Buying a Property in Spain

When you have decided on a property to purchase the first procedure is to pay a deposit and sign a reservation contract.

The deposit is normally 10% for resale properties. The contract will normally set out the remainder of the purchase.

On completion, you will need to sign the Escritura before a Notary. The remainder of the outstanding balance will also be paid either by yourself or by a mortgage company. Once the Escritura has been signed it will then be registered at the Title Registry Office.

You must be made aware that there are various taxes and costs that must be paid when purchasing a property in Spain.

Legal fees normally amount to between 1-2% of the purchase price of the property. Within this price the solicitor will carry out all the necessary registry searches, examine the purchase agreement and assist with completion. There is a transfer tax to be paid of 7% of the declared purchase price. This is paid when the Escritura is registered at the Title Registry Office. A stamp duty tax of 1% of the purchase price is payable when purchasing a new build property only.

Notary fees and land registry fees will vary depending on the property and the area. A general guideline for additional costs is approximately 10% of the purchase price.

You are advised to seek the guidance of a competent solicitor before paying a deposit and signing a contract.