- Before signing the deed, sign the buyer and seller usually first in a private sale agreement (contrato de compraventa) which is also accompanied by paying a deposit of 10%. The remaining amount + fees will be paid at the signing of the deed at the notary, usually within 3 months after signing the purchase contract.
- Is it a new construction, then invoices will be paid according to the completions. IVA (= VAT) rate = 10% IVA on land and plots = 21%.
- Transfer of ownership to the notary: if you do not understand the Spanish language, the notary is obliged to engage a translator or interpreter.
- The deed (escritura) contains data on the property (land) owner (s) of the property, statement free of guilt and burden, price, payment method, who pays the tax (seller pays capital gains, copper transfer tax).
- Purchase costs amount to about 13%, mainly consisting of 10% tax and 3% as a notary, lawyers, registration, connection charges …
- By signing one acquires the property, provided it is registered in the property register (registro de propiedad) within 30 days after signing. The original escritura remains with the notary, a copy gets the buyer.
Energy performance certificate
- As in Belgium also requires an energy certificate in Spain. The energy label shows how energy efficient (on a scale from A to G with A = G = very efficient to very energy-using) the property is.
- Only in Spain EPC certified technicians (architects) are authorized to issue a certificate. The cost of a certificate vary depending on, inter alia, the size of the property. The energy certificate is valid for 10 years.
- Residents and non-residents with financial interests (also a second home) in Spain must apply for a NIE (Numero de Identificación de Extranjero) number, available at the headquarters of the police. The song has mainly tax purposes. Without an NIE is not possible to buy or sell a home or sign a mortgage loan.
- If you buy real estate in Spain of a company that sells professional real estate, then they will charge VAT (IVA).
- If you buy an existing house of an individual who otherwise is not acting in real estate then you do not pay IVA, but ITP (= Impuesto de Transmisiones Patrimoniales or transfer tax). Rates vary between 6% and 11% depending on the region (eg Autonomous Community of Murcia and Valencia = 8% = 10%) of the value of the property stated in the escritura.
- You must always report in Belgium to tax administration that you have a second stay abroad. With the double taxation agreements, these income will be taken into account for calculating the tax on your other income. If you rent your foreign second home, you must also indicate your rental income in tax-on-web. But the rental income is also largely exempt.
- A Spanish bank account is necessary if you are owner of a property in Spain.
- With a mortgage, the buyer must ensure the bank at least fire damage and sometimes other types of insurance such as life insurance and home insurance for damage to the property.
- Because of the money laundering legislation it is required to pay by BANK CHEQUE. The bank check may have an emissive fee of approximately 0.5% of the amount. TIP: It is always better to discuss bank charges in advance and not at the time.