Dear interested party,
In the interest of all parties involved, our goal is to make the purchase process simple, safe and transparent. Therefore, we would like to explain our services to you in the following:

Preparation of a purchase deposit contract (contrato de arras):
Once you have decided on your dream property, we prepare this preliminary contract, which shows the personal data of the contracting parties, the cadastral data of the property, the purchase sum, the deposit sum and the individual deadlines for the transaction. There are no rules for the period until the final notary appointment, here the will of both contracting parties decides.
Both contracting parties sign this contract. Only then is the agreement binding and the seller will take the property off the market (important for the buyer because of a possible in-between sale in order to secure the desired property!)

Compliance with the European General Data Protection Regulation of 25.5.2018:
The processing of the personal data of the parties to the contract is necessary for the entire preparation of the notary appointment. You grant us permission by signing the purchase option contract. We assure you that this personal data will only be disclosed to the persons and offices directly involved in the preparation of the notary appointment (lawyer, bank, interpreter, notary's office, property register, owners' community, if applies). You have the right to obtain information from us at any time about all authorities that have received personal data!

Payment of the purchase price:
The buyer pays the deposit as agreed (usually 10%) within the agreed period, in most cases to the notary's account where the deed is to be signed later, or to an account of the owner. The remaining purchase price should be transferred within the option period in time before the notary appointment to a separate bank account at a Spanish bank, which has been set up in time, or to the account of an authorized lawyer.

Please note the following rules (according to the Money Laundering Act), which must be followed: the transfer must be made from the buyer's own account and the purpose of use must be indicated.
The Spanish bank of the buyer prepares the corresponding bank checks before the notary appointment. We will inform you about the sums of the individual bank checks in time and will gladly assist you in contacting the bank. It is also possible to arrange for a quick transfer from the buyer to the seller, but please note that the seller must have received the purchase price to sign the deed.

Tax Number (N.I.E.):
Every property owner in Spain needs an identification tax number, which is assigned once. You can order this from the Spanish consulate. It can also be applied for through a Gestoria (service company), e.g. the notary's office. Of course, this tax number does not automatically mean tax residency in Spain, but is a requirement for all contracts (such as electricity supplier, telephone, bank). If you do not need any bank financing the property, this N.I.E. number can also be applied directly at the notary appointment.

Spanish bank account:
We help you to open the necessary account at a Spanish bank with an English-speaking contact person, which you need for the payment of e.g. electricity bills, telephone, community fees.

Application for a mortgage:
We are happy to help you apply for a mortgage at a Spanish bank. As a general rule, they will finance up to 60% of the purchase price. Please note that the procedure takes some time due to the examination of the necessary documents. The legal rules have just been changed to strengthen the rights of the mortgagee. We will be happy to inform you about the currently applicable regulations.

Cadastral number of the property (Referencia catastral del inmueble):
With the cadastral number we obtain current information from the responsible land registry (información registral) and thereby learn all tax-relevant data of the property, such as size of the property, construction area, last transfer of ownership, These are important basic data for the purchase contract with deposit.

Property Register (Registro de la Propiedad):
This document tells us whether there are any encumbrances of any kind, such as mortgages, third party rights, distraints or tax or duty debts. All these encumbrances will be cleared until the sale (under the control of the notary and our lawyer), because you will acquire a property completely free of encumbrances.

Existing deed of sale (Escritura de Compraventa):
On the basis of the old purchase deed, we check who is currently the owner (individual, partnership, company, powers of attorney, beneficial interest). So that you know exactly who your contractual partner is.

Property tax certificate (IBI y basura):
The previous owner submits the last paid bill of the property tax to us, so that you know which annual current payment you have to make. With the property tax, the amount for rubbish and waste disposal is collected annually. In the municipality of Calviá, for example, these taxes are paid in July. For the current year, the amount is split proportionally between the seller and the buyer.

Presentation of the energy certificate:
For some years now, it has also been necessary in Spain to present this certificate when changing ownership (certificado de eficiencia energetica). This certificate is issued by an architect and is valid for 10 years. We can organise this for you!

Habitability certificate (Cedula de Habitabilidad):
This certificate confirms that the property complies with the approved plans. It is important to present this certificate when buying a new property in order to conclude contracts with utility companies. It is also desired by the buyer when purchasing an existing older property. Here, too, the certificate is valid for 10 years. It is prepared with the help of an architect. We can establish the contact for you.

