Buying a property in Spain is the culmination of many years of dreaming and at least a couple of years of serious planning.
Sun Lawyers has been present consistently over 10 years exhibiting at A Place in the Sun Live at venues across the UK and Ireland including London, Birmingham, Manchester, Glasgow and Dublin.
We’ve supported A Place in the Sun and speak regularly on The Hub explaining about the process of buying a property in Spain and relocating to the Costa Blanca and Costa Calida.
Having had thousands of conversations over at least a decade, it’s interesting how just half a dozen points crop up time and again. In no particular order, they are:
I am a UK Citizen, can I still buy a property in Spain since Brexit?
Yes! The good news is that Brexit changed nothing for non-EU Citizens wanting to buy Spanish property. The rules for re-locating have changed, but for buying, nothing has changed.
Do I need a lawyer to buy a property in Spain?
The role of your lawyer is actually quite simple. It is to protect your interests and your money. That is why it is so important to choose a lawyer who is independent to the transaction. You will need a lawyer to buy a property so it makes every sense to get this sorted early. Many people don’t do this and reflection wish that they had. It means that when they find the dream Spanish property, the legal arrangements are already in place and will not delay or jeopardise any deal.
Aren’t lawyers expensive, can’t I get the legal work done more cheaply?
As a proportion of the overall cost of buying a property in Spain, the conveyancing fee is very moderate. As a guide the conveyancing charge on a ‘typical’ apartment on the Costa Blanca is about €1,500 + VAT. The benefit of using a lawyer is two-fold. Their experience, plus the fact they are insured should anything go wrong. As you will see below, the legal costs of purchasing a property are but into the context by other associated costs.
On a re-sale, How much should I budget for costs over and above the agreed purchase price?
As property tax is set by regional administrations, the cost will vary depending on the area of Spain you are buying in. At Sun Lawyers we deal mining with the Valencian and Murcian regions.
Valencian Community – 14%
Property tax is 10% plus a further 4% to cover legal fees, notary fees, bank & land registry charges and utilities transfer
Murcia region – 12%
Property tax is 8% plus a further 4% to cover legal fees, notary fees, bank & land registry charges and utilities transfer.
Are the charges different if I am buying off plan / brand new?
Yes, the charging structure is different. 10% VAT is charged on new build properties and there is a 1.5% stamp duty charge in Valencia and 2% in Murcia. When legal, notary, bank, land registry and utilities connection charges are added, it is sensible to allow 15% over the agreed price.
Something that is useful to know when buying new is that when you add extras as part of the build e.g. Air con units, underfloor heating, curtains in fact any extras, you will only be charged 10% VAT on these extras as part of the build. Adding them after completion will attract VAT at 21% so this is a good money saving tip.
Why do I need to get a Power of Attorney?
Over 90% of our clients do a Power of Attorney (POA) early on the purchase process. It saves our clients both time and money over the course of the property purchase. Signing a POA means you grant your lawyer relevant powers to act on your behalf as the transaction progresses.
The first thing will be to apply for an NIE number for each of the purchasers. This is your life-long identification number in Spain for everyone who is not a Spanish citizen who needs to complete economic activity like buying a property or a car.
The POA allows your lawyer to approve and sign paperwork connected to the purchase at key stages and also to complete the purchase including moving monies. So if you choose, you only have to come out to Spain once you are ready to collect the keys to your new property.
Expect to pay in the region of €500 (VAT inclusive) for a Power of Attorney and two NIE numbers. This is assuming you are doing the POA in Spain and you will be accompanied by your representative to the Notary to sign the POA. A POA can be done from the UK but the process is more drawn out and costly. So, we would always advise arranging this on your first trip to Spain when coming out to view properties.
We didn’t answer your question?
These are only a selection of the most common ones. Perhaps a copy of our latest guide to buying and relocating to Spain will help. Finally, know that your first consultation with Sun Lawyers is always free; so why not take advantage and arrange a meeting at one of our offices when you are here next. Just email admin@sun-lawyers.com and we can set something up.
