Terence Wright Spain On Steps To Owning A Spanish Property
Terence Wright in Spain recommends that once you have reached the point where you
have found a property in Spain that you wish to purchase, the initial step towards the ownership of that property is to sign a preliminary sales contract with the vendor as this will ensure that the property is taken off the market and that the agreed purchase price remains fixed.
This preliminary contract will consist of the relevant clauses that will entitle you to a refund should your solicitor find anything whatsoever that is not in order or in accordance with the applicable laws. At this point the buyer must also pay a holding deposit to the vendor, usually in the region of 5000 Euros. The buyer will be able to pay the deposit by bank transfer or credit card, Terence Wright Spain advises that you should not bring cash with you but do of course make sure that the deposit amount is readily available.
Depending on the type of property you are buying the next step may well involve paying a 20% deposit to the vendors usually within 21 days from the date that the reservation is made and after your solicitor has completed all the necessary checks and searches for the property in question. By mutual consent between the vendor and the buyer, this timeframe can be extended if your legal representatives or finance company need more time.
After the steps covered above, completion on the property purchase in Spain can take place at a mutually agreed time where everyone must present themselves in front of a notary for signing of the contracts. The role of a notary in Spain is to verify, record and finalise the property purchase.
After this stage the property will belong to the buyer, and as from the date of completion at the notary you will now be the proud owner of your very own property in Spain.
After completion your legal representative will proceed in registering the Title Deed for the property in question at the Land Registry and arrange payment for the corresponding taxes which must be paid at this point. This part of the property purchase procedure in Spain can take a few months and is part of the responsibilities of your legal representative.
A summary of the purchase costs when buying a property in Spain will include the following with reference to the purchase price. 7% Transfer Tax, 1% Stamp Duty, approximately 2% Legal, Notary and Land Registry fees.
There is also a local tax which is calculated on the rateable value of the property and which has to be paid to the council. This tax is known as Plus valia tax which according to law, must be paid by the the vendor, however the parties may agree otherwise.
Another subject that Terence Wright Spain suggests you consider is that of a Spanish will. According to Spanish law, when a property in Spain is jointly owned by two people and one of them dies, their part is not automatically transferred to the other title holder. It will however be transferred in line with the will of the deceased, or, if there is no will, in line with the applicable laws in Spain on intestate succession.
Although it is not obligatory to have a will in Spain,
Terence Wright Spain strongly urge you to organise one. Arranging a Will in Spain will usually make procedures in these sort of cases much easier and quicker. If you are planning on using your British will, you will not be able to take any action until your British will has been validated. This can of course take some time, especially if your British will or your estate presents any kind of complications.
Without a Spanish will, finalising an inheritance procedure can take a considerable amount of time and in some cases up to two years. Another thing to remember is that the Spanish authorities will apply tax penalisations if these kind of matters are not dealt with promptly.
by: Javier
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