Once you have decided on the property that fulfils your requirements, our team will be happy to offer any further information that you may need regarding the purchase of your property.

All our properties can be reserved with a deposit of 10%. It is then imperative that arrangements are made for the financing of the property. We can assist you in arranging a mortgage if required.

We strongly advise you to retain a lawyer to act on your behalf to make all the necessary checks on the property ensuring that it is properly registered and free of all charges and encumbrances. Lawyers have differing scales of charges which can range from 1% to 1.5% of the property price + 16% IVA (VAT).

COSTS

You will be obliged to pay an additional amount of 7% on the property price to cover the Spanish property transfer tax. A further 1.5% to 2% will be payable when the Escritura (Deeds) are signed to cover registration taxes, notary fees and land registry charges.

In total, we advise our clients to estimate 10% purchase costs when considering buying a property. Those clients who require a Spanish mortgage should estimate 11% to 12% costs.

We also strongly advise that you ask your lawyer to draw up an independent Spanish Will to cover the said property.

IBI, IMPUESTOS SOBRE BIENES INMUEBLES, REAL ESTATE TAX

Every property owner in Spain must pay an annual real estate tax known as IBI to their local Town Hall. Your lawyer will request copies of the receipts for this tax from the previous owner to ensure that it has been paid. Once you have completed the purchase of the property, arrangements can be made for you to pay this tax on a standing order through your local bank. A small additional payment is now required for basura (rubbish collection), also to the Town Hall and payable annually in the same way as IBI above.

SERVICES TO THE PROPERTY

Before signing your Escritura (Deeds) your lawyer will ensure that there are no outstanding debts on the property for electricity, water, telephone, etc. Again arrangements can be made for you to pay for these services on a standing order through your local bank.

COMMUNITY OF OWNERS

Most properties in Spain form part of an urbanisation in which a community of owners exists and every owner is a participant. The owners are obliged to abide by the Rules and Regulations of the community and to pay their portion of the community expenditure. The importance of a community is to control the organisation and efficiency of the estate. Your lawyer will ensure that previous community charges have been paid prior to your signing for the property.

The community is structured with a President, Committee and Administrator, who are elected annually by the owners. It will be their responsibility to determine annual budgets, costs and whatever improvements will be required by the owners for the benefit of the urbanisation. They will also be available for Annual General Meetings, where owners should be present to express ideas and opinions on the organisation and running of the urbanisation and the community.

The community expenses usually include:

• Community and Administrator costs
• Maintenance and cleaning of the pools and communal areas
• Community lighting
• Gardens and communal areas
• Building insurance
• Satellite TV (optional)
• Water (optional)

FISCAL REPRESENTATIVE

Spanish law dictates that every non-resident property owner in Spain must pay an annual income tax regardless of whether you rent your property out. This tax is based on a small percentage of the price of the property. We advise you to appoint a Fiscal Representative to attend to all your legal obligations. There are a number of lawyers, accountants, etc. in the area who would be happy to provide this service for a small annual fee.

LETTING AND MANAGEMENT

You may wish to offset your annual outgoings and provide yourself with an income by letting your property at times when you do not want to use it. You can either arrange this yourself or through a specialist company. We will be happy to advise you.