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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