1.Find a Trustworthy Estate Agent or Builder
2.Choose a Property Lawyer to assist you

Once you have identified the area in which you want to buy a property ~ chose a builder or agent with knowledge of the local area to show you a wide selection of homes and advise on the best areas to invest in.

You should ask for details of the outgoings payable each year to maintain the property, namely the Annual Real Estate Tax (IBI), the community fees, the charge for rubbish collection, the water rate, the electricity charges and The Property Income & Wealth Tax in respect of the property that you wish to buy.

When you have made the decision as to the property to be purchased you will be asked to immediately pay a reservation deposit, thus ensuring that this property is not sold to another purchaser. You will then have a period of 10 to 15 days to exchange contracts but before doing so , you should seek proper legal advice.

From now on until completion of the purchase, the lawyer will take care and assist you in all the different steps in the transaction. There are many excellent English speaking—Spanish lawyers in Spain. Choosing the right lawyer is your guarantee that Spanish legal requirements are met, that the property is in the vendors name & it is free of mortgages, charges & encumbrances, debts or other liabilities. Your lawyer will negotiate & discuss the purchase terms with the vendors lawyer. This will not be just the price but completion date, form of payment etc.
Once you have chosen your law firm they will explain the procedure involved & the associated costs buying a home in Spain.

The next step after paying the deposit is the evidence of the terms in writing—the lawyers at this stage will draw up The Private Contract. It is customary to pay a deposit of 10% of the price on exchange of contracts, which is not normally refundable if the purchaser defaults. Conversely, if the seller fails to fulfil his obligations, you will be entitled to rescind the contract and claim damages. Before your lawyer exchanges contracts he will have completed his searches and investigations in respect of the property.

On the day fixed for completion your lawyer will go to the Notary Public to sign the Title Deed, making the final payment to the vendor who will simultaneously pass possession of the property to you with the keys At this stage the sale is completed.

Immediately after completion the Notary will fax details of the title deed to the local land registry to inform them of the new owners identity so to prevent the property being sold twice. You will then have to pay the relevant taxes.

1.Your lawyer will probably charge 1% + VAT of the sale price.
2.The Notary charges to a fixed scale.
3.Land Registry Fee.

1.If you are buying a resale property you are obliged to pay
Transfer Tax (ITP).
2.If you are buying a new property from a developer then you pay VAT (IVA) plus stamp duty.
3.The VAT (IVA) rate increases if you are buying a plot of land, commercial premises or garage spaces.
4.Plus Valia is a tax levied by the local town hall based on the area in which the property is located. This tax varies dependant on the purchase price. By law the vendor is obliged to pay this tax but in practice it is common for the parties to negotiate on whom is to assume the liability.