The costs of moving to Spain

Search fees at the registry, to check legality and for debts.
7% tax on the value of the deeds ( 7% I.V.A. on a new home).
Local taxes and electricity and water meters on new property.
Notary fee - the notary is an independent professional whose job is to see that all contracts and deeds are correctly raised and also instigates a search before the deeds are signed.
Service fees covers the remainder of the yearly fiscal advisory fee to help connect up the services in your name i.e, water, rates etc. plus any help you need, buying a car & residencia, etc.
Capital Gains Tax - Although this is not a tax that purchasers need to pay at the moment of purchase, it is nevertheless something that Town and Country Casas S.L. think you should be aware of. When the vendor is a non resident the purchaser is obliged to retain currently five percent of the registered purchase price and lodge the amount with the notary who will pay Hacienda on account of the vendors capital gains tax.

Many of Town and Country Casas S.L. clients want to take advantage of loan facilities via a mortgage, so here are a few guidelines of what we can offer:

Town and Country Casas S.L. can arrange Spanish bank mortgages up to a maximum of 80% for non-residents with NO CREDIT CHECKS OR ENQUIRES IN THE UK WHATSOEVER, subject to the bank's valuation. The requirements for this facility are a simple application form, copy of passport, a P.60 and your last three pay slips. We can even assist you with replacement pay slips and documents. Self employed is even easier with just a copy of your last tax return. For the retired, proof of pension is required.

TYPICAL REPAYMENTS OVER 20 YEARS AT 3.25%.

BORROWING 30,000 euros REPAYMENT 175 euros - 116 pounds PER MONTH
BORROWING 40,000 euros REPAYMENT 233 euros - 155 pounds PER MONTH
BORROWING 50,000 euros REPAYMENT 291 euros - 194 pounds PER MONTH
BORROWING 60,000 euros REPAYMENT 350 euros - 233 pounds PER MONTH

Mortgages are available in euros the mortgage rate is currently around 3.25%.
Five to twenty years is normal and to repay the loan it costs around 1% of the outstanding loan, if the client has a residents permit, loans of up to 30 years are available.
A valuation fee of around 500 Euros is charged by the bank valuation officer.
Its very quick in Spain, mortgages can be organized in as little as twenty working days.
There are extra conveyance charges if a mortgage is arranged, as there are two escrituras (Deeds). It is an excellent idea to check all the costs thoroughly before committing yourself to a mortgage.

We would now like to recap some of the above and to go into a little more detail, in order that you will understand the system better.

In the case of reserving a country property resale or ready built property this is called an option contract. It acts as a signed receipt for the deposit and is normally valid for thirty days, giving us sufficient time to carry out the necessary searches. Once the thirty days have expired, the escritura (title deeds) is signed in Spain by both parties before a notary. If it is difficult for the purchasers to attend, it is customary for them to grant a lawyer power of attorney enabling the solicitor to sign on their behalf.

Although Town and Country Casas S.L. actually recommend this practice we do however think it is better for the client to make the effort to be at the notaries for the signing ceremony.

The option contract has conditions that protect both the purchaser and the vendor. Should the purchaser decide to withdraw from the sale, his deposit would be forfeited in favour of the vendor.

However should anything arise in the conveyance process to dispute the legality of the property, the purchaser will have the option of cancelling the contract and the deposit will be refunded.

In the case of land, the option contract reserves the land of your choice giving us thirty days to carry out the searches on the land, after which the main contract is signed. This would state the payment structure at the different stages of negotiations. The main contract is the document that protects the purchaser's legal status to the property. It clearly lays out both the purchaser's and the vendor's contractual obligations and responsibilities.

Buying a country property in Spain is as safe as purchasing a property in the U.K. provided you have the appropriate assistance. The Spanish legal system is quite different from that of the U.K. Town and Country Casas S.L. assists all our clients when buying a property, our professionals will make sure that your interests are safeguarded at all times. And on top of this you have the added peace of mind, knowing that we are monitoring the progress of the transaction and liaising with all relevant parties.

We will handle all the paperwork on your behalf and subject to power of attorney being granted, we will sign over the deeds in your favour. In the case of land it is our responsibility to execute the main contract. Purchasers are recommended to establish beforehand the total costs of conveyancing.