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Buying a Property
BUYING A PROPERTY
Reservation agreement
This temporarily takes the property off the market. A minimum period of 4 weeks is required, allowing your lawyer enough time to carry out all the necessary legal checks on the property before you sign or make any further payments.
The reservation fee is usually between €3,000 and €6,000.
It is very important to review this agreement with your Spanish lawyer. If the purchase cannot go ahead due to a legal issue, you should be contractually entitled to a refund of your deposit. However, if you decide not to proceed simply because you have changed your mind, you will lose it.
Whatever legal assistance you may need, you will find us approachable, responsive and efficient.
Our goal is to build a personal relationship with our clients so that we can provide tailored legal and tax advice that meets their specific needs and circumstances. We firmly believe this is the only way to achieve the mutual understanding required to deliver a service of the highest quality.
The closer our relationship with our clients, the more effective our work will be.
COMPRA UNA VIVIENDA
Private purchase agreement
This is one of the most important documents in the transaction, as it creates binding obligations for both parties going forward.
This is a full contract for the purchase of the property, setting out all the terms and conditions agreed by the parties. The buyer should review every point with their lawyer to ensure that all relevant details are included in the contract; otherwise, it may not be possible to make a claim for anything that has been left out.
The contract should include the specifications of the construction materials to be used, as well as a plan showing the location and measurements of the property.
Although this is not the final deed, which must be signed before a notary, it does establish the responsibilities and legal aspects of the process. Anything you want to be carried out must be included in the purchase agreement; otherwise, your ability to make a claim may be limited.
BUYING A PROPERTY
Bank guarantees
All payments made to the seller must be secured. Spanish law requires this to be done through a bank guarantee or a duly registered insurance company, ensuring the refund of all amounts paid in advance, plus statutory interest, if the developer fails to start the construction works on the agreed date or if the property is not completed. This is regulated by Law 57/68 and Law 38/1999 of 5 November.
If completion is delayed, you may be able to claim compensation for damages, costs and rental expenses incurred as a result of the delay.
BUYING A PROPERTY
Before a public notary
Once the construction work has been completed, or in the case of a resale property, as soon as everyone is ready to proceed, an appointment at the notary’s office will be required for both parties to attend and sign the final purchase deed. This document will formally transfer ownership of the property to you.
This is one of the most important stages of the process. For off-plan purchases, it is essential to check that the property has been fully and legally completed, that the 10-year building insurance guarantee is in place, and that the Certificate of Habitability or First Occupation Licence has been granted. For resale properties, it is important to obtain the latest electricity and water bills, the local property tax receipt and any other documents confirming that everything is in order.
COMPRA UNA VIVIENDA
Before a public notary
After signing the deed, certain taxes must be paid within a maximum period of 30 days:
(For more information, please visit the Taxes and Costs section).
Once everything has been completed, the deeds will be submitted to the Land Registry for registration. This will provide full legal protection of your ownership against third parties.
BUYING A PROPERTY
Power of attorney
Si no puede asistir personalmente a la firma de alguna de las fases del proceso de compra, nos encargaremos de otorgarle un poder notarial.
Este puede firmarse en el Reino Unido o en España, lo que nos autoriza a actuar en su nombre durante el proceso de compra, evitando así inconvenientes y desplazamientos inesperados a España.
BUYING A PROPERTY
Costs and taxes you will pay
It is important to distinguish between off-plan properties and resale properties:
Off-plan properties:
+ 7% VAT. This is added to the total net purchase price and is normally paid upon completion of the construction work.
+ 1% stamp duty — This must be paid within 30 days of completion of the construction work.
Resale properties:
+ 7% transfer tax — This must be paid within 30 days of completion. Resale properties are not subject to VAT.
There are also general costs that apply to every property:
+ Notary fees: These are the notary’s fees. The cost depends on the purchase price and is usually between €400 and €800. It is normally paid 2 to 3 days after signing.
+ Land Registry fees: These are the registry fees. The cost depends on the purchase price and is usually between €300 and €600. It is normally paid 30 to 35 days after signing.
Important!
Once you own a property in Spain, every non-resident will be responsible for three taxes each year.
