+34 971 378 737
+34 971 378 737

Buyers

WHY BUY WITH ISLAND & HOME?

Finding the right real estate agent to help you find your dream home is key, take your time to find the right agent that is knowledgeable, diligent and reputable.

There are plenty of good ones on the island and sometimes your choice can simply come down to which agent lists the house that you would like to view.  Ask them searching questions – the real estate market in general, historical performance and their thoughts around the direction that the market is headed and why. Ask them why the property you are interested in was appraised at that price, take the time to get various opinions from different agents, the more time you spend and the more questions you ask, the better you will gain an appreciation for the market, which will allow you to ascertain if the property is right for you.

Ultimately it will depend on how you feel when talking to a person, however always try to meet them in person and view the property a few times at different times of day, we are at your service, it is a big decision, so let’s make sure that it is right and not rushed.

PROFESSIONAL & REPUTABLE

COMMUNICATION IS KEY

LOCAL PEOPLE, LOCAL KNOWLEDGE

Island & Home maintain the highest professional standards. You can be sure that you’re dealing with a reputable business with your best interests at heart.

We are compliant to the guidelines set by the industry’s leading bodies, to ensure your peace of mind and implement best practices, following the API industry guidelines.

Communication is one of the key reasons why our reputation is what it is today. We always call you back when we say we will.

If you prefer to connect via platforms such as WhatsApp, we can tailor the way we communicate to suit you best.

Our team live and work in the local area. We have expert local knowledge.

New to the area? Give us a call for any advice you may need, from our favourite bakeries to recommended schools and transport links.

MORTGAGES & FOREIGN EXCHANGE

Island & Home work with reputable Foreign Exchange brokers who can offer the best rates and even guarantee exchange rates which are always more favourable than the rates achieved from your local bank

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Buyer's guide

What is the usual procedure? The purchase process in Spain is reasonably straightforward, with our help, support and guidance, we aim for it to be as streamlined and hassle free for you as possible. We will handle all of the negotiations between the buyer and the seller, answer any questions and ensure that the sale/purchase process is progressing at an adequate pace. Outlined below are the main stages.

Negotiation and Offer

Contracto de Arras

Completion

Upon finding a suitable property, the buyer would pass a non-binding offer and we would commence negotiations with the vendor. Once we have reached an agreement, we would draft an exchange agreement (Contracto de Arras) that would outline the agreement terms reached.
Once the lawyer has carried out the relevant searches and is confident that all is in order with the property, the Contracto de Arras would be signed by both parties (purchaser and vendor), if there are any irregularities with the property or the searches have not been fully completed satisfactorily, the contract can be signed, however there would have to be some contingent clauses included in it, in order to protect and indemnify the purchaser. This would be considered Exchange, pending completion.

The final stage of the purchase process takes place at a Public Notary, where the deed of conveyance is signed and the balance of the purchase price is paid. The purchaser will then take possession of the property.

Purchase costs

What are the purchase costs?

There are several costs to bear in mind when purchasing a property in Spain, below we have prepared a breakdown and some interesting points.

Step 1

VAT (IVA) or Property Transfer Tax (ITP)

IVA is currently payable at a rate of 21% on commercial properties and developable land, and 10% on new-build residential properties, Stamp Duty (Impuesto de Actos Juridicos – AJD) also applies in this case, and currently amounts to 1.2%. All other property purchases and transfers would be liable to pay ITP according to the following scale:

up to 400,000 EUR – 8%
400,001 to 600,000 EUR – 9%
600,001 to 1,000,000 EUR – 10%
over 1,000,001 EUR – 11%

Step 2

Notary and Land Registry Fees

These are fixed by law on a sliding scale, and amount to around 0.25% to 0.5% of the purchase price for each. These are usually payable within a month of completion of purchase, however the sooner these fees are paid, the more agile the process.

Step 3

Lawyer’s Fees

Depending upon the complexity of the transaction, your lawyer could charge between 1% and 2% of the purchase price. These fees are usually payable at completion. This is an ongoing relationship, so prompt payment is always recomendable.

Step 4

Mortgage Fees

If you use a Spanish mortgage to finance the purchase of a property, you would be required to pay for the survey and valuation of the property, this is organised by the bank and the fees are relavitely standard accross the board, approximately 500 EUR, generally these are valid for 6 months.

An origination fee of approximately 1% – 2% of the mortgage value may be charged by the bank, however this varies on a case by case basis.

Step 5

Ongoing Costs

Council Tax (IBI) – An annual Real Estate Tax based on the Land Registry or Cadastral value of the property. The amount varies between municipalities, however is generally between 0.3% and 1.1% of the land value.

Bin Collection (Escombros) – The amount varies between municipalities, however very rarely exceeds 100 EUR per annum.

Utilities – These costs will vary and are dependent on levels of consumption, should you consider upgrading your property to improve its Energy Efficiency Rating, please do not hesitate to get in touch.

Maintenance – The maintenance costs on a property will depend on the size of the property itself and specific requirements, such as size of the garden, type of botany, size of the swimming pool, position (such as front-line, etc), whether the property is rented regularly and various other factors. Should you need a quote for Villa Management, please do not hesitate to get in touch, and we would be happy to help wherever we can.

Step 6

Wealth Tax & Golden Visa

This is an annual tax levied on assets above 700,000 EUR, if you do not have your main residence in Spain (non-fiscal residents). If you have your main residence in Spain, there is an additional exemption of 300,000 EUR (so 1,000,000 EUR in total). Tax is payable on a sliding scale, but as this is an ever-changing landscape you would be strongly advised to speak to a local tax advisor, please let us know if you require a recommendation or even an introduction. Purchasing a property from personal funds of more than EUR 500,000 allows non-EU buyers to apply for a Golden Visa (officially known as the Investor Visa).

Further information around Spanish Wealth Tax applicable can be found at: Tax Agency: Non-residents’ wealth tax liability (agenciatributaria.gob.es)

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