Legal &
General Advice


General Advice For Purchasing In Spain

1. Choosing A Category

Common sense really – But when in Spain, no matter which agent you are using , it is advisable to ensure that you have sufficient funds to place a reservation deposit in the event that you find a property that you wish to purchase.

Normally the reservation is 6000 Euros but dependent upon the Vendor can be up to 10% of the purchase. Make sure you are sure of you funding before reserving a property. If you require a Spanish mortgage make sure you get a decision in principle first and Speak to a qualified Spanish mortgage broker –

2. Choosing a Lawyer

Spanish law can be very different to many other countries and as such we can introduce you to Spanish Lawyers whom will offer free legal advice that can be obtained before you buy your property. We also have many lawyers who we have worked with who we could recommend.

3. Exchange of Private Contracts

Upon acceptance of the offer by the owner, the next step in the sales process is to exchange private contracts of sale or to sign an option to purchase. This normally takes place within two weeks following formal acceptance of the offer. The appointed lawyer will have completed his searches and investigations of the property and will have arranged with the owner the procedure for the cancellation of any outstanding debts. The private contract of sale (or option to purchase) will reflect all the agreed terms of the offer and impending sale and set out the date for final completion at the Notary.

4. Financing

Once you have decided on your dream property, we can help you with all stages of financing. We have a close relationship with all the banks in Spain and have a fully qualified Mortgage Advisor in house who will assist you in sourcing the best finance opportunities. However, we always recommend that you take Independent Financial Advice.

5. Completion at the Notary

A sale is formally completed in Spain when the public title deeds of purchase are signed in the presence of a Notary, the final payment made and possession given to the buyer. It is at this stage that the property is transferred.

6. Registration

Once the Title Deeds are signed, they will need to be taken for registration to the local Land Registry. A ” Retention” will need to be done if the Vendor is Non Resident – Your lawyer will need to do this for you and they should include the cost if this into you purchase costs

Taxes and Other costs involved

There are costs to be considered when purchasing a property in Spain and we always advise clients to factor in 11% purchasing costs  (commonly referred to as closing costs)or more if taking a Mortgage.

  • IVA (VAT): When buying off-plan or directly from a developer, at current rate of 10%.
  • Stamp duty: In this case, there is an additional 1%-2% of Deed purchase price to be paid as stamp duty.
  • Transfer Tax: 6%-10% of purchase price depending on region, when buying in all other cases. There is no stamp duty on purchase in this case.
  • Lawyers’ Fees: Usually between 0.5% and 1% (depending on work to be done and its length) of the purchase price +  IVA.
  • Notary and Registry Fees: They normally amount for another 1% or 2% of the purchase price.
  • Plusvalía: 200-1000 euros. Municipal tax based on assessed increase in property value. This tax should be usually paid by the seller.

Iberian Properties are always available to answer any question that you may have. Please feel free to contact us should you have any further questions.

Some notes for foreign buyers.

It would be almost insane to buy a property in Spain without a lawyer or someone who understands exactly what your requirements will be. At Iberian Properties we recommend you source your own Spanish Lawyer or ask us to recommend one for you.

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