The buying process
Our dedicated team are there to ensure that buying a property will be straight forward and stress free. Here at Damatt Property, along with our local partners will assist you through every step of the buying process. This page will give you some pointers on what to expect when buying a property.
It is important that you prepare the relevant finances that will enable you to be in a position to purchase your dream property when you come upon it. This will not only determine your budget but will also allow you to take action on a property when you find it.
When looking at property, it is important to take into account the purchase fees that are involved, in some Countries it could be circa 13% of the property price, which include the following, in some Countries there may even be additional sums, check with your local agent before you commit:
- Resale Purchase Tax – 10% as of 05.08.2013 – subject to change
When purchasing a resale property the buyer is required to pay the transfer tax which is now 10%. – subject to change
- New-Build Purchase Tax (IVA)- 10% as of 01.01.2013 (equivalent to VAT) – subject to change
Payable as part of the payment structure or on completion of the property as detailed in the contract (10% of the declared value of the property).
- Notary Fees
Preparing the Escritura, registering the title.
- Land Registry Fees
To register the property at the relevant Land Registry Office.
- Plus Valia
Tax levied by the Town Hall in accordance with Spanish Law, the vendor is usually liable to pay the Plus Valia Tax. However on new properties it is paid by the purchaser.
- Stamp Duty – Actos Jurídicos Documentados
Payable when purchasing a New –build property – around 1%.
Once you have decided on a property and a price has been agreed it is important to reserve the property (usually a 3.000-5.000 Euro deposit is required). Once the deposit has been paid the property will be taken off the market and the price fixed.
The next step is to draw up a contract which will state a date when the property will be signed for. The completion date will obviously differ to suit individual needs. If the completion date is to be longer than 4 weeks then it is usual that a further payment (usually 10% of the purchase price) is put down as security.
During this time your Agent will liaise with the notary/solicitors and prepare the paperwork that is required. On the day of signing, both parties will be present at the notary with their solicitors, along with your local Agents representative. It is here where the remaining balance will be paid. All this will be conducted in the local language so ensure your Agents is fluent enough to understand what is being said. It can be a little scary.
Once the contracts have been signed and the title deeds exchanged, you will then officially be the new owner of the property. You should then walk away with the keys.
Do not be scared! Your Agent and independent Solicitor are there to help you through 🙂