Buying a property in spain
Everything you need to know about buying a property in Spain
1. SPANISH MARKET.
Spain is a country located in the South West of Europe, from which we can give many reasons to be chosen, as a first or second residence. The weather is perfect all year round, where you will find 320 days of sunshine!
Apart from this incredible peculiarity, the Spanish territory consists of a great diversity of landscapes, with beaches catalogued with the blue flag year after year, and wooded and mountain areas, absolutely beautiful and incomparable.
Visit the region which you visit, you will fall in love, you will experience the history of Spain and you will be immersed in it. Spain has been built by different groups of people and cultures, throughout the history, as a result; a diverse and different culture.
Spain is one of the countries with the major longevity in the world and that is due to multiple essential factors, but specifically; gastronomy and the health system. Each community or region offers a typical menu, where a most popular dish stands out; paella, stew, gazpacho, and a host of inimitable dishes. In the field of health, we find a public health system, rated as one of the best in the world, with professionals in all specialties.
To finish, simply add that Spain offers the best quality of life in the world.
2. STEPS TO FOLLOW IN THE PURCHASE OF A PROPERTY IS SPAIN.
Spanish law does not require the intervention of a lawyer for the sale of a property to be effective, but it is highly recommended, since you will be, advised by an expert in the matter and you will have the peace of mind, ‘to be calm’. Our saying, “Buy Legal, Buy Safe.”
Our services in the management of the purchase of real estate are:
- Legal study of the Property.
- Request for a SIMPLE NOTE in the property registry.
- Request for a CATASTRAL CERTIFICATION.
- Request for the CERTIFICATE OF URBAN NON-INFRINGEMENT at the relevant Town Hall.
- Calculate the tax value of the property.
- Check the situation, legal or fiscal, in which the property is located, at:
- SUMA – TOWN HALL – REGISTRY – SUPPLIERS OF SUPPLIES.
- Prepare the reservation contract.
- Prepare the private sale contract.
- Calculate the capital gain. (Tax paid by the seller, but retained by the buyer, normally to guarantee their payment).
- Control of the cancellation of the mortgage, (if any).
- Prepare all the necessary documentation for the appointment at the notary, for the public disclosure of the private agreement, previously signed by the intervening parties.
- Assistance at the notary.
- Control of the registration of the deed in the property registry.
- Collection of the deed, for delivery to the client.
- Change the supplies of the property, to the name of the new owner.
- Change the ownership of the property, in the Town Hall or in SUMA (Gestión Tributaria), in the name of the new owner.
- Domicile the services in the customer’s bank account.
- Be the fiscal representatives of the new owners in Spain. (Spanish law obliges, to appoint a tax representative in Spain, to the new homeowners in our country, when their property is not their primary residence).
3. TAXES.
In the next section we will make a brief summary of the taxes involved in buying and selling a home.
3.1 Newly built housing.
– VALUE ADDED TAX, the tax rate is 10%.
– TAX ON DOCUMENTED LEGAL ACTS, the tax rate varies depending on the region of Spain in which it is purchased, ranges between 0.5% and 1.5%.
3.2 Used housing.
– TRANSFER TAX, the tax rate varies depending on the region of Spain in which it is purchased, ranges between 6% and 10%.
3.3 Common taxes on new and used properties.
REAL ESTATE TAX.
URBAN SOLID WASTE RATE.
INCOME TAX OF NON-RESIDENTS.
4. EXPENSES.
In this section we will make a brief reference to the approximate expenses involved in the management and processing of a purchase, which usually range from 2% to 3% of the purchase value of the property.
Among the professionals to take into account, and whose fees would be part of the quoted percentages, we find; Lawyer, Notary and Property Registry.
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