Moving to Spain
Buying a property in spain
The first rule to buying a property in Spain is to always use a reputable solicitor. We can recommend some Spanish (English Speaking) solicitors or if you prefer you can choose your own. If you get this part right, the rest will fall into place.
Deposit
When you have found the property that you wish to purchase, your solicitor will do some checks on the property and then draw up a contract. You will then be required to pay a 10% deposit of the agreed sale price. This amount is usually paid in cash at the solicitors, when the contract is signed. This method is used to protect both the buyer and the vendor. Once this amount has been paid, should the vendor decide not to sell the property they must refund the deposit money and also another 10%. However should the buyer not wish to proceed they would lose there 10%
Contract
The contract will include details of the seller and the buyer such as:- Name of buyer / vendor
- Address of the property
- Price as agreed by the vendor and the buyers
- Completion date and remaining balance due to the vendor upon completion
- Deposit amount paid to vendor
NIE number
This is similar to a National Insurance number in Spain. You are not required to have one when paying the deposit, however you must have one by the date of completion. This is usually done through your solicitor, however you must be here in person to present yourself with a valid passport at the NIE office. The only exception to this rule is if you give your solicitor Power of Attorney.
Mortgages
When applying for a mortgage at most Spanish banks, they will require 3 previous months proof of income, and passport or drivers licence as proof of identity. Depending on your financial position and the valuation on the property, you are usually offered any amount between 60% - 70% of the valuation of the property. This valuation is arranged by the bank.
Taxes
When you purchase a property, you need to pay your share of tax. In Spain it is called IVA, similar to VAT in the UK. You pay 7% of the official value on the Escritura ( title deeds ).
We recommend that you add 10% onto the purchase price of the property. This normally covers the extra costs including 7% IVA, solicitor fees and Notary fees.
After your purchase
We understand that moving home can be a stressful time for anyone. We aim to make your move as stress free and smooth as possible and are always at the end of the telephone should you need any assistance.
