Buying property in Spain
A Spanish Lawyer
It is most important that you employ the services of an independent Spanish lawyer who speaks your native tongue. There are several in our area who do. They have experience of dealing with clients from other European countries who wish to purchase property either for a holiday home or a permanent move. In addition as part of their services they will assist you in transferring all the utilities of the property into your name and at the same time set up direct debits so that bills will be paid on time.
In order to find a good lawyer we suggest that you speak to someone who has already purchased and who was happy with their services, alternatively we can recommend one.
Escritura Pública
An Escritura Pública is the Title Deed of the property. It is normally inscribed at the Registro de la Propiedad, the Land Registry Office and is your guarantee that the person selling the property is in fact the owner. If the seller is unable to produce an Escritura Pública it may be because they are not the owner. The Escritura Pública contains a detailed description of the property together with he owner’s details. It also confirms whether the property is inscribed at th Registro de la Propiedad. If there are any mortgages or embargos that exist against the property they will also be noted. Your lawyer will insist on seeing a copy of the Escitura Pública and other important documents that will prove who is selling your property.
We will assist you in obtaining all the relevant documentation from the seller and this will be passed to your lawyer within 24 hours.
Who pays what?
Normally the buyer pays all the legal costs of the purchase and the seller has to pay the Plus Valía which is a small land tax. If the paperwork for the property is not in order your solicitor will insist that the seller pays the cost for this to be done.
The buyer will be expected to pay the Notary fees, Land Registry fees, 7% prchase tax and the Solicitor fees. The seller will be expected to pay Capital Gains Tax as well as the Plus Valía.
Escritura de Compraventa
Your proof or purchase will be the Escitura de Compraventa and this will be signed by either yourself or your solicitor if you appoint power of attorney. It will be signed in front of a Spanish Notario in order to make it legally binding.
The Notario or Notary is an official of the Spanish state who ensures that contracts are legal. They retain the original document. The Notary is not a private Lawyer, they are a Public official. They ensure that the contract is clearly understood by both parties, signed, the money changes hands and that both buyer and seller understand their tax obligations.
It is the Lawyer’s responsibility to ensure that all the paperwork is correct for the sale/purchase but the Notary will confirm this.
Bank loans and Mortgages
It is possible for both non-residents and residents to obtain loans and mortgages against their Spanish property using a Spanish bank. You may however choose to raise the finances for the purchase in your country of origin. You will need to provide the same information relating to proof of earnings as you would have to in your own country. It is normal in Spain that once the property has been valued you will only receive 70% of the value for the advance. This will reduce to 50% if the property stands on rustic land and requires substantial reform. Please bear in mind that Spanish banks are offering amongst the lowest interest rates in Europe.