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Procedure:
During your viewing, if you decide to purchase a property, a private purchase contract (Contrato de Compra-Venta) is made between yourself and the vendor. Upon the signing of this contract a deposit must be paid to secure the property and price, this will insure that the purchase price is fixed until completion.
A personalized payment schedule will be arranged with the vendor to suit your individual needs where possible.
Once your property is completed, a date will be arranged for the signing of the official title deed (Escritura Publica de Compra-Venta) this official document will be prepared by a Spanish Public Notary (Notario) and signed by both the purchaser and vendor.
Whilst the original Title deed is sent to the Spanish Land Registry for inscription in the register, you will be provided with a temporary copy (copia simple) this document is proof of ownership and will enable you to resell the property if you wish.
Hallewell Estates can offer discounted furniture prices and specialised "furniture packs" whether it be for a holiday home or permanent living. If you need assistance with moving furniture over here to Spain we have an association with a reliable and reputable removal company. We also have contacts with car and boat suppliers on the Costa Blanca.
Finance:
We can offer English Speaking solicitors (abogados) who will assist you with all legal matters throughout your purchase. We can also recommend numerous banks and assist you with opening bank accounts and arranging mortgages if required. As in England, when applying for a mortgage, proof of income is required, such as P60's, payslips or certified accounts if self employed.
Hallewell Estates has teamed up with specialist currency brokers based in the UK and Spain. They will advise you on buying Euros and due to the fluctuating value of the Euro it can have a dramatic effect on the final cost of your property.
To calculate the approximate additional costs of the purchase price, a guideline figure of around 10% should be added. This would include Spanish IVA (VAT) at 7%, legal and notary fees and water and electricity connection. To provide a figure for approximate annual running costs you should assume this will be around 1 - 2 % of the purchase price. This would include the community charges, local taxes, rates, house and contents insurance, fiscal representation and standing charges for water and electricity.
Example of additional costs associated with purchase:
| A buying price of 225,000 (£150,000) is used for this example. |
| - Euros | £- Sterling |
| IVA 7% (Spanish VAT) - Payable on the declared value of a new property or 7% Transmission Tax on a resale property
(Impuestos de Transmisiones Patrimoniales) | 15,750 | £10,500 |
| Legal Fees - Making searches, preparation of the Escritura (title deeds) and translation before a Public Notary.
| 2,250 | £1,500 |
| Notary Fees - Preparing the Escritura, registering the title and stamp duty. | 2,000 | £1,333 |
| Connection charges - Water, electricity etc. | 1,500 | £1,000 |
| Plus Valia - Capital Gains Tax levied by the Town Hall on the increase of the value of the plot since last
sold. (On resales, variations may occur depending on last sale) | 150 | £100 |
| TOTAL | 21,650 | £14,433 |
Example of approximate annual costs of villa ownership:
| - Euros | £- Sterling |
| Urbanisation fee - Controlled by the owners' association committee. This pays for maintenance of the
urbanisation inc. public lighting, common areas, pool, security etc. | 900 | £600 |
| Property tax - Based on the rateable value of your property.
| 450 | £300 |
| Contribuciσn Urbana - Local rates (IBI) payable to the Town Hall | 300 | £200 |
| Insurance - House and contents | 400 | £266 |
| Gestor/Fiscal Representative - Most owners appoint a fiscal representative to arrange their annual tax return
(in May). This representative can also handle other payments such as local rates. | 150 | £100 |
| Electricity/Water - Annual standing charges. Normally paid by direct debit from your bank account. | 150 | £100 |
| TOTAL | 2,350 | £1,566 |
- All costs are estimates and for guidance only. Sterling prices on this list are based on an exchange
rate of 1.50 to £1 and are liable to fluctuation.
- If you decide to arrange a mortgage there will be additional set up fees and the Notary fees will increase.
- Connection charges for water & electric vary along the Costa Blanca.
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