When you decide to purchase an off plan property, the builder will ask for a deposit to secure the property. This is normally €3000-00, (or approximately £2050-00), payable in cash or personal cheque, (credit cards are not normally accepted). At this stage you will be asked to sign a reservation contract setting out the terms and conditions applicable to your purchase.
This should be done through your chosen solicitor, or, if requested, we can introduce you to an- English speaking, Spanish solicitor, who will fully discuss procedures relating to all aspects of your purchase.
We advise that all payments should be made via your solicitor who will undertake to check the purchase contract and make all necessary searches regarding the legality of the property on your behalf. You may also wish to confer Power of Attorney to your solicitor for future transactions and for your convenience.
Clients will need to open a bank account (which we can assist you with). This is necessary in Spain when you are purchasing a property as it will enable you to transfer funds from the UK directly into a personal account. It is also advisable to open an account with a currency exchange company to obtain the best exchange rate. We can also assist you with this if required.
Thirty days after signing the reservation contract you will normally be requested to pay 20% of purchase price, 30% after a further sixty to ninety days, and a further 40% to 45% in staged payments until completion of build. The balance is payable at Escritura, (receipt of title deeds / when you receive the keys). These payments are payable in cash or personal Euro cheque or bank transfer via your solicitor´s bank account, this protects your payments at every stage of the purchase. (Credit cards are not normally accepted). These terms may vary from builder to builder. I.V.A. (tax@7% is normally payable with each payment made following the deposit).
These terms can generally be extended or modified, subject to personal circumstances and on the approval of the builder.
Additional costs generally represent approximately 10% of purchase price, this covers I.V.A (tax@7%, if applicable to your purchase), Notary, Solicitor, plus land registry fees etc. (Some builders include I.V.A in purchase price).
When purchasing a “resale” or “key ready” new build property, you are generally asked for a €3,000-00, (or approximately £2050-00), deposit to secure the property, at this point you will also sign a reservation contract. A further payment of between 10% and 20% of the purchase price is required as soon as possible. This is subject to paperwork for the property being checked by your solicitor and to the date you can make this payment / transfer the funds. These payments are payable in cash or personal Euro cheque or bank transfer via your solicitor´s bank account, this protects your payments at every stage of the purchase. (Credit cards are not normally accepted). The balance is payable at Escritura, (receipt of title deeds / when you receive the keys). These terms may vary slightly from vendor/ builder. IVA / Sales tax, ( @7% is generally payable with each payment made following the deposit).
These terms can generally be extended or modified, subject to personal circumstances and on the approval of the Vendor / Builder.
Additional costs generally represent approximately 10% of purchase price, this covers Purchase Tax, for a resale property or I.V.A. for a “Key ready” new build property @7%, Notary, Solicitor, plus land registry fees etc. If you require a mortgage then an additional 1% of the mortgage value is generally payable as an extra charge to the notary to notarize the mortgage documents.
