A step-by-step guide for property buyers, from your initial enquiry, we guide you through the process.
Taxes: For new build property there is VAT of 10% also stamp duty of up to 2% and for used properties (re-sales) there is a transfer tax of 8-10% depending on the region you buy, there is no stamp duty on a used property purchase.
In Spain, the sale must be taken through a notary, this process is to exchange the purchase contract. The buyer is responsible for the notary fees. The fees vary depending on the purchase price.
The new owner must register the property with the land registry, this usually costs around 0.5% of the purchase price. Utility Connection Fees: To connect a property to the utility of water, electric,ity or gas there are fees to pay or if it is a simple reconnection there are also fees. When the services remain in operation there are fees for changing the subscription. Financing the purchase: There are some specialised banks and lenders that will help you with a mortgage or loan for buying overseas property. You may even get advice from your own high street bank.
Naturally depending on size and how much you will use the property will depend on the running costs of a Spanish home. Most properties are subject to a community charge, waste disposal, home insurance, and IBI (property tax) which is annual