LEGAL REPRESENTATION
It is difficult and exciting at the same time looking to buy property in Spain. However, choosing the perfect Spanish property for sale doesn’t end there: you have to fulfill some formalities until the title of your new home is obtained.
It is now a legal requirement to have legal representation when purchasing property in Spain. At Direct2Spain we work alongside representatives from an established Spanish company, who also speak fluent English. We will assist you every step of the way of the whole buying process.
Our basic legal representative service includes:
- The opening of a current or savings account.
- The procedure for obtaining an NIE number (identity number for non- residents in Spain).
- The legal rights and obligations of the purchaser relating to the sale and purchase of a property in accordance with Spanish Law.
- Advance payments security.
- The full translation of the public deed prior to signature in the presence of a notary.
- The procedure for obtaining a land registry certificate, ensuring there are no existing unpaid debts, unpaid taxes, rental contracts etc.
- The verification and control of additional payments in relation to the purchase i.e. taxes, legal fees etc.
- The procedure for obtaining a mortgage.
- The procedure for paying taxes in Spain, i.e. annual tax declaration.
Our Additional legal representative services:
- The arrangement of insurance contracts e.g. building, contents, life etc.
- The preparation of a Spanish will.
- Social security advice.
- Education.
- Additional building work and associated services.
- Security (alarm systems, grills etc).
- Translations (English, French, German, Italian, others).
- Other purchases.
THE BUYING PROCESS
The following advice explains the actual process on buying property in Spain.
Lawyer
The lawyer should be qualified in Spanish Law. Using a lawyer is the biggest guarantee to avoid unexpected surprises. Your lawyer will make a "search" of the property to be purchased. He will keep you updated on the progress of the purchase and will provide you with full details on all the financial transactions and the legal side. Contract and deposit
Once you have decided upon the property to buy, you will have to pay a reservation fee to take it off the market and to secure the property whilst negotiations between the parties’ legal advisors are held. A private agreement will be drawn up between your lawyer and the seller, in which the terms and conditions of the sale are stated such as a completion date and the conditions of the transactions, which should usually contain an assurance by the sellers that the property is sold free of charges, tenants and mortgages. Please note that properties in Spain are free hold, not lease hold as in the UK.
Completing the purchase
The documentation required for the transfer of ownership will be prepared. On the appointed day buyer and seller, and/or their legal representatives, meet at the notary’s office to sign the official transfer of Title Deed from the Seller to the Buyer .The witnessing of the accompanying documentation by the notary acts as your legal safeguard. The change of ownership will be recorded in the official registry and completes the process, leaving you safe in the knowledge that your property purchase is official and free of encumbrances.
All properties in Spain should be registered with the land registry where you can obtain the exact details of the owner, the size of the property and details of any mortgages, debts or judgements against the property. Only the people or company named on the title deed have the right to sell the property.
For anything that involves paying tax like owning a property or a car, or to work in Spain you need an NIE number. This number is necessary for all non-residents. The lawyer will be very pleased to assist you with this matter and solve any other query that you may have regarding purchasing in Spain.
Spanish wills
We recommend that you make a Spanish Will to dispose of your assets in Spain to avoid expensive and complex legal procedures. Spanish laws protect family heirs in that they restrict the testators freedom to dispose of their estate to anybody they choose.
Cost of purchase
Generally speaking, you have to budget for costs of approximately 11% on top of your Spanish property purchase price. This will cover solicitor’s costs, notary public fee, land registry, stamp duty and VAT. A breakdown of all the costs involved is provided below.
Property Tax
Which of these two taxes is levied will depend on the type of property you are purchasing; the property transfer tax is levied on resale properties and is charged at 7 % of the new title deeds value. But if you purchase a newly built property from developer you will pay a different tax called IVA (VAT) which is charged at 7% of the selling price - plus 1 % stamp duty.
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