A guide to buying property in Spain
Home Buying Guide
Purchasing your home doesn’t have to be stressful experience, but simple when you know the in-depth process. Patricia Berrocal and her team of professionals are experienced working with foreign investors. They have assisted scores of satisfied clients purchase their vacation homes in Barcelona and arranged property management services for them.
The ChicRoom Properties experts skillfully and thoughtfully guide you through the fine points of your transaction so you can confidently look to the future feeling secure with your property investment choice. We understand your requirement for timely information and data; we will always be at the forefront of your negotiation representing your interests.
Client service does not end when you receive the keys to your vacation home, ChicRoom Barcelona will always be there readily providing assistance when you need it.
Stage 1: Determine your needs.
Identify your preferred neighborhood. What type and size of apartment are you looking for. Determine the price range you can comfortably afford. Identify what apartment features and amenities are non-negotiable for you. Decide when you would like to move in, a date that could be achieved.
Stage 2: Viewing tips
Viewings often give rise to all kinds of emotions: expectation, enthusiasm and – occasionally – disappointment. To make things easier here are some tips for you. Get to know the areas to sense the atmosphere to make sure this is where your new home should be. Check the distribution, does the apartment have enough storage space? Does the property need renovating? If so, can you do it yourself or will you need to engage professional help? Is the furniture included? If you require a parking space, is there possibility to rent one in the area? Does it have the right energy, does it feel like your dream home? If so, tell us and we will explain you the next steps.
Stage 3: Pre-Contract and Final Agreement.
The pre-contract is signed when the buyer and seller has agreed on a Price and other conditions related to the property transaction. It is important that all necessary and protective clauses is stated in the contract. There is also a final agreement that will include all the details that you need including a description of the property, the purchase price that has been agreed as well as the date of completion that has been agreed. If the seller decides to withdraw after this agreement has been made, the buyer is then entitled to twice their deposit as compensation. If the buyer decides to withdraw, the deposit is normally lost.
Stage 4: Final Contract
The buyer is then issued with the public deed of conveyance (escritura) in front of a Notary Public who is a public official who will be required to witness the deed of sale, however expert, independent legal advice should be taken to protext your own interests. The Notary Public certifies the transfer, and a copy will be passed to the tax office and on to the property registry. The final contract is signed when the notary has completed all
the checks and the buyers have secured their loans. When the final
contract is signed, the financial transaction is completed and keys to
the property as well as documentary evidence of the sale is handed to
the buyer.
Once you find the property that best fits your needs, we will shepherd the transaction through to the closing process, ensuring that everything is moving quickly to close the transaction.
Once you find the property that best fits your needs, we will shepherd the transaction through to the closing process, ensuring that everything is moving quickly to close the transaction.
You should be aware of various fees and costs that are attached with buying property. There are solicitor fees, the agent fees (% of the final sale price), notary and land registry fees (normally between €1000 and €2000 for a normal residential apartment), transfer tax (ITP, normally 8% of the purchase price), stamp duty (AJD, 1.5%, this only applies to new builds).
You also have the local taxes that are payable annually and calculated of the cadastral value of the property. There is also non resident income tax if you own a property in Spain but you don´t reside it. The tax base is 2% of the cadastral value of the property and the tax rate is 24% annually. Please note Cadastral value is normally a lot lower than actual value and so equates to approximately 0.2% of the property value.
If you have any questions or queries after your property purchase, you are naturally welcome to contact us.