How to Buy
Procedures to follow when buying a property in Spain
(NB: The following figures are an approximate estimation for example purposes only)
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• All properties are 'FREEHOLD'
• All prices are in 'EUROS'
For example; Lets say the property value is €200.000
You are buying a 'NEW BUILD' property in Spain. The VAT ("IVA" in Spain) is 10% of the property value. So that would be €20.000 to pay as VAT on top of the buying price.
You are buying a 'RE-SALE' property in Spain. The VAT ("IVA" in Spain) is 10% of the property value. So that would be €20.000-euros to pay as VAT on top of the buying price.
When you decide to purchase, an initial deposit (usually around €5,000) is made to secure the property and to take it off of the market for a few weeks (2-3), while you sort out finances and details. The rest of the payment, including VAT, will be made in full at the NOTARY (Commissioner of Oaths, appointed by the government). The Notary is an independent body who looks after the interest of both parties, buyer and seller, and is the only authority that can issue the freehold DEEDS of the property.
(In Spanish, the deeds are called the "ESCRITURA")
Notary Fees €400
Registration of property in your name €450
Contract for Water, Gas and Electricity €400
Solicitors fees (Approximate) €1,200
Estimated Final Price €222.450 (for re-sale property)
Estimated Final Price €222.450 (for new property)
ON-GOING PAYMENTS (approximate running costs)
RATES ("Contribución Territorial Urbana") €150 a year (CouncilTax)
WATER €20 a quarter.
ELECTRICITY €30 a month.
GAS BUTANE €17 per 12 kg cylinder.
For normal daily use, cooking, a cylinder lasts for approx. 4/5 months.
COMMUNITY CHARGES (applicable to urbanizations only) €20 a month.
Home Contents Insurance (Fire-Floods, etc) €150 a year.
Car Insurance €250 a year.
Road Tax €100 a year.
All of the above payments are paid by direct debit through your private bank account, (except for gas cylinders, which are paid on receipt). The Spanish Bank will forward all statements directly to your home address.
VERY IMPORTANT: NIE NUMBER
The SOLICITOR will act strictly on your behalf throughout the entire transaction of purchasing or selling a home. He/she will obtain the NIE number for you.
Without the NIE NUMBER you can NOT buy a house in Spain.
The NIE NUMBER is obtained via the Spanish Police Station, or, if you are abroad, through the Spanish Consulate.