Once you have decided on suitable property and the price agreed it is normal procedure that a “Reservation Deposit” is now paid to your lawyer - the amount dependent upon the price of the property – normally a minimum of 3000€ or 1% of the agreed purchase price.
This “reservation” removes the property from the market while your lawyer ensures that everything is in order with the property, if all is correct then this amount is transferred to the Lawyer of the Owner, if on the other hand your Lawyer finds that there is a problem with the property then your reservation is refunded back to you.
When your lawyer has accepted that all is in order and he has transferred this money to the owner´s lawyer then you would be expected to proceed towards a “Purchase Contract” when it is expected that a substantial deposit of 10% of the price will now be paid to your Lawyer.
Completion then follows at an agreed date, whereby the remainder of the purchase price, less the deposits, is finalized in the office of a Notary where all parties and /or their legal representatives are present.
Spain has tax levies depending upon the status of the property, i.e., owned in a personal name, company name, a completed property or the purchase of land only.
These are paid by the buyer and these amounts should be taken into consideration when calculating the overall cost of a purchase.
Please ensure that when buying – the basic principles are followed: