If you are interested in a property, and do not have legal representation in Spain, 
we will introduce you to our Spanish Lawyers, who have excellent English and are experts in the conveyance of rural properties and ecological projects. New coastal developments and villa sales are generally straight forward, but most rural properties have been in families for generations, it is essential to discover if the properties paperwork is in order. These properties may also be in more than one name, Brothers, Parent and Sibling  etc; and it's essential that there are no existing property disputes, which could at least, delay the sale.

If you would like to contact our Legal Services please provide your name, email and your question.
Your Lawyer can open a Bank Account for you, (your Passport will be required for this).
Advise on Mortgages and deal with the Conveyance of the sale.

Normally A 10% deposit (or an agreed sum) is required before the sale can commence.
A signed copy of the contract, should also be received within the stipulated time. 

You will be required to arrange final payment and be present (or represented) 
for the signing over of the property, with the relevant documentation prepared by your Lawyer.

Your Lawyer will arrange to have the initial Escritura prepared,
and process any subsequent Escritura, such as the final one for the Property Registrar.

As in many EU. Countries, property in Spain is registered on a property register. 

Notario 
A Spanish Public Notary, and official who witnesses the Escritura

Escritura  - Title Deed

Escritura Publica de Compra-venta
The official Deed of Sale, prepared by a Notario and signed by both Buyer and Seller.

Escritura Copia Simple
The Copia Simple is your official Notarised Title Deed to the property. 
This is a temporary copy of  the Final Escritura which you will be presented with a copy.  
The original is sent toe the Land Registry for Registration. 
The Copia Simple is an official document and can use to sell on the property if required.

Conrato de Compra-venta 
A Private Purchase contract made between you and the Builder as Vendor for New Properties.

Valor Catastral
Official assessment of the property value - The value of the property as stated on the Register.

IBI. Impuesto sobre Bienes Inmuebles
IBI is the Town Halls annual real estate tax. (see Tax below) 

Guideline:
Buying a property in Spain involves a large amount of paperwork, with this comes a number of costs.
As a guide line you should add up to 10% to the purchase price of the property to cover this. 
Note that your lawyer will charge fees for his/her professional services, and this 
will range from 0.75% to 2.0 % of the purchase price, plus VAT (currently at 16%).

Who pays what?:
Spanish laws state, that unless stipulated in the contract, 
Taxes and fees are split between the buyer and seller as follows:
(Note: In some cases the buyer may be asked to pay the agent's fee)

Buyer pays:
The transfer tax (7%); registration fees; notary costs.
The Notary charges for the Escritura Publica
Registration Fees for the property.
Legal fees and expenses for the administration of the sale.

Seller pays:
Plus Valia tax, which is calculated on the increase in value of the land 
or property since the last sale.
A fee to the Agent for handling the sale.
Legal fees for preparation of documentation to secure a sale.

Please note any information here is only a guideline towards buying property is Spain.
In special circumstances, where the agent sources a property for the buyer,
the buyer could be asked to pay the agents fee, which would then be stipulated in the contract.
Alternatively it could be agreed in the contract that fees are shared between the seller and the buyer.

Transfer Tax (ITP) (increased from 6% to 7% Jan 2003)
ITP at 7%.is applied to second hand or re-sale properties
This is 7% of the declared sale price, payable on the property.
you are obliged to pay Transfer Tax (ITP) at 7%.

Commercial VAT (IVA)  
IVA Plots of land for commercial or warehouse space the required VAT (IVA) rate increases to 16% of the cost.

