GUIDE TO BUYING A PROPERTY IN SPAIN
This is a brief guide to purchasing a property in Spain we strongly recommend that you use a qualified Lawyer to represent you in the buying process if you do not have one we can recommend one
Once you have found your dream home in the sun the procedure towards completion is as follows
A reservation deposit is required as a sign of good will this is usually 5,000€ (and will be held by the Agent or your Lawyer) this deposit will ensure the property is reserved and taken off the market and also starts the conveyancing process by your Lawyer, usually within 2 weeks and when your Lawyer is satisfied that everything is clean you will be required to exchange contracts and pay a 10% deposit. The private contract (Compra Venta) will have a fixed date for completion at a public Notary agreed by both parties
SO WHO PAYS WHAT
The Buyer is responsible for the property purchase tax which varies depending on the price of the property up to 400.000€ it is 8% between 400.000-700.000~it is 9% and over 700.000€ it is 10%. You are also required to pay the fees for the Notary the Land registry and your Lawyers fees which are usually 1% of purchase price as a rough guide if you purchase a property between four and seven hundred thousand euros you will be looking at 10% of purchase price.
The seller is responsible for:
Plus Valia, Capital Gains Tax, Agents Commission 5% plus 21% IVA, and Lawyers Fees