Business and Finance

You would not dream of buying an Apartment, Villa, or property in your home country without using a Lawyer and so you should adopt the same practice here in Marbella or any other part of Spain. Many Spanish Lawyers called Abogado's here in Spain are Bilingual speaking English and Spanish. Try to use a Lawyer near to the area in which you wish to buy as their local knowledge could be very useful. Please find below some questions and answers regarding purchasing and selling your property here in Marbella.

Upon finding the right property who do I pay a deposit to?

A deposit is not normally paid direct to the vendor, but to the selling agent or lawyer representing you in your purchase. The minimum normally required is in the region of 3000 euros, but may be greater for the higher-priced property. This reservation deposit is paid by cash or credit card, and will reserve the property until contracts can be exchanged and 10% paid over.

When are the private contracts exchanged?

Upon acceptance of the offer by the vendor and payment of the reservation deposit, the next step is to exchange private contracts. This normally takes place within about 14 days. Your legal representative would have made steps to make sure the property is free of debt or problems as above, and the private contract will set out the agreed selling price and the date of completion at the notary. It is normal practice at this stage to pay 10% of the purchase price.

What is an Escritura Publica and Nota Simple?

The Escritura Publica is the registered title deed of the property. It is entered in the 'Registro de la Propiedad', the Property Registry, and is the only guarantee of title in Spain. It contains a description of the property, the details of the owner and any mortgages or legal claims that exist against the property. This document is important because it tells you if the seller is the owner of the property being sold. A nota simple contains further details of any mortgages or charges against the property and is also available from the Registry.

What is a Notary?

A notary formalizes the sale of a property; they check that the title deeds and purchase are in order before the final payment is made, and the purchase document signed. The notary will then fax a copy of the purchase document to the local land registry office, and the final registration of the documentation normally takes around 2 months.

Are mortgages available in Spain?

There is a wide range of Mortgages available here in Spain. See our Spanish Mortgage information page.

What if I change my mind?

You are committed by the signing of the private purchase contract, and if you choose not to complete the transaction you will lose your 10%. If you have not reached this stage of the purchase all you will lose is your deposit.

What are community fees?

Community fees generally apply to properties that share benefits e.g. community swimming pool(s), general maintenance, gardening and security. These fees are set by a president and committee who are voted in at an AGM (Annual General Meeting) every year.

Is it easy to open a bank account in Spain?

This can be arranged by you or your lawyer, and is very straight forward. Normally all that is required is a passport and a small deposit to the account.

Are there any additional fees to pay like stamp duty in the UK?

Yes there are; as a rule you should allow an additional 10% on top of the purchase price, to cover fees including lawyers, the notary, property registration and transfer tax.

We are considering selling our property here in Marbella and are wondering the situation regarding Capital Gains Tax. We are at the moment non residents.

Being a non resident you will pay 35% on the nett gain after selling the property, as opposed to a resident who will pay 20% on the nett gain. Also at the public notary a non resident will have 5% of the sale price retained by the buyers on account of the Capital gains tax. This retention was implemented to avoid tax loss from non residents whom may sell and return to their country of Domicile. After your tax liability is assessed a refund may be available. There is in Place a ten year countback as of Dec 31 1996 there if you have owned the property since before Dec 31 1986 then you are not liable to Capital gains tax. There are also rules in Place regarding deductions for every year before 1994. You are well advised to Speak to your legal representative regarding this matter.

Any more questions?

If you require any further information, or have any questions please do not hesitate to contact us!