BUYING PROPERTY IN ANDALUCIA, SPAIN
BUYING PROPERTY IN SPAIN
For your information and so you know what to expect when purchasing a property through Granada Houses, we
have set out below a guide to the purchase process:
Before you view any properties we will be clear about any fees or issues that we are aware of, so you can make an
informed choice about continuing with a viewing. We ask all clients to sign a Viewing Agreement, and you get a copy
to read first before signing. We provide a service which is professional and honest as we want our clients to have
complete confidence with each stage of the purchase process and beyond.
Step 1: Following your initial inquiry, we work with you to establish your exact requirements and budget. Our sales
team will help you compile a short-list of suitable properties and, as most of our clients wish to visit Spain to see the
properties, a personally tailored viewing trip can be arranged for you. These need to be booked in advance and we
recommend you allow for plenty of time with us on the trip. We can assist with booking hotels and arrange for you
to be met at the airport if required. For our clients who are unable to travel due to 2020 restrictions we offer, where
possible, a live chat by video, so you can see the house as we walk around and can ask us any questions there and
then. That way you can narrow down your search before travelling to Spain. For the video viewings we ask clients to
sign a viewing agreement beforehand as though they were here in person.
Step 2: When we find your ideal property, and you wish to proceed with the purchase, you will be asked to make an
ini????al payment of between 1,000 and 3,000 euros – this varies with individual properties. You will receive a receipt
for this which forms part of the sales contract. This gives you 2/3 weeks to sort out the balance of the legal deposit.
At this stage it is advisable to meet with a local lawyer, so you can confirm your instructions to him and where
necessary visit the local notary to give the lawyer POA. He can then apply for your NIE number and open a local bank
account. If you are unable to come to Spain the Power of Attorney can be arranged via post. We can recommend a
lawyer who is Spanish and English speaking. We never solicit commission from anyone we recommend. Furthermore, we only
recommend companies and people we trust and have developed a good working relationship with solely because
they do good work and not because they pay commission.
Step 3: 15 / 21 days after paying the initial holding deposit, you will be required to pay 10% of the agreed price – this
includes the initial deposit already paid. By this time your lawyer will have received all the paperwork relating to
the property and will have checked the title etc. to ensure that there is nothing to prevent you from proceeding.
Step 4: The next step is to complete the purchase and pay the balance of the funds. This normally takes place up to
30 days after payment of the 10% deposit – but the completion date will be agreed with the vendor and the lawyer
to suit both parties.
Step 5: if you are planning on permanently living in Spain your lawyer will need to apply for residency for all
members of your family who will live with you.
Purchase costs and fees:
Lawyers’fees: These will vary, but generally we suggest you budget for about 1,250 euros. Your lawyer will confirm
these with you at your first meeting.
Transfer Tax: Re-sale property bears a charge of 8% for property up to 400,000 euros, 9% for property from
400,00,01 to 700,000 euros and 10% for property over 700,00,01 euros of the price declared on the new Escritura
(title deed) but is exempt from VAT.
This tax shall not be applicable for properties being bought from a developer or building company, but VAT at a
current rate of 7%, plus 1% stamp duty is payable. of the declared value of the property is to be paid within 30 days
Tax Value: If the purchase price of a property is less than the tax value (not to be confused with the cadastral value),
the transfer tax is not levied on the purchase price, but on the value for tax purposes. Many homes are being sold far
below the price, and buyers will be later confronted with an additional transfer tax of which they knew nothing, and
therefore, had not taken into account. Your lawyer can calculate for you what the total transfer tax to be paid will be.
Notary fees: 300 to 800 Euros per property based on declared sales price paid on completion.
Land Registry fees: Approximately 400 Euros per property paid on completion.
NIE number: Your lawyer will arrange this for you and the fee incorporated into the overall lawyer fees.
Transfer of Services: Having completed the purchase it is necessary to transfer the water, electricity and telephone
services into your name. Regular bills can be paid by a direct debit through your bank. We help you with this as part
of our after-sales service.
Insurance: Normally Spanish insurance companies offer a split policy, whereby the property and its contents are
assessed separately. Do not forget TITLE INSURANCE: This can be arranged directly through us.
We can also assist with: (on a pay as you go basis)
Contacting builders and obtaining quotes
Buying a car
Managing repairs or building work
Applying for quotes for hot tubs, pools or plunge pools incl licenses with local authorities
Registering with a local doctor or school
Buying a mobile phone and contract
Installing internet/tv and wifi
Contracting cleaners, chefs, gardeners
Our aim is to make your move to Spain, or purchase of a holiday home as painless as possible. We understand that it
can be a little overwhelming when you do not understand the system or the language so we like to help as much as
possible to assist our clients enjoy their purchase.