Spain Assured.com: Spain Assured Property, Buying Property in Almeria, Spain

Buying in Spain.

Purchasing a property in Spain is very different to purchasing a property in the UK or other countries. In this simple guide, we will outline the key processes and usual working practices involved when purchasing a property in Spain.

Purchase Fees & Taxes.

Below is a brief indication of the type of expenses you will be required to pay on your Almeria Spanish property purchase which works out at around 10% of the purchase price.

Notary Fees - approximately 450€ (Prices vary depending on Notary)

Land Registry Fees - approximately 250€.

8% Tax of the purchase price for a Resale property (Property Transfer Tax). For a property priced at 400.000€ or more the property transfer tax is 9%.

1% Tax of the purchase price for a New property when bought from a builder/developer (First Registration Stamp Duty). This document fee is in addition to the 8% IVA (VAT) which is payable instead of the Property Transfer Tax. Total amount payable is 9%.

Solicitors Fees - approximately 1,500€.

Mortgages.

Mortgage and Fees. The mortgage process in Spain is again very different to the UK process. There are two main ways to obtain a mortgage in Spain. The first way is a completely new mortgage, negotiated with the bank from scratch. The second way is to take over the mortgage already obtained by the previous owner (developer or private seller) of the property. This second method can save money as some of the taxes would have already been paid by the previous owner.

Banks are more flexible now on a complete new mortgage and tend to make a decision on fee charges on a one to one basis. They will offer a better deal for example, If a client has his or her mortgage approved and offers the bank additional business i.e. opening a savings account, having house insurance and life insurance with them etc and in some cases waiver the fee altogether

Mortgage Fees.

Opening Commission – 1% of mortgage amount

Notary and land registry fees – Approximately. €1,000

Mortgage Tax – 1 - 1.5% of mortgage amount

Bank Admin fees – Approximately. €500

Home Insurance €250 per year

Life Insurance. If you take over an existing mortgage then you will save on the mortgage tax and usually the opening commission as well. Many banks are now insisting that life insurance be taken out to obtain the mortgage. This must also be taken into account.

IVA (VAT) HAS BEEN REDUCED FROM 8% T0 4% ON NEW HOME PURCHASES

Paperwork.

Required Documents. Paperwork needed on file for Resale and New Build property.

Nota Simple: Land Register Certificate.

Escritura: Title Deeds.

IBI: Real Estate Tax - Annual Rates.

Last Paid Utilities: Water, Electric, Telephone etc.

NIE Number(s): Vendors Residence Number.

In some cases the following documents will also apply:

A Copy of the License of 1^st Occupation.

An Expediente: Certified Document from the local town hall stating all legal requirements & financial liabilities for a property have been met.

Paperwork Due Diligence. Only with all the above documents in their possession can an Agent/Lawyer do the searches necessary to ascertain the legitimacy of a property. You should ask any agent representing a vendor if they have these documents in place and if the searches have been made on the property before agreeing to view the property for sale. It is always advisable to get copies of paperwork and have your own Lawyer/Representative go through the paperwork before signing anything or putting any money down and prior to making any kind of offer on a property for sale.

All the properties listed with us are 100% legal and have been checked prior to being listed by our Lawyers. For further peace of mind if you purchase a Spanish property through us your purchase will be guaranteed for twenty years with Caser® Title Insurance. The safety of your Spanish property title will be insured at no cost to you.

The premium for this insurance is paid by Spain Assured Property and is issued directly to you the purchaser. Caser® are major insurers in Spain and insure the Spanish Savings Banks. Their insurance will give you total peace of mind and covers your purchase for a period of twenty years. For more information click on the Safe Purchase Guarantee logo on the top right hand side of this page to find out more about safe guarding you Spanish property purchase.

All properties listed for sale are 100% legal and have been checked and the paperwork validated by our Lawyers prior to being added to our portfolio and loaded onto our website.

We adhere and by law (Consumers Protection Act - Decree 218 - Andalucia) are required to have copies of the ALL the above documents in our possession prior to any property for sale in Almeria being listed with us.

Committing to a Property Purchase.

Buying any property can seem daunting at the best of times, but even more so when that commitment is an overseas one with all its added differences of an unfamiliar system, language and culture. We at Spain Assured Property can help alleviate any anxiety you may have by guiding you through the whole property buying process, from the initial property search to the handing over of the key to your dream home, holiday home or investment property in Almeria.

Procedure.

Reservation Contract. The first step is to appoint a lawyer or solicitor to act on your behalf. The lawyer will carry out searches on the property and advise you on proof of ownership and any charges (mortgages, embargoes, etc.) which would need to be lifted before, or at the point of sale. Once these initial checks have been carried out, a holding deposit (usually €3000) can be paid to the vendor to secure the property, and a reservation agreement signed and the property taken off the market. It is advisable at this stage to apply for an NIE number (foreigner identification number), open a bank account and leave Power of Attorney (if this is required) with your lawyer before leaving Spain.

Private Purchase Contract. Within 30 days of signing the reservation agreement, you will need to sign a formal and much more detailed contract. This should include completion dates, inventory, and paperwork anomalies to be resolved prior to completion etc. and at this stage you would usually make payment of 10% (minus the reservation fee of 3,000€) of the purchase price. For example; a property purchase price of 200,000€, 10% is 20,000€, less 3,000€ reservation fee equals 17,000€ to pay. Upon receipt of this money the vendor is legally bound to sell it to you at the agreed price and in the agreed timescale. If the vendors default for any reason, then they must pay you back twice the money that you have paid them (in the example above that would be 40,000€).

Completion. The completion and signing of title deeds will take place on before a public notary on a date mutually agreed between vendor and buyer, usually within three months from the initial reservation. The balance of the purchase price is due upon signing the deeds as are the lawyers’ fees. The title deeds must be taken to the tax office and property registry within 30 working days of the signing. Taxes and notary fees must be paid within the same 30 working days. Most lawyers will retain all of the tax amounts on the day of signing to pay the taxes on your behalf.

NIE Number.

An NIE certificate (Certificado de Numero de Identificación de Extranjero) is necessary for the purchase of a Property in Spain. However, this cannot be applied for prior to finding a suitable property. This certificate must be applied for in person by the interested party at the foreign office closest to their proposed property purchase. It may be obtained through the embassies/consulates in the UK, but in reality this process is often not ideal and takes a lot longer than applying in Spain.

Spanish Property System. Translating Spanish to English legal words and their meanings which can be helpful if you want to buy or sell a property in Almeria or in Spain generally.