BUYER'S GUIDE
Information on purchasing and owning property in Spain

Purchase Information

Cornish & Homes are a specialist estate agents with over 20 years experience covering all aspects of Spanish Real Estate. We hope you find this information useful and gives you a good understanding of the procedures on buying a property in Spain.

If you decide to purchase a property the first step is to pay a 10% deposit and sign an official contract in the presence of both parties solicitors. This is your commitment to complete on the sale within a mutual agreed time. This is usually 30 days but is negotiable. N.B. The deposit is non returnable if you decide not to complete. However if the seller decides not to honour the sale, then you are legally entitled to the return of your deposit and some form of compensation.

If you require a mortgage to fund the purchase of the property, the procedure is similar to the UK where the amount offered is governed by the value of the property and your financial status. As a non-resident of Spain, the maximum mortgage available is 65% of the ‘official valuation’ of the property, therefore you will need to ensure that you have sufficient funds to cover the balance needed between the mortgage and the sale price. Normal proof of income includes P60, Chartered Accounts, Tax Returns and Bank Statements are required for the approval of any mortgage. You should also allow for another 9-10% of the agreed sale price to cover all the additional costs associated with buying a property in Spain and which are outlined below:

Legal Representation
We strongly recommend that any purchaser should have representation from a qualified solicitor who is up to date with current legislation. Their main responsibility is to ensure that the person selling the property is legally entitled to, that your purchase is legally registered with the Land Registry and that any debts or unpaid taxes are settled and cleared prior to your completion. We can recommend English speaking lawyers to you that are specialized in property conveyances and who we have worked with for many years. Their charge is normally 1% of the purchase price but this is negotiable. The solicitor can also assist with applications for N.I.E. numbers and ‘residencia’ and for making a will which is necessary in Spain as any wills made in England do not cover property in Spain.

Tax
Transfer tax of 7% of the purchase price is payable by the buyer on all re-sale properties and must be paid within 30 days of completion. However if you are buying a newly constructed property direct from a developer, than the tax on the property can differ and it is essential to clarify with the developer rather than wait to nearer your completion date.

Notary and Land Registry Fees
A Notary is an officially appointed solicitor of the Spanish government who is authorized to witness the signing of any type of public documentation including the transfer of a property between vendor and purchaser.

Both parties sign the Escritura de Compraventa before the Notary which outlines all the details of the property including the square meterage, boundries, price and details of the buyer and the seller. Upon completion the Notary will retain the original signed document and supply a legal official copy to the purchaser (a Nota Simple). The Notary will then apply to the Land Registry for the amendment in the title deeds (escritoria) and the property to be re-registered in your name. This can take some time and therefore the Nota Simple is your only proof of ownership and should be kept in a secure place. The Land Registry charges a very small fee for registering the property in the name of the new owners.

Notary charges differ depending on the property and complexity of the deeds but are generally between 1.5% - 2% of the sale price and must be paid at the time of signing the deeds, (the completion date).

If you are considering purchasing a home on the Costa del sol, then please give us a call and allow us to show you why we have been successful for over 20 years and established ourselves as a reputable real estate company in Spain.