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Purchase guides GoMarbella Homes
Purchasing a property
The Escritura Publica or Escritura de Compraventa, This is the property owners’ title deed.
It is registered at the Property Register (Registro de la Propiedad) and is the only guarantee of title here in Spain. Included within the title deed will be a brief description of the property, the details of the owners and any details on charges that affect the property such as mortgages, rights of way, water wells etc and court embargos.
Ideally, the escritura will describe the property you are buying but it is likely that this description only details the property as it was bought by the current owners so please make sure that you are aware of any significant changes that might have been made by the seller whilst they have owned the property.
Whilst the escritura is a very important document it is a private document and therefore can have inaccuracies (passed on from seller to buyer over a number of years). Therefore it is extremely important to check the public registers for the property you are buying – these include the Property Register and the Catastro (more on both later).
Impuesto sobre Bienes Inmuebles
This is a receipt of the owners’ annual property tax that is known as IBI or “contribución”.
This receipt is very important because it confirms what the owners have paid in the last year on their rates and it also provides information in relation to the Catastro.
The IBI bill will show the property’s Catastral reference number which can give you information (via the Catastro website) on the property you are buying (this website has details of the size of the land, the size of the property and there may also be photographs showing the property)
The IBI bill will also show the property’s Cadastral value as assessed by the Hacienda (tax office) which in turn dictates your annual rates bill as well as any possible tax due when you sell the property.
Your lawyer (prior to completion) will make sure that all IBI taxes have been paid for the last 5 years so that there are no ongoing liabilities for you.
This receipt is very important because it confirms what the owners have paid in the last year on their rates and it also provides information in relation to the Catastro.
The IBI bill will show the property’s Catastral reference number which can give you information (via the Catastro website) on the property you are buying (this website has details of the size of the land, the size of the property and there may also be photographs showing the property)
The IBI bill will also show the property’s Cadastral value as assessed by the Hacienda (tax office) which in turn dictates your annual rates bill as well as any possible tax due when you sell the property.
Your lawyer (prior to completion) will make sure that all IBI taxes have been paid for the last 5 years so that there are no ongoing liabilities for you.
The Property Register
The Property Register is the public register for properties in Spain.
Once you have bought your property you will have an “escritura de compraventa” which is signed in front of the Notary and this will confirm you as the new owners of the property.
Following the signing at the Notary, your lawyer should then forward the “escritura” to the Property Register for public registration – this register holds information about the legal ownership of the property together with details of mortgages, any other charges and rights of way etc. A very important document which is obtained from the Property Register is called a “nota simple” which is a summary of the records for your property.
There are often old copies attached to the “escritura de copraventa” and it is extremely important that you ensure that your lawyer updates the Property Register now that you are the new owners (we have seen some properties which have not been updated and this can be a big problem).
Once you have bought your property you will have an “escritura de compraventa” which is signed in front of the Notary and this will confirm you as the new owners of the property.
Following the signing at the Notary, your lawyer should then forward the “escritura” to the Property Register for public registration – this register holds information about the legal ownership of the property together with details of mortgages, any other charges and rights of way etc. A very important document which is obtained from the Property Register is called a “nota simple” which is a summary of the records for your property.
There are often old copies attached to the “escritura de copraventa” and it is extremely important that you ensure that your lawyer updates the Property Register now that you are the new owners (we have seen some properties which have not been updated and this can be a big problem).
Catastro
The Catastro office is the second system used to identify the exact boundaries and the location of the property as well as giving a brief description of the property.
As mentioned previously, the Catastro dictates the amount of IBI (rates) you pay.
It is important to ensure that the property you are buying is described in the escritura, the Property Register and the Catastro in a similar way (there can be minor variations) but this will ensure that you are safe buying the property (because the public records match those of the escritura).
As mentioned previously, the Catastro dictates the amount of IBI (rates) you pay.
It is important to ensure that the property you are buying is described in the escritura, the Property Register and the Catastro in a similar way (there can be minor variations) but this will ensure that you are safe buying the property (because the public records match those of the escritura).
Agreeing the sale
Once you have found your new home and agreed the price you will need to pay a holding deposit (normally €3.000) to the vendors (normally via their lawyer) to ensure that the property is taken off the market immediately (for a period of 15-30 days).
In some cases a small private contract will be drawn up by the buyer’s lawyer to safeguard their client’s money although this can often delay the sale from the start. At no stage should you be paying money to an estate agent (unless they have a clearly identifiable Client Account).
You will then need (with the help of your lawyer) to draw up the private purchase contract that confirms the basis of the sale and any specific terms agreed between the lawyers. Until such time as this contract is signed the property can still be sold to another party. Once the contract is signed and a deposit (normally 10% of the purchase price) is paid then you have effectively exchanged contracts and this now means the house is sold and a completion date is fixed.
In some cases a small private contract will be drawn up by the buyer’s lawyer to safeguard their client’s money although this can often delay the sale from the start. At no stage should you be paying money to an estate agent (unless they have a clearly identifiable Client Account).
You will then need (with the help of your lawyer) to draw up the private purchase contract that confirms the basis of the sale and any specific terms agreed between the lawyers. Until such time as this contract is signed the property can still be sold to another party. Once the contract is signed and a deposit (normally 10% of the purchase price) is paid then you have effectively exchanged contracts and this now means the house is sold and a completion date is fixed.
Taxes and Fees
There are a number of fees and taxes which will be payable on any property that you purchase in Spain.
These will vary for each property however the general likelihood is that 13% of the purchase price will be needed to cover all costs. There are two taxes to pay – the first is the Andalucian transfer tax (known as Impuesto sobre Transmisiones Patrimoniales). This is charged on all private re-sale properties and equates to 7% of the declared value within the contract however, this is due to rise in 2023 according to the price of the property chosen. If you purchase a brand new home directly from a property developer the tax will be 10% charged on re-sale properties although it will be known as IVA (the same as VAT in the UK) as it is referred to as a business transaction rather than a transfer between two private individuals. The second tax levied is the document tax, which is charged at 1,5%.
