What happens after signing for your Property at the Notary?

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Step by step purchasers guide - Buying property with a mortgage from a Spanish Bank - What happens after signing at the Notary?

Your chosen estate agent or a Spanish lawyer, acting as your representative, will then ask you to lodge with them the costs for the purchase of the property, so as they can pay all the necessary taxes and bills that are due.

The costs for re-sale properties:

- 6.5% Transmission Tax.
- Notary Fees.
- Registration Fees.
- Plus Valia Tax * (Tax on the increase in the value of the land since last sold).
- Administration Fees.

The costs for new build properties:

- 5% I.G.I.C. usually payable in stages throughout the construction process.
- 0.75% Stamp Duty.
- Notary Fees.
- Registration Fees.
- Plus Valia Tax * (Tax on the increase in the value of the land since last sold).
- Administration Fees.

If you have purchased with a Spanish Mortgage:

- 6.5% Transmission Tax or I.G.I.C. (VAT) whichever is appropriate.
- Notary Fees x 2. Both the Escritura (Title Deeds) & Mortgage Deed have to be notarised.
- Registration Fees x 2. Title Deeds & Mortgage Deed must be registered in the Property Registry.
- Plus Valia Tax * (Tax on the increase in the value of the land since last sold).
- Administration Fees.
- Mortgage Opening Fees.
- Stamp Duty on the value of the mortgage, approx. 1.25%.

* According the Spanish law the Plus valia Tax has to be paid by the seller, but in reality it is most of the time the buyer who is paying this tax. The buyer and seller have to agree on this before signing the Deeds.

On average calculate around 8% on top of the sales price for your costs if you are paying cash or financing from a source other than a Spanish Bank.

The average costs when financing with a Spanish mortgage will be around 10% on top of the properties sales price.

After everything has been presented and paid, your representative will supply you with your Title Deeds and receipts for all monies paid on your behalf and will return any left over amount to you.

This information is for guidance only and is not a substitute for proper legal advice!

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