Property Conveyancing in Spain

To reserve a Spanish property it is customary to place a holding deposit, which takes the property off the market and prevents losing it to a 3rd party. The normal amount is 6.000 Euros. (Please note that sterling cheques take up to 10 days to clear in which time your property could go to another buyer).

It is imperative to use a good English speaking lawyer with offices in Spain. They will make sure that the property you are buying meets all the necessary legal criteria.

We believe that clients are entitled to a free initial consultation prior to purchase.

You should never hand over any deposit unless it is accompanied by clear written guarantees, laying down the terms of sale. Never hand any deposit directly to a private vendor. All reputable agents and developers will hold your deposit in a protected client account.

Whilst your property is reserved, your Spanish lawyer can make all the necessary verifications to ensure the property is free and clean of any debts or charges. If it is in a new development, your lawyer will ensure all the necessary licenses and bank guarantees are in place.

After approximately 2 to 3 weeks, it is customary to exchange contracts, at which time if purchasing a resale property 10% of the purchase value must be paid and if it is a new development you must pay 30 to 40% at this stage, although this will depend on the payment schedule set up by the developer’s company.

A sale is formally completed only when the deeds or “escritura” are signed before a Notary and when full payment is made and ownership is formally handed over to the buyer.

Aside from the purchase price of the property, it is important to note that there are various additional fees and taxes. As a general rule of thumb you should add around 13% to the purchase price to cover these costs. Included in this figure is the property transfer tax at 8%, plus legal fees (normally 1%), Notary fees and registry fees.

If you buy a property from a developer, you will be incurred in the payment of the VAT which is 10% plus Stamp duty 1,5% of the purchase price.

The transfer tax may vary depending on the region you are buying. In Costa Blanca, transfer tax is 10% of the purchase price.

Fortunately the Perez Legal Group can take care of all the minor details such as setting up a bank account and transferring utilities such as water, electricity and rates into your name. We can also take care of the formalities of registering the property in your name and paying on your behalf all the relevant fees and taxes.