Insurance, finance and legal advice
To ensure that you receive the best possible service when purchasing, selling or renting out your Spanish property, we can put you in touch with insurance, finance and legal representatives. All related services we recommend are completely independent, multilingual and have extensive experience of working with international clients.
We have an agreement with Nykredit, Handelsbanken and DNB Lux, Norway’s largest financial services group and are able to facilitate competitive mortgages rates, subject to credit checks.
LEGAL ADVICE
When buying property in Spain you should always use a lawyer. We work with well-established lawyers in Marbella that we believe offer the best services at the best possible conditions for our customers. There are many things to take into account such as tax rules and planning, tax returns, inheritance etc. Property purchase in Spain can be problematic, due to the language, an unfamiliar legal system and bureaucratic obligations. The language and the legal system cannot be changed overnight, though can you insure yourself against the worst pitfalls of using a broker who has experience of Spain and who can lead you through the process from start to finish.
BUYER'S GUIDE
Buying a property in Spain can be a straightforward affair. But things can go wrong, and if you blunder into a purchase without any knowledge of the property market in Spain it can be an expensive affair, so it’s up to Perfect Marbella to do the job for you. The challenge of finding the right property, negotiate the purchase and close a sale is more demanding than in many other european contries. As in a lot of places it seems that “everyone” is involved in real estate trade in some form -from the taxi driver to the doorman at the hotel. Property is a favourite topic in any conversation. Almost everyone has an opinion – opinions that quickly can confuse a buyer.
FIND A PROPERTY
Some spend years searching for a property, others are lucky and find their dream home the first time they visit Spain. Talk to us about your needs and we can find your dream property together. What type of property and in which area? Many potential buyers think they know what they are looking for, but often end up with something completely different. If you are not completely clear on what you want and do not know if such a property exists, you should have an open mind and consider different types of properties in different locations.
CHOOSE A GOOD BROKER
On the Costa del Sol there are many qualified brokers, but also many less qualified and with limited or no experience. It is best to use a broker with extensive experience and also one recommended by lawyer. A good broker will listen and understand your requirements, share their knowledge and experience of the market, show you properties for sale and to liaise with other brokers until they find the right property to offer you. If you are not comfortable with your broker, you should not hesitate to switch. If you find a broker who you think it is easy to work with and who understands what you are looking for, you should stick to him / her until you find the right property. Sticking to the same broker motivates him / her to find you the right property.
BANK GUARANTEES
If you buy a property that is under construction, the builder is committed to have an insurance or provide a bank guarantee which ensures your payments in case the property is not built or finished. The builder must also provide proof of ownership, building permits, as well as insurance against structural damage. This will be familiar with your lawyer.
PURCHASE PRICE
The best advice for determining the value of a property is to check the sales prices of similar properties that have recently been sold, assuming that your broker have basic market
knowledge and is honest. Property is an important part of your assets. Always keep in minde that you might need to resell the property again some where down the road. It is therefore important to consider the overall investment criteria such as location, design, quality and facilities – in addition to personal preferences.
LEGAL ADVICENEGOTIATE THE PURCHASE
Prices of similar properties that have recently been sold, assuming that your broker has basic market knowledge and is honest. Property is an important part of your assets. Always keep in mind that you might need to resell the property again sometime down the line. It is therefore important to consider the overall investment criteria such as location, design, quality and facilities – in addition to personal preferences.
OTHER CONSIDERATIONS
To make an offer, it is important to try to find out what the seller’s minimum price is, but at the same time be a serious bidder. Try to have all negotiation points clear at once. Give a written offer if possible via a broker. If the offer is too low it can backfire. So-called “low-ball offers” may actually offend the seller, with the result that there is no answer at all. Seller will certainly take your offer more seriously if you have a deposit ready for transfer from a bank account, this will have to be transferred to our client or the lawyers client account until the lawyer has created the contract. This tends to be the amount of € 6,000 or 10% of the sales price to seal the deal with the seller. Agree on who should pay the municipal “plus Valía” – tax. (Increased value tax) When a bid is accepted, the lawyer acquires and checks the status of the property on the registration office (ownership, liens, etc.). Once this is done the lawyer can draw up a contract that is binding for both parties and provide the property deed to be signed in front of a Spanish notary. Most of the advice above is specifically directed towards the purchase of a completed property. New entries have a fixed price list and payment plan with no or very little room for negotiations – especially in terms of price.
ONE LAST ADVICE
Follow your intuition, it is usually the best wizard!
If anything is unclear, please contact us for more information about the purchasing process.
PURCHASE COSTS
- Transfer Tax (I.T.P.) Scaled at 8%, 9% & 10%
Payable by the buyer for the purchase of any Real Estate (villas, flats, land, commercial premises, garages), provided the vendor is not a developer or normally trading in the business of resale properties. If the “minimum fiscal value” of the property, as per the Regional Government, is greater than the price, then the minimum fiscal valuation applies: 8% is applicable up to the amount of 400,000€ or 30,000€ in the case of garages except those belonging to the dwelling and with a maximum of two; 9% is applicable to the amount between 400,000€ and 700,000€ or between 30,000€ and 50,000€ for garages; 10% is applicable to the amount exceeding 700,000€ or 50,000€ for garages. - VAT and Stamp Duty 10% + 1.5%
For any villa or apartment, or garage that is annexed to an apartment or villa, where the vendor is a developer, promoter or habitual trader for brand- new properties. - Notary & Land Registry Fees & Stamp Duty– apprx 1500 – 2000 euro
- Legal Fees – apprx 1%
Your lawyer must, as a minimum, perform a land registry search to verify ownership, boundaries, mortgages, other liens on the property, rules and regulations for the area, the necessary building permits and check that it is completed and that the property has correct user permits (License of first occupation) and that the area is correct in Catastro (the property register office) etc.
We recommend to calculate 10-11% purchase costs when purchasing a resale residential property.