Property purchase expenses
The property transmission tax in the Canary Islands is 6.50% of the purchase price. In addition to this you have to pay the corresponding fees of registration of the purchase in the land registry, as well as the notary fees. The sales commission for the buyer in Spain is unusual and therefore is not charged.
The reservation document to purchase a property (contrato de arras)
The Spanish pre-contract is the only legal and binding document to reserve a property in Spain before going to the notary. The reservation contract, known as the "contrato de arras", is made only between the buyer and the seller. It is written by the corresponding real estate agency and translated into the corresponding language so that both parties can read it. In the pre-contract, all the important details are collected, such as: details of the buyer, details of the seller, details of the property, date of the appointment with the notary and initial payment. The initial payment will always be abandoned with the signing of the deposit agreement and is usually 10% of the purchase price.
N.I.E. Number: the Spanish tax number for non-Spanish nationalities
The N.I.E. It is the identification number in Spain, necessary for the purchase of a property. It is also required, for example, to purchase a car or to be able to change water or electricity. The N.I.E. It is requested at any national police office, it can also be requested at any Spanish consulate, but this is a little more complex.
The notarial deed of purchase (escritura de compraventa)
In order for the acquired property to be entered in the land register, it is necessary to draw up a notarial purchase contract in front of a notary. The notarial deed of purchase is signed by the owner of the property, the buyer and the notary. In Spain, the signature is the final stage of the entire purchase process. In addition to the signing, the property is paid in full, ownership is transferred and the keys to the property are handed over. The documents required for signature must be obtained beforehand. These documents must all be in the national language, Spanish, and are checked by the notary. Foreign buyers or sellers who are not fluent in the national language must be accompanied by a translator at the notary who translates the purchase document orally and signs the purchase contract. In Spain, notaries do not handle the purchase amount in trust. The property is paid for by a Spanish bank check. Payment by bank transfer is not advisable, as this would be done either before or after the purchase and would therefore be a matter of trust. Payment by bank transfer is only usual for paying the down payment. The system of buying real estate in Spain is 100% secure provided that all the usual steps are followed.