Tax, Legal and mortgage advice
When buying something as important as a property, a good advice is of utmost importance
In the purchase process of a property in Spain you have three main steps to comply: 1) Reservation of the property, 2) Purchase contract, 3) Signing of the public deed. All these steps and respective contracts should be done by a Spanish lawyer of your free selection, who also gives you the entire legal and fiscal advice. For the clients who buy with us, we can recommend high professional and experienced lawyers in the region who also are able to assist you in your own language. As part of our personalised service and being your real estate agent, we additionally give continuous support during all these steps with the lawyer, we offer a professional financial advice and put you in contact with local and international banks, if necessary.
Apart from the purchase price of the property, as a general guide, when buying a residential property in Spain, you should account for about 12-14% (resale vs. new build) of the purchase price as extra costs. These costs include:
- Transfer Tax*: Between 8 and 10% on the total purchase price for resale properties or 10% for new building projects
- Notary’s fees and taxes: ±3%
- Your lawyer: ± 1,2%
*NOTE: Due to the Corona Crisis 2020-2021, the Spanish Authorities in Andalusia reduced the transfer tax for all kind of property purchases to 7% until the 31st of December 2021. See the official publication of the official authority (Junta de Andalucía): click here
In order to protect your interests, it is fundamental that you engage the services of a good Spanish lawyer to buy a property in Spain. Our recommended lawyers and tax experts who are fluent in French, Dutch, English and, of course, Spanish, are able to advice you in the acquisition of a property based on your needs (in your private name, jointly with your spouse and/or children or through a national or foreign company, among others). To be able to buy and sign all these contracts and before the purchase, your lawyer verifies whether all of the legal and tax aspects of the property are in order and take care of all the administrative procedures such as:
- Applying for the Foreign Identification Number – NIE (Número de Identificación de Extranjero)
- Assistance with the transfer of funds
- Tax payments
- Registration of the property in the Land Registry
- Checking building licence (licencia de obra) and/or first occupation licences (licencia de primera ocupación)
- Change of title holder
- Any other services that might be necessary
For buyers interested in a bank loan, we can recommend local banks where some of the employees speak your language.
Once you have completed the purchase process your lawyer will assist you with the opening of a Spanish bank account, arranging contracts with the local utility companies and informing the Community of Owners that you are the new owner, among others.
Each year, as a property owner in Spain, you have to make a Spanish tax return, which your lawyer can prepare for you