The First Steps

If you are serious about purchasing properties here in Spain there are a few things you should do first to allow a quick and easy transaction.

Open a bank account with one of the local banks. If you will be requiring a mortgage contact us ( the inmobiliarias - Inmo ) and we will point you In the right direction. You will need an account for transferring of funds prior to the purchase and for payment of electricity, water and community fees once you own a property. A simple current account is sufficient.

You will also require an NIE number; this is a Spanish tax registration number and involves forms and a notarized copy of your passport. Only one NIE number is required to purchase a property and for the sum of 120 euros we can organize this for you. Let us take the strain and do the application for you - price includes the latest N.I.E. identity card.

Many of our clients view properties while on a short trip or holiday to L'Estartit. As is often the case they find what they are looking for but are not in the position to pay the 10% deposit required to reserve the property.

In this case we accept a 1000 euros holding deposit on the property allowing the clients to return to their country and organize the necessary funds. We will then reserve the property for up to a two week period. However if the clients then decide not to go ahead with the 10% deposit the 1000 euros is non returnable.

During this temporary holding period the clients are expected to transfer the full 10% to our client holding account.

Once we ( the Immobiliaria ) receive the full 10% deposit we will send you a “contract of Arras” this is your receipt and is also a legally bound purchase agreement protected by Spanish law.

Once signed by both purchaser and vendor both parties are protected, for example if the purchasers decide to withdraw the 10% deposit is given to the vendor. If the sellers decide to withdraw then they must pay back 20% to the buyer.

A contract of Arras will have a completion date agreed by both buyer and seller and could be up to 3 months after the initial signing of the document. In some rare and extreme cases the vendor may agree to up to a 6 month period.

Once a contract of Arras is signed by both parties we class this property as good as sold.

Please note that the 10% deposit remains with Inmo Land & Sea (the Costa Brava inmobiliarias) in our client holding account until the day of signing the escriptura.

Mortgages in Spain.

Interest rates are currently 3.5%, most banks are willing to give a 70% mortgage over a period of 20 years to non residents. This can be a very quick and easy process that we can assist with. Contact us for more details with regards to mortgages here in Spain.

Taxes to pay

The transfer tax (Impuesto de Transmisiones Patrimoniales - ITP) The purchaser must pay this upon signature of the sales contract. Its value is 6 % of the purchasing price, as indicated in the sales contract.

Capital Gains tax on land (Plusvalía): This is the tax on the increase in the value of the dwelling since the last sale: And is paid by the vendor.

Fees to pay

Notary: You must pay the notary fees when you sign the escriptura, these are fixed on official scale and will vary depending on the size of the dwelling.

Total costs are generally less than 10% on top of the initial purchase price.

The sales contract - Signing of the escriptura

This is the actual day of signing the escriptura. We will be present along with the seller and in the case of a mortgage the bank manager. You will sign a purchase document (Contrato de Compra-Venta) before a Notary or witnesses, which shall contain the mortgage contingency, and the specifics of it: amount, rate and term, where applicable. The contract must accurately describe the property you are buying, fully identify the vendor and buyer, and state that the property is free of charges.

The Notary is the public official who makes this document to be legal with the information from the vendor and the inmobiliaria. He certifies that the parties sign the document properly. He keeps the original document in his files in case any problem could arise later. Note that the notary does not certify that all statements are true, only that the parties have sworn to them.

The purchase deed is registered with the Spanish Property Registry (Registro de la Propiedad). Once it is done, the title deed (Escritura Pública de Compra-Venta) fully assures your title: the registered contract makes you the owner of the dwelling.

The registration of the house is also important for tax purposes, the real estate tax (IBI tax ) is paid every year and can be paid directly from your account.

If you cannot be present to sign the contract, you can make a power of attorney allowing another person or Land & Sea to sign it for you, if necessary.

You will receive the keys to your new property upon signature of the contract in the presence of a Notary.

And finally..

Properties are frequently bought without mortgages and can take as little as 10 days to complete the transaction from first viewing to signing the deeds at the notary. However in most cases the seller will still request a deposit of 10% and a purchase agreement.

Unlike most countries we do not work solely on behalf of the seller. We work with both parties to achieve a smooth and swift transaction and our commission is paid by the seller.

Free Services for the purchasers of our listed properties.......

With an exception of the NIE numbers our inmobiliaria estartit services are free and we assist the purchaser from the time of the first viewing until the signing of the deeds. At this stage are job is done. There are certain responsibilities once clients have bought a property. Passport details, addresses, bank account details and NIE numbers must be provided to the local water and electricity companies along with the Town hall and in most cases the agency responsible for the community area and swimming pool. For a small fee Land & Sea can take care of these items. If you wish to employ a management company we are happy to provide information.

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