The following is a general guide to purchasing new and resale property in Spain. However, this guide does not attempt to cover all legal and financial points and prospective purchasers are recommended to seek professional advice from an English speaking Spanish lawyer. Where appropriate, we can introduce you to our associated lawyer.

Purchase Procedure
Property in Spain is registered on a property register in much the same way as the United Kingdom and there is therefore a certain similarty with the English conveyancing system.

The Contract
As in England, when you have decided upon the property to purchase, the agreement will normally be contained in a private contract. The document should contain details of the agreed purchase price, payment of a deposit, provision for payment of the balance monies, any extras that you have agreed to purchase and the intended date for completion together with all other relevant terms and conditions.

It needs to be remembered the subject to contract provisions that apply in Spain. Therefore, once you have paid a full deposit there is a binding agreement between both seller and buyer; either party may rescind the contract, the seller returning double the deposit or the buyer losing the deposit.

Conveyance (Escritura)
The sale and purchase of all property in Spain requires to be registered in the Land Registry. They maintain details of the property and record financial charges and other matters which may effect the title.

The Notary (el Notario) prepares the conveyance  (la Escritura) from the information supplied to him by the seller or his lawyer (el Abogado). He will check compliance with Spanish law. However, the Notary will make a check at the Land Registry immediately prior to the signing of the escritura to ensure that there are no undisclosed charges on the property.

Before the visit to the Notary, a check should be made against the property to ensure that no adverse entries have been made beyond those disclosed or to which the purchase may be subject. This is very important as the system of protection afford by H.M. Land registry in England does not presently apply in Spain.

Once the formalities have been completed before the Notary, the Escritura Publica must be delivered to the Land Registry for the title to be recorded in the Registry of Property (Registro de la Propiedad). Before doing so however, your lawyer should check to ensure all taxes have been paid.

Purchase Expenses
The total expenses incurred in the purchase price should not, on average amount to more than 10% of the purchase price. The individual expenses and fees are as follows:

Stamp duty (Transfer Tax).
There is no stamp duty threshold as in England and you will be required to pay at the appropriate rate based on the declared price. If you purchase a new residence from a developer I.V.A (VAT) is charged at the rate of 7% on the declared price. In other cases the stamp duty is charged at 6% of the declared price. If the property being purchased is soley land upon which a property is to be constructed and is brought from an established business the applicable rate is the full I.V.A rate of 16%.

Land Registry.
The fees of the property Registrar for registering your Escritura will be assessed on a scale fee related to the declared value as in England. Your lawyer undertakes this.

 Plus Valia.
This tax is paid to the local Authority and is a form, of Capital gains Tax that is payable on the increase in value of the land since the last purchase. It should be stressed that this tax is based on the increase in value of the land and not on any buildings erected upon it.

Notarial Fees.
A fee is charged by the Notary to prepare and legalise the Escrituar. This is also a scale fee based on the declared value.

We will guide you through all the necessary transactions, we have our own recommended lawyers to advise you and we would be pleased to let you have the names of other lawyers who would be happy to assist you. Normally the legal costs will be in the region of 2-3% of the purchase price depending on value.