A sale is formally completed in Spain when the public title deeds of purchase are signed before a notary. On the assigned day both the buyer and seller (or their authorised representatives) will attend the office of notary to sign the "Escritura de Compraventa" (the title deed) which should state that the property is sold free of charges, mortgages, and tenants. At this point the balance of the payment is made and the seller hands over the keys and full possession now passes to the buyer.

Remember, the notary does not check the terms but solely certifies that the parties have agreed them.

Your lawyer will arrange payment of taxes and fees, and register your title deed at the Property Registry which should be carried out promptly.

Don't forget to have the property and contents insured. You can obtain an online quotation via the website of the coasts leading Insurance brokerages at Knight Insurance Brokers

LEGAL COSTS INVOLVED IN THE PURCHASE OF PROPERTY IN SPAIN

As a rule of thumb, you should estimate that the combined total of costs which you will incur will be around 10% of the purchase price.

A basic breakdown of the fess are as follows.-

• Lawyers Fees: Around 1% of the purchase price plus 16% VAT ( IVA ).
  
• Notary Charges are fixed by law and are generally between 400 to 800 Euros.
  
  
• Land Registry Fees are approximately 40% of the notary charges.
  
  
• VAT ( IVA) or Transfer Tax (ITP) are both set at 7%. IVA applies to off-plan properties and ITP applies to resales.
  
  
• PLUS VALIA :

  Increase in Land tax ( Capital Gains) is an 'added value' tax based upon the increase of the Town Hall index value of the land only, from the prior (vendor's) purchase to the present sale. The tax corresponds in principle to the seller, but, in common practice, is often paid by the purchaser. As there are several variable factors used in calculating this tax (area of land, location, building volume permitted, period of ownership of the vendor), the amount payable can vary substantially and should be verified before proceeding with the purchase.
  
  
  

  
  
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  The Guide to Buying Property in Spain available on the TopPropertySpain.com web site is purely meant as a guide. The authors and owners of ToppropertySpain.com can not be held responsible for any inaccuracies to the text provided or any technical modifications that may apply either at present or in the future.

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