The buying process may vary slightly depending on the type of property you purchase and the area.
The following information is a general guide to understanding the process.

1: DEPOSIT/RESERVATION

When you have found the property that you want to buy, you will need to pay a deposit/reservation fee to ensure the property is taken off the market. Negotiations will then held between the parties' legal advisors.

The average deposit is about 3000 - 6000 Euros depending on property and it is non-refundable.

2: EXCHANGE OF PRIVATE PURCHASE CONTRACTS

With the property taken off the market and the reservation documents signed, you will instruct your lawyer to proceed with the next step, which is to draw up a private purchase agreement. This is between your lawyer and the seller's lawyer and it usually takes about 30 days to complete. The purchaser does not need to to be present at this stage.

3: ESCRITURA - TITLE DEEDS

The required documentation will be prepared by your lawyer for the transfer of ownership.

The buyer and seller and/or their legal representatives will meet on the appointed day at the Notary's office to sign the official transfer of title deeds (Escritura) from the seller to the buyer.

The witnessing of the documentation by the Notary acts as your legal safeguard. The change of ownership will be recorded in the official registry to complete the process. In carrying out this official procedure you are assured that the property purchase is recognised by the authorities and is free of any unknown encumrances.

When purchasing a Spanish property consideration should be given to the following:

Additional Costs
As a guide we suggest that you add approx 11% to the purchase price:
7% IVA (Spanish Transfer Tax)
4% legal services (including registration fees, Notary fees,
transfer of tax, water and electricity contracts, solicitors fees)
Administration Charges

Annual Costs
Annual costs for running a house in Spain are considerably lower than in the UK, they vary according to the size of property and how much it is used, allow approx
£800 - £1,000.
This includes:
Water and electricity
Local rates
Community fees
House and contents insurance

Fiscal Representative
All property owners that are not permanent residents are advised to appoint a local Spanish fiscal representative to look after your fiscal responsibilities in your absence.
Orange Beach Estates financial advisor will be pleased to give you more information about this and to discuss creating a Spanish will.

Letting your property
It is possible to let your property. Rental income could pay part of your mortgage, the amount depends on the size and location of the property. We are able to advise you about this service.

Tax Regulations
Income from letting your property abroad is taxed as rental income in the owners' country of residence. The amount liable for assessment does not include the normal running expenses which are deductible.

Please contact us if you would like to know more about our services.