The Real Estate agent
In Spain, Real Estate Agents can show all properties for sale. There is no exclusivity.
This means that in Spain you only need your own agent, who acts as your personal adviser. It is the seller who pays the commission.
At Dahl´s Estate & Management, we cover the coast west of Malaga – ie. from Torremolinos through Manilva.
We recommend that you set aside at least two days for searching / looking at properties once you are in Spain. It is our experience that it gives you the best way to get a knowledge about the local areas, possibilities, prices and then you can make the best decision for at good purchase. Before we meet for two days – we will have a meeting online to be sure we understand your wishes and then we can show you the properties, which hopefully match your dreams.
Would you like know more about buyng property in Spain
Buyers Success list
- Pick the right area
- Get the right agent, it is all about trust
- Narrow the search before you get on a plane
- View more than three properties
- Make an offer, repeat if necessary
- Tidy up the loose ends with your lawyer
Lawyers and legal assistence
It is imperative to have a lawyer on your side when buying property in Spain. We recommend including your lawyer right from the start of your search process.
At Dahl´s Estate & Management, we can refer you to an independent and authorized Spanish lawyer to examine and advising on the legal situation of the property, private purchase contract, notary meeting etc. We do not receive any “return commission” for referral”.
How to finance your property in Spain?
We will be able to provide financing options. During years of employments in banks in UK and Denmark, we have the knowledge to get you the best finance offer to your Spanish property.
There are typically three ways to finance
1. Additional loans in your property in your home country
2. Loans through Nykredit’s representative office at Costa del Sol.
3. Mortgage from a Spanish bank.
Spanish banks offer mortgages (hipoteca) with competitive interest rates and terms. The Spanish banks’ terms for non-residents are typical 60- 70% of the property’s valuation with a maturity of 15-30 years and current interest rates of around 2 – 3%. The maturity depends, among other things, on your age.
Once you decide which loan you want to pursuite, the loan must be reviewed by a NOTAR, who will ensure that everything is as it should be.
Once you have found your new property and want to buy it, you can reserve your property by paying a deposit of 3,000 – 10,000 Euro. The deposit must be deposited with your lawyer.
Your deposit secures your booking of the property for a period of 7 to 14 days. During this period, your lawyer will conduct the necessary investigations and negotiate the ‘pre-sale contract’ with the seller. If you regret the purchase, the amount will be lost unless the attorney finds irregularities in the legality or property of the home.
The contract must contain the terms of the purchase, including what is included in the price, e.g. furniture, parking space, storage room etc.
The next step is to pay the full payment, usually 10% less the deposit. This amount is paid freely to the seller.
The purchase agreement is legally binding on both parties. Buyer louse the deposit if buyer regrets and seller must pay double deposit back to buyer if seller regrets.
For new projects, your payments and deposits are secured through a statutory bank guarantee.
The final document (escritura de compraventa) reviewed by the notary. The notary confirms that the purchase agreement is legally valid and that the purchase price has been paid. The notary then sends the document to the property register, where it is registered.
The lawyer will also obtain a copy of the lien (nota simple) from the property register. This to check who is the owner and that the property is legally listed and has the commissioning permit in place, the lawyer will also investigate whether there are loans or other liabilities in the property and whether local taxes and fees have been paid.
In case it is a resale property, the lawyer will ask to see the latest receipts regarding the property as well as verify that all taxes have been paid as they can otherwise be transferred to the buyer if they are not paid.
In the case of a new building, the lawyer will also obtain declarations and other necessary documents for the new building, building permits and the commissioning permit.
The lawyer will also investigate the area plans for the area, including any development plans that may affect the area, where the property is located.
Cost of purchase
You should expect to add approx. 11% (approx. 13% for new constructions) of the announced purchase price, which covers taxes levied in connection with change of ownership (impuesto sobre transmissions), as well as costs for registration, notary and lawyer.
Tax on change of ownership is calculated at one of the following rates:
ITP (Transfer Tax) of 8% of the purchase price for up to 400,000, – (9% from 400,700,000, -). These rates apply to resale properties (re-sales).
10% IVA if you buy a newly built property from a developer (off-plan)
1.5% stamp duty
The Lawyer costs around 1%.
The notary costs 0,2-0,3 %
Cost and Tax for home owners in Spain
There are two annual taxes which all home owners must pay – Individual Income Tax and Real Estate Tax. The actual amount is dependent on whether the home owner is resident or non-resident in Spain.
For non-residents (I.e anyone who has not applied for residencia, or who has been working legally in Spain for less than 183 days) the rate of 24,75% is applicable for Individual Income tax. This tax is obligatory and irrespective of whether you pay taxes in your home country.
In order to pay taxes, a non-resident must be in possession of a Foreign Individual Identification Number (N.I.E). It is mandatory for all property owners.
Property owners in Spain are required to pay local property taxes or municipal taxes (impuesto sobre bienes inmuebles) based on the property’s official property value (valor catastral).
In addition, there is wealth tax and rental value tax for non-residents. The non-resident rental tax is called Impuesto Sobre la Renta de No Residents. This is calculated on the basis of the Spanish public property assessment, which is based on the collection of the IBI property tax. The same form must also include rental income taxed at 19%.
If your property is part of a residential complex or an urbanization, joint expenses will be charged to cover exterior maintenance, cleaning and maintenance of common areas including pool and garden.
In addition, waste costs (basura) and costs such as electricity and gas.
The above information is a guide to you and should not be used as a substitute for qualified legal assistance as property laws in Spain may differ from one area to another and from time to time.