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Buying a Property in Spain

1) You should know that purchase contract is a compromise arranged between you and the seller or the real estate agent. The contract should fix a payment schedule, completion date a proper description of the property. It is quite usual that the seller ask you for a deposit to reserve the property. 3000€ is usual and up to 10%. Once completion is coming, we contact you to give you a final breakdown which includes detail of expenses and after confirmation, the notary appointment is arranged and the sale finished.

Buying a new home in SpainIt is quite important to open an account in Spain before completion is coming as last payment should be paid at the notary. This means the money for the final payment should be transferred to Spain at least 2 weeks before the appointment. A couple of days before the signing, we will order the proper figures at the bank so we can collect the cheque/cash there and go directly to the notary.

You should also take into account, the new Title Deeds in your name should be registered; this procedure will take approx. 1-2 months.

- An NIE number is essentially a tax number for foreigners in Spain. You need one if you are going to buy a house or a car, if you are going to work for a Spanish company or if you want to apply for a residency card.
To get an NIE number, we need to go with us to the foreign department at your nearest the police station .You will need to take your passport. The forms are fairly straightforward and you will have your NIE number within 2-6 days of applying

2) These are the expenses (figures approximated) you should pay when you buy a second hand property around 13%.
The agency commission is paid by the vendor
 
Notary: 700 Euros
Land Registry: 300€
Transfer Tax (10% over the value declared for the property)
Water electricity contract and direct debit for Suma office around 420€
NIE number 90 € per person
Registration fees 300€
Solicitors fees 800€

At the signing of the Deeds, we will take these approximated figures to meet all payments on your behalf. If you buy with a mortgage loan, the bank instead of us will retain these as they will be in charge of the registration procedure.

Document needed to open a bank account in Spain

- Latest income tax declaration P60 (where applicable).
- Copies of pay slips for the last 3 months.
- Copy of your passport
- Personal bank statements (last 3 months).

Finally, we would like you to know we will always work for you and we will do our best to make this process easier and clear for you. Our team will be very pleased to meet you.
 
We hope this information is helpful but if you need for further information, please do no hesitate to contact us.

Spanish mortgages
Please bear in mind if you buy a property with Spanish mortgage the cost will increase up to 3 or 4 % on the top of the 13% as their will be additional cost for notary and registry fees, bank commission, property insurance and life insurance and some additional tax

Main lenders:
Most Spanish banks (Sol Bank, Caja Murcia ) and Building Societies will offer mortgages for properties purchased on the Costa Blanca. The bank will enter into agreement with the purchaser and the loan can be increased up to a maximum of 50% for non member of the European community and 70 % for members of the European community of the valuation of the completed property.
    
The maximum amount you can borrow will also depend on your income. In general, the rule of thumb is that you will be advanced up to 3 times your gross annual income, but usually the monthly repayment should be under 33% of your net disposable income.    
          
Interest rates:
Interest rates for mortgages in Euro are based on EURIBOR (Euro Inter Bank Offered Rate).  The lenders will normally charge EURIBOR + 3%
Today around 6%
        
Interest rate review:
Interest rates will be reviewed annually, on the anniversary of the loan, then fixed for the period of one year until the next anniversary.

Buying a new home in SpainMaximum repayment term:
In general, the maximum repayment term is 15years, but up to 25 years can be arranged. This will be dependent on the age of the borrower. The eldest partner must not go beyond his 70th birthday by the end of the term of the mortgage. This means that for a couple, where the eldest partner is currently 55 years old, the maximum repayment term on offer would be 15 years.

Early repayment:
Most lenders will permit early repayment. The cost of this will vary from zero to 1% depending on the loan. Some lenders charge for cancellation only in the first 5 years. You must let us know if you are considering an early repayment option, so we can choose the appropriate lender for you.

Documents required:
The documentation required will vary from one lender to the next. As a general guideline we have listed most of the paperwork you are likely to need, it is a good idea to prepare much of these as soon as possible.

If you are employed you will need to produce:
- Latest income tax declaration  P60 (where applicable).
- Copies of pay slips for the last six moths.
- Credit report
- Copy of your passport.
- Personal bank statements (last 6 months).
- Job certificate

We will help you:
To choose your lender, carefully considering all of the many variables that need to be considered, including the location and type of property. Keeping up to date with all the banks current offers, terms and conditions, knowing their requirements and matching them to those of the client is a highly specialized job, which is why we use our in-house independent mortgage advisor at LA CASA BLANCA ESTATES
Should you have any questions or require more information please do not hesitate to ask.

If you are looking to buy a property in the Costa Blanca and would like more information then contact us at This email address is being protected from spambots. You need JavaScript enabled to view it.

Buying a new home in Spain

When buying a new home in Spain, there are additional extra costs over the basic purchase price. The total amount of these expenses will be around 10% of the basic purchase price.

