Buyers Information
No one buys property in britain without thinking it through, so be aware of the pitfalls in buying property on the Costa Blanca in Spain, where the whole process is different. Usually it's still straightforward and armed with the right information, buying property in Spain and your home in the sun needn't be stressful.
First Steps
Solicitor: Get yourself a solicitor (abogado). Many speak English and specialise in spanish villas for sale and
property purchases. We can arrange this for you if you wish. Your solicitor should:
-Represent only your interests.
-Explain all the ins and outs.
-Draw up purchase contract.
-Check the title deeds of the property, land or apartment for sale.
-Ensure the spanish villa for sale is registered in your name
-Make sure all the fees and taxes are paid.
When you have found your ideal Villa on the Costa Blanca
WHEN you have found a property or plot of land that you like, we may ask you for a holding deposit (say pounds 3,000 or
2,000 euros) to take the property off the market for a couple of weeks.
Your solicitor checks the property's paperwork and prepares the purchase contract. This includes the buyer's and seller's
details, a description of the property or land for sale, price and payments, conditional clauses and the completion date.
You and the seller sign the purchase contract and you pay a deposit (usually 10 per cent). Many contracts state that if you
pull out, the seller keeps the deposit. But if the seller pulls out he has to return the deposit plus the same amount again
to you.
Next if all is well, and your lawyer is happy, with your agents help you should make an offer and firm details up in
writing, covering all the points to be negotiated, these should include:
-
The Price of the property to buy
-
The declared price on the escritura [title deeds]
-
Payment Method and Currency
-
Fixtures and fittings
-
Furniture [with inventory]
-
Who pays which taxes [especially the plusvalia]
-
Take nothing for granted, include it in the offer, presume nothing.
-
This way you only have to negotiate once and there should be no hold ups or surprises.
-
This is where our skill comes into play carefully bringing the vendor and buyer into a harmonious agreement.
-
Having funds available at this time will convince the vendor that you are serious.
On the completion date you, us and your solicitor meet the seller at the notary, who witnesses legal documents, where the title deeds are signed and you pay the rest of the price. You get the keys to your luxury villa. The title deeds are sent to the land registry and registered in your name. Fees and taxes are paid.
Taxes and Fees
Apart from the price itself you pay:
- in Alicante 7 per cent transfer tax (resale) or VAT (new).
- Notary's and land registry's fees.
- Solicitor's fees.
- Electricity and water connections (new) or transfers (resale).
This all adds around 10 per cent to the price.
Do's and Don't's
- Don't sign or pay anything without consulting your solicitor.
- Before buying land get your solicitor to double-check that you can build on it.
- Do your currency conversion homework to take account of exchange rate blips.
- Watch out for the conditional clauses in off-plan purchase contracts - you could find you are liable for extra fees.
- Make sure the property you buy is free of debt or any conditions over its use.
- Before you make the final payment on your finished new-build, check it's all there!
Other things you will need
NIE number:
When buying a house for sale you will need an NIE Number [fiscal identity number] Its handy to have one even if you are not a property owner. A number can easily be obtained from the relevant police station but can take a few weeks to process, your abogado will apply for this for you. Alternatively you can attend the Police Station in Alicante personally and obtain your NIE number the same day but you do have to be there early. You can also apply through the Spanish Consulate in the UK. You should allow one month for this process.
Banks:
Choose your Bank carefully, the running costs and fees do vary considerably, Most Spanish banks and Cajas [Similar to UK savings banks] are very good, and are very competitive on mortgages, some have excellent online banking in English. All the utilities can be paid by direct debit from your account.
Transferring Money:
The cost and time it takes to transfer money varies considerably so shop around in your home country and also in
Spain.
Most people do not realise the commissions and fees charged by Banks are negotiable, do not be afraid to haggle!
There are some very good companies who offer much better exchange rates than the high street banks, and some even allow
you to pre book currency at a set exchange rate for the future, this is particularly important for off plan purchasers
wishing to protect themselves from the falling pound / dollar.
Becoming a Resident:
If you wish to spend more than 183 days per year in Spain you will need to apply for a Residencia to become
registered as a Resident. Being a resident does not restrict your movements in any way you will be able to spend as much or as little time in Spain as you wish, there are no restrictions, but there are many advantages.
Registering as a resident in Spain, in no way changes your nationality. If you are not to become a Resident you must
appoint a fiscal representative who is normally your solicitor.
A Spanish will:
We would Highly advise you to make a Spanish will. Property in Spain is subject to Spanish laws above foreign wills. Talk to your solicitor about the differences between what you can will in your own country as opposed to here.