Solicitors / Lawyers Website Addresses
Buying
real estate in Spain
Buying a Spanish property will normally be contained in a private contract with
a deposit of around 10% payable which is binding by law. It is possible to agree
a contract where either party may change their minds at a financial cost. The
private contract should contain details of the agreed deposit payment, purchase
price and details for payment of the outstanding balance of the agreed buying
price plus any additional extras and your intended completion. A Notary will
prepare the official contracts and make sure it complies with Spanish regulations.
If there is common ownership a Community of Owners must be established through
which community charges can be shared. If your property is contained in an apartment
block then the law will relate to the Horizontal Division and this should be
clarified, especially in new developments. Any property sale or purchase in Spain
should be registered in the Land Registry and its important to make sure any
relevant taxes are paid before this is done.
Please note:
It is common practice for the sale and purchase price to be understated by Spanish
sellers, enabling them to reduce their tax liability and reducing your stamp
duty fees. However, you could be liable for Capital Gains tax on additional profit
once the true price is declared and non residents will normally be expected to
deposit 5% of the sale proceeds with local tax offices until any agreements are
reached, and could have liability by both seller and buyer if the profits or
in excess of set limits around Pt2,000,000.
Fees
You would expect to pay a total of around 10% of the purchase price. This could
include Stamp duty, charged at 7% of the official selling price (4.5% for the
Canaries), and 0.5% for contract documents Land Registry is charged against a
rateable table held by local authorities. There will also be a tax on the increase
of the land your property lies on since it was last sold and should be paid by
the vendor. Notary fees will also be included in the total costs.
Property Tax
All your Spanish property taxes will be based on the official price registered,
not on selling prices and you would expect to pay under 1% annually, plus additional
service taxes set by the local authority. Wealth tax charges apply for residents
after 17m ptas of net assets; if you don’t apply for residency you could be charged
tax for all your net assets. Rate varies from fractions of a percent to over
2% depending on net assets.
For
more information on Spanish Property and to arrange your viewing
visit:
Spanish
Property Viewing Arrangements
Spanish
Property Search:
Spanish
Property Search
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Spain |
Cantarero, Tuisku y Asociados - property, legal advice,
mortgage, inheritance, testament, taxes, company, investment, accountancy,
translation, consultancy.
www.cantarero-tuisku.com
Allen & Overy
www.allenovery.com
Carretero, Lawyers & Accountants, Marbella
www.vnet.es
Cornish & Co
www.cornishco.com
Cornishco, Spain & Portugal
www.corishco.com
Davies Arnold Cooper
www.dac.co.uk
Franco Abogados, Legal & Tax Advisors
www.pgb.es
Herrara & Moreno Conveyancing
clients.mercuryin.es
Marbella Lawyers
www.marbella-lawyers.com
Michael Pattison & Co
www.michaelpattisonsolicitors.co.uk
Olaverri Abogados, Attorney, Andalucia, Spain
www.hipernet.es/olaverri
Solicitors-online.com
www.solicitors-online.com
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