Buying Property in Spain
So you have found your ideal property, what's next?
Here is an example of some additional information for you with regards to purchasing your property/land in Spain.
When I find a property what are the steps I need to take?
You must be in a position immediately to pay a small holding deposit (usually a few thousand Euros). This secures the price. You will need to be able to transfer 10% of the property purchase price very soon afterwards for exchange of the private contract.
You will need a Lawyer, a Bank Account and an N.I.E Number (Numero de Identificacion de Extranero). We can introduce you to English speaking lawyers who will arrange things for you and also help you open a non-resident bank account through our associated banks.
The purchase process is simple.
Your lawyer will carry out all the necessary searches and then together with the vendor's lawyer will draw up a private purchase contract. When this is signed a deposit of 10% of the purchase price is paid. This corresponds roughly to exchange of contracts in the U.K.. After this contract is signed and for some reason you do not complete the purchase you will lose your deposit. If the vendor fails to complete, he or she will have to pay you twice the amount of the deposit. A date is then agreed for completion. This takes place at the Notaries Office, where the Title Deed (Escritura) is signed, the balance paid and the keys handed over.
Anything else?
- A contract for a purchase of land does not need to be in writing, a verbal contract is also binding.
- It is advisable to make a separate Spanish Will dealing exclusively with the Spanish Estate to accommodate any differences between the UK and Spanish Law.
- Under Spanish Law, a lifetime gift is always subject to Spanish Tax; and the tax burden will normally be greater than if the same property had been acquired on death.
- Transfers between spouses are not exempt
For additional information on the steps you need to take to purchase your property/land in any other Overseas countries contact us and we will be happy to advise.
