Buying Property in Spain
A foreigner may acquire any property in Spain offered for sale except for those facilities, the purchase of which is subsidized by the state. They are intended for the poor segments of the population. What are the rules of buying property in Spain?
How to make a purchase.
Transactions are executed through the Spanish real estate agency. Specialists from the agency provide translation services. A lawyer will give general information about the property and go together with the buyer to inspect the house, apartments, or villas. The agency supervises the buyer at all stages of the transaction.
1. It is necessary to open a bank account in any Spanish bank, get a unique number for the payment of taxes along with all utility payments.
2. You shall register with the police, and get an individual number of the foreign citizen.
3. You should register with the tax inspectorate (optional) where they inform the customer about all monthly and annual payments.
4. After the examination and selection of the property, the buyer enters into a contract with the agency and pay a fee. Many agencies do not charge a commission because the transaction is due to the seller.
5. You conclude the contract "of intent" to buy Spanish property. At this stage of the transaction, the buyer shall transfer 10% of the deposit to the seller.
6. The notary issues the preliminary agreement. It checks the object of the sale. They observe if there is any mortgage, arrest of the property and check the proprietary rights. The buyer pays the fees to thenotary and 30 per cent of the pre-payment for the property.
7. The preparation of the final contract begins. The both parties and the notary sign the deal. Before the formation of the contract, the buyer pays all the taxes and pay the remaining sum into the current seller's account.
8. After the registration of the contract, your house, apartment, or villa registered in the state registry of real estate. The customer receives a bill of sale where the name of the owner is inscribed.
Approximate costs when buying property in Spain along with taxes and other payments
• Notary services - from 1 thousand euros.
• Registration in the state register - from 400 euros.
• Formation all types of contracts - from 7.5% of the property value.
• Value-added tax of for a primary residence - 7%
• Transfer of the home ownership - from 7% of the cost of housing.
• Personal income tax - 3% of the cost, which is fixed by the contract.
• Real estate tax (depending on the region) up to 2%.
Buyer shall enter into a contract with the housing management including waste disposal, electricity, pool cleaning, etc. A hundred square meters of housing services is about 30 euros per month but it all depends on the complex, its location, the presence of the garden, and the pool. There are many other considerations.