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Guide
to Buying Property in Inland Spain |
Before you set off for Spain to view properties,
make sure you have enough money available for a reservation
sum on the property you choose. Without this means
to place a reservation sum, you run the risk of losing
the Spanish property of your choice. 6,000 Euros
is a typical sum to deposit. Remember, however - the
deposit is refundable if the sellers change their mind,
but not if you cancel the transaction.
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Selecting Your Property in Spain |
When you are searching for the right property in
Spain, it is advisable to make a special trip specifically
to visit properties that meet your requirements. Avoid
mixing your holiday with your property purchase because
you need to focus on the many considerations that need
to be taken into account.
- How far is the property from the airport?
- What is the rental potential of the property you
are looking at?
- Where are the nearest amenities?
- Which amenities do you require?
There are many factors to consider when you are purchasing
a property in Spain, whether for rental, investment
or to live in. Be sure to allow the time you need
to make the decision that is best for you. And, be sure
to call us at Terence Wright Associates to help plan
your property viewing trip. We are here to help you.
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Appointing a lawyer in Spain |
You have a good selection of excellent English- speaking
solicitors in
Spain, including international law office Manzaneres
Lawyers. Your solicitor provides the legal guarantees
for the purchase according to Spanish law and
ensures that the property is purchased free of encumbrances,
charges or debt. Your solicitor will also ensure that
all contributions to community charges, local taxes,
water and electricity are paid up to date.
Solicitors will tell you in advance the fee (usually
1% of the purchase price of the property). It is advisable
to use a solicitor in Spain, rather than using an English
solicitor. Even if a law office in the UK has Spanish
speaking lawyers, they may not be knowledgeable
about the oft-changing Spanish legal requirements. This
can lead to delays in finalising your dream to own a
property in Spain. At Terence Wright Associates,
we highly recommend Manzanares
Lawyers, who have worked closely with us on many
successful property transactions.
N.I.E. (Spanish ID Number for Foreigners)
The N.I.E. is the ID number that foreigners use in
Spain, and is issued by police authorities. Without
this ID number it is impossible to buy properties
in Spain or obtain service contracts for utilities.
Applications to obtain a N.I.E. number tend to take
about 2 months to process, so it is very important to
present your application for a number at the beginning
of the buying process.
Spanish Bank Account
It is essential to have an account in a Spanish bank
in order to contract utility services for your property
in Spain and to pay them by direct debit. We can
help you to open a bank account in Spain.
Spanish Will
According to Spanish law, when a property in Spain
is jointly owned by two people and one of them dies,
their part is not automatically transferred to the other
title holder. It will be transferred in accordance with
the will of the deceased, or, if there is no will, in
accordance with laws on intestate succession.
Although it is not obligatory to have a will in Spain,
we strongly urge you to have one. A Spanish will usually
makes procedures easier and quicker in Spain. If you
use your British will, you will not be able to take
any action until your British will has been validated.
This may take some time, especially if your British
will or your estate presents any kind of complications.
Without a Spanish will, finalising an inheritance procedure
can take up to two years. Spanish authorities apply
tax penalisations if these matters are not dealt with
promptly.
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Steps to Owning a Property in
Spain |
Once you have found a property that you wish to buy,
the first step towards ownership of a property in
Spain is to sign a preliminary sales contract with
the seller - to take the property off the market and
to fix the price. This preliminary contract contains
clauses covering a refund should your solicitor find
anything not in order. At the same time a holding deposit
is paid to the vendor, usually 6000 Euros. Your deposit
payment can be made by credit card or bank transfer
and will be held in your name. Do not bring cash with
you, but do ensure that this sum is readily available.
Step two. 20% deposit. The vendors usually expect
this within 21 days from the date of reservation and
AFTER your solicitor has completed his searches. By
mutual consent, this timeframe can be extended if your
lawyers need more time.
Step three. Completion takes place at a mutually
agreed time, in front of a Notary with everyone present.
The role of the Notary is to record and finalise the
transaction.
The property then belongs to you, the purchaser, as
from the date of completion. You will now be the owner
of a property in Spain.
Your lawyer will then register the Title Deed at the
Land Registry and pay the taxes. This process can take
a few months and is a part of the responsibilities of
your lawyer.
Purchase costs
- 7% Transfer Tax
- 1% Stamp Duty
- 2% Legal, Notary and Land Registry formalities These
depend on the number of pages of the document, parties
appearing, price of property, etc.
- Plus Valia tax. This is a local Tax payable to the
Council calculated on the rateable value of the property.
By Law, the Plus Valia Tax is payable by the vendor,
although the parties may agree otherwise.
Please contact us at Terence
Wright Associates with any questions you have about
the steps to purchase a property in Spain. We
are happy to help you.
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