Buying a new home in SpainExample: £ 75.471 (€ 120.202,42)

Spanish transfer tax (V.A.T) 7% - £ 5,283 (€ 8.414,17)
1% stamp duty - £ 754 (€ 1.200,01)
Notary fee - £ 320 (€ 51 0,86)
Water and electricity contract and connection - £ 377 (€ 601,01)
Spanish Solicitor around - £ 377 (€ 601,01)

Buying a new home in SpainBuying Step by Step

Reservation
When buying a house you pay //3000€// 2.100£ as a fee in order to reserve the specific property you have chosen.


First payment

Within 40 days you normally pay 50% of the purchase-sum, 7% VAT not included, receiving shortly afterwards the contract of sale to be signed by you.

Buying a new home in SpainMortgage, Final payment & Title deed
The final payment is to be paid when delivering the house with all the keys belonging to it. Since the Spanish bank laws don't allow mortgages to buying properties until they are completed, you can only finance the final payment from Spain. Normally you get a mortgage of 70% of the purchase-sum, VAT not included, but if you have a security or other properties in possession, it is possible to get a mortgage up to 70% of the purchase-sum (subject to the annual income). Finally, when signing the title deed you also pay the costs corresponding to 7% VAT and 2-3% for the administration of the purchase, charged by the authorities in question.

Annual costs

Buying a new home in SpainCosts vary according to the size of the property. The following are estimated charges:

. Water £95
. Electricity £115
. Local rates £75
. Community fees £150

Mortgages in Spain

Mortgages are available in all major Spanish banks.

Spanish banks may offer a mortgage of up to 70% of the purchase price of   the property. However, the normal thing would be ask for 60%.

The interest rates in Spain at present may be 3, 25% (variable rate).The bank would fix this for the first year.

You can choose the repayment periods.

The age limit for a mortgage is 75 years. Therefore, the borrower must finish paying the mortgage by that age.

The documents needed would be annual income on a tax statement and monthly proof of income (payslips).

If you are looking to buy a property in the Costa Blanca and would like more information then contact us at This email address is being protected from spambots. You need JavaScript enabled to view it.

Costa Blanca

Alicante

The Costa Blanca or White Coast, which extends along that section of the Mediterranean coast, which corresponds, to the province of Alicante, is made up of two clearly differentiated scenic sectors. To the North, a curtain of mountains runs parallel to the sea, descending at times to form cliffs; to the South, a vast plain of sand patches, palm trees and salt deposits make up the backdrop for the beaches.

The traveller can choose any of the corners of this coast, from the most bustling and cosmopolitan to those, which still maintain their rural air beside the sea. In any case, the trip to the nearby regions is well worth the venture for they make up a fine representation of the typical Mediterranean countryside. From the valleys, which are covered with stepped orchards and keep alive its Moorish past, to the palm trees of unmistakable African origin, the horizons of the Costa Blanca offer the most varied attractions

The climate offers variations as well. The temperatures are usually mild -the annual average is a little higher than 17ºC- and rain is scarce, though the rainfall is logically higher in the mountainous northern sector, in comparison with the lowlands which surround Elche and Orihuela. The fields of almond trees, the vineyards, the fruit orchards and the magnificent palm trees form vegetation, which emphasises the oriental nature of the landscape.

The south coast of Alicante, from the mouth of the Segura River in Guardamar to Pilar de la Horadada, has experienced spectacular growth rates in tourism over the last few years.
This quality coastline with its sandy beaches, exotic dunes, rolling hills of the interior, and challenging golf courses, plus numerous residential estates and tourist accommodations, have consolidated this part of the coast as an ideal destination for a few days of leisure or a complete summer or winter holiday.

AlicanteGuardamar Del Segura

The ancient town was built on a hill whose skirts were washed by the river Segura. Still preserved are the ruins of a castle and other historic remains from Hellenic times, when this town was a port.

Eleven kilometres of dunes and sandy beaches in Guardamar give you the chance to choose isolated spots or more frequented spots where you can spend the day near the sea.

Torrevieja

Torrevieja is mainly a residential area, perfect for all year round living due to its excellent climate: Over 300 days of sun a year and an average temperature of 20ºC. It is also a popular holiday area thanks to its many fine beaches and lively atmosphere. The other important economic resource of this coastal town, coexisting with tourism, is the salt it extracts from the La Mata and Torrevieja salt flats now listed as a national park.

The Torrevieja salt flats have a perimeter of 25 Km, and are connected to the La Mata lagoon. From the lagoon, the Acequión canal runs to the sea. Today, residential areas are built on the surrounding hills, but the parkland has been preserved.

Orihuela

Punta Prima, Playa Flamenca, Villamartín, La Zenia, Cabo Roig, Dehesa de Campoamor - these are all tourist resorts founded to attend to the rising national and international demand for quality vacation spots. Today they provide comfort and relaxation for many fortunate guests. The area is considered ideal for golfing, and three excellent 18-hole courses have been constructed. The challenging terrain, with Mediterranean shrub land, trees and vegetation, provides impeccable facilities for golf enthusiasts.

For more information about the Costa Blanca or about properties in the Costa Blanca contact us at This email address is being protected from spambots. You need JavaScript enabled to view it.