PolarisWorld Buyers Guide -
How do I buy a spanish apartment, townhouse or a villa in southern
an established real estate agent.
This is important to ensure that you get professional advice
regarding the purchase process, but also to ensure that you
buy a property that is likely to hold its value even if the
market goes down, as it did a few years ago.
Local markets are very temperamental which means you should
look for different real estate agents based in the areas that
Do I Buy?
To purchase property in Spain is as easy as anywhere else in
the world. As it might be different from what you are used to
at home, you should always use a lawyer right from the outset.
The extra fees incurred are cheap insurance against possible
future problems. The following is an example of a standard property
Normally the purchase is initiated with a reservation agreement,
which takes the property off the market. The deposit to pay
at this stage could be anything between 600 Euro - 10% of the
Normally it is 1% and the agent holds this amount in a client
account. Now your lawyer will begin a search of the property,
which will show if there are any charges against it.
Private or Option?
Within a week or two a private agreement or option is signed
between the purchaser and seller and at this stage it is normal
to pay 10% directly to the seller.
The seller and buyer's lawyers, together with the agent, should
determine all outstanding debts and rates in order to arrange
the payment of these according to the agreement. These could
be property tax (I.B.I.), community fees, telephone, electricity,
water bills, etc.
Usually 30 to 45 days after the reservation agreement, the completion
takes place in front of a notary, who issues the title deed,
or “escritura”. If the purchase is financed with
a mortgage the bank representatives are present in order to
pay and sign the mortgage. The title deed should then be registered
by the lawyer in the corresponding Property register.
Notary and Registry
The law states that the seller should pay a part of the notary
fee and what is known as "plúsvalia municipal".
All other costs are to be paid by the buyer. In most sales it
is agreed that all costs are paid by the buyer. This is more
practical as he will probably remain here and it is likely that
the seller may leave the country. The lawyers charge around
1% of the purchase price, but a minimum of 900 Euros.
Notary and Registry cost
The cost for Notary and registry for a property of:
60.000 is approximately 700 Euros.
150.000 is approximately 1,200 Euros.
300.000 is approximately 1,900 Euros.
Plus Valia Municipal
This is a council tax that is paid each time a property changes
hands. It is complicated to calculate. Basically it depends
on the property’s tax value and how long it has been owned
by the seller. It usually is approximately between 300 Euros
& 1,800 Euros.
Transfer TAX or VAT
Depending on the party's legal status and the type of the property,
there is a 7% transfer tax or 7-16% V.A.T. (I.V.A.). As follows:
On first hand homes, you pay 7% V.A.T. + 0,5 % Stamp-duty. On
second hand homes, you pay 7% transfer tax. On villa plots from
the promoter, you pay 16% V.A.T. + 0,5% Stamp-duty.