Purchasing a Property in Spain
Steps to take to buy a property:
Find a suitable property
Go through a Due Diligence
Reservation of the property
Sign deed at Notary Public's
Due Diligence Process
The Due Diligence Process is a very important step that you should take before proceeding to pay to reserve a property. It refers to a thorough analysis of the circumstances of the property, from verifying the seller's ownership to making sure that they have all the necessary documents.
We strongly recommend that you do not pay or sign anything before having a lawyer do a Due Diligence. This is a typical case of caveat emptor (buyer beware). Only the Realtor and a lawyer hired by you will actually represent your best interest.
Obtainment of ownership certificate from the property registry
Checking if there are any pre-emption rights & tenants
Check with the urban planning department of the town hall
Check with community of owners (fees etc.)
Making sure that the property is free of debts, charges, liens and embargoes
Review specific aspects due to the property's, the seller's or buyer's nature
Check that local taxes (IBI) are up to date. The town hall issues a certificate to that end.
Review of the previous deeds and making sure the property is described
Check cadastral record (inventory of property for tax and assessment purposes)
Check that utility bills are up to date and get copies of latest receipts
Ask for builder's guarantee if the building is less than 10 years old
Ask for copies of the required certificates (habitability, energy, etc.)
What are the costs involved in purchasing, owning and selling a property in Spain?
When you buy a property in Spain you have to keep in mind various costs and taxes that go over and above the property price. Depending on whether you purchase a new property from a developer, or a resale property from a private individual, you will either have to pay VAT & Stamp Duty, or a transfer tax. In Summary, allow for between 12% and 15% of the purchase price in taxes and other costs, though it does depend on what and where you are buying.
As a property owner in Spain you have to pay local tax (IBI), possibly community fees and insurance. In some parts of Spain you have to consider wealth tax and if you rent out the property, you will have to declare income tax on the rental income.
If you sell a property, you have to pay the "plusvalía", a municipal tax on the capital gains.
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We are here to make sure your property purchase is a success and the process as smooth as possible. Get in touch!