Lawyers

Buying a property in Spain can be a wonderful and rewarding experience as long as you follow some basic rules and the most important of these rules is to use a lawyer. There are many English–speaking Spanish lawyers who are more than willing to offer their services to protect your interests in the purchase of property. The lawyer should tell you in advance what his fees are. Some lawyers will fix a fee while others set it at percentage of the purchase price. The normal fee in this area is 1% of the purchase price of your property, to which you must add 16% VAT.What can you expect from a lawyer for this fee?

•    Legal Attendance by English-speaking lawyer in the purchase/sale of your property.

•    Explanation of the contract, and all the legal implications.

•    Negotiation of changes to the contract as required.•    Assistance in the application or termination of a mortgage loan if required.

•    Assistance in the process of opening an account in a Spanish bank.

•    Liaison with the vendor’s/purchaser’s solicitor or estate agent.•    Translation and explanation of all documents requiring your signature.

•    Arranging payment of and taxes relating to the transaction.

•    Searches for the existence of debts, loans or other commitments on the property.

•    Application for NIE (fiscal number).

•    Translation of the deeds before the notary.

•    Advice on Spanish taxes related to the transaction, ITP, IVA, capital    gains etc.

•    Arranging registration of the title at the land registry.

•    Resolving all legal questions involved in the transaction.

•    Buying by power of attorney if you so require. 

The Costs involved in the Purchase of a Property

As a normal rule, to estimate the costs of buying a property in Spain add approximately 10% of the purchase price, to allow for all the fees and expenses involved. This 10% is broken down as follows:

• 7% for Vat (new construction) or Transfer tax (re-sale property)

• 1% for lawyers Fees

• 1% for Notary and Land registry

• 1% for Stamp duty

Note: f you are purchasing a plot of land, commercial premises or individual garages the VAT increases to 16%.

Opening a Bank Account

It is very easy to open a bank account in Spain. All you need is a copy of your passport and expect the bank to ask you for the following information:

• Full name

• Marital status

• Date of Birth• Address

• Contact phone number

• Occupation

You will have to pay 15€ for a non residence account certificate and this is paid every two years. Bank charges can vary greatly so our advice is to shop around and find the best for your personal needs. 

NIE (Numero de Identificación de Extranjero)

The NIE is necessary for almost any official transaction you may want to do in Spain. This tax identification number can be obtained by bringing a photocopy of your passport to the nearest department for foreigners and filling out the appropriate form. Between 10-14 days later you will be issued your NIE which you must collect from this department.Huelva is the nearest office in this area and to avoid long queues and complications it is advisable to leave this chore to your lawyer. 

Mortgages Mortgages in general are cheaper in Spain compared to the rest of mainland Europe.Banks offer both fixed and variable interest rates. Non residences are usually offered 60% mortgages with a term of 15 years maximum. The variable being the most sought after at this present moment in time.The variable rate is based on Euribor (the European Mortgage interest rate) + a percentage that each bank adds, normally Euribor + 1%.  Conditions can vary greatly from bank to bank but here is an example of a mortgage:    

Please note there will be opening commissions to consider which can oscillate between 0.5% - 2%. Cancellation or subrogation fees can also be charged.  You are obliged to take out house insurance when taking a mortgage in Spain.