Notary fees are fixed with an official scale of charges. The fees will vary according to the amount of land, the size of the property and the price at which the property is being sold. The costs of the Notary can be shared although often, the buyer will be expected to pay all Notary costs (especially when buying from the Spanish).
The property Register will be updated with the new buyer’s details once the transfer has gone through and the charges for this will be similar to the costs for the notary.
These will vary for each property however the general likelihood is that 13% of the purchase price will be needed to cover all costs. There are two taxes to pay – the first is the Andalucian transfer tax (known as Impuesto sobre Transmisiones Patrimoniales). This is charged on all private re-sale properties and equates to 7% of the declared value within the contract however, this is due to rise in 2023 according to the price of the property chosen. If you purchase a brand new home directly from a property developer the tax will be 10% charged on re-sale properties although it will be known as IVA (the same as VAT in the UK) as it is referred to as a business transaction rather than a transfer between two private individuals. The second tax levied is the document tax, which is charged at 1,5%.
Notary fees are fixed with an official scale of charges. The fees will vary according to the amount of land, the size of the property and the price at which the property is being sold. The costs of the Notary can be shared although often, the buyer will be expected to pay all Notary costs (especially when buying from the Spanish).
The property Register will be updated with the new buyer’s details once the transfer has gone through and the charges for this will be similar to the costs for the notary.
Who Pays?
Unusually there is no Spanish law that states that any one party has to pay the taxes due on any property transaction.
Traditionally the seller will pay the Capital Gains Tax on the sale together with Plusvalia which is a local authority tax due on any gain in value based upon the Catastro.
Normally the buyer will pay the transfer tax and any document fees as mentioned above.
Spanish consumer regulations advise that this split between the buyers is the normal way in which fees and taxes should be paid however there are instances where the seller will insist that the buyer pays all fees and taxes.
Traditionally the seller will pay the Capital Gains Tax on the sale together with Plusvalia which is a local authority tax due on any gain in value based upon the Catastro.
Normally the buyer will pay the transfer tax and any document fees as mentioned above.
Spanish consumer regulations advise that this split between the buyers is the normal way in which fees and taxes should be paid however there are instances where the seller will insist that the buyer pays all fees and taxes.
How much to declare?
If you are buying a property and the seller insists on reducing the declared value of the property there is a possibility that the tax authorities will impose a fine once the sale has been completed. In addition when you come to sell the property the Capital Gains Tax will be charged on the profit that you have made since buying the property (the difference between your declared buying price and your declared selling price). So always declare the whole purchase price!
Documents required to apply for a mortgage
Employees
- 1. Photocopy of ID or passport.
- 2. Completed application forms.
- 3. Last 3 paychecks.
- 4. Last income tax declaration.
- 5. Simple note of the property.
- 6. Indefinite-term employment contract with at least 24 months of term.
- 7.- Bank certificate of funds available for sale.
Freelancers
- 1. Last 2 tax returns.
- 2. Official accounting breakdown of assets and liabilities.
- 3. Completed application forms .
- 4. Photocopy of ID card or passport.
- 5. Simple note.
- 6. Purchase contract if done already (if done already).
- 7. Accounting report for the last 3 years working as a freelance Accountants reference.
- 8. Credit report.
- 9. Bank certificate of funds available for the purchase and sale.
- – If the applicant has other additional sources of income (property rentals, pensions, etc.), he/she must present the corresponding certificates. .
- – If you have other bank credits in the country, present a bank certificate of the last 3 payments.
- 1. Photocopy of ID or passport.
- 2. Completed application forms.
- 3. Last 3 paychecks.
- 4. Last income tax declaration.
- 5. Simple note of the property.
- 6. Indefinite-term employment contract with at least 24 months of term.
- 7.- Bank certificate of funds available for sale.
- 1. Last 2 tax returns.
- 2. Official accounting breakdown of assets and liabilities.
- 3. Completed application forms .
- 4. Photocopy of ID card or passport.
- 5. Simple note.
- 6. Purchase contract if done already (if done already).
- 7. Accounting report for the last 3 years working as a freelance Accountants reference.
- 8. Credit report.
- 9. Bank certificate of funds available for the purchase and sale.
- – If the applicant has other additional sources of income (property rentals, pensions, etc.), he/she must present the corresponding certificates. .
- – If you have other bank credits in the country, present a bank certificate of the last 3 payments.
The origin of the funds for the purchase must be legally documented by providing the legally required documentation. the originals of all documents must be presented prior to the signing of the deed.
Documents required to sell a property
Required documentation to sell a property
- 1. Photocopy of id card of all holders (front and back).
- – Photocopy of powers of attorney in the case of a company.
- – Photocopy of separation/divorce decree.
- – Capitulations.
- – Photocopy of declaration of heirs.
- 2. Photocopy of an updated land registry simple note (not older than 3 months).
- 3. Last 3 paychecks.
- 4. Photocopy of the last receipt of the urban tax (i.b.i).
- 5. community: last community receipt (as well as, the details of the administration office and the name of the president).
- 6. Garbage fee last receipt .
- 7. Owner’s phone and email.
- 7. energy efficiency certification (only those homes required by the royal decree 235/2013 of the BOE.
Supplementary documentation for the sale of a property
- 1. Photocopy of receipts:
- – Water company.
- – Electricity company (endesa/sevillana).
- – Photocopy of plans.
- – Photocopy of the specifications.
- 2. First occupancy license.
- 3. Photocopy of deed/title of purchase.
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