Guide to buying
property in Almerimar on the Costa de Almeria, Andalucia, Spain.
Buying
a place in the sun is much easier than you may think. Most Spanish
banks are quite happy to grant mortgages of up to as much as 80%
of the purchase price to foreign purchasers, subject to proof of
income. In the case of a new property, the developer will already
have a mortgage on the property to finance the building works and
the purchaser simply takes over all or part of it.
Property sales are booming and consequently prices are rising fairly quickly and, the house or apartment you look at this month may well cost quite a
bit more next month, if it is even still available.
If
you are not in a great hurry and want the best investment, buying
off the plans is the best way to go. You will be required to pay
a small deposit and pay several payments as building progresses
with the final amount due (with a mortgage if required) upon completion
which may be scheduled for 2 or 3 years hence. If things continue
as they are, your property will have increased significantly in
value by the time you get it.
In the case of second hand property, you will need to have your lawyer make a check at the property registry where any existing mortgages or liens must
be registered and the true owner of the property is listed. He should also check that all taxes and charges for things like water, electricity, rubbish, the municipal real estate tax, etc. are paid to date. Your
bank will also require a valuation.
When
the property is finished and the financial arrangements made, you
and the seller will sign the escritura de compraventa at
the notario's office. You must have a translator if you do
not understand the Spanish contract. The notario is an official
of the State whose duty it is to make sure that the contract is
legal, has been signed by the correct people, the money paid, and
that both parties know their tax obligations. His office keeps the
original document securely in case any questions should arise later.
There still remains one step before the property is officially yours. This is the registry of the contract with the Registro de la Propiedad. This registry converts your escritura de compraventa into an escritura publica, the title deed.
How high are the fees involved in buying a place going to be? As a general rule, you should calculate with around 10 per cent of the purchase price.
You will pay fees for the notarisation of the deed and for the registration in the property registry according to the official scales. Then there is a purchase tax whether you buy from a company or privately and plus valia - a
capital gains tax calculated on the increase in value of the land since the last sale. If you employ a lawyer, you will have his/her fees to pay as well.
Traditionally,
the seller pays the notary's fees and the plus valia tax
since he is making the profit on the increase in the property and
land value, and the buyer pays the impuesto de transmisiones
and the registry fee since he is interested in getting the property
registered in his name.
Nowadays however, almost all contracts state that the buyer will pay todos los gastos, which means he must pay all the expenses concerned with the purchase. This is perfectly legal since the parties can make any contract conditions they wish.
This is actually not such a bad idea. At least the buyer knows exactly what his obligations are. There can be no unpleasant surprises later when bills,
especially the plus valia, have not been paid - especially by non-resident vendors. By the time a new purchaser would become aware of this, the vendor would be long gone and he would be responsible for the
bills anyway, as they are bills due on the property. When the new owner is responsible for all the taxes then things are straightforward and there can be no complications.
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