When Buying a property with Costa Blanca Homes in Spain
Costa Blanca Homes in Spain team will guide you through the sales and after sales process . We know how overwhelming it can be an experience of buying a property and that is the reason we are here to help you in every step of purchasing your dream property.
Taxes and legal fees
Apart from the property cost, you will need to have 13% of the purchasing price, whether it is new build or a resale and wether a mortgage is needed or not, to cover the different costs of real estate purchase such as IVA (VAT), Legal Fees, Notary Fees, Land Registry and Title Deed Tax. When you are looking at houses, none of the them will come with IVA (VAT) includied in the price, at the time of signing the deeds at the Notary this is where you will be asked to add 10% from the actual cost of the property. Legal Fees are from 1% to 2%, depending on the property price, Notary and Land Registry Fees are approximately 1% and Title Deed Tax at 0.5% of the declared value.
Reservation of a property
To make a reservation of a property you will be asked to sign a formal sales contract with our company and you will be expected to pay a deposit of 5.000€ to reserve your property, this amount will be deducted from the price of your new home at the Notary. Remember without these two steps the house you have chosen is still on the market and can be still sold to someone else. Don´t forget in this area the market goes very fast and we are not able to reserve it for you with the absence of the above.This contract will act as a receipt for monies paid with respect of the purchase. There is by Spanish law 3 months for the completion, and as for resales you are able to agree with owners the correct time always depending on Notary availability. As for new builds it will depend if the property is still in construction.
Booking your trip
At the front page of our web site you will be able to enter at the clients travel info request."Booking your trip". At this page you will need to insert all your information so that we know the best way in which to contact you. Coming for a trip with us is a wonderful unforgetable experience. You are expected to stay with our company for 3 days, where we will pick you up at the Airport, drive you untill the Hotel, show you the full area including restaurantes and bars and places of interest and of course show you the houses that matches with your requests. Fligths and Hotel Costs will be given back to you if you buy a house with us. You will find this trip both fun and very informative.
Choosing a solicitor
In the process of buying you can choose a solicitor, you can use your own, or you can use our recomendation. The solicitor will take care and assit you in all the different steps involved in the transaction. There are many excellent English-speaking solicitors in Spain. Choosing the right Solicitor is your guarantee that Spanish legal requirements are fulfilled, the property is registered in the vendor´s name and that it is free of any mortgages, charges and debts.
(NIE) Numero de Identificación Estranjera
Foreigner´s Identification Number. Every non-resident requires a NIE. You will need to get this in person at the foreigners department at the National Police headquarters. Our team will assist you with this procedure. This number is obligatory to get before the purchase any property in Spain.
Sending your funds
From the moment you start to come more often to Spain, deciding or not to buy a house, you should open a Spanish bank account to avoid any extra commisions in ATM´s and a loss of your cards and an urgent trip back home with no funds. This bank account will allow you to send over your funds into Spain and to assist you on the completion of the payment of your property. Notice that in Spain you will not be able to purchase a property with a cash payment, only by registered transfer or checks. Our team will also assist you on this, giving you the directions of a good bank and a financial adviser.
The local town hall charge SUMMA (IBI) on owned properties (Impuesto sobre Bienes Inmuebles), wich is an annual real estate tax. This local tax is based on the Catastral value of the property which varies from property to property. This yearly amount can be from 100€ up to 2000€.
Plus Valia tax
This is a tax on any increase in land value from the last time it was sold, this depends from region to region and is normally charged to the seller of the property but may have to be retained by the buyers solicitor to clear it.
New build property
Buying a brand new property you will get a 10 years construction guarantee from the builder. Some of the projects are still in construction and the majority of clients are buying the properties off-plan (still in construction or just out of plan). The constructing companies give a bank quarantee on deposits and amortizations given so nothing to worry about. You will see a show house completly furnished to have an ideia of how is going to look like when it is finished. Conditions of payment will depend on the builder and time of finishing.
You are able to request a bank guarantee to insure your payments. This insurance costs from 1% to 2% of the payments insured. You don´t need to cover the total amount of the property, only the payments untill completion.