Additional purchase costs:
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 between €2,500.00 and €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 per utility. For new contracts, the cost may be up to €800.
We recommend that you hire a fiscal representative to handle your annual taxes. 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.
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.
The contract
Once you have identified your dream home or investment property 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/terms and conditions and, if accepted, we will arrange the sales contract which includes:
- Seller’s and Buyer’s personal details
- Property specifications
- Purchase price and terms of payment
- Non-binding translation in the language of your choice
- A deposit will be required upon the signing of the sales contract. This is usually 10% of the purchase price.
We recommend that the deposit is held in an escrow account by a lawyer.
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 the 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
Mortgage can be arranged through most banks in Spain and this is something we can assist with.