Spanish real estate law
Any type of property in Spain should be registered in Reglstro de Propiedad (Property Registry), where you can get complete information about who owns the property, what is its exact price, the exact area, as well as the presence of a possible debt of the owner. At the owner's name is made the main official document called the Escritura Publica, which is then assigned its own serial number, record number, leaf and volume for its entry in the Register. Sell the property under the laws of Spain, has the right only by the owner or a person designated by them and has, accordingly, from his power of attorney notarized. As a rule, the right to sell trusts agencies. In this case, the agency must be licensed. Each company or agency also has its Eskrituru whose data are stored in the Register property of Spain, where you can put things about him help. If suddenly a question of lack of confidence, in which case you will be issued a document called a Nota Simple Informatlva (Nota Simple Information).
If several property owners or the owner is married, then according to the requirements of the Civil Code of Spain, the sale must be present and consent of all owners of a notarized power of attorney from them.
After you select a suitable property and making a decision about his purchase is a private contract of sale, in which, inter alia, specifies the conditions and method of payment. When signing the contract, as accepted, the buyer pays about 10% of property value, thereby reserving the property for themselves. After the conclusion of the contract the buyer must contact your local police so-called N. I. E. (Foreigner identification number), then to properly process the deal at the notary. Further, within a month made out the main official document of sale - Escritura Publica or simply "Eskritura. The remaining amount of money paid upon signing Eskritury, then you become the rightful owner. And there are various payment terms, for example, can receive a mortgage, as a rule, he is 50, 60, a maximum of 70% of the value of the property for non-residents of Spain. All this is stipulated in the contract before signing it. Eskritura signed by buyer and seller in the notary office in the presence of a Spanish notary. In Eskrituru on request may be made not only the name of one owner, but his whole family. Following the procedure of signing is only to register your property in the Register property in Spain. The registration process usually takes about three months. The costs associated with the acquisition of real estate.
First of all, I must say that there is some difference in the costs associated with acquiring new properties and secondary. Speaking on the operating costs should also mention another important point. In Spain, widely practiced, the following: in Eskriture officially declared value, underestimated by 10 - 20% of real estate prices. This is done to reduce operating costs and taxes associated with the purchase. But to do this is undesirable, since later can be legal problems in case of subsequent resale.
Total costs when buying property
- Notary fees (Notario) - paid by a special scale, progressive, depending on the value of the property. For example, when buying a property tax is slightly higher in the case of a mortgage loan.
- The cost of registration (Registro) in the Register property Spain - paid when you make your name and property data in the Register as a new owner. This amount is also determined by a special scale and depends on the purchase price, in the case of the same example from 50.000 to 100.000 euros, it ranges from 120 to 180 euros - the cost of paperwork (Gestoria). If you use the services of a private attorney, his services will cost you about 850 euros.
When purchasing new properties in addition to the above shall be paid the following taxes:
- Value added tax (Impuesto sobre Valor Anadido, abbreviated as IVA). This tax is for apartments and houses 7%, and commercial facilities for private production, and undeveloped land - 16% of the value specified in Eskriture. Payable to the municipal offices to receive taxes.
- Tax on documented legal acts (Actos Juridicos Documentados, abbreviated AJD), up 0.5% of the value specified in Eskriture.
When purchasing real estate, second-hand, that is, from "second hand", levied the following taxes:
- The transfer tax (Impuesto de Transmlsiones Patrimoniales, abbreviated I.T.R.), 7% of the value claimed Eskriture and paid to the Council for Economy and Finance of Spain.
- Tax Plus Valia. This is a municipal tax, based on official estimates of growth of real estate value at the time of its sale. This tax must pay the property owner, that is, the seller, but in practice, all taxes are usually paid by the buyer. The exact amount of tax indicates a local municipality, the amount of which affects the age of real estate and the number of years of ownership of the property the last of its owner.
