IFA-Bulletin Knowledge Base

We have put together a series of articles and factsheets that we hope you will find both interesting and useful. Please don't forget to check back from time to time to catch up with the latest updates. In addition we will be running features on various aspects of buying property and living abroad along with expert articles bringing you the latest in financial products and services associated with investment property

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To help guide you through what sometimes seems like a complicated and confusing process we have put together the various stages of buying a property in Spain. As with all property purchases all buyers should seek independant financial advise from an authorised advisor before proceeding with any purchase.

First, the basics

The purchase of a Spanish property is a regulated process. To ensure that the Spanish property you wish to buy is free of debts and restrictive clauses, it is essential to employ an English-speaking lawyer or solicitor to protect your own interests.

Stage 1: Preliminary Contract

Once a sale has been agreed with the vendor both parties are best advised to sign a preliminary private sales contract, a Contrato privado de compraventa - containing all the details such as a description of the property, purchase price, and date of completion. A Nota Simple will confirm if a property has any outstanding debts on it.

Stage 2: Final Contract

On the completion date the balance of the purchase price (sales price minus deposit) and all fees must be payable by the purchaser. The vendor and purchaser then sign the Escritura de compraventa contract, which is equivalent to the Deeds of the property. The purchaser is then issued with the public deed of conveyance (escritura) in front of a Notary Public, and a copy will then be passed to the tax office and on to the property registry. The Notary Public in Spain is a public official who will be required to witness the deed of sale.

There are a number of fees payable when buying a property in Spain most of which a fairly fixed and add around 12% to the purchase price of a property. These are:

• Transfer Tax (resale properties only)
• Legal document tax
• Value added tax, (new properties only)
• Land tax
• Notary's fees
• Stamp duty, (new properties only)
• Deed registration fee
• Surveyor's fee, (optional)
• Selling agent's fees
• Utility fees, (new properties only)

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