Buying Process when Purchasing your property in Spain.
Buying a property and it´s buying process in Spain can be some what confusing when looking at the initial steps.
That is why we at Malaga Property Invest are dedicated to taking you through the process step by step, as well as providing a full after sale service if needed.
Malaga Property Invest has more than 15 years of experience on the coast and Spanish property market and are dedicated to helping customers find their dream property in the sun.
In addition to this we will also help you with independent legal and financial advice via our contacts in the Malaga region.
When we have helped you find the ideal property for your needs on the Costa del Sol and have decided that you wish to move forward with the purchase, a usual deposit of 6000 Euro will secure the property (sometimes a bit higher depending on cost of the property) while the lawyers office are checking all the legal papers in order to check that all things are in order with the property.
This deposit can be paid by bank transfer or by credit card, it can be held in the Malaga Property Invest company client account or with a lawyer of your choice.
There is lawyers office in Malaga that can be used that we often cooperate with and normal procedure would be that reservation funds would be held by the same lawyer that is handling your whole property purchase.
The deposit serves to reserve the property while your chosen lawyer conducts the initial check ups of the property. This reservation deposit is fully refundable in the event that your lawyer should discover any legal problems related to the reserved property.
Should you continue with your purchase after the property check up the deposit will be used towards the purchase price and deducted from the total cost.
Buying Costs when purchasing a property in Spain:
The buying costs in Spain vary from 10% to 13.5% of the purchase price:
– 10% IVA (VAT) on NEW properties, 8% to 10% IVA (VAT) on re-sales depending on price category.
– 1% Notary cost
– 1% Lawyer (sometimes a fixed figure can be used)
– 1.5% Stamp Duty Tax
Note: No fees are paid to the real estate agencies from the buyer, always the selling party.
Do you need a NIE number?
NIE Number – The Five W’s
What is it?
The NIE number (or “Numero de Identificatión de Extranjero”) is a national tax identification number that is required in Spain by any non-Spanish individual. It is the foreigner’s equivalent to a DNI number possessed by Spanish nationals.
The NIE Number itself is issued on a standard A4 page,or on a smaller green paper with the recipients full name (as written on the passport used during the application process), their place of birth, their nationality, and the number itself, along with a stamp and signature provided by the National Police.
Why do I need it?
The NIE Number is issued by the National Police of Spain and in accordance to Spanish law is required for the purchase or sale of any real estate, vehicle, or boat within Spain. There are many other transactions that require the parties involved to possess an NIE Number.
The document is often used as a form of identification, and in many cases the original document is required (a copy is not sufficient).
When will I need it?
Once issued an NIE number, it will never change, irrelevant of marital status, name changes or residence status.
Where can it be used?
The NIE Number is a national number, and therefore the location of application is irrelevant as the number can be used throughout the whole of Spain and the Canary and Balearic Islands and Melilla.
Who can help me get it?
In order to obtain an NIE Number, there are several ways to do this. Note the following:
Apply in Person – To apply for an NIE Number in person, you must present yourself at a local branch of the National Police of Spain (the Guardia Civil). The exact process varies from one branch to another but generally they follow the following steps:
Download and print an NIE Number application form – this can be found at the Ministry of the Interior website.
Complete the application form.
Take the form, along with your passport (and a photocopy of your passport) to a local branch of the National Police.
When you arrive at the National Police station, you will need to take a number and stand in the queue. Their offices are only open until 14:00 and it is recommended to get there very early as to get a number (e.g. 6:00 a.m.) especially during the summer months.
Submit the application, and be sure to collect a receipt for your application, the administration of the Guardia Civil should inform you when your NIE Number document will be ready to be collected.
Return to the National Police station where you made the application in the time-frame suggested. (It is wise to add an additional week, just to be sure it will be ready by then) and queue to get a number again.
Present your receipt at the counter and you should be given your NIE Number document.
For further assistance or information on buying a property in Spain please contact us directly on firstname.lastname@example.org, we can arrange with lawyers that will handle this whole process for you with a power of attorney.
If you have all this ready when you start searching for your dream property in Spain the process will go so much quicker.
Team Malaga Property Invest