In total, the full cost of the purchase, excluding mortgage loans make up about 9% of the value of real estate, mortgage loan increases the costs to about 12% .0
Purchase process ESTATE
When buying property in Spain operates conventional process your purchase:
1.Pokupatelem opens an account with one of the Spanish banks in his name shall be entered or transferred money.
2.Vybrav interesting property, are private reservation contract in triplicate between the buyer and seller of real estate, upon signing by the buyer pays about 10-20% of the value of real estate as collateral by means of a check, certified by the bank.
The contract is a full legal effect and status.
Object is removed from sale. Real estate cost is fixed at
that day.
By the value of the object should always add about 9%
costs of real estate (notary fees, register
Property tax, VAT).
3.Pri need a buyer can take a bank loan (from 50% to 80% of value). In this case, is an independent real estate appraisal, after which the bank within 15 days, decide on the amount of credit for many years and at what percentage (usually for foreign citizens to quickly address the issue limit: up to 25 years, up to 60% in the case of secondary market).
4.After signing the private contract (mortgage) is still 60 days until complete clearance of the acquired property in the notary's office (the signing of the deed, certified by a notary - «Escritura»).
Based on the preliminary agreement the customer must obtain
alien identification number to the police.
5.B time of signing the deed at the notary you pay the difference in the value of real estate you buy a bank draft (in case you obtain a bank loan, it carries a bank representative, who will be present at the notary when signing the deed).
Expenses for registration of real estate:
-Property Tax (ITP) = 7%;
-Notary fees = 0,3 ... 0,5%;
-Register property = 0,5 ... 0,8%;
-Opening a bank loan = 1 ... 1,5%;
-Insurance is a flat (in the case of bank credit) = 150 ... 200 EURO.
The above expenses are paid by bank check, addressed to the appropriate agencies. In the case of a bank loan, these payments be conducted by representatives of the bank, pre-reserving fund in your account.
6.You signing of the notarial purchase contract (Escritura), you get the keys, a notarized copy of the contract. Original "eskritury" sent to the property registry (Registro propiedad), where for 20-30 days, pass a state registration.
On the basis of "eskritury" your property, and extracts from the register of property you can get into the Spanish embassy in Moscow one year Schengen visa (this procedure is executed within 10 days).
 Additional costs Additional costs associated with buying property in Spain
When buying property in Spain you have to count on additional costs, which account for 10-13% of the cost nezhvizhimosti and consist of:
• IVA (Impuesto sobre el Valor Añadido) - a tax that is paid only once when buying a new property consists of 7% of inventory value of the property or
• ITP (Impuesto de Transmisiones Patrimoniales) - tax when purchasing a property second-hand, which is also, like the IVA paid once and consists of 7% of inventory value of property
• Rates for notary services when you make a so-called «escritura» buy / sell are usually from 300 to 600 Euros
• Registro de Propiedad - Registration purchased property in the Municipality of registration depends on the value of the property, but usually is around 300 euros in the area of Torrevieja, for example
• The contract for connection of electricity and water supply - approximately 420 euros
• The size of the insurance depends on the value of property
 Expenditure on the Estate Annual cost
Impuesto Sobre Bienes Inmuebles - IBI council tax, which is paid once a year, in August or September (persons who yavlyayutsyarezidentami and non-residents). The percentage of tax depends on the area and is calculated according to the cadastral value of real estate. For example, in Torrevieja, this tax is 0,8% of the cadastral value of real estate
• Impuesto Extraordinario Sobre el Patrimonio paid once a year in December - a tax on the availability of existing assets: house, maschina, a bank account. Example: 0 to 167,129 euros tax is 0.2% .0 This means that you will pay 200 euros per year if the cost of your nedvizhimsoti 100.000 euros
• Declaración de la renta - a tax on the proposed revenue from property rental - 0,5% of cadastral value
• The subscription fee for the water block 15 euros and 15.84 euros for the electricity once every two months (3,3 Kw). You also pay for the use (costs) of water and electricity at the meter. These accounts must be paid (Domiciliación Bancario) by direct payment from the customer's bank account.
