We strongly recommend you hire an expert lawyer before you commit to sign any contract. Basically will ensure that all the documents are in order and the property is fully legal.
NIE NUMBER & SPANISH BANK ACCOUNT
You must obtain the NIE number and spanish bank account to complete any buying or selling process in Spain, otherwise the notary will disallow it.
THE RESERVATION CONTRACT / DEPOSIT AGREEMENT
The reservation contract normally is a one simple page document. Signed by all parties without the intervention of a notary, takes the listed property off the market (normally 30 days).
The deposit amounts from 3.000€ to 6.000€ depending on the property (also 10% of the property price). Is fully refundable in the event that your lawyer should discover any legal impediments pertaining to the said property.
THE PRIVATE PURCHASE CONTRACT (PPC)
A long legal contract which contains the buyer and seller´s personal details, a full property description, the agreed sales price, the buying terms and the time frame to complete before a notary public.
From 10% to 14% of the purchase price:
- IVA (VAT) – 10%.
- Notary fee – 1%.
- Legal fee (lawyer) – 1%.
- Stamp duty tax – 1,5%.
- Mortgage in Spanish bank (in need case) – 1% to 1,5%. – 1% to 1,5%.
The information provided in this article is of general interest only and is never a substitute for professional legal advice.