Buying property in Spain
Every country does things slightly differently, and so it is no surprise to learn that the buying process in Spain may be a little different to what you might be used to. This is a summary guide to the process, if you buy with us we can recommend independent legal advisors for you.
Reservation stage. The reservation contract.
A reservation contract is the first stage and is standard practice when buying property in Spain. This contract secures or reserves the property for you. It is usual to pay a deposit at this time. The contract will usually specify a certain amount of time at the end of which you must move to the second stage. During this first stage your legal team will conduct various searches. This deposit is not normally refundable if you decide not to proceed.
Stage two. The private purchase contract.
Following the due diligence undertaken by your legal team as part of stage one if you then proceed you must have a private purchase contract. This contract between you and the seller will be drawn up by your lawyer and will include the amount to be paid, the completion date, and various technical details relating to the property including the official government registration number of the property. (referencia Catastral)
Costs related to buying property in Spain
These costs are presented as a guide and can vary depending on the exact type of property. Costs are for Andaluciá. Generally speaking, you can expect to pay between 11.5% and 14% of the purchase price in costs.
- 10% IVA (government sales tax) on new property.
- 8-10% IVA on re-sale property
- 1% notary fee (this is a mandatory requirement)
- 1% legal fees (this rate is regulated)
- 1.5% stamp duty
This information is provided in good faith and for guidance only. Always seek independent legal advice.