A Property Purchase

single.php

Posted and filed under Case Study, Legal Issues in Spain, Property in Spain, Property Purchase/Sale Service.

When a client comes in to see us to say that they want to buy a property in Spain and ask about our property purchase service, we sit down with them and go through everything using a spreadsheet, so we can work out the costs for them

We tell them that we will help with everything until they get the keys to the house the day they complete, and very importantly, afterwards as well.

The clients need to know that in Spain they pay 10% taxes on the deed price (or for a new build 10% plus 1.5% stamp duty) in our Valencian Community.

We ask whether they will be here for completion and whether they would like to provide us with power of attorney for this transaction or not. We would discuss a provisional date but we will not be able to confirm this date until documents are all checked and we have spoken with the agents. Of course, if a mortgage is involved, we also need to speak with the Bank and coordinate with them.

One of the first things that someone needs is an NIE (a certificate with a tax identity number), so we will explain how to get these and that they will need a passport photo.

The clients will also need a Spanish bank account, so we will help them arrange this. We advise that we will set up direct debits on it later. Are they getting a mortgage? If so, we will need to know how much the mortgage will be, and the bank, and name of the person dealing, as we will need to work with the Bank.

Wills

We always advise clients to make Spanish Wills and discuss these. The Wills will need doing on or after completion, so often we arrange this appointment the first time the clients come back to Spain after the purchase.

We discuss our price with the clients go through exactly what we do for them as part of our service, for example being their fiscal rep for the purchase etc.

We find it is very helpful for our clients to go through all the figures of the purchase of the costs and set these out for them, including the deposit they have paid.

We advise that the final figure will need sending to their bank account here a week or so before completion and they would be advised to use a currency agent. We also offer title deeds insurance and explain to them how that works.

Completion

When completion takes place, we either accompany the clients to the Notary or we will use their power of attorney as instructed to. Afterwards, the taxes are paid and the deeds are usually ready for clients to collect about 2 months after, but of course, they will have had a copy at the Notary or by email in the meantime.

We ask for an initial provision of funds and the balance is to be paid on completion. Then when the registration process is finalised and we balance the accounts, we will refund any balance of what has been paid to us not required, or clients sometimes leave it with us to cover taxes next year.

Bills

Whoever owns the property in January pays SUMA that year, but we explain that the next year they will be responsible for both this payment and non-resident taxes and can arrange these direct debits for the annual payments.

Part of our service is that we retain funds from the seller for covering SUMA (if not already paid) and also the bills up to the point seller move out (meter readings are not generally done, so it is usually estimated). We transfer the utilities into the clients’ names after completion and make sure there are no outstanding debts of any kind that the buyer would inherit.

We do not see a property purchase service as a one-off transaction. These are clients that we will look after for many years, if not for life, helping with non-resident tax, or other taxes, any problems with utilities, car issues, such as changing the ownership, even sometimes divorce or helping their family when the clients eventually die. We seek a good long-term relationship with our clients living or owning property in Spain. 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

*

*

*

Looking for a solution?

Feel free to get in touch with any enquiries and one of our friendly members of staff will get back to you as soon as possible.

Form loading.