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Buying Guide

To help you in budgeting for your house purchase in Spain we set out a few guidelines;

PURCHASE SUM

  • The price of your chosen home is fixed in Euros and not subject to any changes once you have signed a purchase contract and made the first payment and cannot be altered by the constructor.
  • Should you require any extra works, we will first request a fixed price quotation which will then be passed on to you for your approval and instruction.

PURCHASE COSTS PER HOME

You must budget for additional costs for a home in Spain which are approximately 10% depending on the purchase price of the property and whether or not a mortgage loan is being used.

This percentage includes:

  • Notary and solicitors charges and registration fees;
  • Spanish Transfer tax;
  • IVA (Spanish VAT) which is currently 7% ;
  • Water and electricity connections.

OUR SERVICES

As a valued client you will receive the following services:

  • A fully guided property and area inspection;
  • Help and guidance with the contract from the developer/builder for your chosen property;
  • Opening of your personal Spanish bank account and arranging of a mortgage if required;
  • Obtaining quotations and ordering of extras to your instruction such as air conditioning, alarm, telephone, satellite TV, etc.;
  • Guidance with the understanding and signing of your title deeds with the Notary and solicitor;
  • Arranging your fire and household insurance;
  • Help and advice on choosing your furniture;
ANNUAL CHARGES

The annual costs of running your holiday home in Spain are considerably less than in the UK. Typically you should budget for £500 - £700 per annum for a property although this will vary depending upon the size of the property, location and how much electricity/water is used; this is an average guideline based upon a typical 2 bedroom apartment and includes the following:

  • Fire and household insurance;
  • Yearly house tax;
  • Refuse collection service;
  • Street lighting in the urbanisation;
  • Community charge including maintenance of the communal swimming pool;
  • Standing charges for water and electricity.

PROPERTY PAYMENT CONDITIONS

The following conditions typically apply on new property on the Costa Blanca/Costa Calida and Almeria and may vary slightly depending upon the developer/builder:

  • You can generally reserve your chosen home with a payment of €3000 (approximately £2000), usually payable with a UK cheque;
  • A purchase contract between you and the builder/developer is then signed by both parties agreeing the payment terms and any extras required;
  • A further 30% - 50% is payable within 20 days following the signing of the purchase contract;
  • Generally speaking the balance due is payable upon completion and handing over of your property. However, some builders/developers prefer to operate a stage payment basis of payment during the build period. The actual terms of the purchase contract are agreed between the parties at the outset;
  • All payments attract IVA at the relevant rate;
  • For the various money transfers, we will provide the correct documents and guidelines for your bank to make electronic payments, thus avoiding any worries. Further, we are able to put you in touch with a currency exchange company who will be able to offer you a better rate than UK high street banks.

For second hand or resale property a nominal deposit is agreed between the vendor and purchaser, normally no more than 10% of the agreed purchase price. Thereafter, the balance is payable at an agreed date in the future. Again, payments attract IVA at the appropriate rate.