Dreaming of owning your own property in Spain, on the Costa del Sol coast, is becoming increasingly realistic for many people. Many beautiful homes with sea views, surrounded by green areas or close to golf courses, are available on the market. However, before embarking on this exciting process, it’s worth understanding the procedures to go through, the costs to incur, and the additional aspects related to purchasing property in this picturesque corner of the world.
Choosing Your Dream Home
The first step in realizing this dream is choosing the right home. On the Costa del Sol, you can find many luxurious, modern apartments, beautiful villas with sea views, or charming cottages near golf courses. Here, in the rich offer, you can find something for yourself, tailored to individual tastes and needs.
Reservation and Deposit Agreement
After finding the perfect place, it’s best to reserve it for the duration of negotiations and legal formalities. A deposit agreement, which is worth signing even with a lower offer than the asking price, ensures that the seller takes us seriously. The deposit, amounting to about 6,000 euros or 1% of the home’s value, is transferred to the lawyer’s or real estate agent’s account.
Submitting an Offer and Negotiations
The next step is submitting an offer and potential price negotiations. If the seller accepts our offer, we proceed to the next stages of finalizing the purchase.
Pre-Purchase Agreement and Down Payment
Next, with the support of a lawyer, we sign a pre-purchase agreement. We then pay a down payment, amounting to 10% of the property’s value. In the event of the seller breaking the agreement, the buyer is entitled to a double refund of the down payment.
Purchase Agreement and Mortgage
Once all formalities are settled, we sign the final purchase agreement at the notary’s office. Here, we also sign a mortgage agreement if we are using a loan. Notary fees and the tax on legal acts (AJD) amount to approximately 1,000 euros and 1.2% of the loan amount, respectively.
Transaction Costs
Various fees, such as taxes, lawyer’s fees, notary fees, and fees related to the mortgage, need to be added to the property’s price. Depending on the market (secondary or primary), the tax may be 7% or 10% of the property’s value.
Additional Costs
Don’t forget about additional costs, such as utility fees, costs associated with obtaining an N.I.E. number, or the cost of opening a bank account in Spain.
Professional Assistance at Every Stage
I strongly emphasize that you are not alone in this process. Our professional agency offers comprehensive assistance at every stage of purchasing property in Spain. With our experience and knowledge, you can count on support and advice on any issues that may arise.
Our specialists not only assist in choosing the right property but also guide you through all legal formalities, price negotiations, and contract finalization. Additionally, we offer assistance with renovation, interior design, property management, and rental mediation.
Thanks to our support, the process of purchasing property in Spain becomes easier and more enjoyable. You can be sure that we are by your side every step of the way, taking care of your interests and ensuring a comfortable purchasing process for your dream home on the Costa del Sol.
Here is a detailed breakdown of costs and percentages associated with purchasing property in Spain:
- Reservation and Deposit Agreement:
– Deposit Agreement: €6,000 or 1% of the property value (whichever is higher). - Submitting an Offer and Negotiations:
– No additional costs. - Pre-Purchase Agreement and Down Payment:
– Down Payment: 10% of the property value. - Purchase Agreement and Mortgage:
– Notary Fees: Approximately €1,000.
– Tax on Legal Acts (AJD): 1.2% of the loan amount.
– Mortgage Filing Costs: From 1% to 1.5% of the capital. - Transaction Costs:
– Property Transfer Tax (ITP) (secondary market):
7% of the property value.
– Value Added Tax (VAT) (primary market):
10% of the property value.
– Tax on Legal Acts (AJD) (primary market):
1.2% of the property value. - Lawyer’s Fees:
– 1% of the transaction value + 21% VAT. - Notarial Fee:
– Approximately €1,000 depending on the transaction value. - Registration Fee:
– Approximately €500 to €1,000. - Additional Costs:
– Signing utility contracts (water, electricity, telephone): Approximately €500.
– N.I.E. (Foreigner Identification Number) Cost: Approximately €150 + 21% VAT per person.
Summing up these costs constitutes an additional 8% – 13% of the property value, which needs to be added to the chosen property’s price. Adding up all percentages, depending on the type of transaction, additional costs can range from 8% to 23.2% of the property value. It’s important to keep this in mind when planning to purchase property in Spain.
Summary
Buying property in Spain is a process that requires attention and careful consideration, but it’s also full of opportunities. With an understanding of the procedures and costs associated with the purchase, you can effectively realize your dream of owning a piece of paradise on the Costa del Sol.