Buying a Property
Buying any property is without a doubt a big financial decision, but it can be made simple if you surround yourself with the right people. iHOME Property has been selling Spanish real estate since 2003 and has a large property portfolio of San Pedro Alcántara and surrounding areas. We can guide you through the purchase process and if you do not already have a lawyer, we highly recommended that you employ one. iHOME Property have worked with many competent lawyers in the area and we are happy to recommend one depending on your language preference.
Here in Spain there is no need to register with each and every agent, and there are over three hundred on the Costa del Sol! iHOME Property are members of a multi-listing service which allows us to offer other agencies’ properties. At iHOME Property we not only search our own portfolio of properties but have access to thousands of properties up and down the coast. By registering your details with iHOME Property you are, in effect, registering with over 300 agents with only one point of contact saving you from endless calls, repeating the same information over and over.
The following is a guide to the purchase process, however, this may differ depending on the particular operation.
When you find the property you wish to buy, and your offer has been accepted, it is normal procedure in Spain to place a reservation deposit. This can be anything from €3.000 – €10.000, depending on the purchase price. A reservation contract will be drawn up, which states the names and identification numbers of the buyer and seller, the agreed sale price and any conditions that have been agreed upon concerning the purchase. The reservation deposit is normally paid to the estate agent or your lawyer to show good faith.
NON-RESIDENTS: Your Lawyer will assist you with your applications for an NIE number (Numero de Identidad de Extranjeros, a tax identification number) and the opening of a Spanish bank account, both legal requirements for ownership of a property in Spain and also necessary for dealing with utility companies
Your lawyer will then begin carrying out the necessary checks on the property with the local land registry to ensure that all the property’s documents are in order, that there are no debts on the property and that the seller is the real owner of the property.
If your lawyer is satisfied that all the documents are in correct order, then often a private contract between you and the seller can be signed and you will then pay a 10% deposit (less the original reservation deposit). In this contract, the buyer and seller details and identities are stated, along with the agreed sale price and the date for the final transfer of the property from seller to buyer. Once this document has been signed, if the buyer decides to withdraw from the purchase they will forfeit their deposit and if the seller withdraws they will be obliged to repay double the deposit amount to the buyer, unless otherwise agreed.
The signing of the deed takes place in a public Notary, where you will pay the remainder of the agreed pruchase price. After the deed has been signed your lawyer will register the property in your name at the local land registry.
When buying a Property you will have to pay between 8% to 10%, depending on the property you purchase.
NEW PROPERTIES FROM THE DEVELOPER
When purchasing a new property directly from a developer, tax is charged on all new properties a rate of 10% on the purchase price.
When purchasing a re-sale property from another owner, tax has to be paid on the purchase as below:
Purchase price Tax due
- € 0 – 400.000 8%
- € 400.000 – 700.000 9%
- Above € 700.000 10%