All prices on our website are listed without taxes and legal costs.
Additional Purchase FeesIn addition to the asking price you will need to budget for between 13% & 15% more to cover taxes and fees. Below is a breakdown of the taxes and fees:
- 10% IVA (VAT)
- 1% to 2% Land Regsistry & Notary Fees
- 1.5% to 2% Stamp Duty
- 1% + IVA (VAT) Solicitor Fees
Reservation Deposits and Payment Schedules
Reservation fees and stage payment deposits differ between builders and will be dependent on the construction time for your new property. Below is a typical example of stage payments for an off-plan property purchase:
- €10,000 - Reservation Fee
- 25% + VAT - First deposit typically 28 days after reservation
- 25% + VAT - Paid on commencement of construction
- 50% + VAT - Final amount paid on completion
Deposits and stage payments are never paid directly to the developer or builder. All your payments are made to a special "guaranteed account" where your funds are fully protected and insured by a bank. In the event of a breach of contract by the developer any money paid by you will be immediately returned to you in full and with any associated interest.
If you are purchasing a key-ready property then it usual for the process to go straight from reservation to completion within 4 to 6 weeks without any need for stage payments to be made.
Número de Identidad de Extranjero (NIE)
When buying property in Spain you will need to obtain an NIE number (Número de Identidad de Extranjero) which is the equivalent of a UK National Insurance Number. If your lawyer has Power of Attorney in place for you then they can easily obtain this for you.
We recommend appointing an independent, solicitor to oversee the purchase of your new Spanish home. Your lawyer should be a member of the Spanish Bar association and ideally listed on the British Consulate for English Speaking Lawyers in Spain. To avoid travelling to and from Spain during the purchase process we also recommend granting your solicitor a special Power of Attorney. Legal fees are usually around 1% of the property price + IVA (VAT). The legal fees will usually include obtaining your NIE, full conveyancing, signing on completion, connection of utilities and setting up your direct debits.
We can assist you with finding the right bank for you and with opening an account. However, most Spanish banks in the region have English speaking staff and also offer online banking in English. So in reality there is very little difference between opening and operating an account in Spain and one in the UK.
The maximum LTV (Loan To Value) currently available to non-residents is 70% and rates can vary from around 1.5% for a variable rate and around 4% for a fixed rate loan. As in the UK, finance is offered in line with the applicants personal financial status and as an official broker for many of the major high street banks in Spain, we can study your finances and advise what options would be available to you. If you are looking for a mortgage in Spain then we advise you do this before you travel . This way you will know exactly what your maximum budget is as well as the terms of the mortgage should you find a property.
Completion date will vary widely depend on the stage of construction of your new property. However, would usually expect completion for a key-ready property to be between 4 and 6 weeks after paying your initial deposit.
Looking After Your Property
We can give you guidance on local property managers who have been operating in the region for over many years. Your property manager is there to ensure that your property is looked after whilst you are away and usually offer cleaning, laundry and general maintenance services.
Renting Your Property
In addition to basic management services our partners also offer both holiday and long term rental services. We have many years experience in managing and renting property in Spain for clients. We can therefore also advise on potential rental income for most properties in the Region and provide you with accurate data on incomes and running costs.
Anything We Missed?
Whilst this guide covers most of the questions we are frequently asked there may be something we missed. If so you can call us on 07961 222720 and we’ll be happy to help.