FAQs

How do  I buy a property in Spain?

Once you have chosen the property you wish to buy the process is quite different to the UK.  The steps we take as your lawyer are as follows:

1.     Application for NIE – Spanish National ID number for foreigners. This document is essential for any foreigner to be able to buy a property in Spain.  It is not necessary, however, if the purchaser is a company.

2.     Title Deeds.  We will ask the vendor to provide us with a copy of the official Deeds to the property in order to check ownership.

3.     Land Registry. We will then request a Nota Simple from the corresponding Land Registry in order to confirm the ownership and to know if there any debts registered against the property.

4.     Local Council Tax - Impuesto de Bienes Inmuebles (IBI).  We will obtain proof of up to date payment of the local council tax either from the vendor or the Town Hall.

5.     Informe Catastral – Town Hall Report.  At the Town Hall we will verify that there are no irregularities regarding town planning and there are no plans to reclassify the land where the property is located. Where necessary we will officially request the above information from the Town Hall.

6.     Community charges.  Where the property belongs to a group or Community of neighbours we will contact the President or Administration Company in order to check that all payments are up to date.  We will also enquire as to whether there are any extra expenses in the immediate/foreseeable future.

7.     Pre-purchase Legal Report and purchase contract.  At this point ConsultiQ.es will provide the client with the legal report and if the client chooses to go ahead with the purchase, a private purchase contract is signed in order to reserve the property.  At this time a deposit must be paid, the same amount being then deducted from the final sale price on completion.

8.     Title Deeds.  The sale is completed when the sale-purchase contract is elevated to an oficial document – the Title Deed.  This takes place before a Notary.

9.     Payment of taxes.  ConsultiQ.es will take care of the payment of the corresponding taxes: either IVA (equivalent to British VAT) or ITP, the Tax for Transfer of Property depending on whether it is a new property or a re-sale.  IVA is usually around 10% of the property’s sale price and ITP depends on the local laws but is usually around 8% of the property’s sale price.  We will also pay the IAJD (Impuesto Sobre Actos Jurídicos Documentados) – the equivalent of stamp duty, as well as ensure the payment of the added value tax (Plusvalía) which according to Spanish law falls to the vendor.

10.  Land Registry. We will have the new ownership registered at the corresponding Land Registry. 

11.  Utilities.  Finally, for new properties, we will manage the connecting of the basic utilities – water, electricity and gas - where required on presentation of the relevant official paperwork.

What is the NIE?

All Spanish citizens have an ID number and the NIE is a document issued by the Spanish authorities to all foreigners to give each individual an identification number in Spain.  It is essential to have this in order to buy a property.  To apply the following documents are required:

Application correctly filled in and signed; original and copy of passport or ID card or travel permit; written justification for application, in this case the purchase of a property; If the NIE application is to be made by a representative of the client, he/she must have written authorisation from the applicant.

 

Why should I use a lawyer?

Before buying a property the prospective purchaser should be fully aware of what they are buying, for example, any debts against the property, legal irregularities regarding town planning, community charges outstanding etc.  It is advisable to use and independent lawyer to advise you throughout the sale-purchase procedure.

What information should the vendor supply for the purchaser?

Spanish law dictates that a vendor of any property must advise the purchaser of the following information:

-          full name (person or company) and full address of the owner or tenant

-          plan of property location and floor plan of the built area together with a full description

-          details to identify the property on the official Land Registry

-          full price and method of payment.

(Royal Decree 515, 21 April 1989 on the protection of consumers regarding the information to supply for sale-purchase and rental of properties).

 

What is the Nota Simple from the Land Registry?

The Nota Simple is the document issued by the Land Registry which contains the basic information regarding the property, its description, the ownership and any current debts on the property.

 

Who is the Notary?

The Notary is a civil servant who has the authority to elevate a private document (in this case a sale-purchase contract) to an official public document, testifying that the content is true, signing it and thus guaranteeing tit as a legal of the document.

 

Why must we notify the Land Registry?

Any transaction which affects ownership or rights on a property must be registered at the Land Registry.  This provides legal security and makes the information, transactions and rights available to the public. 

What taxes are paid?

The taxes applied for a purchase are IVA - the Spanish equivalent to VAT - or the ITP, the Tax for Transfer of a Property, depending on whether the property is a new build or not.  VAT is usually approximately 10% while ITP is approximately 8% depending on the regional laws where the property is located.  We will also manage the payment of the IAJD tax and the capital gains tax which are both paid by the vendor.