Our company follows strict rules as stated following the Spanish law regarding the registration of personal data.
We refer also to our privacy statement.
The information provided to us will never be shared with others, and is given in a secure environment, which can be recognized by the padlock and https designation in front of the web page address (URL).
Your contact information will be disclosed only to persons who are directly involved in your booking such as the owner and caretaker of your holiday home.
Online payments go through an authorised payment provider, or you pay by bank transfer.
We will never have access to your credit card information, and thus this cannot be stored.
The servers of our organisation are all insecure European data centres.
On our websites, we give as much information about the homes as possible, and you can assume that this information is correct.
But if you want to know something that is not mentioned on the website please contact our customer service.
Our staff will happily answer your questions.
When buying a new build property from a developer
VAT (IVA) and Stamp Duty (Actos Jurídicos Documentados) apply. VAT and Stamp Duty are applicable for residential properties that have never previously been occupied and building plots of land. VAT is a national tax that does not vary depending on the property’s location (with the exception of the Canary Islands). At present VAT is 10% of the purchase price for new residential properties (villas, apartments etc) and 21% for building plots of land.
When buying a resale property!
Transfer Tax (ITP) This tax applies if it is a resale property that has been used before. The general ITP rate is 10%
It is not obligatory by law to seek legal assistance for a property purchase but it is strongly recommended to do so. The fees can vary due to the amount of work required by the solicitor.
Notary Public’s Fees and Land Registry Fees
The fees vary depending on the purchase price and complexity of the deed.
We always recommend that all our clients are represented by an independent lawyer or Gestor who can advise fully on the purchase process in Spain.
You will be required to pay 20% on the profit from the sale of your house (the difference between what you declared when you bought the house and what you will declare when you sell the house).
On the day that you complete on the sale you will be charged a flat rate of 3% on the full amount of the declared sale price (the amount shown in the esctritura or title deed). This amount will be deducted from the final money you will receive when you visit the Notary to complete the sale of the property. (Buyers from non-resident sellers are required to withhold 3% of the total purchase price and pay it directly to the Spanish Tax Agency, usually through their lawyer or accountant).
This 3% paid on the day of completion is a part payment of the amount of 20% to be paid on the profit made on the sale. You will be required to pay the remaining amount of the 20% on the profit when asked by the tax office.
All non-residents are required to pay a 3% retention on the day of completion.
If the 20% of the profit works out to be less than the 3% on the full amount, it might be a good idea to ask your lawyer or accountant to make an application to pay the 20% and then he can claim back the 3% already paid and just pay the lesser amount of 20%. He has one month after completion to make this application.
In addition to capital gains tax, the plusvalía tax is also paid by the vendor in this area.
The plusvalía tax is based on the increase in the value of your land from the date you bought it to the date you sell it and it is calculated by your local Town Hall.
Each Town Hall determines the amount of plusvalía to be levied on each house sale. The original purchase price and the sale price of the property do not have any effect on the plusvalía tax.
The plusvalía tax is calculated according to the rateable value of the land and the number of years it has been in the ownership of the vendor.
For an indication of the amount of plusvalía tax you are likely to have to pay, you need to go your local Town Hall with your Escritura and an IBI receipt for your property. They will be able to tell you the tax accrued if the property was to be sold on that date
The first step when you find a property that you want to purchase is formulating an offer in writing and putting down a good faith deposit. This deposit can be held by the estate agency and the amount varies depending on the property price as well as other factors. Your sales Agent can advise you of the exact amount, based on the property of interest. If your formal offer is accepted and signed by the Seller then it becomes a reserve agreement and the property is taken off the market. The reserve agreement will provide conditions and timelines for the next contract; we always advise our clients to use a solicitor for the purchase and can recommend lawyers suitable for the transaction who speak your language.
This is a simple agreement between the Buyer and the Seller in which the Seller agrees to sell the property and the Buyer agrees to buy the property at the price agreed. This contract will be made by YOUR lawyer or Gestor.The Private Contract will contain all the relevant details such as a description of the property, the purchase price, the payment structure and the completion date. At this stage the Buyer will be expected to make a down payment, which is normally paid to the Seller’s bank account and is usually 10% of the agreed purchase price, within 10 working days (only when your lawyer instructs you to do so) Within the private contract there is usually a clause stating that should the Seller decides to withdraw from the sale the buyer is entitled to receive double the down payment as compensation and should the buyer decide to withdraw from the sale the down payment amount is lost. So you need to be 100% sure the property is for you and you are in a financial position to complete the sale at the date of a notary.Prior to entering the contract, due diligence checks will be carried out regarding legal and technical details of the specific property.
On the completion date, the balance of the purchase price (sales price minus any amounts paid to date) must be paid. The seller and buyer then sign the Public Deed of Conveyance (Escritura), which is equivalent to the title deeds of the property. The buyer is then issued with the Public Deed of Conveyance in front of a Notary Public, who certifies the property transfer, and a copy of the Public Deed of Conveyance will be passed to the Spanish Tax Office and on to the Property Registry.
The Notary Public in Spain is a public official who is required to witness the deed of sale. However, an expert and independent legal advisor should be used to protect your own interests.