Buying Process
Once you have found the ideal property on the Costa del Sol and have decided that you wish to move forward with the purchase, the next step would be to draw up a Reservation Contract. This contract is used in Spain as a standard procedure to reserve a property for a specified period of time whilst your lawyer conducts the "Due diligence". This is a temporary reservation document only. Such a document would include:
- Full name of buyer and vendor.
- Price of the property.
- Property address.
- Date to sign a private purchase contract.
- Other special conditions ( subject to finance)
- Deposit amount place to reserve the property.
After that you draw up a private purchase contract. This is a contract between the consumer and the vendor. The contract will be prepared by the lawyer and will contain.
- A legal declaration from the vendor that she/he is legally positioned to sell the property respectively.
- The exact address and dimensions of the property and its features as set out in the "Referncia Catastral" government registration of the property.
- The completion date and hand over of the keys.
- The agreed terms and conditions as agreed buy the consumer and the vendor.
The buying costs in Spain from 10% to 13.5% of purchase price , broken down as follows.
- 10 % IVA ( VAT)on new properties, 8% to 10% IVA (VAT) on resales depending on price category.
- 1 % Notary fee.
- 1% legal ( a fee charged by your selected lawyer to conduct the Due Diligence.)
-1.5% Stamp duty tax. ( A tax charged to make all documents legally effective)
- If you should require a mortgage, you should calculate an average of 1-1.5% cost for the set up fee of mortgage with a local Spanish bank.