Purchasing Costs and Legal Matters
It’s important to note when you acquire a property in Spain that the Purchasing Costs are about 12-14% of the sales price when buying re-sale or new properties. The purchasing costs account for things such as Taxes, Notary Fees and Legal Fees for your local Lawyer and the Land Registration fees.
When purchasing Commercial Premises, Parcels of Land and Garages not annexed to your property, then Taxes and Stamp Duty may vary, but your lawyer will advise you about this in each case.
Any buyer of a property in Spain should always obtain and use legal advice from a local qualified Spanish lawyer. This lawyer should also speak your native language in order to avoid any misunderstandings. We have those lawyers available who are able to cover most of the major languages.
Your lawyer will obtain for you a N.I.E. (Foreigners’ Identification Number and Tax number), will carry out the Due Diligence of the property, sign the Title Deed (Escritura) on your behalf (if required) and register your property at the Land Register Office once the sale is completed.
When you have found the right property, you should secure it by signing a Reservation Agreement and pay a Reservation Fee to your lawyer’s client account, or if you prefer to our own client account. A Reservation Fee is normally between 6,000 and10,000 Euros. After this your lawyer will take care of the rest by having a Power of Attorney as your legal representative in Spain and which can be organized at a Notary office in a day whilst you are still here.
A property is normally purchased by an individual(s), but it can also be purchased by a company. Company ownership is recommended when planning to buy several properties and your intention is to rent them out and then sell the properties at a later date. Your lawyer can take charge of incorporating a Spanish company for you.
By working with a professional real estate agent and a reputable lawyer from the very beginning, you will be guaranteed not only the purchase of the best possible property for your money, but also you will experience a smooth and trouble-free purchasing process.