Buying a property in Spain is probably one of the biggest investments you will make, so it is important to get it right!
Of course, The buying process is different depending upon your choice of re-sale properties, newly built properties or off-plan purchases. Charges and taxes will also differ depending on the type of property you have chosen to buy.
As in UK, if you require finance, the major Spanish banks are keen to lend to those wishing to purchase a property. In fact, with interest rates so low in Spain at the moment, the terms of a mortgage can seem a lot more attractive than they do in the UK. A bank in Spain will typically lend around 70-80% of the purchase price of a property to non-residents, but this can be increased for some sorts of purchases (please see our finance page for details of how to finance your purchase).
It is highly unlikely you would consider purchasing a property in the UK (resale or new-build) without the appropriate legal advice. The same is true in Spain. Some still buy Spanish property without consulting a lawyer. This is a huge risk and can leave those purchasers in serious financial difficulty as a result. ! Here at Si Villas! our panel of solicitors are on hand to make sure that all of the legalities of your purchase are in order, meaning that you have the peace of mind of knowing that there will be no nasty surprises once you have purchased the property (such as realising that you have inherited the previous owner’s debts!).
When you purchase a property through us, you can be sure that dedicated professionals are looking after you.
It’s also very important to consider the initial outlay when purchasing abroad. As well as the deposit, there are certain taxes and legal costs that every purchase will incur, which differ as to the type of purchase you make (new-build, re-sale etc). Below is an idea of what these costs are in relation to a re-sale property:
As well as the cost of the property, the buyer will be liable for transfer tax (IVA), which at present is 6% on a second-hand property and 7% on a new one, plus 1/2% stamp duty. The property registration office will charge you a fee to change the new deeds into your name. This is usually around 300€. There will also be notary charges for copies of the ‘escritura publica’. The charge is on a scale depending on the contract price. In total you should allow 10% of the purchase price for costs. It is often the case that the buyer also pays the seller’s fees. Check this at the point of enquiry, and negotiating is often possible. Banks may also charge an opening commission for mortgage loans.
These really are the basic points to consider when thinking about purchasing abroad. For more advice on this, don’t hesitate to give us a call. We will be happy to answer any questions you may have. And don’t worry! We are here to deal with all of these things for you, and will be with you every step of the way!