Before
committing yourself to buying the property, you should
ensure that pre-contract enquiries and searches are carried
out to protect your best interests. By taking common-sense
measures you will safeguard your investment and ensure
a trouble-free conveyance.
We
work closely with various independent legal firms on
the Costa del sol, who can give you sound advice when
buying property under Spanish Law, and we are in constant
consultation with them to protect our investors.
New
Build Homes
In most cases the developer
will offer a standard contract of sale, requiring an
initial down-payment and a number of interim or staged
payments, which are generally linked to progress or
construction and competed work stages. In most cases
the final payment is made on completion of the works,
when the Deed of Conveyance is signed.
Any
interim payments you make to the developer while a
construction is in progress must be guaranteed by a
performance bond/bank guarantee or insurance policy.
Registration
Before
having your deeds registered at the Land Registry you
must apply for
registration as a non-national (Identification Number
for Non-nationals). This is a mere formality, for
which you only require a certified copy of your passport,
and a signed application form. You will require this
identification number for non-nationals should you
wish to open a Spanish bank account.
Registration
of your deeds at the Land Registry usually takes six
or seven weeks from the date on which the deed was
signed before the Notary Public.
Proof
of registration is unequivocal proof of title, and
that title is guaranteed by the Land Registry.
Fees
and Outlays
In either case, you must bear in mind that
the fees and
outlay/disbursements entailed in any property purchase
will amount to around 9.5% of the purchase price. Most
of this 9.5% goes towards taxes on the transaction
or stamp duty, which amount to 7.5% when purchasing
a newly built home.
The
rest covers notary's fees (in Spain all deeds must
be attested by a Notary Public), Land Registry fees
and your lawyers fees. The only exception where taxes
are concerned is the first time transfer of development
land (a site) by a developer, in which case you would
be required to pay 16% VAT in addition to the Notary's
fees, Land Registration fee and lawyer's fees.
Making
a Will
It is always advisable to make a will in Spain
in respect of your assets and property in this country.
Making
a will facilitates future probate proceedings and reduces
expenses. Drafting and signing a will is a simple and
inexpensive procedure.
Thousands
of property transactions take place each year on the
Costa del sol. In the vast majority of cases these
transactions prove to be an excellent investment, bringing
many advantages to the investor, provided that the
procedures and formalities are properly handled and
supervised by a lawyer. Your lawyer will answer all
your queries and ensure that risks are kept to a minimum.
All
this might seem daunting but we, along with independent
lawyers, will take you carefully through each step,
ensuring you make all the right moves and our sound
knowledge
and experience will help make your investment a sound
one for the future.
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