Below is our simple guide for a more in-depth guide please click on the overseas link above
Buying a property in Spain might seem complicated in fact its quite simple and similar to the UK in more ways than one , We are going to keep it simple with basic facts that can be expanded on , remember we can help you on every step you take you just need to ask.
A good place to start would be reading our article on moving to spain then do your research and work out your finances.
So whats the costs involved ? aprox 11% plus purchase price.
Here in this example property purchase costing €100,000 = in total cost of €111,000 and here is a break down
Purchase price = €100,000
Tax at 8%= €8000 (note this could be less if the declared value on deeds is less than purchase price)
Legal fees = €300-€800
Notary Fees = €400-€600
Registry Fees = €1000
So your budget for any purchase should be purchase price plus at least 11% in taxes and fees
You could also apply for a mortgage which will incur more fees but that depends on the amount you want to lend
Now lets assume you have done everything in our article moving to Spain and you have found your dream home so what is the next step ?
same as in UK you make an offer to purchase the property and if the seller excepts your offer then we move on to step two
(this is where it starts to get a little different at this stage its advisable to get legal representation a lawyer .)
You will then be required to sign a reservation contract and place a holding deposit on the property (usually around €3000)
This money is to be given to the seller and a contact will be created between you (the buyer)and the seller and will include both parties terms and conditions and the purchase payments will be set out with dates and amounts this will include the next payment due which will take you up to a 10 % deposit on the property ( remember a contract is an agreement and some of the details within any contact are negotiable ) the property is then taken off the market and placed under offer and the owner is legally bond not to sell to any other party and if they pull out they will have to repay you double the reserve deposit back .
Then the date arrives that was set out in the reservation contract and next payment is due usually 10% of the purchase price of the property minus the reserve deposit already paid and this is also when the purchase contact is signed (compra-venta) this will have set in the contract dates for completion usually 90 days buts it depends on the requirements and terms and conditions of all parties involved (buyers & sellers )
The final step is signing at the notary and making payment to the seller this can be done in any number of ways and will be by prior agreement by all parties involved
Then you will be given the keys to your new spanish home
you could also arrange for your lawyer to sign for you this can be arranged with power of attorney
Selling your Spanish property
- you will need to prepare all the required paper work see our list here required documents
- prepare your property . a clean tidy well maintained property will sell easier
NONE resident in Spain will have 5% TAX to pay and part or all can be claimed back but depends on circumstances
Plus Valia is another tax to be paid by the seller usually amounts to just a few hundred Euros. This is a tax which is levied by the local authorities and will be based on increases in the estimated value of the property. This tax therefore depends upon property market in that area at that time.
Capital gains tax is payable on the profit made on the house. The net profit is calculated using the sale price and deducting other fees such as the cost of selling, the original purchase price and an allowance which is calculated each year by the tax office. If you are a non-resident you will pay 35% on the profit made. Residents pay CGT at a rate of 15%. Residents may also find that they are exempt if the house is their main or only home and if you purchase another property for at least the same value within 2 years
two other costs are your spanish lawyer and your estate agent fees