Existing supply companies:
The previous owner informs us about the existing contracts for electricity, water, gas supply, telephone and internet providers, insurances for buildings and household effects. We help you with the takeover according to your wishes.

Community costs (Comunidad):
If it is a flat or a house in a residential complex, the owner is obliged to present a certificate from the owners' community (or administration) at the notary's appointment that the current duties have been paid. This way you will know at the same time how much this monthly fee is. These fees are settled between the seller and the buyer when advance payments are made. If the owners' community has recently passed decisions on future special payments (e.g. for repairs), these payments must be settled between the contracting parties. Any credit balance in a reserve fund remains in the property and is automatically transferred to the buyer.

Legal support:
As estate agents, we will take care of all the necessary documents before the notary appointment. Should you require further legal assistance, this is charged at a fee.

Recommendations:
We are happy to give you recommendations for the opening of a Spanish bank account, for a lawyer and a tax advisor. Please ask our sales managers.

Signing the deed of sale with the notary:
We will help you every step of the way until the notary appointment. At this appointment, an interpreter will of course be present to translate the purchase deed for you and will also be mentioned in the deed.
At this date the entire purchase will be completed, the purchase price will be paid and you will receive the keys to your dream property!

Congratulations!

Incurring one-time taxes and costs for the buyer:
A: The buyer pays a land transfer tax (only for the property itself, not for furniture and other things) in the following amount:

The new ITP (wealth transfer tax) from 2023 is as follows:

The price between 0 - 400.000 €	8%
The price between 400.000 - 600.000 €	9%
The price between 600.000 - 1.000.000 €	10%
The price between 1.000.000 - 2.000.000 €	12%
The price over 2.000.000 €	13%

Example: Sales price 1,500,000 €

The price between 0 - 400.000 €	32.000 €
The price between 400.000 - 600.000 €	18.000 €
The price between 600.000 - 1.000.000 €	40.000 €
The price between 1.000.000 – 1.500.000 €	60.000 €
Total	150.000 €

Exceptions: When buying a new-build property from a developer, VAT (IVA) of 10% is payable. In addition, a stamp duty AJD (impuesto sobre actos juridicos documentados) of 1.5% applies to properties valued at less than €1,000,000. For properties over €1,000,000, the stamp duty is 2%.

B: The buyer pays the notary's fees for the notarization. These are based on the purchase price.

C: The buyer pays the fees for the registration of the property in the land register. These are also based on the purchase price.

The land transfer tax, notary and land registry fees must be paid within one month of the notary appointment. We recommend that you have the individual payments processed by the notary's tax office so that no deadlines are missed. There is a fee for this service, which is based on the purchase price.
All other taxes and costs are paid by the seller, such as the capital gains tax (Plusvalia), other cancellation costs for an existing mortgage, possibly a 3% tax withholding (Retencion) and the broker's commission. These positions are deducted directly from the total purchase price by the notary.

All other taxes and costs are borne by the seller, such as the ad valorem tax (Plusvalia), other cancellation costs for a mortgage, possibly a 3% tax withholding (Retencion) and the broker's commission. These items are deducted directly from the total purchase price at the notary.

Annual taxes and costs for the owner:
A: The property tax and the rubbish fees are to be paid annually to the respective municipality (e.g. in the municipality of Calvia in July). Please sign a direct debit mandate from your Spanish bank account.

B: An annual income tax is payable by non-resident owners on the personally used property (tax model 210). This is based on the cadastral value of the property (valor suelo and valor construccion together). This should be handled by a trusted tax advisor or lawyer.
Example: cadastral value 300.000€, of which are calculated: 2% or 1,1% (if the cadastral value has been adjusted in the last 10 years), and of this amount 19% (EU citizens) or 24% (non-EU citizens) taxes are charged!

C: In the case of a property in a communal residential complex (comunidad), the pro rata communal costs (according to the percentage of ownership) are to be paid according to the rules of the resolutions of the owners' meeting.

General:
Please bear in mind that high late payment surcharges are charged in Spain if payment deadlines are not fulfilled! Therefore we strongly advise that the buyer instructs a gestoria or a tax consultant of his confidence to take care of these matters (tax office, land registry, notary, service agency).

Status: January 2024