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Taxes and Legal Aspects PDF Print E-mail
Written by Kent Moen   
Friday, 22 September 2006

The process with buying or selling a house in Spain is more or less the same as in other European countries. There can be some differences, and it is important to know about all legal aspects and additional costs before purchasing a property.
Although we would like to inform our clients personally and in detail, we will try to give a short summary here.

When you have found your property, you can make a reservation on this by signing a private contract
(Contrato de Opcion de compra), when signing this you have to pay an amount, normally 10 % of the agreed price of the property.
This contract shall include following information:
 
Who is the contract between (buyer and seller).
Witch property.
The agreed price.
Last day for completion of the purchase.
Inventory lists.
If there are any debts and charges on the property.

Both parts (seller and buyer) are obliged, and if one do not fulfill the contract, the other can demand the one whom not fulfilled the contract to pay an indemnity.
 
When the day for completion comes, both parts go to Notarius Publicus and sign the Deed of Conveyance (Escritura Publica de Compraventa). At the same time the buyer pays the rest of the price for the property.

Notarius Publicus has in advance collected legal information about the property. Any debts will be paid with bank checks directly to the owner of creditor (normally cancellation of mortgage). Notarius Publicus will also inform about rights and duties, and make sure that everyone has understood what the deed says.
 After this the deed has to be presented to the land registry and to the tax office. The name on the contracts with the suppliers of water and electricity must be changed and we recommend paying insurance for the property and the inventory.   
The additional costs can vary if it is a new construction or an old property. The largest single cost is on 6,5 % and are the purchase tax.We recommend that you calculate with up to 10 % additional costs.

When buying property in Spain all foreigners must apply for an identification number (N.I.E).

We will of course assist all of our clients through this process.
 Regarding the legal aspects and taxes in your home country, we recommend that you contact your government there.

Last Updated ( Friday, 22 September 2006 )
 
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