If you wish to purchase and sale real estate in Spain, from Welex, law firm in Spain, we recommend hiring the services of a professional conveyancing lawyer.
According to Félix Ruiz, an expert conveyancing lawyer in the sale of real estate in Spain, sometimes it happens to find people who choose not to have the services of a professional specialized in the purchase and sale of real estate in Spain getting them wrapped in a legal nonsense from which they find it difficult to get out.
Therefore, from Welex we will explain the steps to follow at the time of the purchase and/or sale of real estate in Spain.
I want to buy a house in Spain, what should I do?
First of all, the most important thing that a good lawyer specialized in the purchase and sale of real estate in Spain should know if the property is newly built or considered as second transmission.
In addition, in the event that it is newly built, whether it is finished or not.
In both cases, it should be compulsory to inform the client first about the taxes that must be assumed for the purchase or sale of a property in Spain.
From Welex, lawyers specialized in the purchase and sale of real estate in Spain, we explain summarily the expenses that you must assume:
”If we enter the field of taxes in Spain, we find that, if it is a second transmission home, the Transfer Tax is paid depending on the value of the property.
In addition, the first 400,000 euros of the value of the property in Spain would be 8%, the rest up to 700,000 to 9% and from that figure, to 10% if the property is located in the Andalusian region” says Félix Ruiz.
To this it is necessary to add the expenses of the notary, the Land Registry fees in Spain to register it in the name of the client and the professional conveyancing fees of your lawyer.
These are the initial costs arising from the purchase of a property in Spain in the event that it is second transfer.
And if it’s a new home, are the expenses and taxes in Spain different?
In the case of the purchase of a property in Spain of first transmission, the seller is considered a promoter.
The home has never been inhabited and is purchased, usually when it is already finished, under plan.
In these cases, the taxes payable would be:
- At the state level, 10% VAT would apply on the value of the home.
- At the regional level, a 1.5% of stamp duty would apply on the value of the property without VAT.
To this it is necessary to add the expenses of the notary, the Land Registry fees in Spain to register it in the name of the client and the professional fees.
We can note here that in this case of the purchase of a property in Spain we do not have the previous scale of 8, 9 or 10% of Transfer Tax since it is a sale of an professional to an individual consumer and is therefore subject to a different tax regime.
What are the documents that a expert conveyancing lawyer in the sale of real estate in Spain must request from the client?
At first, if the client is Spanish, their ID is sufficient.
“However, in our law firm in Marbella we usually find that clients are non-residents in Spain who want to buy a property in our country. So it is necessary the client’s NIE” adds Félix Ruiz.
In the event that you do not have a NIE number in Spain, Welex offers the request service of the same in order to avoid long queues to the customer.
If the buyer has time, it is advisable to set an appointment with a Spanish notary to obtain a power of attorney with which to request such tax identification number, in addition to a legitimate copy of his passport.
In case that the client must return to their country in a short period of time, it is necessary to go to a foreign notary in their country of residence with a document granted by Welex, lawyers and economists in Marbella. Such notary should obtain the Hague Apostille for that document and for a legitimate copy of his passports.
In addition, you are asked for a Utility Bill. Basically, it is a payroll, certificate of your company about your profession, receipts of light or water to know your home, etc.
The purpose of this is to know where the funds to be invested in Spain come from.
What is the documentation to be signed in a process of purchase and sale of real estate in Spain?
The documentation to be signed may be:
– Reservation document
– Purchase Title Deed
None of these documents are mandatory by law, but the Purchase Title Deed utmost importance if you wish to own a property in Spain.
What is the reservation document in Spain?
This is a pre-process document in which a small amount is given as a reservation. The idea of this document is to take the property out of the market and leave it in the hands of professionals for further review.
After the signing of the reservation document, within approximately one month the private purchase contract is signed.
What is a private purchase contract in Spain?
This document specifies the precise conditions of the purchase and sale of real estate in Spain.
At the time of signing, another amount is paid for the house. This is usually 10% of the property value.
A good conveyancing lawyer specialized in the purchase and sale of real estate in Spain performs an analysis of the property before the signing of this private purchase contract in order to include the necessary stipulations to perfect the transaction.
