Buying
property in Spain -The purchase contract
You
may find that the buying procedure in
Spain is a little different to what you
are used to in your own country. It is
always a good move to ensure that you
are fully aware of the terms and
conditions of the contract before you
sign, once signed, the contract is
legal, any deposit paid will be lost if
you change your mind at a later stage.
Always deal with a reputable agency and
always use the services of a Spanish
lawyer. Please remember, that when
buying a property in Spain you must
always use a local Spanish lawyer.
The
normal procedure after finding a
property you hope to purchase is to
determine the full price, at this point
terms of the contract can be agreed and
the amount of deposit can be decided
upon, this will depend on whether you
are buying a new property directly from
the developer or a resale. Normally at
this stage a visit to the Lawyer is
recommended, he or she will be able to
vet the contract and take up contact
with the seller. Once the contract is
signed and the deposit paid, all terms
& conditions and price are fixed.
We
will supply you with a list of your
likely in-going and on-going expenses of
the purchase, naturally your lawyer is
there to answer all of your question as
well. Always be sure that you are aware
of your payment schedule, when the
amounts have to be paid and how they
will be paid You should also make
provisions for these payments allowing
for the time it takes for funds to be
transferred to Spain, transfers normally
take 3 to 5 days, again we will make
sure that before you return home you are
fully aware of all aspect of the
purchase. We will also take the
opportunity to assist you in opening a
bank account as this is necessary to
first, purchase a property in Spain and
secondly to maintain your home once you
have purchased.
Once you have returned home there are
always more questions that you would
like to ask us, the door is open at
Coastal Realty, just get in touch and we
will give you the answers. You should
always keep in mind that we are here to
help you, and we understand that this is
most likely your first purchase in
Spain. We have sold hundreds of
properties and arefully experienced in
looking after client's needs.
Buying
property in Spain -Payment Terms
Once
you have made your decision to purchase
and considered all the various costs
involved, please ensure that you
understand the payment terms as they may
vary a little according to where and
what you have decided to buy. Normally,
by the time you decide you will have
already discussed a great deal about the
buying procedure with our staff. It is
normally at this stage that we will
introduce you to an independent
solicitor who will also in addition to
informing you about the payment terms,
will discuss the terms and condition of
the contract with you
Having
made your decision, the first thing you
will be asked for is a deposit to hold
the property and ensure the price and
conditions of the contract, this is
standard and to your benefit. If you
decide to buy a new property then the
payment scheme can be within reason
tailored to your comfort, as the
developer is here solely to sell
properties, you will find him reasonably
flexible. You may have decided to buy a
resale property, again the above will
still apply, however, you will be
dealing with an individual and therefore
the terms may be as much to the vendor's
benefit as they will be to yours. Always
remember, we are here to see that
whatever you decide is dealt with in a
professional manner.
Most
resale contracts will require that you
leave a 10% deposit with the balance of
the payment being paid on completion at
the notary, this normally takes one
month from start to completion. New
properties tend to adopt a different
payment scheme, this is as most new
properties will be under construction
and you will be making stage payments to
the developer throughout the
construction period.
In
either case buying resale or new you
will have additional expenses of the
purchase, IVA (Value added tax) Notary
& registration fees, conveyance,
house insurance, wills and a few other
items which all amount to approximately
10% of the purchase price. We always
supply our customers with a
comprehensive list of all the likely
additional expenses of the purchase. We
would also like to mention that Bank
Guarantees are available to all our
clients for each stage payment that is
made, ask our staff for more details and
you will be happy to know that your
money is always safe with the bank
guarantees. Mortgages, you may require a
mortgage to assist with the purchase of
the property, not a problem, as we are
constantly working with the Spanish
banks, arranging mortgages for our
clients. The Spanish banks normally lend
up to 65% of the value of the property
and the mortgage will run for a period
of 10 years, our staff will be happy to
discuss all details regarding your own
personal requirements on request.
Taxes and Charges In ALL cases there are
taxes and charges applied to the
purchase cost which have to be paid by
the buyer. When buying new property
I.V.A (Value added tax) currently the
l.V.A payable is 7% in addition to this
you will have the expenses of the
notary, registration fee, in some cases
legal rights and plusvalia. If you
decide on a resale property, then you
will find that you are no longer paying
I.V.A. but instead you will pay I.T.P.
which is a transfer tax currently 7%. As
a general rule you should allow 10% of
the purchase price to cover these
expenses. Remember, we will give you a
list of all your in-going expenses.
Buying
property in Spain - Living in Spain
During
the past 15 years a number of major
factors have ensured that Spain enjoys
long term growth and stability. The
change from dictatorship, coupled with
Spain's entry into the EEC, has brought
prosperity unthought of 25 years ago.
Having one of the world's finest and
healthiest climates helps, with an
average of 320 days a year of sunshine
and no real extremes.
There
is a wonderful mixture of people and
cultures, particularly along the coastal
areas, and a long history of settlement
by various armies has seen a
cosmopolitan lifestyle develop. The most
recent great armies seen to be invading
Spain include those of our clients,
seeking a better lifestyle, quality of
life, healthier atmosphere and friendly
people, not forgetting about that great
climate.
Many
clients ask about the cost of living,
well first it has to be said that for
many things, the cost of living is still
quite low, the climate and lifestyle
ensures this. Fresh food is available
daily, fish caught and sold every day
and an abundance of fruit and
vegetables, especially this forms the
Mediterranean diet, this with a little
vine and plenty of olive oil. There are
plenty restaurants that offer a 3 course
lunch (menu del dia) for around 6 Euros
per head, which includes a beverage and
coffee.
Medical
facilities are excellent in Spain and
there is a first class National health
Service (social security) which is free
to those within the EEC with reciprocal
arrangements, (you should contact your
local Spanish Embassy for more details).
Hospitals and clinics are everywhere,
most with multi-lingual staff. Private
health insurance is also available at
competitive rates.
Spanish
schooling is excellent and of a high
standard, for those of you with young
children it is best to move them
straight into a Spanish school where
they will be taught English as a second
language, very quickly they will be
talking Spanish as a native. There are
plenty of private schools, and foreign
language schools. Full details can be
supplied on request.
Standard
annual costs such as rates etc. are
reasonable low, but, the services
provided are also much less. Once we
know which property and in which area
you wish to purchase, we will give you a
guide of the likely annual expenses you
will incur, we will also give you a full
list of the in-going expenses.
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