PURCHASING A PROPERTY IN SPAIN

1. Always use a reputable Real Estate Agent; and
Instruct a legal counsel preferably before any exchange of funds or reservation deposits take
place.
Once a reservation deposit has been delivered to the Real Estate Agent or to your Lawyer, your
lawyer will carry out a full due diligence on the property.
The Lawyer will then prepare a purchase and sale agreement, which will include the payment
terms:
• Re-sales: 10% of the purchase price is tendered to the seller upon execution of the
private purchase contract and the 90% on completion date, time at which the Title
Deeds are signed before the Notary Public and the buyer takes possession of the
property.
• New properties, the form of payment of the purchase price may have the following
characteristics; (i) payment in two instalments, i.e.: 30% at the signing of purchase
contract and 70% upon completion.
Power of Attorney
On many occasions clients are unable to travel to Spain on a regular basis. Should this be the
case, then a power of attorney granted in favour of the client’s lawyer is the best way. To
formalize such power of attorney, the client should do so before a local Notary Public during a
visit to Spain, or alternatively back in their home country before the Spanish Consulate abroad.
TAXES AND COSTS
• 11% to 13% for re-sales.
• 14% for new properties.
(If client wants a mortgage, you must add a 3% to the referred percentages)
(The above percentages includes legal fees and registration costs)
LEGAL FEES
• 150.000 € - 200.000 €: 1.500 €
• 200.001 € - 300.000 €: 2.000 €
• 300.001 € - 400.000 €: 3.000 €
• 400.001 € - 500.000 €: 4.000 €
• 500.001 € - 600.000 €: 5.001 €
• Properties above 600.000 €: please contact us.
(The above amounts do not include 21% VAT)
For more info please contact us at:
Jaime Montoro (Managing Director)
bsa-lawinspain
Urb. La Alzambra Local 3-1, Melior Vasari, Puerto Banús, Marbella, 29660, Málaga, Spain
0034 951 31 97 55 (tlf) 0034 951 31 97 30 (fax) office@bsa-lawinspain.com