Buying in Spain? A UK buyers’ guide to the purchase process
We are currently taking a lot of enquiries with regards to Spain and if you are one of the many looking to cash in on the surprisingly buoyant Spanish property market, there are just a few simple things you need to know –
Legal –
Accurate legal advice is crucial. As you would if buying abroad in any other country, you should always retain the services of a lawyer who speaks both the local language and English to help you get the right result. They can also help you obtain a fiscal number (numero de identificacion de extranjeros) which must be in place before you begin the process of buying.
Buying Off-plan
Many developments are available to buy off-plan in Spain. If this sounds like your ideal route onto the Spanish property ladder then ordinarily you just need to sign a reservation contract and pay a small administration fee which will ensure your chosen property is taken off the market. This is usually for a limited period of 30 days, allowing the contract to be written and the necessary legal checks to be carried out. It’s at this stage that you pay the first of a series of arranged payments – normally at least 10% and non-refundable.
Resale
A small deposit is required to secure a resale property once your offer has been accepted. As soon as all legal checks are complete you should sign your contract with the knowledge that any breach of said contract by yourself will invalidate this and mean your deposit is non-refundable. Should the contract be breached by the seller, they are required to pay you twice the stated deposit. Once you have completed and paid the various fees and taxes, you can register the property as your own. Although rare, please be aware that if the seller approaches you and asks you to under-declare the value of the property (therefore paying him/her a proportion of the money in cash in return for a better price) you must always say no. This is highly illegal and could lead to you being prosecuted and/or liable to pay extra capital gains tax.
Costs
Ensure you budget for an extra 10-14% of the purchase price to cover legal fees, IVA (the equivalent of VAT), stamp duty and registration fees. If buying in a complex there are also the maintenance fees to consider – these can vary considerably so check carefully!
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