Buying a property in spain
In order to purchase property in Spain, the location is important. The prices are naturally highest along the coast line, particular expensive are first line beach properties. You should know that the inland climate is different from the coastal climate. Inland climate has cooler winters and warmer summers. You should also know inland areas might have less developed infrastructure compared to central and coastal areas. But on the other side, there is a rising number of people that seek rural homes where they can find tranquility and peace. Nowadays the rural areas called REAL SPAIN.
PURCHASE PROCESS
The purchase process normally consist of three steps.
TRANSACTION COSTS
Apartment from acquisition price of the property, there are certain costs which are compulsory to purchase the property in Span.
Fee to Notario
Notario is a public servant and called as Notary also. When you want to purchase a property you should consult with notario. Notario confirms the entering into contract and also that settlement has taken place. Notario sends the deed of conveyance to registration. The fee to Notario is related to the purchase price which may around few hundred euros.
Lawyer's fee
You should calculate a fee of around 0.75 to1% of the purchase price including 16% VAT. You can also find such lawyers who work on a fixed price principle i.e. it is not based on percentage of purchase price. In addition to the lawyer ?s fee expenses of the lawyer should also be paid.
Sales Tax
The quantity depends on whether it is a newly built house or if building is older. If it is a new construction, there is a 7% VAT called Value added tax on the purchase price. If it is resale, there is a 7% transfer tax. For sale of plot or commercial properties, there is a 16% plus document fee of 0.5%.
Registration fee.
The Registration fee relates to the purchase price
PRECAUTIONS
Foreigners who want to buy property in Span are rarely familiar with Spanish law. Thus they can easily commit formal mistakes when they operate on their own. Even if you should have a good case after Spanish law, a process can become costly and it can take a long time to settle.
Very few foreigners will have an assumption to consider risks and potential problems in connection with property purchase in Span. Buying property in Span will probably be quite different from your experience of buying property in your own country. Hence it is better to take a lawyer advise through the legal process of buying. For most people, buying property is one of the most important investments ever. Using a lawyer will then be a kind of insurance that nothing goes wrong.
Your lawyer should check the following
It is advisable use a local lawyer who is familiar with Spanish rules for property sales and who has knowledge of local conditions. And do not use Vendors lawyer even if it is just assistance regarding technical issues.
NIE NUMBER
It is highly recommended to apply for an NIE number which called a foreigner's identity number. This is number is necessary when carrying out any financial transaction in Spain including buying a property.
The NIE numbers are issued at the National Police Station in the town where you are purchasing the property and you need to apply for this in person. You should remember there are separate rules for each town for making the application. You will need your passport and photocopy and complete the application form in duplicate using black ink. It is always useful to have several spare photocopies of your passport. You should go to the concerned police station between the house of 9 am and 2 pm and complete the NIE application form and be prepared to queue.
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