It’s important to note that when you acquire a property in Spain the Purchasing Costs are about 14-15% of the sales price when buying new properties and about 12% of the sales price for re-sale properties. The purchase costs include items such as Taxes, Notary Fees, Legal Fees of your local Lawyer and the Land Registration fees.
When purchasing Commercial Premises, Parcels of Land and Garages, not annexed to your property, Taxes and Stamp Duty may vary, but your lawyer will advise you about this in each case.
Any buyer of a property in Spain should always obtain and use legal advice from a local qualified Spanish lawyer. This lawyer should also speak your native language in order to avoid any misunderstandings. We have the advantage of having lawyers available who are able to cover most of the major languages.
Your lawyer will obtain for you a N.I.E. (Foreigners’ Identification Number and the Tax number), will carry out the Due Diligence of the property, sign the Title Deed (Escritura) on your behalf (if required) and register your property at the Land Register Office once the sale is completed.
When you have found the right property for you, you should secure it by signing a Reservation Agreement and pay a Reservation Fee to your lawyer’s client account, or to our own secure client account. A Reservation Fee is normally between 6000 -10 000 Euros. After this your lawyer will take care of the rest by granting a Power of Attorney to your legal representative in Spain and which can be organize at a Notary office in 1 day whilst you are still here.
A property is normally purchased by an individual, but it can also be purchased by a company. The company ownership is recommended when planning to buy several properties and your intention is to rent them out and then sell properties at a later date. Your lawyer can take charge of incorporating a Spanish company for you; this would also be done through the granting of a Power of Attorney.
Golden Visa (non-Europeans): The Spanish government is offers a Residency Permit valid for 5 years including the right to work in Spain and later on enables you to obtain Spanish Citizenship, (for the whole family) as long as you are able to invest a minimum of €500,000 in Spanish property. Your lawyer will be able to take care of all the formalities to obtain this Golden Visa. The minimum investment can be in a single property, or multiple properties (residential or commercial) and you must maintain your minimum investment for the duration of your residency.
By engaging from the very beginning a professional real estate agent and a reputable lawyer you will be guaranteed not only that you will be purchasing the best possible property for your money, but also experience a smooth and trouble free purchase process.
Seppo and Peter