The Buying process in 5 Easy Steps
The sales and marketing system on the Costa del Sol, unlike other countries and indeed the rest of Spain allows all estate agents to freely access and share each other properties, so it is completely pointless and a waste of your time in looking at properties with lots of different estate agents. Once you find your dream property, is time to make an offer.
You will start the negotiation process; once agreed a mutally beneficial price and terms you will sign an offer and deposit contract.
1 . Offer and Reservation contract
You will need to sign an offer and reservation document and pay a fee to secure the property. Subsequent documentary requirements should be fairly standard. This contract is not logged with any official registry but is considered binding.
The reservation deposit is usually 6,000€. You do this to ensure the property is taken off the market and to avoid the risk of someone else buying the property while doing the legal survey.
2. Private purchase contract and deposit ( contrato de arras)
The vendor's lawyer will draft the private purchase contract (contrato de arras) which needs to be signed by the buyer and the vendor ( or their legal representatives). Within this document, both parties will set out the terms of the purchase.
You will then be required to pay a deposit on your new property, which is usually 10% of the purchase price, less the reservation deposit. This can sometimes be more depending on the deal.
Should you decide to pull out of the process, the laws in Spain state you lose that deposit. So, make sure you are ready and willing to proceed. If, however, the seller pulls out after the deposit is paid, then you are entitled to claim double the amount of the deposit in compensation, unless otherwise stated in the contract.
Within the clauses of this contract, a deadline will be set by which time completion must take place or else the parties responsible for the delay will be forced to pay penalties.
3. The Title Deed
Signing the title deed must be done in front of a notary at the notary office. At this stage, you will also pay the balance and receive the keys to your new home. You will get a copy of the deed, known as the Copia Simple.
If the buyer requires a mortgage, or the seller has a loan to be discharged upon the successful completion, a representative from the bank will also be present and the notary will thoroughly check the deeds and ask each party if they fully understand the contents written therein.
Once he is satisfied that everyone is happy with the contents he will supervise the transfer of a bankers draft for the balance pending on the property and the keys will be handed over to you, the happy new owner!
4. The Land Registry
Once the title deed is signed your details will be registered at the Land Registry.
The utility companies should be informed of the change of name. Again, this is usually arranged by the lawyer.
5. Annual Taxes
Of course, paying property taxes is a must. How much you pay will depend on a few factors.
One is whether you are a Spanish resident - both residents and nonresidents are liable for IBI or council tax.
Non-residents however, must also pay imputed income tax. This is usually 2% of the cadastral value or the property.
The Law - What You Need to Know
It is in your best interest to get legal representation before making a property purchase on the Costa del Sol.
The process of buying a property in Spain can be complex.
NIE
In order to purchase a property in Spain you must obtain a NIE number (Numero de ldentificaci6n de Extranjeros). Having a NIE means you are registered with the Spanish authorities, is an easy process and can be obtained through your lawyer.
Set up a bank account
It is very easy to set up a bank account in Spain, whether you are a resident or not. All you need is proof of a Spanish address (this can be your new property or a rental property) and an official form of identification. Most current and savings accounts with the main banks have a monthly fee, but otherwise they work in much the same way as in the rest of Europe.
Spanish residency
If your intention is to live in Spain for more than three months in the year, you are - by law - required to apply for a Spanish Residency certificate if you are an EU citizen.
Officially, every person who lives in Spain for more than 180 days per year is required by law to register on the padr6n, which is the official list of all those residing in a certain municipality.
Register with Your Town Hall
The empadronamiento, also known as the padr6n municipal de habitantes, is a municipal register or census record, similar to an electoral roll.
The town hall holds this list, and it is a way for them to know how many people live within their area of jurisdiction. The information provided during "empadronarse" (the act of registering) is confidential and subject to data protection laws.
Where to Buy Your Property on the Costa Del Sol
Whether you are looking for an investment property, a getaway apartment, a holiday home or your permanent residence, here are 10 things to consider when choosing the location Marbella is a symbol of glamour and luxury lifestyle.
The combination of sunshine, blue sky and white sandy beaches offers an exciting mixture of natural beauty with the best climate in Europe along with digital infrastructure that way more developed than most capitals on the continent. Superfast internet, well built road network, the increasing availability of paperless government and commercial services provide the best environment for remote working.
The perfect life and work balance is now the number one reason for an increasing number of young professionals and families to choose the lifestyle they have always wished for. No wonder that the property market is much more resilient in this part of Spain.
My most favoured areas start from the buzzing and often over the top fashion of Puerto Banus through Marbella Town all the way to Rio Real that is considered central to this part of the coast. Going toward further east, you will find Elviria with its more tranquil private villas, well looked after apartment urbanisations through Calahonda where one may still find bargains all the way to La Cala.
The small town in the Mijas Costa has been experiencing a mini boom of modern developments thanks to its beach town location and the smaller number of available properties for sale.
