Legal and Financial Matters

Purchasing a resale property in the Costa Blanca is a relatively simple procedure. However, when it comes to the preparation for purchasing your dream property, Style Property Sales will take care of these factors, including finding an English-speaking lawyer, and helping you to obtain a mortgage, if this is a requirement.

We, at Style Property Sales, work in conjunction with Advice Center Spain SL for all your legal, tax and financial issues. The Advice Center has offices up and down the Costa Blanca and employ fully qualified, experienced and well respected Gestors. In Spain, a "Gestor" is an agent who deals with government departments and who wades through "red tape" and "multiple forms" on your behalf. This will save you both time and money.

Purchasing Procedure

When your dream property is found, the property and agreed price can be secured with a non-refundable 6,000 Euros reservation. Within 14 days the remaining part of the 10% of the purchase price, which is also non-refundable, must be transferred to the lawyer. The balance of monies are payable upon completion and you sign the conveyancing deed before a Spanish notary. Your lawyer then sends a certified copy of the deed to the Land Registry office which converts your deed to a title deed (escitura).

With all property prices you need to add approximately 10% for the purchasing costs – 7% for government tax (IVA), 1% for notary, 1% for land registry and 1% for all legal work.

Before a non-resident is able to purchase a property in Spain they must obtain a NIE number – this being an Identification Number for non-Spanish nationalities. You cannot attend the notary without this number as it is entered on the escitura.

Financial Information

The opening of a Spanish Bank Account is essential to facilitate the transfer of funds and for payment of utility bills. We have built up a close working relationship with many of the banks here in Spain.

We can help you to arrange a Spanish mortgage through a bank. Although euro mortgage interest rates in Spain are only between 3 and 3.5%, for non-residents the banks will normally grant up to 70% of their bank valuation (80% for residents). The banks are mainly interested in establishing that your current income (ignoring any other commitments or debts) is sufficient to repay the mortgage loan granted. Remember the importance of being able to pay in cash the non-mortgage percentage of the property price plus the estimated 10% purchasing costs.