When you make the decision to purchase a property and the offer is accepted, you will be asked to immediately pay a refundable reservation deposit (normally ranging between €3,000, €6,000 or 10% of the purchase price). This deposit ensures that the property is taken off the market which ensures that it is not sold to another client while negotiations take place and the paperwork is checked.
After paying for the reservation contract, there is a period of between 10 and 14 days to exchange and check the basic documents. This will be done by your lawyer (who I will connect you to). The lawyer will also draw up the beginning of the purchase contract. If everything has been approved and the negotiations on any conditions are included in this contract, 10% of the purchase price will be paid after this period (this is called signing private purchase contracts).
During the following 30 to 45 days, your lawyer will have time to carry out all necessary legal investigations on the property you wish to purchase. This time can be shortened if both parties wish. After this period, the purchase is completed, the contract is signed at the notary and the keys are received.
From the beginning, until the completion of the purchase, I and your lawyer will assist you in all the different steps of the transaction.
Now on to the additional costs of purchasing your home. In addition to the asking price, you must take into account a number of costs that CANNOT be paid from a mortgage:
Part 1:
1.1) 8% transfer tax on the purchase price for homes up to € 400,000.
1.2) 9% transfer tax on the purchase price for homes from € 400,001 to € 700,000.
1.3) 10% transfer tax on the purchase price for homes from € 700,001+.
1.4) 10% IVA (VAT) on new-build homes.
These figures apply to resale properties – this rate rises to 21% if you buy plots or parking spaces of which you are the first owner (if it concerns a resale plot, you pay the reduced transfer tax rate of 7%).
**PLEASE NOTE THAT THE CURRENT TRANSFER TAX (ON SALES PROPERTIES AND PLOTS) IS SET AT 7%, REGARDLESS OF THE PURCHASE PRICE.
Part 2) 1% legal costs (plus IVA, which is a VAT of 21%).
Part 3) About 2/2.5% in stamp duty, notary and land registry fees (notary fees about 0.5%; property registration 0.4%; stamp duty 1.5%, and ultimately somewhere from €200 to get your Spanish NIE (identification) number and power of attorney to be obtained (approximately € 100).
**PLEASE NOTE: STAMP DUTY IS CURRENTLY REDUCED TO 1.2% ON NEW CONSTRUCTION BUILDINGS.
Your purchase costs for an existing home will therefore be approximately 10.5% and for a brand new home approximately 13.5/14%.
If you need or prefer to acquire finance in Spain there is no longer any additional charge to do so, although you will find that many brokers will still inform you that there is a charge involved (previously there was a further 2% to 3 %). % pay). These costs consisted of the mortgage arrangement costs and additional notary and cadastral costs for registering the mortgage, which would make your total purchase costs approximately 14% to 15% of the purchase price for an existing home.
Attracting financing is generally easy in Spain, depending on your personal circumstances. However, I recommend that you seek professional advice from one of the affiliated mortgage advisors.
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