Buying and Selling in Spain

When you have found your Spanish Dreams house a purchase contract will be drawn up and a deposit of 10% have to be made. The deposit will be made to Spanish Dreams client account, and will stay there until the final payment of the purchase. All parties decide in this contract when to make the final appointment with the Notary¹ to get the purchase legalised.

At Spanish Dreams we are working with several of the banks in the area. We can set up meetings for you to make sure you get the best deal for your financial situation. The bank you choose will do a valuation of the property and depending on the result you will be able to get finance of 70-80% of the banks valuation. Sometimes we can arrange for a bank to transfer the existing mortgage from the seller. This will be better for both of you!

For the purchase to be legal we have to have a meeting at the Notary¹. The final payments are made in this meeting with seller and buyer present.

When you leave the Notary¹ you will have a COPIA SIMPLE, a short version of the transaction you just have made. You will receive the original papers ( the ESCRITURA²) about 3 months later when the property is registered with you as the new owner in the land registry. Remember to go back to the Notary1 to get your ESCRITURA² and full overview of the taxes. Many clients have received money back from the Notary1 when the transaction is finally completed!

After the transaction of the property at the Notary¹, you have to start working with the utilities to get water, gas, electricity and other bills in your name and arrange the direct debit from your bank account, otherwise you might experience a sudden loss of power or water. To change ownership at the water supplier you might need a full technical survey by an authorised technician. If you buy a Spanish Dreams home we will help you get all the necessary paperwork done.

1. Notary
   A public official to witness the property transaction, to make sure that you have understood the content, confirm that you have signed the papers yourself and to register the deal publicly.
2. Escritura
   The title deed proving who owns the property with details and legal information concerning the property
3. NIE Number
   NIE-number is your identification number in Spain. It stands for "Numero Identification Extranjero" which means Identification Number for Foreigners. You will need this for every transaction you do in Spain, including getting your Social Security Card. working, or buying a car or a property. You can get this at the police station in Benidorm and you need to bring your passport.
4. SUMA
   The SUMA is the property tax that is to be paid each year. If you haven't received this earlier you need to go to your nearest SUMA-office in your town to make sure everything is paid for before you sell your property.
5. Plusvalia
   The Plusvalia Tax is set by the local authorities and based on the increase of the value of land from the date you bought the property to the time you come to sell it. This is not to be confused by the value of the property that stands on that land. Local authorities determine the amount of Plusvalia to be paid by calculating the rateable value of the property and the number of years it has been in the ownership of the vendor as well as a number of other factors. The only way to get an accurate idea of what the tax might be in your circumstances is by applying to your local Ayuntamiento.