Frequently asked questions

Buying a property in Spain

Generally a deposit of around 40% is required but this depends on the lender.

Country properties are generally harder to secure mortgages, some banks have a limit of not offering on properties more than 15 kilometres inland.

This depends on the value and varies from around 10% to 12% of the purchase price, briefly this consists of transfer tax of between 8% and 10%, a legal representative who will charge a maximum of 1% plus IVA (at 21%) and land registry and notary fees at approximately 0.35% of the purchase price.

Yes, a NIE ( a foreigner`s ID number ) this can be obtained from main police stations, the nearest one´s to us are in Torre del Mar and Motril at a cost of around 20 euros.

Yes, but we would strongly advise using a legal representative, we consider this to be extremely important.

As soon as an offer has been accepted a 3,000 euros holding deposit is required to render the property off market, typically for a period of 3 / 4 weeks. Thereafter a private contract is signed between buyer and seller, confirming the purchase price, at this point a non returnable 10% deposit is paid to the vendor. Under normal circumstances the balance is paid to the vendor approximately 4 to 6 weeks later.

As part of the purchase process we apply for various paperwork that confirms before the signing of the contract if there are any charges against the property. The buyer`s solicitor also makes similar checks.

As explained above, a 3,000 euros reservation deposit is paid to ensure the property comes temporarily off market for 3 / 4 weeks or for a period agreed by both buyer and seller. During this time the buyer prepares all necessary paperwork inconjunction with their lawyer and us.

This is the responsibility of the buyer`s solicitor.

Yes, although at the time of signing the private contract an inventory of contents is attached and signed by both buyer and seller.

Yes, urbanization charges ( often called community fees ) vary depending on the size and facilities of the urbanization.

If you buy on an urbanization there are annual community fees. All property owners are required to pay an annual property tax and IBI which are local taxes set by the town hall for utility connections, refuse, garage entry etc.

Yes, buyers can assigned a person to represent them and sign on their behalf, they normally ask their legal representative to do this.

We have a large holiday rental company our team would be happy to evaluate rental returns before you commit to the purchase.

Selling a property in Spain

Approximately 10%, can be more depending on CGT / length of ownership and whether buyers are resident or non resident. Costs comprise a.) the agency fee b.) plus valia tax c.) capital gains tax.

Not generally, although some vendors prefer to use a solicitor / legal representative.

Yes, as from 01 June 2013 it is mandatory to have an EPC and for the agent to advertise the rating when advertising the property.

Yes this is very important, the bank will also have to notify the Notary in advance of signing the deeds and be present at the signing.

No, all taxes and charges must be paid up to date prior to signing, the various paperwork applied for by either us, or the buyer`s solicitor / legal representative will reveal whether there are any charges or unpaid taxes against the property.

This depends on whether you are a fiscal resident or non resident. Briefly fiscal residents selling their primary residence have their CGT rolled over to their new property. Non residents have to pay a 3% withholding charge irrespective of whether there is a gain or not. Under certain circumstances this can be recovered, otherwise capital gains tax is circa 21%.

The vendor pays this tax and it is based on the catastral value of the land that the property occupies, this tax is set by the town hall.

** Please note the Team Group are not tax advisors and the information above as it relates to taxes should be used as a guide and is not definitive law. A gestor, a solicitor or a legally qualified representative should be sought for specific advice on taxes.