ARE YOUR LEGAL REPRESENTATION FOR PROPERTY PURCHASE in SPAIN
We do all
the checkings on the property, and
manage relations with the notary and
broker/seller to ensure the real estate purchase
The service includes everything in our
standard service, plus our presence at the
closing, and help facilitating all payments to
the seller and to Hacienda.
8% property price
recommended to check before doing any step.
is your proof that the property is registered in Spain.
If it is not registered, you may having difficulties
when it comes to selling the property. Price: 250€
If the property is not registered, most likely because it was illegally
built. Many unregistered properties are being sold to foreigners, since
foreigners are less likely to check the registration. If you find a bargain,
chances are it's not registered. Solution: Get a registry listing (nota
The steps to buying a house in Spain
Once you have decided on the property that you want to buy, the process is
Nota simple informativa
With this document from the Property Registry (Registro de la Propiedad),
you'll find out if the property is free of debt, if it really belongs to the
seller, and if the description of the property matches what the buyer has been
told (to avoid surprises about missing square meters).
(Contrato de Arras)
Between the seller and the buyer there has to be a contract in place until the
public deed of purchase is ready. It's usually a simple document in which the
seller expresses their intent to transfer the property to the buyer, and the
buyer expresses their intent to buy at the price and conditions agreed upon. At
this time, the buyer also gives to the seller a percentage of the agreed-upon
price. The typical agreement in Spain (called contrato de arras) is if the buyer
backs out of the contract, they lose the deposit; if the seller backs out, they
have to pay double. Of course, the buyer and seller may choose another type of
agreement if they prefer.
The documents typically required by a bank are: Your
NIE. Your work contract. Your last 3 paycheck stubs Your latest income tax return Your
pre-agreement with the seller Proof that the property
tax (IBI) on the house is paid up. Other mortgages or loans that you
may have All property titles, both in Spain and overseas Certificate from work
authorities (vida laboral), showing your past work history Records of
your assets (bank/mutual fund statements, etc.) Prenuptial agreements, if any
Nonresidents: A certificate of nonresidency (form available from the bank) If
tax on economic activities (IAE) If self-employed: VAT
tax you paid for the last trimester and last year
If you get a mortgage, you will become acquainted with an appraiser (tasador).
The bank requires an appraiser to ensure that their loan to you is safe. You
will need to pay for the appraiser's work, usually between 300-500 euros. Note
that the tasador by law is a licensed architect, so even if you don't
need a mortgage, but have doubts about the structural integrity of the house,
you might want to hire an appraiser.
The property transfer must be certified by a notary. The deed of purchase will
be given to the buyer after the notary reads it and the parties present agree to
the contents of the deed. The following must then be presented: proof of
identity if both parties are in Spain (or power of attorney to be represented by
the attorney/solicitor called ) of both parties, the seller's title of property
(a form that reports the investment to the Central Register), and the buyer's
payment. The buyer and seller sign the contract; beneath their signature, the
notary signs using his firma protocolizada and the deed is ready for
For the buyer: transfer tax and stamp tax (Impuesto de transmisiones
patrimoniales y actos jurídicos documentados).
If the seller is an individual, the buyer pays a tax of 6% (7% in some regions)
of the price specified in the deed. If the seller is a real estate developer and
the building or land to be built on represents a first-time transfer, then the
buyer pays VAT
tax instead, meaning 7% for housing, 16% otherwise. If for housing, you have to
add a stamp tax, in this case reduced to 0.5%, depending on the region (for
Madrid it's 1.5%). Some special conditions apply for the Canary Islands.
For the seller: a local tax called the plusvalia.
With a copy of the deed in hand, the seller must go to the City Hall (or
wherever local taxes are paid). After filling out the form, the seller will
receive in the mail a notice of how much they have to pay. This amount is
calculated based on the number of years the property was held, and on the
property's valor catastral. Be aware that each town has a different
procedure regarding payment of this plusvalia. It's best to ask at the
notary's office about this payment.
If you want to be sure that your rights to the property are fully protected, you
must register your title at the local office. (Some small towns don't have an
office, some big cities have many -- check the original deed of the seller to
find out which office corresponds to you). You will be charged a standard fee
(about .4% of the first 6010 euros, going down to .02% for over 6,010,121