Purchasing Property in Spain
The process of buying a property in Spain is quite different from that in the UK and it is important to understand a few of the main considerations:
Once you have actually selected a property and a successful offer has been made, a purchase option contract will be drawn up detailing the property, the names of the buyers and sellers, the agreed price, the deposit and the date on or before which the contract must be completed. At the time this option is signed the deposit will be paid. The contract is legally binding on both parties. It is sensible at this time to employ the services of an independent solicitor (Abogado). We will be pleased to help with this process if required.
It is essential to ensure that the property purchase is transacted in the correct manner. A key function of your solicitor (Abogado) is to make sure that the property is free from any debts, charges or encumbrances before you make your purchase, and to ensure that the actual purchase details are as you understand them to be.
Bank Accounts & Mortgages
You will need to set up a local bank account to ensure that all bills can be paid locally. A process similar to a direct debit system exists in Spain and most of your ongoing bills will be paid in this manner. If you do not have one, we will be pleased to arrange this for you. We will also be happy to facilitate a Spanish Mortgage on the property for you if you so wish.
You also need to be aware of the various costs which you will incur during the buying process and ensure that you budget accordingly. You should expect them to be in the following range:
- Solicitorís fees will be around 1% of the purchase price.
- A tax of 7% of the declared value is payable to the State on completion.
- Notary, registration filing fees and other miscellaneous expenses can amount to approximately 2%
- In total it is sensible to budget for costs of approximately 10% of the purchase price.
As part of your buying process, we will provide a range of advice and support throughout the purchase and we continue doing so until you are fully comfortable with your home here.
Our aim is to make the purchase of your new home, here in Mallorca, as trouble free and pleasurable as possible and ensure that you continue to enjoy the time you spend here.