General Costs and Processes for purchasing a home in Andalucia
This is a very basic guide to some of the steps that will formally need to be covered when and if you decide to make an offer on a property in Andalucia.
Costs associated with the purchase of a property.
As a rule of thumb, budget for around 8 - 10% of the purchase price in additional fees and taxes.
This is broken down as follows:
Property Purchase Tax - 7% of the purchase price, payable to them local town hall within 30 days of completion of the purchase.
Legal Fees - Typically 1% of the purchase price
Notary Fees - on average, around €800
Land Registry Fees - between €300 - €700
Take a property with a purchase price of €150,000 as an example. You can expect to pay the following:
Purchase Tax of 7% - €10,500
Legal Fees - €1,500 + IVA
Notary Fees - €800 approximately
Land Registry Fees - €500 approximately
Total estimated additional costs - €13,300 (around 8%)
You will then need to register with your town hall for water and rubbish collection and your IBI bills, and with utilities providers.
Things you need to know when you make an offer on a property
As part of the offer process, we will ask you for some additional information and this needs to be provided in full before an offer can proceed to contract stage:
The full name of the buyer(s)
Address
Scanned copy of Passport
Scanned copy of an NIE (This is the ID number for non-Spanish individuals, and you must have this for the purchase of a property. A lawyer can obtain this on your behalf)
Profession/occupation
Confirmation of funding for the property purchase: mortgage/sale of another property etc.
If purchasing the property through a company, we will require:
Company registration documents
Directors list
Identification of Ultimate Beneficial Owner (UBO >25%)
All documents will be kept confidential and stored securely.
We will send out a guide to help with these formalities, but they are legally required to comply with Spanish Anti-Money Laundering law (Law 10/2010).
The stages of property purchase
The basic stages for buying a property in Andalucia are very straightforward:
THE OFFER
Once you have found the ideal property, make an offer. You will need an NIE before you can complete the purchase, so you will need to obtain this as soon as possible. A lawyer can obtain an NIE on your behalf. A Spanish bank account is also advisable, for the future payment of utility bills and taxes;
PURCHASER INFORMATION.
We will send you a form requesting further information pertaining to your position to purchase;
OFFER ACCEPTANCE.
Your offer will be discussed with the vendor and if the offer is accepted we will share your details with your lawyers and the lawyers acting on behalf of the vendor;
DUE DILLIGENCE AND RESERVATION CONTRACT.
As part of the conveyancing process, your lawyer will carry out due diligence on the property and draw up a Contrato de Arras. This is the legally binding sales/purchase contract and you will be expected to pay a deposit of 10% of the purchase price at this stage;
COMPLETION
A date will then be set for signing the Contrato de Compraventa at the Notary, and this is when the sale/purchase is completed. Before this date, your lawyer will liaise with you to have the balance of funds sent to their account or for the ordering of a Banker's Draft/Cheque to be presented at the Notary's office.
This entire process could be carried out very quickly, providing all the correct documentation is in place. We request preliminary information from the vendor of the property as soon as we are instructed, so that documentation is readily available once an offer is accepted
If you have any doubts at any stage during the property purchase process, we are here to help!
Lead photo: Cortijo Alpujarras.
