Important information for buying a home in Spain
When you have decided to buy a house in Spain, , some points have to be cleared out at the start, so you can be sure you are only buying a house and no possible debts:
- An extract of the register of real property has to be asked by the competent register office. Here you can see that the house is not saddled with debts or mortgaged.
- Also has to be checked by the competent authorities and distributers of water, electricity, taxes etc. if there are any old bills unpaid.
- Normally a private buying contract or buying option is first being signed. Herewith all relevant points of agreement are settled, for example the amount of the prepayment, the date on which the amount is due and the transmission date of the property, if the furniture is included in the buying price, etc.
- By signing the ”Escritura pública” (contract of notary) by the notary the property is transmitted to the new owner. Normally the amount that is still due, is paid here by cheque or cash. This way there is no temporary interruption of the transaction.
- All this is the responsibility of our agency and it will be checked properly.
- Immediately after signature by the notary you get a copy (Copia Simple) of the original escritura. The original will be given approximately 6 months later when it is examined and registered by the competent Registration authorities.
- All services, for example water, electricity, telephone, etc. have to be transferred at the name of the new owner and all necessarily banc procurations for moving into the house must be signed by him so that the new account situation can take place without any problems. Also herewith we will help you and take the necessary steps by the authorities in question.
Costs & Taxes
Also very important points are the taxes and costs for seller and buyer: The seller has to pay 1. the coupontax (interest) and 2. the Plus Valia (local value added tax), the buyer has to pay 3. the landtax / Value added tax, 4. the taxes for official documents, 5. the Notary-costs and 6. the Registration-costs. Detailed explanation of the one-off taxes and costs:
1. Coupon Taxes
When the seller is at that moment not in the possession of the Spanish Residencia then a prepayement within 30 days after signature of the Escritura is due to the competent Inspection of taxes. This payment is 3% of the selling price declared in the new Escritura.
The buyer is responsable and has to see that this amount is paid to the Inspection of taxes. If this 3 % is not paid, than the property will be charged with a debt of this amount.
For this reason the buyer hold this 3 % prepayment tax in of the sellingprice and transmit it himself to the Finance office or get it executed by the notary.
When the seller is in the possession of the Spanish Residencia, sells his property and wants to buy a new house in Spain, or it is already 10 years in his possession, than he does not have to pay this 3 % prepayment on the coupontax.
2. Plus Valia (Local value added tax)
The Plus Valia has to be paid to the municipality and is calculated by the increase in value of the plot at the buyingmoment and the sellingmoment.
The calculation of the more value of the plot is based on different factors and also varies from territory to territory.
The tax that´s due increases with the number of years of possession and is based on the size of the plot. This tax has, normally, to be paid by the seller, but when agreement of the two partners, it can also be paid by the buyer.
3. Landtax/ Value Added Tax (V.A.T.)
The Landtax , due by the buyer, is 10 % of the value declared in the new Escritura .
By a new construction or by buying a new estate in stead of a landtax you have to pay a value added tax of 10 % of the declared value.
The landtax/ value added tax has to be paid in 30 workingdays, after signature of the Escritura pública.
4. Taxes for official documents
Taxes for official documents come to 1,5 % of the declared value and are to be paid by all proceedings whenever an official document is needed, when it has a financial contents and has to be registrated in the register of real property.
5. and 6. Notary- and registration costs
These costs are calculated on ground of fixed costtabels. Normally you can count on a value of approximately 1.5 % (for both costs) of the value declared in the escritura.