P R O P E R T Y   B U Y I N G   G U I D E

Sunny Palm Real Estate can show you the finest selection of properties regarding your personal requirements. We have a very large portfolio of properties and we also collaborate with all other estate agents in the area. Therefore we can also act as property finder, which gives our clients the comfort to stay with one salesperson, scanning the current market with different agents and take you to view any property.  

Purchasing a property in Spain is a relatively straight forward process. Once you have found your ideal property there is usually a 3-stage purchasing process. 

1) Reserve – Once a price and timescale for purchase has been agreed, you will have to sign the reservation document "Señal y Arras”and pay the reserve deposit on the property to the agent. This is 1% of the purchase price, with a minimum of 3.000 euro. The property is now reserved in your name, the purchase price is fixed and the property will be removed from the market. The seller will have to sign a mirror document to confirm the sale from his side. 

2) Contract – Around 3 weeks after the initial reservation, a full purchase contract will be drawn up. This will stipulate all the terms and conditions of the purchase, including dates for payment and completion. It will also include an inventory if the property is being sold furnished. At this time, it is usual for a 10% deposit to be paid. 

3) Completion – Around another 3 weeks after contract or any assigned day by seller and buyer. This is done in front of a Notary. The outstanding balance is paid and an "Escritura" or title deed is signed. All the relevant taxes and fees are paid at this time.

LEGAL ADVICE

We advise all buyers to have their own solicitor. There are many excellent English speaking lawyers in Spain who will assist you in the various steps from reservation until completion of purchase. Your lawyer is your guarantee that all Spanish legal requirements are met, that the property is registered in the vendor's name and that it is free from mortgages, charges, encumbrances, debts or other liabilities. Your solicitor will also negotiate and discuss the purchase terms with the vendor or his solicitor. Also Power of Attorney can be given to your solicitor or any other person. 

A solicitor will typically charge 1% of the purchase price.

TAXES & FEES

Transfer tax:

7 % transfer tax on the purchase price.

Stamp duty tax – only in case of new built property

10 % stamp duty tax (IVA) on the purchase price.

Notary fees (fixed scale) and Land Registry fees (approx. 40% of the notary fees). The total should be between 1.200 and 2.000 euro.

Plusvalía tax is normally paid by the vendor. This is a tax levied by the local town hall, based on the area where the property is located and calculated on the increase in value of the land occupied by the property since the last purchase. 

Retention tax & Capital Gains tax is paid by the vendor.

A non-resident vendor is liable to a retention tax of 3% of the purchase price retained in lieu of capital gains tax. It is however the responsibility of the purchaser to enforce this retention, deducted from the final payment in notary. The solicitor will arrange this for you. A resident vendor is liable to a capital gains tax of 19% calculated on the difference between the declared price when purchased and the declared sale price.

FINANCIAL ADVICE

To open a bank account in Spain is necessary.

If a mortgage is required we can organize one for you as to the best type for your needs. We will bring you in contact with one of the banks we can recommend.    

Payments can be made in various ways, by bank transfer or by banker draft. It can be in € or a foreign currency if mutually agreed.

IN GENERAL

Any buyer must have an NIE number. It is a fiscal number that must be obtained by the purchaser in order to register the property. Your solicitor will help you to obtain this. 

Next to buying a property, you will need this number to buy a car, take out insurance, etc.

Transfer of Services

All services like electricity, water, rates, telephone and if applicable community fees are usually paid by “direct debit” or standing order through your bank in Spain. We can organize for these to be transferred to your name on completion. Insurance of the property becomes your responsibility on completion and we can recommend and arrange quotes as required.

Please do not hesitate to contact us at any point.