What is a purchase Title Deed in Spain?
This is the final act by which the buyer becomes the owner of the property in Spain.
It is a solemn act that is performed before a notary in which both the seller and the buyer appear.
What services does a expert conveyancing lawyer in the sale of real estate in Spain provide or what actions should he carry out?
In this sense from Welex, law firm in Spain, we are very aware of having clearly and quickly the personal data of the client and relevant of the property in order to expedite the procedures.
“A good lawyer specialized in the sale of real estate in Spain performs an analysis of the property with all the information collected from the property register, in the town hall and in the cadaster to ascertain if the property has a valid and fair title to be bought”‘ add Félix Ruiz.
After that, Welex, leading law firm in Marbella, issues a report on the property explaining to the client everything relevant about it.
This gives ‘green’, ‘yellow’ or ‘red light’ to the purchase of the property in Spain.
”Green and red lights are self-explanatory. However, it is at the moment when the client is given a ‘yellow light’ in which a good conveyancing lawyer in Spain makes the right decisions so that the client is safe when buying the property in Spain”
These contingencies that must be resolved prior to the signing of the private purchase contract may be, for example, an embargo or outstanding tax liability that has not been paid and appears at the Land Registry.
Between the signing of the private purchase contract and the Purchase Title Deed, from Welex there are a series of bureaucratic procedures totally necessary to be able to carry out the transaction.
What are these procedures?
From Welex, leading law firm in Marbella, we offer our clients the possibility to open a bank account telematically in a Spanish bank as it will be necessary to continue settle the utility costs of the property in the future.
In addition, the client is advised to come and visit the property in the days before the signing of the Purchase Title Deed in Spain in order to verify that everything is in order.
Also, before signing the Purchase Title Deed, a good lawyer specialized in the purchase and sale of real estate in Spain, performs a new analysis of the property in order to determine that there have been no incidents since the signing of the private purchase contract.
If things continue as they were, your lawyer in Spain ensures that the content of the purchase Title Deed will be a true reflection of the private purchase contract.
What additional services does Welex provide during the process of purchase and sale of real estate in Spain?
From Welex, lawyers and economists in Spain, in process of purchase and sale of real estate in Spain, we are taking advantage of the client coming to our country to sign the Purchase Title Deed, we quote him to register with the Spanish tax agency as tax resident or non-tax resident whatever is applicable. In addition, the digital signature is obtained since it greatly facilitates the procedures at any tax level in Spain.
Don’t know what digital signature is? Here we explain it to you.
But that’s not all.
At Welex we know how tedious it is to grant the corresponding contracts for the different utilities.
That is why we provide our clients with this service. It will be a pleasure for our leading law firm in Marbella to be responsible for the granting of the utilities contracts and stating the direct debits on your Spanish bank account such as the electricity contracts, water, gas, rates (IBI), community of owners or garbage collection.
Our customers should not worry about more than enjoying their new property in Spain.
What do I have to do after signing of the Purchase Title Deed?
After the signing of the Purchase Title Deed in Spain, the process of purchase and sale of real estate in Spain has ended for the buyer. However, for Welex it is not so.
Then it is time to pay the above-mentioned taxes depending on whether it is a second transmission home or a new one.
After this, our experts conveyancing lawyers in the sale of real estate in Spain will be in charge of registering the house in the Land Registry.
How long does this process take?
It depends on each property.
However, if we consider a property that during the analysis carried out by our law firm in Marbella does not present any tax or legal liabilities, or presents any of minor relevance, usually the deadlines between the signing of the reservation document and the signing of the purchase Title Deed are around three weeks to two months at most.
In the event that there are major liabilities with property, this period can expand over time.
From Welex, lawyers and accountants in Spain, we always advise you to hire the services of a professional in the field of property transactions, who will advise you at all times at the time of appearance of a liability that may arise in the process of buying and selling a property in Spain.
Welex provides a comprehensive service reaching full customer satisfaction, always informing and assisting you at all times.
Do not hesitate to contact us with any legal or fiscal queries.