Process of Buying a Property in the Murcia Region
We will assist you buying your property and make sure you are satisfied right through
the legal process of buying a property, from start to finish.
We always advise you to use an independent English-speaking lawyer, local to the
area in which you are buying. We advise you to give Power of Attorney to your lawyer
for the purpose of buying a property. This gives the advantage of the lawyer being able
to sign documents on your behalf if you are not present
To buy a property in Spain you have to have the following:
o NIE Number (Número de Identidad de Extranjero), which translates as
‘Identification number for foreigners. This is a fiscal number and can be
obtained for you by your lawyer with a photocopy of your passport.
o Spanish Bank Account We will assist you with this or again it can be
set up on your behalf, by your lawyer if they have Power of Attorney.
Resale properties
Once your offer has been accepted, you pay a small reservation deposit which is
normally € 3,000 to € 5,000 depending on the price of the property. At this point, the
property will be taken off the market for a limited period (usually 14 days). This allows
time for the lawyer to conduct legal checks and make sure there are no liens on the
property and to draw up a contract of sale (Escritura de Compraventa) which includes
the following:
- o Selling Price
o Details of the property
o The property is sold free of any debt.
o Completion date
o The amount of the non-refundable deposit. The reservation deposit will
now become non- refundable and an additional amount may be required
by the seller. Once the Purchase Contract is signed, should you default
on this contract, you forfeit your deposit. Should the seller default, they
must pay you twice the amount of the deposit.
o Any other items requested by the buyers, such as repairs.
o An inventory if the property is sold furnished.
The sale is complete when the Title Deeds are signed at the Notary’s office, either by
yourself or on your behalf by the lawyer. The Notary is responsible and ensures all the
financial transactions are completed at the time of the sale. Finally, the keys to the
property are handed over to the buyer
Costs Involved In The Buying Resale Properties
The buyer pays:
o 8% I.T.P. (Impuesto de Transmisiones Patrimoniales). Stamp duty and
taxes involved on Property Purchase. In Alicante and Valencia Province,
this is 10%.
o Notary fees of 0.5 to 1%
o Land Registry fees around 0.5%
o Legal fees usually around € 1,330
The seller pays:
o PLUSVALIA (Local Capital Gains), However because the seller may
leave the country without paying the plusvalía, the notary deducts the
amount owing from the sales price and deposits it the buyers account
who has 30 days in which to pay it.
OFF-PLAN PURCHASES OR NEW CONSTRUCTION:
The buyer pays:
o 10% I.V.A. (Spain ‘s equivalent of VAT) 1,5 % a.j.d. (Actos Jurídicos
Documentados).
o Stamp duty for a new property.
o Notary and property registration fees of about 3 per cent Legal fees
(usually between 1 and 2 per cent)
MORTGAGE COSTS
If you choose to buy with a mortgage, this will incur several additional costs:
- o Property valuation that the mortgage provider will require before
granting the mortgage. This is paid for the by the buyer and can cost
around 500 Euros.
o The costs of the implementing mortgage. This varies according to the
provider, and even according to the particular branch. However, there is
usually some kind of opening fee of around 1% of the value of the
mortgage.
o The mortgage will increase the Notary expenses.
TRANSFERRING FUNDS TO PURCHASE THE PROPERTY
It is advisable to use a specialist currency broker to transfer funds which can give you
substantial savings on bank exchange rates.
