THE BUYING GUIDE

PRICES & FEES
All the prices on our website are listed before taxes and legal fees.

The following is a guide to expenses for any purchase of Spanish property. You should add:


Either 8% ITP(*) when buying a resale property or 10% IVA on new off-plan property / any property which has never been previously owned.

Land registry, notary costs 1% to 2%.

Solicitor/Legal fees. Typically €1,000 to €1,500 + VAT.

1% – 2% Stamp duty on new off-plan property / any property which has never been previously owned.

Clients may have other expenses on completion. e.g. first years’ insurance, first quarter’s community fees.

If buying with a Spanish mortgage then you should also factor in set-up fees and life insurance.


Example for a resale property


€100,000 – Agreed property price

€8,000 – ITP

€1,700 – Land registry & Notary costs

€1,700 – Solicitor fees

€600 – Other associated fees

€112,000 – Approximate Total

(*) ITP is charged by the regional government and applies to 99% of properties on our website. However If the property is brand new and direct from a developer this is taxed by the national government and not the regional government. IVA (VAT) and not ITP then applies and this is 10% (not 8%).
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DEPOSITS
Most of our properties can be reserved with a €5.000 initial reservation deposit, which can be paid with a credit/debit card – this removes the property from the market. You are then required to pay a second deposit within 20 calendar days after the first deposit to cover 10% of the total cost of the property.


See example below:

Property price agreed €200.000


First deposit of €5.000 – on agreement of price

Second deposit €15.000 – within 20 days later


However, in special circumstances, the completion can be scheduled within four weeks, in these circumstances your solicitor and the vendor’s solicitor can negotiate the second deposit being paid at the time of completion.

LEGAL INFO
When buying property in Spain as a foreign individual, you will require an NIE number (equivalent of a National Insurance Number). These are obtained from the local police station. We recommend that you give your solicitor Power of Attorney. Once registered, your solicitor can collect your NIE certificate on your behalf.


Whenever buying a property we would always recommend independent legal representation. There are a number of local solicitors that speak many languages including English. If you do not want to keep flying back to Spain during the buying process we would recommend you grant your solicitor Power of Attorney. With POA your solicitor can obtain your NIE number, open a bank account and also set up your utilities. The solicitor will only action anything once they have written approval by you. The costs of a solicitor varies between 1% – 1.5% of the purchase price with a minimum fee of €1000 – €1,500.

BANKS
You will need to open a Spanish bank account when buying a property. We have negotiated free banking and other special offers which are exclusive to our customers with one of the biggest banks in Murcia, Spain. However you are always free to use whichever bank suits you best.

If you decide you would like to apply for a Spanish mortgage, we can help you. There are currently some fantastic offers with various banks. In general a non resident can receive a 60% – 70% mortgage.
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COMPLETION
It normally takes up to 12 weeks from the time of your initial reservation deposit being paid to completion. If you are taking out a Spanish mortgage then you should add two more weeks. If you have given your solicitor power of attorney you do not need to be present for the completion.

Once you have your keys we can give you guidance on local key holders. Your keys holders will look after your property offer cleans, laundry services and general maintenance.

Andrew Brown remains at your disposal after completion for any recommendations on external services relating to the upkeep and maintenance of your new property .

If you decide to rent out your property, we can advise you on holiday rentals and introduce you to the necessary entities to obtain your rental license.

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RUNNING COSTS
The costs of running a property will vary from one property to another. To give you a better idea on costs, below is an approximate guide for an apartment. Please Note that the community fees stated on our website are for guide purposes only, they could be more or less. You can find out the exact fees via your solicitor.

Apartment Monthly Running Costs

€120 – Community fees

€60 – Standard charges for Gas, Electric and Water


Apartment Annual Costs

€250 – Key holder fees

€250 – Council Tax

€200 – Insurance


Total for the year €2.860

ANYTHING ELSE?
We are here to help you make an informed decision before buying your dream property.

Even though we have covered the majority of question we are frequently asked there may be something we missed. If you have any questions regarding the buying process please do not hesitate to contact us