It is not mandatory to have a legal adviser or lawyer, but it is highly recommended. Once you have found the right property for you, it is important that you get the help you need to ensure that everything legal is in order with the home you want to buy.
Your choice of lawyer is a very important step in the process of buying a house in Spain, and they must look after your interests in the best possible way.
Your lawyer should…
- be able and easily communicate with you - make sure they speak your native language well.
- be available when you need them - especially if you are still in your home country during the purchase process.
- have a good reputation - always try to secure yourself by, for example, talking to others who have used them before.
- have been established for a while - you want to be sure that your lawyer has the experience needed and is credible. - We would definitely recommend that you use the law firm - Mare Nostrum Solicitors - to take care of all the legal issues when buying your new dream home here Costa Blanca.
The first thing to do when starting the process of buying a property in Spain is to get your NIE number.
Your 'External Identification Number' is what you will need to register with the Spanish tax authorities.
A power of attorney or 'Notarial Power' is a written power of attorney that gives a person, whom you trust, the opportunity to represent you in legal matters or transactions.
It has many application possibilities, including getting your NIE and making it possible to complete transactions etc. in connection with the purchase process right up until and including attendance at Notar - in your name.
If you want to buy a property in Spain, a power of attorney for the lawyer will make the whole process much easier, regardless of your travel plans.
You can then, for example, be in your home country until everything is completed - and then come to Spain when it suits you, and be met by us at the airport - whereupon we drive you to your new home which is then ready to take over from you.
A notary is a professional in the Spanish legal system, and his / her main function is to certify Spanish documents and ensure that private agreements meet certain legal criteria. The Spanish notary is involved in the legalization of agreements and contracts and uses a stamp and signature to confirm them.
The main difference between a lawyer and a notary is that the lawyer deals with private documents such as. contracts and may represent a client, e.g. in a lawsuit. A notary, on the other hand, brings a document out into the public space.
The notary has a strict code that he or she must abide by, and the law on notaries defines his or her function and the scope of his or her authority. The notary is qualified at a very high level and must pass some very strict exams to achieve this status. They will initially study for five years at the university to obtain their law degree. Then they must pass another exam, which on average requires another three to five years of study.
The sales contract for a property can only be registered in the property register by means of a public deed signed and confirmed by a notary.
To ensure that your purchase is hassle-free in the future, there are a number of legal and tax obligations you must meet.
These can be divided into
- External costs *
- Taxes **
- Legal fees in connection with the purchase process ***
* External costs
The largest external costs are for the Spanish notary and the Spanish Land Registry.
The size of the notary fees is determined by law, and the actual amount to be paid depends on the scope of the legal provisions in the real estate document (housing deed).
As a guide we would say that the fees usually start at 800 €.
The Spanish register ‘Registro de la Propiedad’ is an official register that protects the rights of Spanish property owners. The real estate document must be registered in the local real estate register. The fee depends on the value of the property, but usually starts at 400 €.
There are other additional expenses, which in some cases are imposed depending on individual circumstances. For example, if you have never had a tax liability in Spain before, you must have an NIE number before you can open a bank account or buy your first property.
You must also have a power of attorney if you can not be here in person and need to appoint an advisor / lawyer, whom you trust, in Spain - to act on your behalf.
In addition to the external costs, there are also taxes and fees you need to consider when estimating the cost of buying a property in Spain. The tax depends on whether it is a new property or a used property.
New construction: (Valencia region)
- IVA (VAT) 10%
- Stamp duty (AJD) 1.5%
Second-hand property: (Valencia region)
- ITP (transition fee / tax) 10%
*** Legal fees in connection with the purchase process
Finally, you need to include the attorney's fees in the cost of buying a property in Spain. It is important that you ensure that your interests are well represented throughout the process.
An independent lawyer will give you advice and assurance that the legal issues will be checked on your behalf during the purchase process. Make sure that the person you leave this very important role to puts your needs first, and does not have a conflict of interest with other parties.
If you have enough equity for approx. 30 - 40% of the purchase price plus external costs and taxes - and you have sufficient income, a stable job and a good credit rating, most Spanish banks will be able to give up to 60 - 70% in loans.