The reservation contract is a document that specifies the basic conditions of purchase. This temporary document includes:
- The full name of the buyers and sellers
- The price of the property purchased
- The address of the property purchased
- The date of signature of the sale agreement
- Possibly certain special conditions, specifying whether the property purchased is sold furnished or unfurnished.
- The amount of money paid to reserve the property
A deposit of €6000 must be made to ensure the reservation. This amount is cashed momentarily on the customer account of our agency or on the client account of the law firm of your choice. This reservation deposit is entirely returned in the case where the law firm discovers that the said property can not be sold legally. Once the law firm has carried out all the checks (administrative procedures with the Register of the property, the Cadastre, the town hall, the tax centre and the trustee of Condominium to ensure that the real estate is legally Registered and that it is free of charge) concerning the property reserved, this one after having informed you that everything is in order, proceeds to the drafting of the compromise of sale.
Compromise Real Estate Sale
The Compromise of real estate sales also designated as a pre-contract is a material agreement between the sellers and the buyers and which details the conditions. It is written by your lawyer (in Spanish and French) and replaces the reservation contract. It includes:
- The exact address and the surface of the real estate as well as certain characteristics as notified in the "Simple note" simplified document registered in the Register of the property (Registro de Propiedad) which indicates the current owner of the good and allows you to check whether there is a mortgage in progress, an easement, debts or if the property is being seized.
- The date of signature of the deed (Escritura Publica) at the notary with the handing of the keys.
- The different agreements established between sellers and buyers.
The Compromise of sale is signed with 10% of deposit, the booking fee paid in advance of deduction.
Notarial ACT – ESCRITURA PUBLICA
The final act of purchase is signed in the notary's study, the lawyer having agreed on the date of signature in agreement with the buyers and the sellers and the notary himself. The signature is done with a notary who speaks French or if it is not the case, with an interpreter. The balance of the payment is paid by certified Bank cheque from the Spanish bank of the buyers in the study of the notary. If the buyers are not yet holders of a bank account, they will have prior to the signing paid the amount of the balance on the client account of their lawyer who will arrange to issue this cheque in order to hand it to the sellers on the day of the signature Of the final act at the notary. Any debts, mortgages or taxes relating to the property purchased must be cleared and paid by the sellers before payment of the balance. Once the final notary deed has been signed, the keys are handed over to the new owners and a copy of their title (Copia simple). The original title is sent to the land register in order to proceed with its definitive registration, which will be effective after four to six weeks. The original title will be given to them by their lawyer.
Cost of acquiring a property in Spain
The cost of acquiring a property in Spain depends on the type of property and the amount of the purchase price. Depending on the case, they can vary between 10 and 13% of the total acquisition price.
- If it is a new property, a VAT (IVA) of 10% is payable on the total amount declared.
- If it is a second-hand property, a tax on inheritance is payable (ITP – Impuesto sobre transmisiones patrimonial). This tax is 8% up to €400000, 9% for the tranche between €400000 and €700000 and 10% above €700000.
- Notarial fees: The cost of a solicitor depends on the declared value of the property purchased. They are generally between €500 and €1500.
- Registration Fee: The amount of the registration fee from the property registry depends on the declared value of the property purchased and fluctuates between €300 and €1000
- Stamp Duty: It is 1.5% and corresponds to the tax relating to the drafting of legal acts (IAJD – Impuesto de Actos jurídicos documentados). Applicable only in connection with a new property purchase.
- Legal fees: 1% of the purchase price (minimum €1500) plus 21% VAT. +
The costs of acquiring a property in Spain in the province of Malaga cost between 10 and 13% of the total purchase price. They depend on the type of property and the amount of the purchase price:
Property Transfer Tax
-For a new property, a VAT (IVA) of 10% is payable on the total amount declared. -For a second-hand real estate, a tax on transfer of property is payable (ITP – Impuesto sobre transmisiones patrimonial). This tax is 8% up to €400000, 9% for the tranche between €400000 and €700000 and 10% above €700000.
Notary fees depend on the declared value of the property purchased. They are generally between €500 and €1500.
The amount of the registration fee from the property registry depends on the declared value of the property purchased and fluctuates between €300 and €1000
It is 1.5% and corresponds to the tax on the drafting of legal acts (IAJD – Impuesto de Actos jurídicos documentados). Applicable only in connection with a new property purchase.
1% of the purchase price (minimum €1500) plus 21% VAT.