A Guide to Buying Property in Spain

The following information is intended as an outline guide to purchasing property in Spain and should in no way be substituted for professional legal advice.

As your agent, España Mágica is here to assist you , step by step, to a successful completion and purchase of your dream home here in Spain. We can provide to you, every service you require to make your purchase here smooth and successful. To see our full range of services (including Translation and Language services, obtaining official N.I.E. numbers, Opening a Bank account, applying for a Mortgage, appointing a Solicitor, Registration of E121s/Pensions/Health, Building works required, Swimming Pool installation/maintenance and even Spanish Classes!) Please click on Services We can Provide.

Appointing a Solicitor (Abogado)

España Mágica is happy to recommend a local English Speaking Spanish solicitor but you are of course free to appoint one of your own choice. The appointed solicitor will perform all the necessary searches on the property to ensure that the Vendor is the correct owner, that the property has all the correct planning permissions and is correctly registered accordingly and that there are no outstanding debts or legal charges on the property and will clarify any other legal matters. This can be done through España Mágica or your own appointed solicitor.

Purchasing a Property

It is important to be aware that for any property you see advertised for sale in Spain you should add approximately a further 10% of the asking price to cover the Purchase Fees as described below.

When you have seen a property you like and all the terms, conditions and purchase price have been agreed with the Vendor, you will then be required to pay 10% of the Purchase price as a deposit. This acts as an official confirmation of your intention to buy the property and the Vendors intention to sell the property to you and an initial contract of intention to Buy/Sell is drawn up accordingly, which both parties are required to sign. Should either party decide to withdraw from this initial contract, the purchaser would loose the 10% deposit paid and, if the vendor withdraws, they have to pay back the double to the purchaser. This clause protects you from other interested parties making a higher bid on the property than yours (as so often happens in the UK). It also protects the Vendor, in that the property can immediately be withdrawn from the market.

The remaining 90% of the purchase price is payable on the signing of the Title Deeds (Escitura) which takes place at the Notary office at a date agreed by you and the Vendor in the Initial Contract of Intention to Buy/Sell. If you are purchasing a New Construction then the Builder will request staged payments to be made by you and these can vary depending on the Building company.

The Notary (Notaria)

The Notary is a solicitor appointed by the Spanish Goverment to witness the signing of all the legal documents and represents both the Vendor and the Purchaser. The Notary and Registry fees are around 2% of the purchase price of the property and paid at the same time as the signing of the Title Deeds (Escritura).

When the Title Deeds have been signed and stamped, the original document is retained by the Notary who will then apply for the necessary changes at the Land Registry. A legal copy of the Title Deeds (Copia Simple), which is also signed and stamped, will then be issued to the Purchaser. This document is your only proof of ownership and should be maintained in a secure location. The change of details at the Land Registry can take a number of months, depending on the area concerned, but eventually the amended original deeds will be returned to you.

Purchase Fees

As stated above, these usually are approximately a further 10% of the purchase price of the property and are as follows:-

The Purchase Tax is 7% of the declared value of the property. This declared value is listed in the Title Deeds (Escritura) of the property and must legally be paid within 30 days of signing the Title Deeds.

The Notary and Registry Fees are approximately 2% of the purchase price of the property and must be paid at the signing of the Title Deeds.

The Plus-Valia Tax and capital gains tax are paid by the Vendor. It is calculated on the increase in the value of the land from when it was last sold and is based on the rateable value of the property and is paid in a one-off payment.

Your Solicitors Fees are approximately 1% of the purchase price of the property and are normally paid at the signing of the Title Deeds at the Notary office.