In Spain, the purchase of a property is a regulated process. We have a team of experts at hand to offer advice on how to proceed with purchasing in Spain, what to avoid and assistance in financing your purchase. Below is a brief outline on the basic procedures of buying in Spain.

Reserving Your Property
Before visiting Spain, ensure that you have access to sufficient funds to cover the reservation fee that's required to secure the property. Reservation fees are typically 6,000 Euros (roughly £4,000) and are best paid by credit card or in cash (rather than by cheque) as this results in the property being immediately withdrawn from the marketplace.

If you pay by cheque, there is a risk that you could lose the property to someone who can provide funds immediately, since a cheque drawn on a UK account can take up to 10 days to clear.

Legal Advice
It is highly recommended that anyone buying Spanish property engage the services of a Spanish solicitor to oversee the purchase process. At Live Estate, we work closely with a number of highly experienced English-speaking Spanish solicitors to ensure that you receive the very best possible advice.

Signing Sales Contract
Once a price has been agreed with the vendor both parties sign a binding sales contract. Even before signing this contract proof that the vendor owns the property and it is free of charges i.e a Nota Simple will be required as in Spain debts are charged to the property and any outstanding mortgage will be passed on to the buyer. A deposit of 10% of the purchase price is usually requested and the estate agent or solicitor will hold these funds in a client account.

Securing A Mortgage
The process of applying for a mortgage in Spain is much simpler than in the UK and is organised by your solicitor. Typically, Spanish mortgage companies are prepared to lend up to 70% of the purchase price of a property. In addition, many new developments are offered for sale with pre-arranged mortgages with favourable interest rates already in place.

Euro Mortgages can be arranged on Spanish properties and current rates are attractive. However, all mortgages are full status and proof of income and outgoings will be required. Loans can be arranged for acquisition, renovation & construction purposes although in the case of stage payments this will depend upon where in Spain you intend to buy.

It is possible to buy a property through an offshore company but both legal & taxation advice should be sought in this case.

Signing Deed of Sale
The notary in Spain is a public official who will be required to witness the deed of sale but you should take expert, independent legal advice to protect your own interests. Notary Fees payable when buying in Spain are approx. 10%

Costs - Fees and Taxes
Typically there are two taxes and three sets of fees involved when purchasing property in Spain. As a guideline, the total costs involved will equate to around 10% of the price of the property being purchased, which you should consider when setting your budget. If you have any questions or would like more information about any aspect of purchasing property in Spain please contact us.

There are two Property Taxes:

1.) Impuesto sobre bienes inmeubles/IBI – based on the fiscal value of the property
2.) Rendimientos del capital inmobiliario – based on the fiscal value, and purchase price.

Ongoing Cost.
Property owners in Spain, as in their own country, are liable for the payment of their ongoing charges. Your legal representative will advise you of these charges at the time of completion.

In Spain these will include:
• Community Fees
• Property Income Tax and Wealth Tax
• Local Council Rates
• Property building & contents Insurance
• Utility services (water, electricity, etc.)