Buying Guide

What are the costs involved in purchasing a property in Spain?

As a rule of thumb for most properties in Spain, you need to add approximately 13% onto the purchase price.

Purchase tax is 8% of the purchase price.

Land Registry and Notary fees are typically between 1,500 euros and 2,000 euros.

Lawyers fees range at around 1,200 euros.

You are advised to make a Power of Attorney in favour of your lawyers, this costs around 200 euros.

If the property is being purchased directly from the developer or SAREB bank properties, there is an extra 2% tax or stamp duty to be added.

What are the running fees once my purchase is completed?

If you have purchased on a Resort, you will have to pay community fees.

This depends on the Resort and the property but generally between 80 euros per month and 120 euros per month.

There will be standing charges for electricity and water, typically around 40 euros per month.

Annual fees cover the IBI – Town Hall Council Tax – typically from 150 euros per year to 350 euros per year.

Home insurance – around 120 euros per year.

Yearly tax return – 120 euros per year.

What is an NIE number?

An NIE number (Numero de Identidad de Extanjero) is a national insurance number in Spain needed to be able to purchase a property in Spain. This is normally obtained by having to go in person to the Comisaria (police station) in either Murcia city center or Cartagena city center.

This will take up a full morning of your valuable viewing trip, however, we have selected lawyers that can do this on your behalf with the power of attorney appointed.

Do I need lawyers to purchase a property in Spain?

We strongly advise clients to use a Spanish lawyer to handle the property purchase for them.

An appointed lawyer will not only carry out the correct searches, they will represent you at the Notary.

They will arrange the connections or change overs of electricity and water contracts.

Lawyers will arrange the change overs of registrations with community fees in the case of resorts that incur community fees.

A Spanish lawyer will ensure that your new property is purchased free of any previous debts.

They will also ensure that your future taxes are kept up to date.

Do I need lawyers to sell a property in Spain?

Again we highly recommend that as a seller, you use the services of a Spanish lawyer.

You will need representation at the notary, again better with an appointed power of attorney.

As a seller and normally a Non Resident in Spain, you will have to leave behind a tax retention of 3% of the purchase price of the property. This retention is to ensure that all of your taxes in Spain are up to date. This retention is then reclaimed the following tax year and a lawyer will arrange this for you.

Do I need a Spanish bank account?

You will need a Spanish bank account to purchase a property.

You will need to set up direct debits for the payments of water and electricity bills, also community fees when applicable.

We open bank accounts for you as part of our service to you but your lawyers can do this for you do this yourself if you wish.

Can I finance my purchase in Spain with a Spanish mortgage?

Options vary within the various banks but as a Non Resident of Spain, we can generally source up to 70% of the purchase price for you.

It is important to note that this 70% is of the actual purchase price, this does not cover the extra tax and legal fees to be added.

How long does the purchase to completion process take?

Again this various depending on whether you are purchasing from a bank or private resale.

Generally speaking, the process is 4 – 8 weeks. Once you have paid your deposit and arranged Power of Attorney to your lawyers, you need not worry about the completion process, we will take care of everything for you.

All you will need to do is send the final funds when advised by your lawyers.

What do I need once the completion is done?

You will probably want a key holding service to look after your property in your absence.

We can advise on good companies that deal with the properties in the area that you are purchasing.

We can advise on good service providers such as – Painting, furniture, cleaning, rentals, TV services, etc. etc.

We will always be on hand to help with any questions should you need help for whatever reason during the duration of your ownership of your new holiday home. Our after sales care is second to none and we will always be here for you!