Purchasing Property In Spain: What You Need To Know

When investing in Spanish property, there are a number of things you can do to ensure you are investing safely. The first thing you should do is check with the relevant Land Registry that you are within the law regarding the local planning permissions.

Carrying out these searches are a safeguard against any fraud or unlawful activity on behalf of the sellers. It confirms they have the necessary title deeds and can transfer the property without you being subject to any unexpected charges. You can see more about this on http://www.estate-agent-in-javea.com.

It is still an all too common occurrence that people agree to purchase property, pay a deposit or other costs, then perform the checks and find out there is a problem.

When searches have been carried out and come back satisfactory, you need to seek approval from the Spanish Public Notary. They will sign off the notarial deed and register the purchase with the Land Registry.

It’s within the best interests of the person(s) making the purchase to make contact with Spanish lawyers, this will help ensure the paperwork is completed correctly locally. You can have a safer piece of mind knowing that local lawyers are completing all the relevant documents, contacting the Land Registry, drafting the notarial deed’s, handling the change of name which is required for local taxation (Impuesto sobre Bienes Inmuebles), and following the process through to completion.

It’s worth considering making a Spanish will at the same time as purchasing real estate in Spain. This will cover the legalities of passing the property over to the persons named on the document should it become necessary.

As a foreign individual owning real estate in Spain you will be subject to Spanish Income and Wealth Tax on the property. This will require filing the necessary tax returns annually.

If the property purchase is under a foreign company, there is a specific tax that will be charged. Called GEBI, this will be applied instead of the Spanish Income or Wealth Tax, and is chargeable at 3% on a value local authorities assign the property. There are some specific circumstances in which some properties are exempt from this tax.

As you can see, purchasing a home or other property in Spain is not the same as, for instance, purchasing groceries or other home essentials. It is not even the same as buying a car, because although both involve paperwork far more can go wrong with buying a property in Spain, so always make sure you employ professionals.