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Buying a new property in Spain can be confusing, there is much more to consider than just which villa to go for, so here is a basic guide to all the major things to consider:
Applying for your NIE
As soon as you contemplate purchasing a property in Spain, you need to apply for an NIE (Numero de Identided de Extranjero). This must be done in person at the local Police Station and after application, takes approximately one week to be processed. We have the relevant application forms, which we will assist you to complete and can then accompany you to the police station. You will need one passport sized photograph and your passport. Appointments need to be made approximately 5/6 weeks before your arrival in Spain. We will collect the number for you once it has been processed.
Deposit
You will normally be asked to pay a holding deposit before the purchase contract is drawn up, usually around 3,000€ which withdraws the property from the market and secures at the agreed price.
Contract
Your chosen solicitor will carry out all the relevant legal checks on the property and with all parties happy with the financial details, a private purchase contract will be drawn up and signed by all parties. This will state payment structure and final date when the deeds will be signed. Various clauses can be included into this contract and when agreed and signed by both parties a 10% deposit is paid to the Vendor.
Bank account
You will need a bank account in Spain to arrange the transfer of funds for the purchase and so that direct debits can be set up for your bills. At the moment, banks in Spain charge for accounts, there is no free banking, so you may like to look around. However, the Halifax Bank does offer free transfers if you have a Halifax account in the UK. We think you may be able to come to some arrangements with Barclays also but would recommend that you do shop around.
Mortgage
Again, you may wish to shop around if you are contemplating taking a mortgage for your purchase. To apply for a mortgage you will be required to provide your latest P60, 3 months payslips as a minimum or pension details. Some banks will also ask for copies of bank statements and a credit reference rating or report in the UK which you will probably be asked to obtain yourself.
Notary
When the final date to sign arrives, unless either the seller or you have given Power of Attorney, all parties will be at the notary. This may also include Estate Agents, the Bank and Solicitors. Payments will be made, the deeds will be signed and you will walk away with the keys to your property. The notary is there to ensure everyone is happy with the transaction and legally correct.
Fees for purchase
Fees will vary dependant upon the purchase but as a general guide you need to allow for a further 10% of the purchase price for expenses, ie 7% vat (IVA) due on the purchase price, land registry fees, notary costs, solicitors fees. If a mortgage is required additional fees will apply depending on the chosen lender.
Credit to:
Sra. Marta Colechá Smiles
Abogados Colecha & Monserrat
C/Calderón, 10 - 3º - 11
03700 Dénia (Alicante)
Tel & Fax: 0034 96 642 4431 |