VAT (IVA) 
Vat on IVA is applied to New Properties, or properties partly constructed by a developer, 
builder or selling agent, you would be expected to pay VAT (IVA) at 7% plus Stamp Duty at 0,5%

Plus Valía Tax
Plus Valia is a localised tax which is payable to the local Municipal or Town Hall. 
This tax is evaluates on the Catastral Value, land mass or area, and the age of the original title deed.
Normally payable by the vendor but it may be stipulated that the buyer pays. This tax may range from a few thousand pesetas to as much as several million pesetas on larger properties with a lot of land. Who pays this will be discussed in the negotiations and in consultation with your lawyer. As a rule of thumb , if you budget for ten percent of the purchase price you will not be far wrong.
Plus Valia can be small if purchasing a new property , or quite a large amount for a property that has not been sold for 20 years. The seller usually pays this tax, but it is wise to ask your Lawyer.

Annual Taxes.
All property in Spain is subject to 2 taxes. 

Patrimonio or Wealth tax, 
Patrimonio is charged at the rate of .2% up to the amount of € 150,250 euro ( 25m ptas). 
On € 90k euro (15m ptas) an amount of € 180 euro (30k ptas) will need to be paid,
Spanish Residents have an exemption for the first € 100k euro (17m ptas).

IRPF property owners income tax, 
IRPF is based upon 2% of the Valor Catastral (thought to be your income from the property) and this is paid upon the imaginary income at the rate of 25%. 
As an example, on a Valor Castral of 15m ptas the bill would be € 450 euro (75k ptas).

IBI. Impuesto sobre Bienes Inmuebles
IBI this is the Town Halls annual real estate tax. The previous owner has to give you the previous years receipt for this annual tax, without it the Notary may not allow the completion of the property to take place. This receipt will show the Valor Catastral, which is the official assessment of the property value and is used to asses the tax.

Notary Charges
Notary, who charges according to a fixed scale, 
their charges may range from € 360 euro (60k pesetas) 
for a properties sale price of around 120k euro (20m pesetas)
to 600 euro (100k pesetas) for property price of 6k euro (100m pesetas)
you should expect to pay around € 300 euro ( 50,000 pesetas) as a minimum.

Land Registry Fees
Land Registry Fees, as a guideline are normally 40% of what the Notary charges.

Registry Guidelines
Expect to pay between € 125 euro (20,000 pesetas) to € 300 euro (50,000 pesetas) for having the property deeds inscribed in your name at the Registrar. If the property doesn't have deeds, (which is still the case with many rural properties), it costs a little more for first-time registration of the property, which is a slow but painless process, and a very important first step to take after buying the property.

Lawyers' Fees
If you want a Lawyer to draw up the papers, expect to pay around 1% of the purchase price. 
A worthwhile investment if you are in any doubt about the ownership of the property.
Complicated sales could be 1.5% to 2%

Property tax 
Tax of 0.02% of the rateable value of your property.

Services - If connected
Water and Electricity - Standing charges, these are metered with similar charges to most EU Countries.

Communal Charges (for urbanisations only)
In some cases community charges apply at an average of 0.5% which is an annual charge covering public areas and street lighting.

Annual Taxes (see above)

All legal matters should be discussed fully with a lawyer - either your own appointed lawyer or one recommended to you us. Never be afraid to ask questions, and never sign anything you don't fully understand.

Make sure that you are aware of any potential building around the particular plot you are looking at and remember that "green belt" land in Spain can very often have that status lifted.

When buying a property still under construction, the developer is legally required to provide an insurance policy, or bank guarantee which will protect your payments in the event of the work not being completed.

Having your deposit available in a Spanish bank normally assures both the agent and the vendor that you are a serious buyer. Using your discretion is paramount.

In Spain, all debts on a property, stay with the property when it is sold, which is a good reason to employ a Lawyer to discover if any debts are attached to a property. If the property doesn't have deeds, no can money can have been borrowed using the property as collateral, so hence there can be no bank debts attached to the property.

 This document and it's content is a very general informative guide to buying property in Spain and is not an agreement or  contract between La Mohea Properties and any third party... always check expenses and costs are clearly defined in your pre sale agreement.
We can introduce you to a local and reputable Lawyer who can provide you with legal representation if required.