Frequently Asked Questions

Do I need a lawyer?

It is possible to buy a house in Spain without using a lawyer. We strongly recommend you use an English speaking lawyer. We can help with a lawyer if you wish.
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What do I have to pay in Capital Gains should I sell my Spanish property?

Since 1 January 2007 you now have to pay 18% of the gain minus expenses. These expenses are lawyers fees, estate agent fees, Notary, and transfer tax currently 7%. Make sure you get official facturas (invoices) and keep them.
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What is the process of buying in Spain?

Buying a house in Spain is a simple process but can be made difficult if things are not checked properly, we strongly advise that you instruct a Spanish lawyer who speaks English, and we can help with this. The process is as follows.

  1. Find the property you wish to buy and agree price.
  2. Pay a holding deposit; on the understanding the vendors supply correct paperwork to your Lawyer. This is a copy of the deeds and land registry details, plus proof that they have full title to sell.
  3. Once your Lawyer is happy with the paperwork and his search is clean (No debts or charges on the property) he will prepare a private contract between you and the vendor. This is a simple contract detailing the property, price, and completion date, plus anything else that has been agreed. You are then required to pay the balance of a 10% deposit.
  4. On the date agreed we go to the Public Notary and sign the paperwork, hand over the money and receive the keys. The property is then yours. On this day you are also required to pay the balance of your lawyer’s fees and the rest of the Fees, Notary, Land Registry, Transfer tax, this is normally paid to your lawyer unless you have given power of attorney in which case the Lawyer will take as and when required.
  5. Once prepared the Lawyer will pick up the deeds from the Notary and take them to the Land Registry and at the same time pay your Land Registry fee and your 7% Transfer Tax.
  6. When the property is fully registered on the Land Registry the deeds are picked up by your Lawyer and held or passed to you for safe keeping.
  7. All the Utilities will be changed into your name.

You will need to have a Bank account here in Spain for your money to go through, the Notary will ask for a certificate from your bank saying that the funds used to purchase the property have gone through your account. Once again your Lawyer organises all this for you.
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Do I need a Spanish bank account?

Yes in every case the money used to purchase property has to go through a Spanish account and the Notary requires a certificate from your bank manager stating the money has come from outside Spain.
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What is an Escritura?

This is the public deed of sale; it is drawn up by the Notary and your lawyer. The information has details of vendors and buyers as well as a full description of the property. This information is what is written down at the Land Registry.
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What is the Land Registry?

This is the most important document as it describes the property and details of the registered owner. It also has details of any debts and charges against the house. This is important because if they are not cleared prior to signing they transfer to the new owner.
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What is an NIE number?

Nacional Identificacion Extranjero. This is your I.D. number in Spain and it is needed in order to pay your taxes. All Notaries now require you to have this in place prior to signing the Escritura. This means you either applying yourself or giving your lawyer Power of Attorney. It is now vitally important that you allow enough time at the end of your viewing trip to organise this.
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Why do I need to give Power of Attorney?

Most steps of the purchase can be conducted without the need to give your lawyer power of attorney. However to change the utilities into your name and to apply for your NIE does require a Power of Attorney

Power of Attorney in Spain is very specific and it is signed in front of the Notary who will make sure you understand what power you are giving.
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What is a Notary?

This is an official appointed by the government and they sit above the lawyers to make sure you fully understand what you are signing they also ensure all the paperwork is in order. Some agents suggest that they do all the paperwork for you and let the notary check. We strongly recommend that you use an English speaking Spanish lawyer.
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What is the best way to transfer my money to Spain?

There are many ways to send your money abroad, most people think of using their bank. This can be very costly both in charges and the exchange rates they give you. Using a financial exchange company will ensure the best rates with no charges. We use Sterling Exchange who do not have a minimum amount.

How can I get the best exchange rate?

By using a foreign exchange professional you can keep in constant touch to judge the right time to purchase euros. Alternatively all of the foreign exchange companies will allow you to buy ahead. In essence you agree an exchange rate today guaranteed for a fixed period. This reduces the risk of the rate going against you.
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Do I need to do a Spanish Will and what is involved?

Your UK will is valid in Spain but it can be very time consuming and expensive to process it. It is advisable to do a Spanish will for your Spanish assets. Your lawyer will prepare the documents for you. They are then signed in front of the Notary and are stored on the central register of wills in Madrid.
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Do we need permission to build or reform a property?

Yes, any work you do on a property requires a building licence from the local town hall (Ayuntamiento). They will decide if the work is major (obras majores) or minor (obras menores). If it is decided the work is major then you need to involve an architect and submit a project. If it is minor you pay your fee and you are issued with a licence. For both the licence fee is based on the cost of the work.
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Do we have to become Spanish residents?

This depends on your personal circumstances and how long you intend to spend in Spain each year.
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Can I take out a mortgage in Spain?

Yes of course the mortgage rate is very favourable but please be aware that the initial costs are very high with setup fees, commissions, transfer tax, legal fees and Notary fees. These are on top of the fees for buying the property.
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What extras can I expect to pay when buying a property?

You will have to pay legal fees, Notary fees, land registry and transfer tax. As a rough rule of thumb this comes out at approximately 10% on top of the purchase price.
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How do I get insurance where they speak English?

Most of the big insurance companies will have someone who speaks English.

We deal with a company called Intasure who are based in Croydon, England.
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How do we change the utilities into our names and how do we pay?

Your lawyer will normally sort this out for you. All the utility companies can be paid by direct debit all you have to do is ensure there are sufficient funds in your Spanish bank account.

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