Buyers Guide to Purchasing in Spain

Properties in Spain

It is strongly recommended that you choose a lawyer who is specialised in Spanish land law (urbanismo). The Spanish property conveyancing system is different to the UK system so you should ensure that those involved in the transaction are qualified and experienced in Spain.

Finance
If you require finance we can introduce you to specialist mortgage advisors who will assist with completing the paperwork involved with applying for finance.
Once the application is handed to the bank they will aim to have an answer for you within 2-3 weeks.

Your appointed lawyers will obtain your individual NIE number (tax number) this number is used for all tax returns and correspondence with the Tax Administration and they will also arrange the Power of Attorney document at the public notary. This completes the process for the lawyers to have the ability to sign the deeds and complete the purchase on your behalf.
A Spanish notary public will be involved in preparing the contract of sale and issuing the public deeds.
Once registered, your lawyer will then aid with connection of utilities and pass over the keys of your dream property to you or to your rental management company if your purchase is for investment.

Buyers Guide to Purchasing in Spain

Buying Costs in Spain

As a general rule the costs of a mortgaged property purchase in Spain are in the region of 10.5% to 14% these account for:
Legal Fees (around 1%)
Notary & Land Registry (0.5% but usually an amount not a %)
Stamp duty on new properties only (1.5%)
IVA (VAT) on new properties (10%) * Certain new properties are eligible for a reduction to 4% IVA for a limited period.
Mortgage Arrangement fees: Vary (there may be additional notary/registry fees and stamp duty)
NIE Numbers, utilities etc.

Buyers Guide to Purchasing in Spain

Taxation
The tax system in Spain operates on the same basis as the tax system in the UK. In the UK, those who are resident for tax purposes are taxed on their worldwide income, regardless of the country in which it arises. Those who are not resident for tax purposes are taxed only on the income arising in the UK. A Double Taxation Convention between Spain and the UK operates to prevent income being taxed in both countries when a resident of one country has income arising from a source in the other country. The full text of the convention can be found on the HMRC website.