• The contract for gas. Gas in Spain is delivered to the gas cylinders. The client can contract for one or two containers for about 42 euros or 66 euros. When replacing a bulb in Repsol Butano have to pay around 7 euros.
• Payment of utility services. All owners of facilities that are constructed groups (so named urbanización), must follow the laws of Spain to pay for maintenance and supervision. For example, the swimming pool and green areas priadlezhaschih their area. Payment is made once or twice a year.The amount depends on the number of owners and the services offered. For example, urbanization with swimming pool, tennis courts and a 200-mi owners will pay about 420 euros per year.
• Property Insurance depends on the value of your property: furniture, electronic devices and other valuables. The average cost of insurance is 200-300 euros per year.
• Attorney Services. The cost of daklaratsii to pay annual taxes normally cost in the region 120 euros per year.
To cover all expenses vysheykazannyh we encourage customers to make payment to the bank 240 euros in the quarter.
In Spain, the utility bills are paid, as elsewhere, over the counter. In a month, if not to save money on the house will 100-150 euros - if the day bake pies in the microwave at the same time to wallow in the bath. The apartment - much less: 40-50 euros. Communal pool and garden will cost 400-800 euros per year, an individual gardener will go to you as needed for about 150-180 euros a month. In this case, utilities will be automatically debited from your bank account, "fastened" to the treaty. If the money in the account will not - the bank will pay from its funds, but it will cost you a loan at a relatively significant percentage of the credit.
Banks. Credits. Type of Loan
When the mortgage in Spain calculation of payments can be made as to annuity and in differentiated scheme are also available for refinancing a mortgage in Spain. Our partners assistance in obtaining mortgages, as in mainland Spain and the Canary and Balearic Islands.
The bulk of mortgage loans in Spain is a "floating rate". Rate is taken as a basis for the European interbank discount rate Euribor. By this indicator, the bank added interest from 1,25% to 2,5% .0 Depending on the Euribor rate annual percentage rate on the loan may increase or decrease at specified intervals 03.06.1912 months. Typically, loans are extinguished by monthly installments. There are also loan agreements with a fixed interest rate that does not change during the term of the loan, and is therefore much higher than floating.
Practice shows that if you plan to early repayment, as well as short-and medium-term mortgage loans with floating interest rate is favorable, but a loan with a fixed rate allows you to plan your payments on the loan, which reduces the risks of changes in interest rates.
Borrower
Borrower may act as a private person, and the company.
The size of mortgages in Spain
The minimum loan size in Spain is € 50,000. The size of the mortgage is only limited by the fact that its amount can not exceed 80% of the appraised value of the property (which in reality turns out to be lower than the market).
Terms
from 5 to 30 years of age with a maximum of 75 years.
Early repayment
The possibility of early repayment of the loan depends on the bank, and requires separate negotiations. Conditions stipulated in the title deed, you must also specify the percentage of commission that the bank will take over the operation (for loans with "floating" rate, he is 0,5-1% of the amount paid in advance).
Costs
Spanish bank fees vary, but usually make up 1% of the mortgage. Costs associated with property valuation will be around € 500, stamp duty is paid at the rate of 1,8% of the amount of the mortgage. Notary and registration fees amount to about 0,5% of the loan.
Requirements for the borrower
Lowell Finance to advise on the requirements of Spanish banks to the borrower, in order to understand what factors are most important for the bank.
We will provide you with information about on what conditions you can expect based on the value of Spanish property, your property and financial situation.
Because each bank's most important is your ability to pay, most Spanish banks take into account your existing commitments and payments in Russia, including payments on the mortgage / rent, personal and bank loans, and alimony.Together with the alleged payments to the Spanish mortgage, your payments should not exceed 40% (this figure may vary) from your net monthly income.
Spanish banks require proof of income. This may be information on wages, savings or investment income. However, not all lenders take into account these documents.
