortgage. You'll do this within two weeks of paying the reservation deposit, and everything can be handled by your lawyer; you just need to give him power of attorney.
3. Receive your title deed and keys Your lawyer (with power of attorney) will sign for your title deeds at a notary, which he'll then forward to the Land Registry to be recorded in your name. (He'll first make sure there are no outstanding charges on your property.) Finally, he'll help you in getting your utilities connected up and – if you've bought on a development – with formally meeting your community of owners. It's now simply a case of receiving your keys! Do I need a lawyer to buy a property in Spain? While it is true that it's not a legal requirement to have a lawyer in Spain to enact a property purchase, it is simply not the case that an agent can "handle everything on your behalf". Even with the very best intentions, how could any agent be impartial enough to keep your best interests at heart? Our advice is therefore unequivocal: As soon as you have found the property you want, the next step is to employ the services of a reputable lawyer with a proven track record in property conveyancing in Spain. Remember too that a good Spanish solicitor can be an invaluable ally to you in all kinds of situations: Give your lawyer power of attorney and they will be able to take care of all kinds of formalities without you even being there, for instance. Some law firms offer a valuable suite of extra services such as signing paperwork on your behalf; getting utility accounts set up in (or switched to) your name; and putting direct debits in place for regular payments. This can be a valuable add-on in terms of the time, hassle and travel it saves you, and for a relatively minor extra expense.
What are the buying costs? Reckon on 10-12% of the purchase price. Here's roughly how the fees break down: Legal (around 1%) Notary & Land Registry (1%) Stamp duty: only for new properties (1%) IVA (VAT) on new properties (8%), Transfer Tax on resales (7-8%) Mortgage commission: Varies (if you buy with a mortgage, there may be some additional notary/registry fees and stamp duty).
2. Sort out the mortgage At this point there's normally a "private purchase contract", which covers any payment made to the vendor that's outside of the amount of the mortgage. You'll do this within two weeks of paying the reservation deposit, and everything can be handled by your lawyer; you just need to give him power of attorney.
3. Receive your title deed and keys Your lawyer (with power of attorney) will sign for your title deeds at a notary, which he'll then forward to the Land Registry to be recorded in your name. (He'll first make sure there are no outstanding charges on your property.) Finally, he'll help you in getting your utilities connected up and – if you've bought on a development – with formally meeting your community of owners. It's now simply a case of receiving your keys! Do I need a lawyer to buy a property in Spain? While it is true that it's not a legal requirement to have a lawyer in Spain to enact a property purchase, it is simply not the case that an agent can "handle everything on your behalf". Even with the very best intentions, how could any agent be impartial enough to keep your best interests at heart? Our advice is therefore unequivocal: As soon as you have found the property you want, the next step is to employ the services of a reputable lawyer with a proven track record in property conveyancing in Spain. Remember too that a good Spanish solicitor can be an invaluable ally to you in all kinds of situations: Give your lawyer power of attorney and they will be able to take care of all kinds of formalities without you even being there, for instance. Some law firms offer a valuable suite of extra services such as signing paperwork on your behalf; getting utility accounts set up in (or switched to) your name; and putting direct debits in place for regular payments. This can be a valuable add-on in terms of the time, hassle and travel it saves you, and for a relatively minor extra expense.
What are the buying costs? Reckon on 10-12% of the purchase price. Here's roughly how the fees break down: Legal (around 1%) Notary & Land Registry (1%) Stamp duty: only for new properties (1%) IVA (VAT) on new properties (8%), Transfer Tax on resales (7-8%) Mortgage commission: Varies (if you buy with a mortgage, there may be some additional notary/registry fees and stamp duty).
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