Legal and finance
Before you start
You should seek the advice of (or appoint) a solicitor before entering into any contract or dealing with any agency in connection with your property purchase.
Before you can buy or sell property in Spain you need to have an NIE (Numero de Identificacion para Extranjeros). This is an ID number and it is available to residents and non residents of Spain.
Finance
There are three buying options available, namely, 1. buy for cash (i.e. no mortgage or loan). 2. Arrange finance through a bank or building society in your home country. 3. Obtain a loan or mortgage in the country where the property is located.
If you need a mortgage you should establish your borrowing limit prior to any house hunting trip and before you enter into a contract with a seller.
Property buying costs
Over and above the price of the house that you wish to buy there will be additional costs incurred as a result of the sale. They include
- Tax paid to the Registro Catastral which is similar to stamp duty in the UK.
- The cost of a notary (Notario) who is responsible for the deeds, property registeration and collecting the property tax. There is a government schedule of fees.
- The cost of a solicitor which is vital for any Spanish property purchase and with a fee structure of roughly 1% or 2% of the registered sale value.
More on property tax in Spain
Tax is dependant upon whether your house is new build or a re-sale.
- New build and off-plan developments pay a 7% IVA tax plus an additional 0.5% stamp duty.
- Re-sale properties pay a transfer tax to the Impuesta de Transferenia Propiedad which is 7%.
Legal information
For information about solicitors, legal aspects of buying a property in Spain etc, go to this legal page.
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