Guide to property buying
Important hints when purchasing a property in Spain.
You should read through the following, before buying a property:
Choosing the location
- (Consider the infrastructure)
- closeness to beaches / towncenter
- shopping facilities
- walking conditions
- medical facilities / farmacy
- architectonic barriers
- garage / parking
- surveillance while you are absent
- floor / view
- rentability
- resale potential
BUDGET
Consider, that the purchase price does not include the legal taxes and fees.
We do expect your comprehension, that at this point it can not be explained precisely due to obvious reasons.
The inscription tax on the Canary islands is 6,5% of the value declared in the escritura, which will be signed in front of a Notary
Also you will have to pay:
Fees of the Notary
Fees to the registration office
Administration fees
We will calculate for you the exact amount of your total investment.
We will of course also explain to you the regular expenses and obligations of a property owner in Spain and calculate the exact figures for that property that you are interested in. There are different kinds: The monthly costs and the yearly costs and taxes.
Even non-residents in Spain can obtain a mortgage from a Spanish bank.
Let us explain to you exactly what your possibilities are and calculate your mortgage.
We will of course help you to find the right and necessary insurances that you will need.
ATTENTION : IN SPAIN THE BROKERS COMMISSION IS PAID BY THE VENDOR
BUYING STEP BY STEP
Once you have found the desired property, which is also according to your budget and you have then decided to purchase, then come the following steps:
Opening a bank account
Any person with a valid passport can open a bank account in Spain. Choose a bank that will charge low fees for accounts of "non-residents".Your bank statements should be emitted in your language and sent to your home address. At least one of the employees in the branch should speak your language fluently.
Tax ID (NIE)
In order to meet your tax requirements in Spain, you have to apply for the so called NIE number. This is being released by the national police department, is for each person and will never change.
This tax ID is necessary in order to register your property in the land registry, and when it comes to paying your yearly income and wealth taxes.
The staff of Villas and more holds all necessary forms. We will also present you tax declarations on their due dates
Pre contract
In order to assure your purchase, a pre contract will be signed and a deposit payment of 10 -20% of the agreed purchase price is to be made. Since normally one doesn't carry such sums around while being on holidays, the deposit payment can partly be made via bank transfer from home. The balance will be paid with the signature of the escritura in front of the Notary. This is normally 20 to 45 days later. The pre contract MUST clearly state, that the property will be sold free of charges liens or encumbrances and up to date with all payments, like the rates, community fees, electricity, water bills, rubbish collection etc. You do also need the new energy efficiency certificates. This is another of the services that Villas and more will provide.
Sometimes it is advisable to include a detailed list of contents of the purchased property as annex to the purchase agreement.
NEVER SIGN A PURCHASE AGREEMENT IN A FOREIGN LANGUAGE WITHOUT A NEUTRAL AND EXPERIENCED TRANSLATER.
NECCESARY PROOFS
The vendor and the broker must provide the following when it comes to signing at the Notary:
Receipts of the rates for the previous 5 years or certificate released by the council.
Written certification of the owners community(COMUNIDAD DE PROPIETARIOS), that all monthly quotes are paid.
Proof that water- , electricity bills and the rubbish collection are up to date.
Should the vendor have been in possession of the property for less then 5 years, he will need to provide proof of payment of the Plusvalia and the registration tax.
If ALL THIS IS DONE, YOU CAN NOW SIGN THE ESCRITURA !
Congratulations to your new home on the Canary Islands
AFTER THE SIGNATURE
A professional real estate office will of course handle all the after sale matters such as:
Collection of documents
Inscription into the land registry
Payment of registration tax and Plusvalia
Changement of electricity, water, rubbish, community fees, yearly rates and telephone
Unfortunately many property brokers do leave this bureaucracy to a "Gestor".
This is very often the moment when you enter the planet of the eternal mañana...
(We do charge a small administration fee for the complete after sale service.)
Apart from sales of property, we do also provide the following services:
RENTALS
ADMINISTRATION OF PROPERTIES
TAX ADIVICE
LEGAL ADVICE
INSURANCE
SALE/PURCHASE between private
RENOVATION AND REFURBISHING
INHERITANCE MATTERS
WILLS
NOTARIAL MATTERS
POWER OF ATTOURNEY
MORTGAGES
TRANSLATIONS (convalidated)
NIE (tax numbers)
Rely on more then 25 years of experience in the south of Tenerife.
Villas and more Tenerife
Hartmut Finke
Since 1994
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