Newsletter February 2020|In our previous newsletter you will read that, subject to planning, your heirs will save inheritance tax by purchasing Spanish property. That is why today we will explain more about the main concerns in the buying process in Spain.
The property market in Spain is not regulated. In addition, the Spanish notary does not protect your interests. This often leads to unexpected problems.
Consider, for example:
- the seller is not (yet) an official owner
- there is no certificate of conformity
- there are construction violations
You can avoid these surprises.
Do you have a house or flat in mind? Then ask for a written option first. Within the option period - usually one month - you will have the property surveyed. After this survey, we can draw up the compromise. And only when you sign, you pay the deposit of 10%.
Thus, we can solve problems in time without putting you at risk. Confianz assists you with every step of the buying process.
Would you like more information about the buying process in Spain? Here is a practical roadmap in advance.
What are the additional costs in a purchase?
For a resale, the cost depends on the autonomous region. Registration fees (ITP) vary between 8% and 11%. Catalonia and Costa Blanca are more expensive than Murcia or Andalusia, for example.
If you buy new construction, you will pay VAT on the Spanish mainland 10%. There is also a stamp duty (AJD). This stamp duty also varies by autonomous region and is around 1.5%.
In addition to these taxes, there are additional costs. Consider, for example, notary and registration fees.
Read more about acquisition costs in:
You are buying on plan: so what are the pitfalls?
The key point in a buy on plan is a bank guarantee. This protects your payments to the promoter. A bank guarantee at the promoter's expense is required by law. But in practice, we see that promoters do not always comply with this obligation.
