Legal Process
The Legal Process of Buying a Property in Spain
We regularly receive questions related to legal matters and the costs involved in the buying process, so we put these questions and others to our legal team, asking them to explain the main points for us. Please feel free to browse through this information, but if there is a question which you feel is not addressed, or if you would like more personal legal advice on any part of the property buying process in Spain, then please feel free to contact Prohome Spain using the contact section at the bottom of the page.
Thank you
(Your Prohome Spain Team)
BUYING A NEW BUILD PROPERTY – TAXES AND EXPENSES
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Value Added Tax (I.V.A.) This tax is paid by the buyer and the Spanish IVA for the transmission of a new built property is currently 10% of the full price of the house. If you are paying your new home in instalments, then each payment to your builder must include the relevant tax, step by step. |
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Judicial Documentation Act Tax (A.J.D.) This tax is paid to the notary and is calculated as a percentage of the value declared on documents prepared in connection with the purchase of your new property, including the Escritura (title deed). This tax amounts to 1.5% of the cost of the property. |
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Legal Conveyancing fee This is the fee you pay to your solicitor in order to take care of the whole conveyancing process for you and they total €1,500 (including 21% tax.) Notary Cost: In Spain, Notaries are public officials who are responsible for preparing and witnessing contracts and other important legal documents which are registered at the Land Registry or other official registry. The actual cost for the Notary fees are variable, but can be estimated to be around €900 in an average case. Land Registration: This is the cost of registering your Escritura (title deed) at the land registry and it makes sure that your rights of ownership of the property are legally recorded. Again we need to estimate this cost due to the complicated method used to calculate the fee. Our estimate is around €700 in an average case. |
BUYING A RESALE PROPERTY – TAXES AND EXPENSES
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Habitation certificate: This document is issued by the town hall which covers your property and is needed to be in active force when you go to the notary in order to complete on the purchase. The cost of obtaining this document on your behalf can vary from €200 to around €700, depending on the town hall and situation of the property. Legal Conveyancing fee This is the fee you pay to your solicitor in order to take care of the whole conveyancing process for you and they total €1,500 (including 21% tax.) Notary Cost: In Spain, Notaries are public officials who are responsible for preparing and witnessing contracts and other important legal documents which are registered at the Land Registry or other official registry. The actual cost for the Notary fees are variable, but can be estimated to be around €900 in an average case. Land Registration: This is the cost of registering your Escritura (title deed) at the land registry and it makes sure that your rights of ownership of the property are legally recorded. Again we need to estimate this cost due to the complicated method used to calculate the fee. Our estimate is around €700 in an average case. |
THE CONVEYANCING PROCESS (What our legal team do for you)
Searches are prepared on the property you wish to buy to ensure that it is free from any encumbrances which may cause you a problem at a later date and check that the person selling the property is legally entitled to do so.
Present Owners are contacted on your behalf to ensure that the purchase goes smoothly and deal with any issues that may arise and cause issues on the day of completion. Also, all documentation such as inventories of furniture and insurance certificates etc are sought directly.
Utility Bills and Community Fees Our legal team will change the owners details with these outstanding companies and organisations and ensure that your new direct debits and contracts are in place so as to ensure there is no disruption to the supply of services.
Title Deed Registration is carried out on your behalf, making sure that the title to the property is safely and securely in your name at the end of the process
Payment of Taxes is carried out on your behalf ensuring you have no unexpected tax issues at a later date
Mortgage or Finance Applications can be carried out on your behalf
Private Contracts are drafted by our legal team, according to all applicable legal requirements and fully mindful of protecting our clients interests.
Notary Visits are accompanied by one of our legal team who will also provide translation of the legal documentation (A Power of Attorney service is also available at extra cost which will enable our legal team to complete a purchase on your behalf, in your absence).
Constant Ongoing Assistance is offered by our very experienced legal team to ensure that your purchase is as smooth and trouble free as possible, answering any questions and fixing any issues as they arise to give you complete peace of mind.
ESTIMATED ANNUAL EXPENSES FOR PROPERTY: NON RESIDENT OWNER
Non Resident Tax is payable annually in arrears and is based on your property’s value.
IBI (Spanish Council Tax) IBI is payable annually to your local town hall and is a tax on land which has a property on it. The value on the”cadastral” (town hall) register is used to calculate this tax and the person who owns a property on the first of January is responsible for paying the tax during the following payment period. This means that in most cases the seller will pay this tax for the first year.
Community Fees are only paid if your property belongs to part of a community which owns common assets, usually a swimming pool, car park or garden area, but it can also include private access roads, or elevators in apartment buildings. The fees vary dependant on the assets and maintenance level and are usually payable monthly, quarterly or annually.
Utility Bills These are the bills for energy and water and are due at different times dependent on the actual bill. Electricity bills are payable monthly and there is a minimum charge of approximately €35. Gas is payable to your supplier (if it is available in your location) and again is paid monthly. It is calculated on usage by meter. Your Water bills are payable quarterly and again there is a minimum bill of around €35.
House Insurance can vary tremendously dependent on a variety of factors, but the cost is very reasonable compared with many other European countries. Our legal department can prepare a quotation and arrange cover if you require assistance.
Please remember that these figures are estimates on the annual costs, but if you wish more accurate figures based on a specific property and your circumstances then our legal department will provide you with a personal estimation.
PROHOME SPAIN SOLICITOR FEES
Conveyancing Fee: €1,500
NIE numbers (a foreign identification number) are essential for any foreign house purchaser: €150 per person on the purchase document
Padron (certificate of enpadronamiento) obtained from the town hall €50
Legal Will Preparation (including the Notarising Fee) €200
Retention Tax Reclamation process €400
Change of a non-Spanish Driving Licence to the equivalent Spanish document €100
Paperwork for re-registering a foreign motor vehicle onto Spanish registration plates €400
Spanish Tax return preparation (Per Person) €100
Preparation of Power of Attorney (including Notary fee) €200
Habitation Certificate or first License of occupation request €100
Energy Efficiency Certificate “Certificado Eficiencia Energética” €200
Prohome Spain reserve the right to charge €50 flat fee for other non-specific Legal Consultations
These prices include V.A.T at 21%, are subject to change and are correct as of 1st September 2014