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It is impossible to overstate the importance of appointing a qualified lawyer to look after your interests when you’re buying a property in Spain. When choosing a lawyer, make sure that he or she fluently speaks and writes a language that you understand and don’t hesitate to ask questions.

What to expect from your Spanish lawyer

As well as giving legal advice at each stage of the process, your lawyer will check the property registry to investigate any encumbrances or debts registered against the property. When completion takes place your lawyer will lodge the title deed with the land registry and then take care of any remaining formalities such as opening accounts with local utility companies in your name and the payment of any transfer taxes.

When you have made a decision as to the property you want to buy you will be asked to
make immediate payment of a Reservation Deposit, thereby ensuring that the property is not sold to another purchaser. You will then have a period of between 10 and 15 days to exchange contracts but before doing so, you should seek proper legal advice.

The next step after paying the reservation deposit is to evidence the terms of purchase in
writing. At this stage the lawyers will draw up the private contract. It is customary to pay a
deposit of ten per cent of the price on exchange of contracts, which is not normally refundable if the purchaser defaults. Conversely, if the vendor fails to perform his obligations, you will be entitled to the resolution of the contract and claim damages or demand the obligatory fulfilment of the contract. Before your lawyer exchanges contracts he will have completed his searches and investigations in the Land Registry in respect of the property.

Finally on the day fixed for completion your lawyer will go to the Notary Public to sign the
Title Deed, making the final payment to the vendor who will simultaneously pass over possession of the property to you, handing you the keys. At this stage the sale is completed. Immediately after completion, the notary will fax details of the title deed to the local Land Register to inform them of the identity of the new owner so as to prevent the property being sold twice. In this way the Notary and the Land Register act together to protect and guarantee your interests. You will then have to pay the relevant taxes and have the original title deed submitted to the Land Register for registration of your title. Your Lawyer can also arrange for the transfer to your name of utilities and services such as water and electricity and organise their payment through a local bank.

The Fees                                     Search for property now

Notary, charges according to a fixed scale. His charges may range from € 340 for a property price of € 120.202 to € 601 for a property price of € 601.012. 
Land Registry, as a rule of thumb, is 40% of what the Notary charges.

The Taxes                                   See more on taxes and costs

If you are buying a re-sale property you are obliged to pay Transfer Tax (ITP) at 7%. If you are buying a new property or a property in the course of construction from a promoter, developer or habitual trader, then you should pay VAT (IVA) at 7% plus Stamp Duty at 1%.The VAT (IVA) rate increases to 16% if you are purchasing plots of land, commercial premises or garage spaces. Plusvalia is a tax levied by the local Town Hall based on the particular area where the property is located, on the surface area of the land, on the catastral value and on the date of the previous title deed. This tax may range from a few thousand pesetas to as much as several million pesetas on larger properties with a lot of land. By law the vendor is obliged to pay this tax but it is common practise for the parties to negotiate on who is to assume this liability.
Finally bear in mind that your lawyer will charge fees for his professional services, these normally will range from 1 % to 2 % of the price plus VAT (currently at 16%).

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