The requirements when purchasing new build and re-sale properties are different, therefore we will explain the new build procedure first:
To enable to have the property of your choice taken off the market you are required to pay a deposit of between 3,000 – 6,000 Euros. You will then receive an initial contract with the purchase details, however, you will be able to review this before making a full legal commitment.
Your purchase contract and 1st stage payment.
The first stage payment varies between 25% and 50% of the total value of the property. Normally, this payment will be expected to be paid one month after placing your initial deposit. One important point to bear in mind is that once you have signed this contract you are legally bound to buy the property.
Subsequent Stage Payments
Before you sign the purchase contract mentioned above, the amounts and dates of further stage payments will be agreed at this point. The stage payment terms can vary between constructors but usually, the final 50% - 60%payment will be done on completion of the property.
On completion, you will need to pay all the outstanding monies, taxes and legal fees. Your solicitor will pay the tax and lodge the deeds. Although it may take a while for the Land Registry to formally register the title, you will now own your property and will receive the keys to your new home.
As mentioned before, we will now take you through buying a re-sale property:
To secure a re-sale property a deposit between 3,000 – 5,000 Euros will be required. Also, an initial contract will be signed.
The buyers and sellers will agree on a completion date and usually the rest of the monies for the purchase of the property are transferred on completion. As with the purchase of a new build property, once the purchase contract is signed, you are legally bound to buy the property.
This is the same as for new build properties. Please see above.
The following are a list of additional fees and charges involved in the process through to completion for both new build and re-sale properties.This normally amounts to a minimum of 14% of the property purchase price.
· IVA – tax is 10% of the declared value
· Stamp duty – 1% of the declared value
· Notary fees – 0.5% of the declared value
· Solicitors costs – Registration and Conveyancing
It is a legal requirement to have a Spanish bank account if you buy a property in Spain. For this reason, it is advisable to open an account as soon as one can. You will need your passport and we are able to assist you with this process if need be.
FINANCIAL SERVICES SPAIN
If you are interested in financing the purchase of your property in Spain or raising capital from your existing home we will be happy to assist you in finding a competitive mortgage that meets your personal requirements.
Your enquiry will be handled promptly and you will receive a personal evaluation which includes: ·
The specific conditions of the mortgage we can arrange for you
· A calculation of the monthly re-payments
· An estimation of the commissions and charges for the whole transaction
· A list of documents required for the mortgage application Spanish Mortgages
The benefit of having a Spanish mortgage was historically the Banks offered lower interest rates than in other European countries. Generally, new mortgages can be granted for up to 70% of the property valuation.
The documents you typically require when applying for a mortgage are:
Income Tax Returns (Form P60)
Proof of Earnings (last 3 payslips/Pension Statement)
3 months Bank Statements
Copy of Passport
Copy of Purchase Contract
Proof of address
Credit Report (Equifax or Experian)
Latest Tax Return/IR
Tax Calculation P & L Account + Balance Sheet
Following year Profit Projections provided by your Accountant
As a Banco Sabadell Intermediary, we are able to provide you with Mortgage Illustrations on request. Please contact us and we will be happy to provide access to all the appropriate information for your review and comparison.
CHOOSING A SOLICITOR
When purchasing or selling a property in Spain everyone it is required to have a solicitor or legal representative to act on your behalf. We recommend choosing a locally based solicitor as they will have good local knowledge, know the country and most importantly know the Spanish laws extremely well.
For this reason, it is not advisable to assign a non-Spanish solicitor as they may not have any previous experience of overseas property transactions and laws of the country concerned. Another important requirement for all non-residents when purchasing a property in Spain is to have a NIE number. This is known as Numero de Identidad de Extranjero (Foreign Identification Number) and is required for all official dealings.
For further information, please call us on 00 34 693 923 834 or email us at firstname.lastname@example.org
SPANISH LEGAL AND FISCAL SERVICES
As mentioned before, it is imperative to have legal assistance when purchasing or selling a property in Spain. This is why we believe that a specialised Spanish legal firm is the best option to guide you in the conveyancing process. We are able to recommend a Spanish Registered Independent Legal firm based with several offices in the Alicante area. They have a highly qualified team of solicitors (abogados), accountants and legal assistants, many of whom are multi-lingual, with extensive experience.
They offer a full range of services, including:
· Signing of Title Deeds in the presence of a Notary
· Land Registry inscription of Title Deeds
· Power of Attorney
· Processing of application for the N.I.E. Number (Foreigners Identification Number)
· Signing of Mortgage Deed in presence of a Notary
· Fiscal representation, i.e. overseeing payment of taxes, completion and submission of annual tax return
· Spanish residency applications
· Preparation of Spanish Wills
· Probate and estate work
· Document legalisation
· Preparation of building licences/permits, e.g. for extensions to properties
· Conveyancing, new and second-hand (resale) properties will include the following:
· Confirm that the seller of the property is the legal owner.
· Check whether there are any encumbrances on the property that may adversely affect the sale.
· Verify that the property, when built, has all the necessary licences and authorisations.
· Prepare the necessary documentation for the signing of the public Title Deeds and arrange all necessary appointments.
· Accompany the client to the Notary and translate all legal documents.
· Arrange for the payment of any fees and taxes and for the Title Deeds to be inscribed in the local Land Registry.
· Assist the purchaser in obtaining all important N.I.E. number (Numero de Identificacion de Extranjeros). This number is essential for non-residents and is required in the purchase of a house or car.
· Review the terms of the mortgage, if requested, and will liaise with the purchaser´s mortgage lender in order to coordinate the signing of Title Deeds.
FOREIGN CURRENCY EXCHANGE SERVICE
Lider property investment have teamed up with one of the world’s leading currency specialists, to ensure our clients have access to wholesale exchange rates and transfers are as cost effective as possible It is very important to achieve the best available exchange rate when transferring monies as you can lose thousands of pounds. Transferring could in fact be one of the biggest expenses if you are not careful.
When buying or selling a property internationally, adverse currency fluctuations between search, offer and completion dates can have a significant effect on your budgets. Being prudent with your financial planning can save you a lot when purchasing and maintaining a property abroad. One of our dedicated dealers will monitor markets on your behalf and offer expert guidance on the best strategy and timing for your transaction, and ensure that you have all the relevant information.
They will work with you to get the best rates, avoid unforeseen problems and reduce transaction costs. It´s definitely worth to have a talk with a Foreign Exchange Specialist before you buy abroad. Lider property will be pleased to provide you with a detailed booklet explaining the range of specialist services and the benefits available. These are just some:
· Wholesale currency exchange rates
· Tailored and strategically timed services
· Unrivalled customer care
· Secure transfers
· No transfer fees
· Personal dedicated dealer
· FCA authorised and regulated Electric money institution
· Same day delivery