Buying a
property in Spain is probably one of the biggest investments
you will make, so it important to get it right!. Of course,
The buying process is different depending upon your choice of re-sale properties, newly built properties or off-plan purchases. Charges
and taxes will also differ depending on the type of property
you have chosen to buy.
As in UK,
if you require finance, the major Spanish banks are keen
to lend to those wishing to purchase a property. In fact,
with interest rates so low in Spain at the moment, the
terms of a mortgage can seem a lot more attractive than
they do in the UK. A bank in Spain will typically lend
around 70-80% of the purchase price of a property to non-residents,
but this can be increased for some sorts of purchases
(please see our finance page for details of how to finance
your purchase).
It is highly
unlikely you would consider purchasing a property in the
UK (resale or new-build) without the appropriate legal
advice. The same is true in Spain. There are those who
still buy Spanish property without consulting a lawyer. This is a huge risk and can leave those purchasers in serious financial difficulty as a result. ! Here at Si
Villas! our panel of solicitors are on hand to make sure
that all of the legalities of your purchase are in order,
meaning that you have the peace of mind of knowing that
there will be no nasty surprises once you have purchased
the property (such as realising that you have inherited
the previous owner's debts!). When you purchase a property
through us, you can be sure that you are being looked
after by dedicated professionals.
It's also
very important to take into account what the initial outlay
will be when purchasing abroad. As well as the deposit,
there are certain taxes and legal costs which every purchase
will incur, and these differ as to the type of purchase
you are making (new-build, re-sale etc). Below is an idea
of what these costs are in relation to a re-sale property:
Initial
Costs
As well
as the cost of the property, the buyer will be liable
for transfer tax (IVA), which at present is 6% on a second-hand
property and 7% on a new one, plus 1/2% stamp duty. The
property registration office will charge you a fee to
change the new deeds into your name. This is usually around
300€. There will also be notary charges for copies
of the 'escritura publica'. The charge is on a scale depending
on the contract price. In total you should allow 10% of
the purchase price for costs. It is often the case that
the buyer also pays the sellers fees. Check this at the
point of enquiry and it is often possible to negotiate.
Banks may also charge an opening commission for mortgage
loans.
These really
are the basic points to consider when thinking about purchasing
abroad. For more advice on this, don't hesitate to give
us a call. We will be happy to answer any questions you
may have. And don't worry! We are here to deal with all
of these things for you, and will be with you every step
of the way!
