MAKE AN OFFER
The buyer makes his offer via the real estate agent who contacts the seller immediately. Normally the buyer can expect an answer the same day, and if the seller declines the offer, the agent must enter into negotiations.
PAYMENT OF RESERVATION FEE
The reservation amount will normally be between 2,000 euros and 10% of the purchase price, depending on the length of the reservation period. This is a bargaining issue, but the owner ultimately decides how much he will accept to take the property off the market. The amount must be paid to your lawyer's client´s account or to your Spanish bank account. The seller gets hold of the reservation fee only after having accepted the terms of the contract and that he must pay back the double of the reservation amount if he breaks the agreement.
We and the solicitor check the property for all kinds of liens/encumbrances before the seller receives the reservation amount. Signing of the reservation contract is often done in front of the notary in case of large sums of money / long waiting periods. You can also sign directly at the notary without paying any reservation fees. However, the owner might sell it to a third party without any notice.
We will help you in every step of the process. However, make sure that you can spare us a couple of hours while you´re on the island to do the paperwork.
If you decide to buy a property after you return to your home country, this can easily be done by giving a power of attorney.
You will need a NIE number (tax number) and you will have to open a Spanish bank account. The NIE number is necessary to pay the transfer tax and the bank account is a must to pay the community fees, water and electric bills, property tax etc. We will help you with the paperwork. We/the lawyer will also make sure that the fixed expenses regarding the property will be paid automatically from your Spanish bank account.
TRANSFER OF THE REMAINING AMOUNT
The rest amount must either be on your own Spanish bank account or on your lawyer's client´s account latest on the day before the signing of the title deed as the bank checks for the seller must be prepared latest on the morning of the signing.
The title deed will be signed by the buyer and the seller at the notary (or their representatives). The seller will receive his bank check and the buyer will receive the keys. Legally the property now belongs to the buyer.
REGISTRATION OF THE DEED
Immediately after the signing of the public deed in the notary, the deed gets sent to the property register for registration. This can take about a month depending on their workload.
COSTS IN ADDITION TO THE PURCHASE
You have to expect about 8-10% of the purchase price in additional costs (for "new" properties about 10-12%).
YEARLY EXPENSES OF THE PROPERTY
- 6,5% transfer tax to state.
- 500 - 1.000 euros notary fees (for low-priced properties you pay even less. You will get a receipt for the cost and the rest amount will be transferred to your Spanish bank account).
- 500 - 1.000 euros registry fees (same as above).
- Legal representative fees.
- Community expenses each month.
- Water and electricity if it is not included in the community costs.
- Property tax and garbage fees are invoiced twice a year. Garbage fee is apx 60 euros per year and the property tax depends on the cataster value.
- Non-resident tax - Mainly calculated in the following manner: Tax value multiplied by 2%. Then you multiply the result with 19%. Example: If the tax value is 50 000 euros, the yearly non-resident tax will be 190 euros. To be paid in connection with the tax declaration that must be handed in every year, starting from the year after the purchase.
- Property insurance
- Extraordinary community costs - only if there is not enough money in the community to make significant/necessary repairs etc. However, this might never happen if the community has a strong economy. The costs (if any) will be divided between all the properties in the complex.