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The Buying Process

1. A deposit is placed with the solicitor and an initial search on the property is carried out to check with the Land Registry and the Town Hall about the status of ownership of the property, any building licences, first occupancy licences, etc. The Town Hall, Tax Office and other interested parties are also contacted to make sure that there are no debts outstanding on the property.
2. After the search is done the reservation contract is signed.
3. The solicitor will then apply for your NIE number at the Tax Office in Malaga. This is a fiscal identification number for non-residents, which is required so that you can pay taxes in Spain.
4. The private purchase contract is prepared and payment of 10% of the purchase price is due.
5. The conveyance title deed is prepared, which is to be signed upon completion in front of the Public Notary.
6. If you are applying for a Spanish mortgage, we will prepare the mortgage title deed which will also be signed in front of the Public Notary upon completion.
7. After completion, the lawyer:
   
   • registers both title deeds with the Land Registry,
   • pays the Public Notary fee,
   • pays the Public Registry fee,
   • pays the legal tax at Malaga Tax Office,
   • sets up all necessary direct debits, such as utility contracts, local taxes, rubbish collection in your name and arranges for standing orders at your local bank,
   • in order to provide your electricity connection, you will need to provide us with the contact number of someone who can grant access to the relevant engineer.

Taxes and Fees Payable in Spain When Purchasing a Property

If you are purchasing an off-plan property (i.e., a new property, direct from the developer) the relevant taxes are:

• 7% VAT
• 1% Stamp Duty
• notary fee
• registry fee
• legal fee

If you are purchasing an existing home, you will have to pay the following:

• 7% transfer tax
• notary fee
• registry fee
• legal fee

Finally, if there is a mortgage in place you also have to pay:

• 2% approx tax on amount borrowed
• notary fee
• registry fee
• opening fee
• survey

Please note that this information does not constitute legal advice and should not be taken as such. It is merely a guide to help you understand the process. We can arrange the proper legal advice for you, or put you in touch with the relevant parties to obtain your own independent financial advisor.