Reservation
When you find a property, a holding deposit is required. The reservation amount is usually 3,000.00€ and is required in cash, bankers draft or credit card.

This deposit is refundable if the vendors change their mind, but is not refundable if you cancel your
purchasing contract.

Paying the reservation deposit guarantees that the property is taken off the market and reserved for you at the agreed fixed price. A local lawyer will explain all procedures in English, from this point on they will take responsibility for the complete transaction, keeping you informed every step of the way.
They will ensure that Spanish Legal requirements are met and that your property is correctly registered in the vendor’s name and is free from any mortgage, charges or restrictions.

Exchange of Contract
Once you have paid the reservation deposit, you will have a period of approximately 30 days to exchange the private purchase contract with the vendor. At this stage you will be required to pay the balance of the deposit; your lawyer will make sure that detailed searches and investigations into Land Registry have been completed. This together with the other negotiations can be organised in your absence, should you wish to appoint the lawyer as Power of Attorney.

N.I.E. number
All foreigners who purchase property in Spain must apply for an NIE (Número de Identificación de Estranjero) tax and identification number at the police station. Your lawyer will advise you on this application.

Completion
With NEW properties we will arrange to have the property inspected on your behalf and detail anything which should be rectified.
Finally, on the day of completion you will be accompanied to the Notary with your lawyer (unless you give Power of Attorney) to sign the title deed, making the final payment to the vendor who will exchange possession of the property and hand over the keys for your new property. Details are then faxed to the Land Registry office confirming your identity as the new owner. At this stage the sale is completed.

Property Purchase Costs
When you buy a home in Spain there are additional costs other than the basic cost of the house. As in the UK, there are various taxes and fees, which are necessary to complete the purchase. The approximate cost of the extra expense is around 10-12% of the purchase price.

The following is an example breakdown of typical costs (with no Spanish mortgage).

The price of the property 150,000€

 7% IVA                                             10,500€
 1% Stamp Duty                                1,500€
 Notary Fee                                            600€
 Land Registry Fee                              450€
 Water & Electricity contracts             900€
 Lawyer Fee                                       1,200€

Estimated Total Payable              15,150€