The Buying process
Investigation of the property
We protect your interests by making sure that the property is currently registered and that there are no debts attached to the property. We ascertain what property taxes (IBI) and outstanding bills are due. These include community fees, water, gas, electric, telephone and alarm bills. We also determine the value added tax (Plus Valia) due at the time of the closing.
We hire a professional and independent service firm, Interhelp Service, to obtain this information. They have many years of experience in doing this and they are very reliable.
Transfer of the title deed (escritura) at the notary
The notary in Spain does not perform the same duties as the notary or solicitor in your home country. Here the notary makes a deed (escritura) where he writes down the wishes of the parties involved, judges their identity and legal capacity and composes the document according to the parties’ instructions. He makes sure that it fits the legal requirements. He also cautions both parties about the obligations each must fulfil as a result of making the agreement.
The choice of the notary is made by the party paying the notary’s fees. This is usually the buyer. We accompany you to the notary and provide translation of the proceedings.
You are not obligated to submit your new title deed to the Property Registry, but we strongly recommend that this be done immediately after the closing. Otherwise, you cannot sell the property. Interhelp Service can arrange for the tax declarations of the purchase and submit the deed at the appropriate Property Registry, if you choose. Their costs are 350 euros plus VAT.
Taking possession of the property
Handing over the property and the keys normally takes place once the full purchase price is paid and the deed signed. This is usually at the notary’s office.
Transfer of services
Once the deed has been signed, you can then transfer services such as water, gas, electricity and alarm. We recommend that you put the services in your name and set up a direct debit to your Spanish bank account to prevent payment problems. Be Spoiled Properties helps you to do this using the services of Interhelp Service. Sometimes the utility companies will charge you a small fee for transferring the name and a greater fee if it is a first time connection.
This becomes your responsibility once you take possession of the property.
We are not affiliated with any insurance agencies or companies,
but we can provide recommendations for both property and medical insurance.
Katy will help you to find the best Insurance.
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In addition to the purchase price of the property, you can expect to pay:
- Notary fees are based on a formula incorporating the deed value and the number of pages in the deed. The Property Registry fees are also based on a formula using the deed value. We do not know in advance exactly what you will be charged. On a property of 500,000.00€, the two fees together with the handling fee of the inscription are usually 2,500.00€ to 3,000.00€.
- The Transfer Tax (I.T.P) is at present 10% of the deed value if you buy a resale property. If the property is new, stamp duties will be charged at 1.2% plus the VAT currently at 10%.
- There are some fees charged by the utility companies to you for transferring services from the previous owner’s name to your name. They normally range from 100 to 200 Euro per utility. For new contracts, the cost may be up to 800 Euro.
- We recommend that you hire a fiscal representative to handle your annual taxes. Interhelp Service can be your fiscal representative. Their fees for calculating the rentable value tax (if you do not rent out your property) are approximately 85 Euro plus VAT annually per property owner. In case you would have to pay for wealth tax or on the income of the rent, more tax declarations will have to be made and the price changes. If you register with them, they will do your taxes each year automatically.
- Besides, they can also be your representative for the municipality. Most of the municipalities have their own office that collects outstanding debts, the SUMA. This office will reclaim all your outstanding costs by registered mail or publishing your name in the state's bulletin. If you sign a representation with Interhelp Service for a one-time 100 euros plus VAT, they will keep you informed about outstanding debts and will only charge you their extra handling fee if they indeed have to contact you or pay your outstanding amounts.
- You may find it necessary to have a postal address here, which does not necessarily come with your property. You can arrange this also through Interhelp Service at a cost of approximately 120 Euro plus VAT annually.
- The cost of Property Insurance varies depending on the value insured and the coverage provided. You can compare quotes and coverage from different companies.
- If you have a mortgage, there are the bank fees, notary fees and registration fees to be paid because this involves another official document (escritura). You can compare the terms and rates offered by different banks. The notary and registration fees are set forth in a table that the notary has. The bank can help you with this.
When you have found the home you wish to purchase, discuss your decision with us. Your offer should include the price you want to pay and the terms and conditions of purchase. We will advise the seller of your offer and, if accepted, we will make a sales contract which includes:
- Seller’s and Buyer’s personal details
- Property specifications
- Purchase price and terms of payment
- Non-binding translation in language of your choice
- A deposit will be required upon the signing of the sales contract. This is usually 10% of the purchase price.
You must provide
- A passport or identification card
- N.I.E. (Spanish identification number) obtained in Spain
- Home address
- Civil state (single, divorced or married in community or separation of goods). In the case of separation of goods a legalized copy of your matrimonial contract with apostille and official translation is required. In case the translation is done in your home country, an apostille of the translator is also required.
- First names of parents
- Spanish bank account
- Two color photos
If you require a mortgage, we can help you to obtain one with a Spanish bank.