Buying costs of Spanish property are calculated as an approximate percentage of the purchase price. The costs vary slightly depending on whether it is a new property or a resale (pre-owned) property being purchased. The buying costs are 11% or 14% of the purchase price respectively, excluding the costs/taxes associated with setting up Spanish mortgage which add between one and two further percentage points.
Almost all of Always Marbella clients visit to view what is on offer. Visits can also be accommodated at weekends, however it is advisable to be in Spain for one working day which will allow important (and cost saving) measures to take place for a buyer, for example; visiting a Spanish Notary and signing a Power of Attorney enabling your lawyer to sign contracts on your behalf, open a Spanish bank account, instruct your independent lawyer to apply for your N.I.E. (Spanish identity number for non-residents, and possibly to visit a local bank manager (English speaking) to discuss a mortgage application and check out the excellent mortgage deals available.
Buying Costs on a new Spanish property is as follows:
Total buying costs are between 11% and 14% depending on wether you buy new build Property or a resale property.
Always Marbella recommends a panel of independent Spanish lawyers who are experts in conveyancing and English speaking. All are bonded with The Bar Association of Malaga. The lawyer´s staff also speak most European, Scandinavian and Russian languages. It is important to easily understand all aspects of the buying transaction.
The first step is to formalise your purchase of the property and remove it from the market. This is done by signing a Reservation Agreement and paying a deposit of (usually) €6,000 to the independent lawyer´s client account. The reservation deposit also freezes the price.
Your lawyer will then ask for all the papers relating to the property and start the searches. Once the lawyer has completed the searches to their satisfaction, they will sign the Private Contract on your behalf, upon your written authorisation. You can also come to Spain and do this in person.
The most popular type of mortgage in Spain is the capital and interest or repayment mortgage. In a competitive market, mortgages with an initial exclusion period may be available. In capital and interest mortgages, the loan is returned by paying part of the capital monthly, together with the interests generated. This way, the loan is returned completely once the repayment period has ended.
On the other hand, mortgages with an initial exclusion period (usually 24 months) consist in initially paying only the interest, and then returning to capital and interest payments. Non-residents are usually offered 60% and up to 70% loan to value of the property purchase price (not property valuation), however Always Marbella can secure up to 100% (and even up to 109%) mortgages on selected quality properties and developments in Marbella and on the Costa del Sol.
(Signing the title deeds)
The property will always be sold with clear title, meaning that all outstanding debts, including an existing mortgage, any property taxes, waste collection charges, community fees and utility bills will be paid by the vendor before completion or by prior agreement deducted as part of the completion process.
You lawyer will then finalise the taxes and charges, already detailed above, and supply you with a detailed print out of all costs. While this is happening, you can already be enjoying your new home in the sun!
Always Marbella Aftersales Department are happy to help with many items that time from your stay, like meeting the electricity company representative sent to connect your supply, supply and install furniture packs, carry out deep cleans, supplying and fitting of shower doors, bath screens, irrigation systems and owner´s locked wardrobes. We offer a one stop shop for our clients. As we say “We are here for you”, as our hundreds of happy clients will confirm.
Again, thank you for taking the time to visit our Buyer´s Guide, if you have any further question, please contact Always Marbella in the link below.