When we have a client buying a property we can assist and advise them going through all the general costs involved with buying a property in Spain. We discuss the purchase price and all the payments they will have to make and go through a spreadsheet with them, telling them that get the keys of the house the day they complete.
What we do when acting on behalf of a buyer, is to check that the property meets all legal requirements and there are no debts. This is, of course, a major worry for buyers and as important as being aware of costs, if not more so.
We explain that they currently pay 10% taxes on the deed price purchasing (or for a new build 10% plus 1.5% stamp duty) in the Valencia area where are. We ask clients whether they will be in Spain for completion, or otherwise, they will need to give us power of attorney.
We need to know what date is being suggested for completion and does this suit the clients and we would note the provisional date. If the clients are getting a mortgage we will not be able to confirm until the mortgage is approved.
We need to ask the clients if they have NIES, as these are required for a purchase in Spain and we can arrange them. We also need to check if they have opened a Spanish bank account and need our advice, and also if they are getting a mortgage, how much it is and with what Bank.
We would advise on Spanish Wills and if a client does not have them, we would arrange this for after completion.
We explain regarding the deposit that would be paid, taxes, other payments and how it would work with transferring the final figure needed before completion.
After completion, the taxes are paid and the deeds are usually ready for about 2 months after.
We advise our clients that the seller pays SUMA the year of buying and we explain how both non-resident and resident taxes work. We retain funds from the seller for covering SUMA if needed and bills up to the point seller move out (meter readings are not generally done, so it is usually estimated). We transfer the utilities into their names after completion.
The costs of buying a house depend on whether the house is a new build property or a resale. In all cases, on top of the purchase price, clients need to pay the Notary Fees and Registration. Then taxes are due dependant on the house type, as detailed.
– NOTARY FEES
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This is the charge that the Notary will make for the Purchasing/Selling process and paperwork. This covers the printing and amending of the Escritura (Title Deeds) and the Notary witnessing the signing of it.
– REGISTRATION
The Land Registry will make a charge for the registering of the change of ownership details of the property.
– IMPUESTO DE TRANSMISIONES: Re-Sale Properties
This is calculated at 10% of the value of the house as stated on the Escritura (Title Deeds), for Re-Sale Properties only.
– IVA: New Build Properties
IVA is paid directly to the builder, either in stages with the payments, or at the final payment and is presently at a rate of 10%.
ACTOS JURIDICOS DOCUMENTADOS 1,5% of the Title Deeds price, which must be paid to the local Administration within 30 days following the signing at the Notary.
This is all for the Valencia region. If we can help you impartial assistance and translation for Notary processes and assistance with everything to do with purchasing a property, please contact us.