Although it may seem a daunting prospect when purchasing a new home in Spain, our team will do everything possible to make it as smooth a transaction as possible for you. We have more than 20 years experience with selling second hand and new homes.

Once you have found the perfect golf property and decide you want to move forward with the purchase, the first step is to draw up a reservation contract.

A reservation contract is used in Spain as a standard procedure to reserve a property for a specified period of time whilst your lawyer conducts due diligence. (Research and investigation into the real estate transaction to make sure that the property is free of any debts and/or encumbrances, a review of building permits, licenses, certificates and taxes)  This process is a lot simpler when buying a new home than it is a second hand property.

Normally a 6,000 Euro deposit will secure the property while the due diligence is being conducted. The deposit serves to reserve the property while your lawyer conducts all due diligence or to arrange finance in this period.
*The reservation deposit is fully refundable should your lawyer discover any irregularities about the property. If you proceed with the purchase after the due diligence the 6,000 Euro deposit will be used towards the purchase price.

Once your lawyer has conducted a full and thorough due diligence, he/she will inform you of their findings and discuss moving to signing a private purchase contract. (PPC)

What is a private purchase contract (PPC) ?

A private purchase contract is a contract between the buyer and the vendor (Developer/Builder if you purchase a new home) All relevant details have to be included, like total sales price, final date for the notary deed, detailed information from the property register and if there are any outstanding debts.  Upon signing of the contract, normally a payment of 10% is paid to the vendor.

*In most cases there exists the so called “escape clause”. The buyer could withdraw during the process, and downpayment/deposit would be lost to the seller.

Now the process moves to the Notary where the remainder of the purchase price is paid and the Sales Title Deeds (Escritura) are signed. The buyer now takes possession and can move into the property. All the costs including transfer tax and the costs of the notary must be paid.

Breakdown of approximate costs involved if the final purchase price was 190,000 €

10% IVA (VAT)             –   19,000€
1% Notary fee                –    1,900€
1% Legal fees                 –     1,900€
1.5% Stamp Duty Tax  – 2,850€
Registry Fees                 –    700€
Utilities                           –    500€

Expenses:                            26,850 €

Total cost:                  216,850 €

** If you require a mortgage, you should calculate an average of 1%– 1.5% cost for the setup fee of a mortgage with a Spanish bank.  Click here to have an informal chat with our mortgage partner regarding your specific finance requirements.

Expenses of Ownership (Annual)

Community Fees ( Comunidad de Propietarios). This is usually paid twice a year and can vary considerably in different urbanisations. It pays for the maintenance of any communal area and the outdoor space such as the swimming pool. Entrance areas, lifts, parking.  50-120 € / month
IBI ( Impuesto Sobre Bienes Inmuebles)This is paid annually to the City Hall and all owners of property must pay this tax at 0.5% of the cadastral value.
Basura. This is a tax for rubbish collection and is paid annually.
Agua. Water fees which are paid to the local company.
Impuestos sobre el Patrimonio. Property owners in Spain have to submit a return for the tax on all properties by December 31st.