Purchasing A Property
At Perfect Spain we can show you a wide variety of properties to meet your needs. We can help you through every step of the process and connect you to the best lawyers and notaries in Valencia to facilitate the transaction.
Take your time to browse through our selection of properties online using our search facility, and please contact us if you require more details or wish to view a property. If you are coming from abroad to make your property search we can arrange travel and temporary accommodation during your stay.
At Perfect Spain we will provide the ongoing costs to maintain a property in Spain so you can have a realistic view of what the typical housing costs would be for you. They include, the Annual Real Estate Tax (IBI), community fees, rubbish collection fee, water rates, estimated electricity costs and the Property Income and Wealth Tax.
We guide you through every step in the purchase of a property. The seller and the buyer will make a preliminary purchase contract in place until the public deed of purchase is ready. It is usually a simple document in which the seller expresses their intent to transfer the property to the buyer, and the buyer expresses their intent to buy at the price and conditions agreed upon. At this time, the buyer also gives to the seller a percentage of the agreed-upon price. A typical agreement in Spain (called arras) is that if the buyer backs out of the contract, they lose the deposit; and if the seller backs out, they have to pay double. Of course, the buyer and seller may choose other terms if they prefer
Legal Advice and Assistance
We recommend you hire a lawyer to assist you in all the different steps involved in the transaction. There are many excellent English-speaking Spanish lawyers in Spain. Choosing the right lawyer is your guarantee that Spanish legal requirements are met, that the property is registered in the vendor’s
name and that it is free of any mortgages, charges, encumbrances, debts or other liabilities. Once you have appointed your chosen law firm they will explain the procedure involved in buying in Spain and the associated costs. Before signing the deeds with the notary your lawyer will have completed his
searches and investigations in respect of the property. In Spain, debts are attached to the property, not the person, so ensure that your lawyer obtains proof that the vendor has paid all his obligations, including community fees if the property is on an urbanization, and all utilities, electricity, water, IBI and taxes. Also ensure that the property is free of mortgages.
We can assist you in opening a bank account, obtaining Spanish resident or non resident Identification and a tax number,
The standard commission on a house purchase in Spain is 3% plus VAT for the seller. The buyer is charged a 3% commission plus VAT. The sale price which you see on our web-site is the price to the owner (excluding legal fees).
The purchase of the property will involve the following expenses.
- Notary, who charges according to a fixed scale. His charges may range from 350 euro for low priced properties to 1.200 for high priced houses. The law “Articulo 1455 codigo civil ” mentions. The costs of recording of documents shall be borne by the seller and the first copy and the other after the sale will be paid by the buyer, unless otherwise agreed.
- Land Registry, as a rule of thumb, is 40% to 50% of what the notary charges.
- If you are buying a re-sale property you are obliged to pay Transfer Tax (ITP) at 10%.
- Plusvalía is a tax levied by the local Town Hall based on the particular area where the property is located, on the surface area of the land, on the catastral value and on the date of the previous title deed. This tax may range from a few hundred euros to as much as several thousand euros on larger properties with a lot of land. By law the vendor is obliged to pay this tax but it is common practice for the parties to negotiate on who is to assume this liability.
- The seller must pay the Capital Gains Tax on the sale.
- Finally, bear in mind that your lawyer will charge fees for his professional services normally between 1% and 2% of the price plus VAT (currently at 21%).