GUIDE TO BUYING IN SPAIN
Holding Fee A temporary holding fee can be paid direct to the seller nomally around 1000 euros who signs a document stating that the property will be taken off the market whilst the paperwork is checked. This holding fee refundable only if problems are found. A nota simple can then be obtained from the registry office to check if the property is free of debt, if it really belongs to the seller, and if the description of the property matches what the buyer has been told (to avoid surprises about missing square meters). Purchase Contract - ‘contrato privado’. A formal contract between the two parties is drawn up, including the completion date, price, and any other terms. A non-refundable deposit of 10% of the purchase price is paid to the seller. Completion must be within the agreed timescale or the deposit can be lost. If the seller decides to withdraw double the deposit has to paid back. Final Stage - escritura de compra-venta The property transfer must be certified by a notary. The deed of purchase will be given to the buyer after the notary reads it and the parties present agree to the contents of the deed. The following must then be presented: proof of identity (or power of attorney) of both parties, the seller's title of property (a form that reports the investment to the Central Register), and the buyer's payment. The buyer and seller sign the contract; beneath their signature, the notary signs using his firma protocolizada and the deed is ready for taxes. Taxes 7% TRANSFER TAX - ITP is payable by the buyer for the purchase of any property including villas, flats, land, commercial premises, garages, etc provided the seller is not a developer or normally trading in the business of resale properties. 8% - 7% VAT and 1% stamp duty) for any villa or apartment, or garage that is annexed to an apartment, where the vendor is a developer, promoter or habitual trader in these generally new properties. 17% - 16% VAT and 1% stamp duty for parcels of land, commercial premises, or commercial garage spaces, where the vendor is a developer, promoter or habitual trader. This covers virtually all newly urbanised land parcels and newly built commercial premises. This only covers resale properties when the vendor falls into one of the above categories. Notary Fees & Property Registry Inscription Fees The Notary charges according to a fixed scale and depending on the official value of the property. Minimum charge is approximately 300 euros.The property registry inscription fees, providing the purchase is straightforward, run are charged as a percentage of the notary fees. Plus Varia This is an "added value" tax based upon the increase of the Town Hall index value of the land only, from the prior (seller’s) purchase to the present sale.This tax corresponds in principle to the seller, but, in common practice, is often paid by the purchaser, especially with respect to apartments or townhouses. As there are several variable factors used in calculating this tax, especially the length of time of ownership of the property, the amount payable can vary substantially and should be verified before proceeding with the purchase. Summary The total official costs involved in purchasing property could be less than 8% if it is a resale property, or less than 9% if VAT is paid on the purchase price, plus the PLUS VALIA, if applicable. Total costs of around 10% of the total purchase price is usually a good working guide. | 
