BROWSE PROPERTIES

INFORMATION

Purchasing process and associated costs

Having decided that you wish to buy a property in Spain, what are the next steps?

CHOOSE AN AGENT

The right agent will help you build your knowledge of the area, advise on the various developments and compare prices of properties. Qvalitas Services can provide you with the experience and expertise to answer all your questions and assist in the whole process providing you with peace of mind.

Once you have found a suitable property the Qvalitas professional will negotiate the price and details with the owner on your behalf. When an agreement is reached, you may be required to put down a reservation deposit to take the property off the market. This is generally around 1% of the purchase price and will be held either by the agent or their lawyer. You will then have a period of approximately one week or ten days to sign an option to buy contract. Qvalitas recommends that but before doing so, you should seek proper legal advice.

USE A LAWYER

Using a lawyer from your home country will significantly increase your legal costs and most certainly will delay the sales process. It is not difficult to find a knowledgeable Spanish lawyer who can deal with you in English. Qvalitas Services works with various lawyers and we can recommend legal firms with both extensive experience in real estate transactions and a good reputation. A lawyer will assist you with the legal aspects of your property purchase and is your insurance against any future problems. They normally charge a fee of one percent (+ 16% VAT) of the purchase price. Please note that the property purchase process will vary depending on whether you are resident in Spain or are buying a holiday home and your lawyer will be able to assist you with this.

FIND A MORTGAGE

If you are looking to finance your property purchase, there is a wide variety of banks and savings banks that can assist you with competitive rates. Each entity has different criteria and each individual is a unique situation however it is worth shopping around to find the right mortgage. Qvalitas has a good working relationship with a number of banks and can provide assistance should it be required.

OPTION TO BUY AGREEMENT

Once an agreement is reached for the purchase of your property, the terms and conditions agreed are laid out in a written document called an “Option to Buy Agreement”. This is also accompanied by a deposit of 10% of the agreed purchase price. It is important to note that this deposit is normally not refundable should the purchaser not complete the property purchase. This agreement states the purchase price and the period of time established to complete the transaction at the public Notary.

TITLE DEED – PUBLIC NOTARY

The public Notary is the final step where the title deeds are signed. Prior this, your lawyer will have completed the necessary searches of the property documentation at the Land Registry and arranged with the owner (or their lawyer) the procedure for the cancellation of any outstanding debts. A sale is formally completed when the public title deeds are signed in front a public Notary, and the balance of the price is paid to the owner. At this moment you will receive the keys to the property and take possession.

PROPERTY REGISTRATION

The new ownership will be then be registered with the Land Registry Office. Your lawyer will also pay on your behalf all the relevant transfer taxes associated with the purchase and will handle the formalities of registration of your title deeds. The final registration of the deed may take up to two months. Your lawyer will also arrange for the transfer of accounts with the local suppliers of utility services such as water and electricity and organise their payment through a local bank. We recommend setting up a bank account locally in order to pay utilities, property taxes and community fees.

ASSOCIATED COSTS

The purchase will involve the following expenses.

• Transfer tax 7%: Applied to resale properties and is paid by the purchaser.
• 7% VAT: Applicable to new properties sold by developers.
• 16% VAT: Applicable on plots, commercial premises and private garage spaces.

In both cases you will also have to pay 1% for stamp duty.

• Notary's fees: The Notary fees are based on the value of the property. Minimum charge is circa €400.
• Registration fees: As a rule of thumb the costs of registering your newly acquired property in the Municipal Property Registry is approximately 40% of the Notary fees.
• Municipal Plus Valia Tax: This is a tax levied on the increase of the value of urban Land by the Town Hall. It is paid by the vendor. Estate agent's fees: This is customarily settled by the vendor and not the purchaser.
• Lawyer's fees: It is in most cases 1% of the purchase price although this can vary.

MAINTENANCE COSTS OF THE PROPERTY

• Annual Local (Town Hall) Real Estate Tax ( I.B.I ) – equivalent to property rates. Based on the value of the property.
• Community fees – The managment fees of your urbanisation.
• Rubbish collection fees – Not aplicable in all cases.
• Property specific expenses such as electricity, water, telephone, insurance etc

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CONTACT INFO

Pza. de las Palmeras
Local 6, Edificio D
Puerto Marina de Sotogrande
11310 San Roque, Cádiz, España
CIF: B-92.610.880
Tel.: +34 956 790 340
Fax: +34 951 232 037

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