HOLDING DEPOSIT
Having found the property you wish to purchase, the first step is to pay a holding deposit, usually Euro 3000, and signing a purchase contract. This guarantees that your property will not increase in price, be sold to anyone else or the specification changed without your agreement or appropriate compensation. If you subsequently decide not to proceed with the purchase for your own reasons you will lose that deposit. A total deposit of 10% is normally required and you should arrange to pay the outstanding balance on your return to the UK once your solicitor advises you that the contract is in order.

APPOINTING A SOLICITOR
The next stage is to appoint a Spanish solicitor. We can help you with this as we have efficient and conveniently situated English speaking contacts who we are confident can offer you the best service. Although you may prefer to deal with your UK solicitor, he will not normally have the knowledge of Spanish law, which even a simple property transaction requires.
Your solicitor will require your details and copies of your passports. He or she will then describe the procedures involved, which are broadly similar to the UK, and detail the associated costs.

OPEN A SPANISH BANK ACCOUNT
To open a bank account all you need is to provide your details, a copy of your passport and deposit a small amount, normally 100 Euro.
Most accounts include a cheque book, cash card. These can be sent to you in the UK or held until your next visit to Spain. As in the UK, accounts can be held in single or joint names.

YOUR CONTRACT
The contract you sign when purchasing a property is legally required to be written in the Spanish language but in many cases, an English language version is available for you to read or the contract is written in both languages. Contracts are normally quite simple but vary depending on the nature of the property and whether it is new or a resale.

As you would expect, the contract includes the names and addresses of the buyer and seller, the details of the property, what is to be included in the agreed price, at what stages payments are required and an approximate date of completion

NIE NUMBER
Before completing your purchase, you will require a Spanish Foreigners Identification Number (N.I.E.) which we will help you to arrange.

DECLARED PURCHASE PRICE.
In Spain, particularly with resale property, the declared purchase price on the contract is normally less than the agreed sale price, substantially in some cases. This is the accepted practise throughout Spain and reduces Spanish tax liability. The difference is made up in a separate payment. Provided that the contract value is in proximity to the rateable value of the property (itself much lower than the market value), there should be no need for concern as all such arrangements are handled openly by the solicitors concerned

YOUR STAGE PAYMENT STRUCTURE.
In the case of resale properties, the balance of the purchase price is due on completion. With new properties, payments are normally spread over time and become due at different stages of the
building process, as detailed in your contract. Should you be arranging a mortgage, of which more in due course, most developers accept an agreed mortgage arrangement in lieu of some, or all the stage payments.

HOW BEST TO TRANSFER YOUR FUNDS.
When it comes to transferring money to Spain you have the following choices:
1. Direct bank or cash transfer into Euros at the prevailing tourist rate of exchange.
2. Pre buying the required total amount of Euros at an agreed rate with transfers being made subsequently.
3. Making individual payments through a money exchange specialist who will offer a beneficial commercial rate of exchange for amounts in excess of 5000 GB Pounds.
This last option is the safest and easiest and we can offer you an arrangement through our associates,

ARRANGING YOUR MORTGAGE.
If you require a mortgage to finance part of your purchase, this can be easily arranged. Please see our mortgage page for further details.

APPROACHING COMPLETION.
The completion arrangements are managed by your solicitor who makes an appropriate appointment with a notary, to witness and sign the transfer documents. The Notary is a highly trained government appointed official responsible for the impartial execution of all public documents and legally binding agreements of any description. He ensures full compliance with Spanish law. Full payment is required before the title deed can be transferred into the name(s) of the owner(s).

TAKING POSSESSION
The handing over of the property and the keys will normally take place only when the full purchase price has been paid.

TRANSFER OF SERVICES
Having completed the purchase, it is necessary to connect or transfer services. Electricity and water need to be in your name.

BUILDING & CONTENT INSURANCE
This is your responsibility upon taking possession of your property.

PAYMENTS OF CHARGES AND TAXES
As in the case of owning a property anywhere, certain periodic payments have to be made. Your solicitor will usually be willing to look after these matters, but you can appoint a Gestor (Fiscal representative) to make the necessary payments and take care of whatever paper-work is involved. Local rates are paid to the town hall. You need to obtain a fiscal number from the local tax-administration office.

COMMUNITY FEES
If you purchase a property within a complex or apartment block, you are obliged to join its residents association which administers the general maintenance of the areas of common ownership. An annual budget is calculated to cover these costs, which is divided between all the owners according to the size of their properties.

PATRIMONIO TAX
This is wealth tax, calculated at 0.2% of the declared value of the property and is payable each year by non-residents.

IMPUESTA DE LA RENTA
An annual tax payable by non-residents, which is based on the estimated value of the property on the assumption the property is rented out, whether it is or not.

PLUSVALIA TAX
A one off tax on the sale of a property, it is calculated on the appreciative value of the land the property is on and varies between towns. It is common for this tax to be paid by the purchaser.

THE ESCRITURA
These are the freehold title deeds, which are presented before the notary-public, showing ownership of the property.

THE NOTARY
A lawyer appointed by the Spanish government to ensure that the change of title is properly executed. It is his/her job to make sure that the seller is legally entitled to sell and the taxes are paid. The notary will register the change of ownership in the land registry office; this in turn is registered at the central registry of foreign investments in Madrid. The local registry office is where all the escrituras relating to property transfers are recorded after the taxes have been paid.

RENTING YOUR PROPERTY.
Even if renting your Spanish property was not a priority when you made your purchase decision, you could potentially benefit from making the property available for rental. Some may only want to rent for occasional weeks, perhaps to friends and family. Others may want to rent their property almost permanently, just using it themselves when the property is available. Many, of course, buy their property as an investment purely for rental, either long term or holiday lettings and also enjoy a good capital growth.

Please contact us for detailed specific information.

IN CONCLUSION.

We do hope that this guide will assist in making the process of buying your property in Spain as smooth as possible. It cannot hope to cover every eventuality without becoming too longwinded so please feel free to contact us at any time you are uncertain about any detail in the process.