Company partner has exclusive agreements with several Spanish banks offering special deals for Russian borrowers, offering a minimum package of documents and requirements for underwriting clients, as well as conditions of the Spanish mortgage.
Insurance
Insurance purchased property is a prerequisite. As for life insurance, it is not necessary in most cases, but we recommend life insurance and can provide independent advice on insurance and real estate abroad.
Score
Assessment of the property and its impact on the amount of the mortgage.
Mortgage available for up to 80% of the appraised value of real estate: the figure in most cases differ from market valuation. Taken into account transactions for similar objects in a selected area within the previous 6 months, of which displays the average cost per square meter. This figure applies to the characteristics of interest of the property to arrive at the assessed value of real estate.
To assess, in some cases required Eskritura simplicial or note, these official documents can be obtained from the land registry or from a representative of the seller. In some cases, the assessment can be made only in the presence of these documents.
Legal issues of Spanish property law and Spanish law
We strongly recommend that when making real estate deals in Spain to consult with qualified attorneys on the issue of the preliminary contract. Do not sign any agreement and do not make a deposit for the purchase of real estate up until you are sure that these funds Recurrence in the event of failure you in getting a mortgage. Also, before signing any documents, consult on all expenses that you will incur, including the state or other, before making any transaction or refinancing the loan in Spain.
The company will use its best efforts to prepare the loan to purchase real estate in Spain, declared terms, but delays may occur as a result of the Spanish legal action or the banking system.
Completion of the transaction Mortgages
At the conclusion of a transaction on your Spanish property and the buyer and the seller signed before a notary public document sales Eskrituru. At the same time held the keys to the transfer of real estate, and you become the official owner of a property in Spain!
An application for a mortgage in Spain to purchase real estate.
We recommend you learn about possible mortgage options before making a purchase and, perhaps, that until such time as you plan your visit to search for real estate in Spain. This will allow you to learn on what conditions you can expect based on your financial situation and your budget, and obtain the prior approval of the bank, upon which you will have time to search for real estate and obtaining funding for the proposed conditions.
Terms of Mortgage Lending in Spain:
Up to 70% of the appraised value of real estate
The loan term of 5 to 30 years, maximum age 75 years
Floating rate Euribor + 12m 0,75-1,75%
Fixed rate 4.15% -5.3%
Administrative fees of 1-2% depending on the bank
There are restrictions for early repayment
The minimum loan amount is 50,000 Euro
The proposal is not an offer. Conditions may be changed without notice. Offer relevant at the time of placement. Rates can be changed at the discretion of the bank.
Costs for buying property in Spain with a mortgage in Spain
- Administrative fee for the loan (usually 1-2% of the cost of credit). For our customers in a number of banks in Spain, an administrative fee will be charged.
- Services of an independent evaluator for the acquired property (around 280-500 euros). The expert assessment is required in any case.
- Property insurance - required when purchasing property with a mortgage loan in Spain. Depends on the coefficients of insurance in different regions of the country, as well as the assessed value of real estate.
- Life insurance is the borrower - is not required when purchasing property in Spain on credit. Size total insurance rate determines the employee insurance company based on a comprehensive study of the personal file of each client. In some cases, the presence of a life insurance policy the borrower leads to lower mortgage rates in Spain.
- Expenditure on registration of property into private property: if used to purchase real estate mortgage, the taxes, notary and registration fees are increased. Stamp Duty (IAJD) is charged with the total value of mortgages, not just the loan amount (whole value consists of the issued amount, the amount of interest and costs, which almost doubles the tax base). The tax rate ranges from 0.5% to 1% .0 Since the tax is taken from the total value of mortgage, then the effective rate is usually the result of 1.5-2% of the loan amount. Mortgages in Spain are also accompanied by a notary and registration costs. The buyer will immediately become the owner of the property, despite the outstanding loan. Notary fees and taxes when buying property in Spain make up 8-10% of the value of the property, including mortgage, stamp duty and registration fees.
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Buy real estate - Spain