GUIDE TO BUYING PROPERTY IN SPAIN
NIE number. The first requirement that starts the process of buying a property in Spain is to get your NIE number. Non-resident property buyers in Spain can apply for a NIE (foreigner's identification number in Spain) in any of the Spanish consulates in your country which could save them having to come to Spain a few days early and endure long queues in an Oficina de Extranjeros in a Spanish police station.
Anyone intending to sell or buy property in Spain (or indeed anything else which involves paying tax to the Spanish inland revenue) needs a NIE by Spanish law for tax purposes.
Spanish Bank-account. We would recommend that if you are purchasing a property that you open a Spanish bank account as soon as possible.
Pre-Contract. Once you have agreed to buy/sell a property in Spain and we have been instructed, using a copy of the current Escritura (conveyance deed) we will obtain a Land Registry search result (Nota Simple) of the property to confirm who owns the property, that they are authorized to sell it and whether or not there are any debts or mortgages on it. Once the Land Registry search result has been obtained and is satisfactory then we will either prepare a private contract or proceed directly to the signing of the Escritura. The signing of the Escritura will take place in front of the Notary local to the property, which is being sold or purchased.
Post-contract. Once a deposit has been paid, we will liaise with the parties to the contract and agree a date to complete either the purchase or sale. As mentioned above, this will take place at the local Notary.
Completion. This will take place at the Notary local to the Property. On the day of completion the balance purchase monies will be paid along with some of the other costs. From the date of completion you will be the owner of the property. Once registration has been completed an Escritura will be issued in the names of the buyers. It can take as long as 6 months for the Escritura to come through and sometimes even longer if you have purchased unregistered land, which is in the process of registration.
3% Retention on sale. If you are a non-tax resident selling your Spanish property the purchaser’s lawyers will retain 3% of the total sale price to be paid on account of your capital gains tax liability. The purchasers have 1 month to pay this amount to the Spanish tax authorities and the seller then has a further 3 months to pay any remaining balance of the capital gains tax.
CONGRATULATIONS you are the owner of a Spanish Property.
Water/Electricity/Central Gas in Spain
If you are purchasing a new house then the utilities will usually only be connected after completion and connection can take up to four weeks. Bear this in mind if you intend to occupy the property on completion.
If you are purchasing a second hand house then all existing contracts that the seller has can be transferred over to you once the Escritura, which can take up to three weeks to be produced by the Notary, is available. Then a certified copy of the Escritura can be produced to the utility companies and the process of transferring the utility contracts can commence. The good news is that in all likelihood you would have connections to the utilities on completion but it could take some time before the actual contracts are in your name.
Please, be kindly invited to let us know if you needed further help and advice.
info@valdemarconsultores.es
NIE number. The first requirement that starts the process of buying a property in Spain is to get your NIE number. Non-resident property buyers in Spain can apply for a NIE (foreigner's identification number in Spain) in any of the Spanish consulates in your country which could save them having to come to Spain a few days early and endure long queues in an Oficina de Extranjeros in a Spanish police station.
Anyone intending to sell or buy property in Spain (or indeed anything else which involves paying tax to the Spanish inland revenue) needs a NIE by Spanish law for tax purposes.
Spanish Bank-account. We would recommend that if you are purchasing a property that you open a Spanish bank account as soon as possible.
Pre-Contract. Once you have agreed to buy/sell a property in Spain and we have been instructed, using a copy of the current Escritura (conveyance deed) we will obtain a Land Registry search result (Nota Simple) of the property to confirm who owns the property, that they are authorized to sell it and whether or not there are any debts or mortgages on it. Once the Land Registry search result has been obtained and is satisfactory then we will either prepare a private contract or proceed directly to the signing of the Escritura. The signing of the Escritura will take place in front of the Notary local to the property, which is being sold or purchased.
Post-contract. Once a deposit has been paid, we will liaise with the parties to the contract and agree a date to complete either the purchase or sale. As mentioned above, this will take place at the local Notary.
Completion. This will take place at the Notary local to the Property. On the day of completion the balance purchase monies will be paid along with some of the other costs. From the date of completion you will be the owner of the property. Once registration has been completed an Escritura will be issued in the names of the buyers. It can take as long as 6 months for the Escritura to come through and sometimes even longer if you have purchased unregistered land, which is in the process of registration.
3% Retention on sale. If you are a non-tax resident selling your Spanish property the purchaser’s lawyers will retain 3% of the total sale price to be paid on account of your capital gains tax liability. The purchasers have 1 month to pay this amount to the Spanish tax authorities and the seller then has a further 3 months to pay any remaining balance of the capital gains tax.
CONGRATULATIONS you are the owner of a Spanish Property.
Water/Electricity/Central Gas in Spain
If you are purchasing a new house then the utilities will usually only be connected after completion and connection can take up to four weeks. Bear this in mind if you intend to occupy the property on completion.
If you are purchasing a second hand house then all existing contracts that the seller has can be transferred over to you once the Escritura, which can take up to three weeks to be produced by the Notary, is available. Then a certified copy of the Escritura can be produced to the utility companies and the process of transferring the utility contracts can commence. The good news is that in all likelihood you would have connections to the utilities on completion but it could take some time before the actual contracts are in your name.
Please, be kindly invited to let us know if you needed further help and advice.
info@valdemarconsultores.es
