Specialist in Marbella Property

Buying a Property

The process of purchasing a property in Spain is far simpler and more transparent these days than many people imagine. Even so it is always advisable to use a well-established law firm with lawyers that speak your language – we can recommend highly respected companies.

Reserving the property

When you find a property you want to buy you will have to provide a reservation deposit to take it off the market while your lawyer checks the status of the property to ensure that all paperwork is in order and there are no outstanding debts.

Completing the purchase

Cash buys can proceed from this point on, but if you need to obtain financing a Private Purchase Contract is signed in the interim, and a further percentage paid towards the purchase price.

Once financing is arranged vendor buyer and/or their respective representatives sign the title deed at the notary, after which the property is recorded in your name with the Land Registry and you take official possession.

Your agent and lawyer will assist you through the steps, and can also be on hand to open bank accounts and set up utilities on your behalf.

Purchasing costs

  • Legal Fees – usually up to 1% of the purchase price
  • Notary Fees and Land Registry Fees – approximately 1%
  • Stamp Duty – 1.5% of the purchase price
  • Plusvalía (Capital Gains Tax) – a variable municipal tax applying to existing properties that is based on the difference between the sales price and the original purchase price – paid by the seller
  • Transfer Tax (ITP) on re-sale properties – 8% on the first 400,000 Euro of the sales price, 9% of the amount between 400,000 and 700,000 Euro and 10% on the amount thereafter. A property sold for 800,000 Euro would pay 69,000 Euro in Transfer tax, ie. 32,000 + 27,000 + 10,000 Euro
  • Value Added Tax (IVA) on new properties – 10%
  • Banks also charge a variable commission for mortgages

Overall, purchasing costs currently amount to approximately 12-15% of the buying price