Buying a property in Spain
Buying a home in Spain on your own can be a complicated and confusing process for those who are not Spaniards, involving unfamiliar legal transactions and large sums of money. There is also a significant amount of legal work involved to ensure the transaction is made safely, and complying with all legal and tax Spanish regulations.
If you are planning to purchase a house, a plot of land or any kind of commercial property in Spain, the first move you should make is to contact a Spanish solicitor, an independent professional who will protect your interests and make the transaction trouble free. You should never sign anything until you have sought independent legal advice. Choosing your solicitor is very important and it is worth finding one who you feel comfortable with, as regards both service and price.
Your house in Spain will probably be one of the biggest financial commitments you will ever have and it is essential that a professional guide you step by step through one of the biggest decision you will ever make.
Before purchasing it is very important to know the complexities of the procedure and the importance of such matters as:
- Requirements to be an owner of a property in Spain: having a Fiscal Identification Number (NIE), which must be requested to the Police Authorities, and open a Bank Account with a Spanish Bank for paying all suppliers of the property (water, electricity, telephone, community rates, etc).
- Taxes to be paid for the transaction: VAT 7% and Stamp Duty 1 % on the purchase price for new properties, Transfer Tax 7 % on the purchase price for second hand properties, and VAT 16% and Stamp Duty 1 % on the purchase price for Plots of Land from companies, and Commercial properties. It can also be agreed that the purchaser pays the Plusvalia Tax that is a Local Tax.
- Taxes to be paid in the future for having the property: IBI rates, Deed Income Tax, Wealth Tax.
- The main outlays and costs to be paid in the transaction: Notary fees, Land Registry fees and solicitor fees.
- Community rules and fees.
