Farmhouses and Country

Villas in Almeria Spain

www.farmhousesandcountryvillas.co.uk

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Buying Guide

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Step by step guide to purchasing property in Spain.

1. N.I.E NUMBER.

Before you can purchase a property here in Spain you will need to apply for a N.I.E number which translated to English means National Identification Number. You will have to go in person to the capital Almeria whether on your own or with your chosen solicitor to apply at the Oficina de Extranjeria (Office of Foreigners). The Number will take approx 4 to 6 weeks to come through. This allocated number will stay with you throughout your time in Spain & is used for tax purposes & will also appear on your Residence Certificate & bank accounts etc.

The cost for this can range from 150 € each to about 400 € each pending on the solicitor or accountant.

2. DEPOSIT.

Deposits are required here in Spain to secure your chosen property. For an Off-Plan property the norm is 3,000 € followed by 50% on the Purchase Contract & 50% on Completion less the 3,000 € or either 3,000 € deposit & four 25% Payments as the structure is built. The deposit will be lost if you decide for no apparent reason to pull out of the purchase, but the deposit is doubled and returned to you if the constructor fails to deliver all the necessary legal paperwork or decides for no apparent reason not to sell the property to you.

For resale properties the norm is 10% & 90% on completion & this applies to the above regarding the loss & the return of the deposit.

For key ready properties the norm is 30% & 70% on completion & again this applies to the loss & the return of the deposit. The above deposits & percentages are the norm but all Constructors & Vendors can be negociable on payments & can be tailor made to suit your requirements. We at Farmhouses & Country Villas pride ourselves on checking all the necessary legal paperwork along with your chosen solicitor before the 3,000 € deposit is paid to ensure that no nasty surprises occur in the purchasing of the property

3. THE PURCHASE CONTRACT.

The purchase contract is only normally meant for off-plan properties. The contract determines the total price of the construction, payment schedule, time scale of construction, finishing specifications to the villa, architect’s drawings, location on the plot & any other specifications you may have made & have agreed with the constructor. Every page of the purchase contract is signed by both parties and is a legal binding contract. The contract can be in Spanish & English or just Spanish, but if the contract is only written in English it is not consider to be a legal binding contract here in Spain.

4. THE MEANING OF OFF-PLAN.

Off-Plan means that you are purchasing a property that has not yet been built but have seen & approved the architect’s drawings. Within this procedure you will be able to have a design input into your villa by rearranging the internal walls to your own specification, choose from a range of wall, floor & roof tiles, the type of kitchen you require within the budget set by the constructor, the position of the villa on the plot (rule of thumb is to point the bedrooms north & the lounge south) & any other details that you may require changing within the total budget of the villa.

5. THE MEANING OF KEY READY.

Key Ready means that the property is brand new & you can move in immediately or within a chosen time. This time scale is normally about to months after all the irrelevant searches have been made & any snagging that may need finishing.

6. THE MEANING OF RESALE.

Resale means that the property is second handy & is available for immediate occupation after the irrelevant searches have been made.

7. PAYING FOR THE PROPERTY.

The final stage of paying for your property is made before the notary’s office. You will be accompanied by your solicitor & estate agent. Your solicitor will translate all the documentation so you can fully understand what you are signing & ask any relevant questions. The example below shows you what type of taxes & charges you will have to pay, as follows,

PROPERTY PRICE 200,000.00 €

IVA 7% (VAT) 14,000.00 €

STAMP DUTY 1% 2,000.00 €

Stamp duty is only paid on new properties not on resale’s.

SOLICITORS FEES 1% + 16% vat (is about the norm) 2,320.00 €

NOTARY CHARGES 600.00 €

LAND REGISTARY 450.00 €

PLUS VALIA TAX 200.00 €

8. EXCHANGING YOUR ₤ TO €.

It is advisable to change pounds to euros through a Clearing House & not a local high street bank. This way you will get a far better rate of exchange from companies like Global Currencies Exchange Network or Currencies Direct & many more companies like these. There are 2 different rates of exchange in the market place the first is called The Tourist Rate & the second is called The Commercial Rate. The Commercial Rate is normally 5 points high than The Tourist Rate, the reason being is that you are exchanging a far larger amount of money than you would with The Tourist Rate which is normally meant for exchanging holiday money. An example is shown below.

₤ 200,000.00 Exchanged at the Tourist Rate of 1.35 = 270,000.00 €.

₤ 200,000.00 Exchanged at the Commercial Rate of 1.40 = 280,000.00 €.

So as you can see you have made an extra 10,000 € (₤7,142.85) by using one of the Clearing Houses & it is also advisable to shop around because theses Clearing Houses can offer slightly different rates. These companies will have an agreement with the Spanish banks not to charge you any fee to transfer your money from England to Spain so the amount you agree in England will be the same amount that arrives in your bank account in Spain .

Currency Convertor (opens in a new window)

Free official Spanish Govt non residents tax guide