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| Buying Property
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Living in Spain has its own share of charm because of the wonderful lifestyle, great living standards and lovely weather. Add to this the fact that that property prices have risen faster in Spain in the last 20 years than anywhere else in the world. Property can be purchased through estate agents or lawyers in Spain.
Some major paper work required :
The Escritura Publica and Nota Simple , which is the registered title deed of a property
containing a description of the property, the details of the owner and any mortgages or legal claims that exist against the property.
IBI receipt, which applies to a resale Spanish property. The 'lmpuesto sobre Bienes lnmuebles', or lBI is the municipal property tax.
The Referencia Catastral , Every property sale must quote the 'Referencia Catastral' of the property in question. The Catastro is another system of property registration in Spain, concentrating on the location, physical description and boundaries of the property.
It is common practice for the buyer and seller to confirm the details of the purchase in a private contract, with the buyer putting down a non-refundable deposit of between 5% and 10% of the purchase price. This reserves the property and allows the buyer sufficient time to arrange payment of the balance
The Escritura de Compraventa
Assuming that the private contract is in order and that the buyer has secured the funds to complete the transaction, the sale is completed by signing the Escritura de Compraventa in the presence of the Notary.
The Escritura de Compraventa does not guarantee your title to the property until it is registered at the Property Registry (making it an Escritura Publica, a public document).
The total costs involved :
The notary - EUR 300 to EUR 600
The registry fee - EUR 300 to EUR 600
The transfer tax - 6% to 7% of the declared purchase value
The document fee - ½% to 1% of the declared property value
The municipal tax - 10% to 40% of the increase in value of the property
The Lawyer Fees- approximately 1% of the property value
The tax deposit - 5% of the declared purchase value
Bank Loans and Mortgages
With the introduction of the euro and the lifting of virtually all exchange control, both residents and non-residents can now obtain loans and mortgages against a Spanish property in any currency from any bank in the world Mortgages of 20 and 30 years, and mortgages of 100% of the property value, are available in Spain. For a non-resident buyer, the mortgage is usually limited to around 70% of the property valuation.
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