Processing the legal papers involved in transferring an ownership interest of a real estate property from one of the parties to the other (purchasing a property) bears the legal term of conveyancing. This means that both the buyer and the seller have to meet their obligations. It is advisable to seek counsel from a Spanish attorney if you need to be provided with conveyancing services.
Steps in a Spanish conveyancing process
When you decide on buying a property in Spain, you should first consider a number of aspects and various elements that need to be checked. The property should first be analysed, as well as the land and the construction itself (materials used, administrative and legal situation of the property).
Then you should also discuss the property’s aspects with inspectors and architects of the area (for future ease of obtaining licenses, building permits etc). This can easily be done by our Spanish solicitors as they have expertise in these legal matters. After this, a property report should be completed so as to know the exact legal situation of your future property, the costs and taxes of the transaction.
A Spanish law firm can also assist you in obtaining a mortgage loan (if that is the case) in order to finance the purchase of the property. If you want to start the process of buying a property you can easily address to our team of Spanish lawyers, who can conduct the conveyancing procedure on your behalf.
The video below offers more information on the conveyancing procedures available when purchasing a Spanish property:
What are the services of our conveyancing lawyers in Spain?
It is worth knowing that in the process of buying a local property you will need the legal services of a law firm in Spain. This is highly advised, as the procedure will imply the participation of numerous entities and each of them will have a part in the entire purchase, from a legal point of view.
The services of our conveyancing lawyers in Spain are necessary for persons who are not accustomed with the legal procedure of buying a property because during this process, numerous documents will have to be prepared in accordance with the applicable law and, more importantly, the party buying the property will need to know the order of the steps that have to be completed.
Thus, with the exception of those who are familiarized with the legal requirements (let’s say, a realter who buys his or her own home in Spain), most of people, local or foreigners, should seek legal advice and assistance, as numerous other problems can appear.
In the case of properties that have previously been owned by another person, our conveyancing solicitors in Spain will verify if the property does not have any debts accumulated by the owner, any mortgages, that is sold with hidden flaws and, if so, this should be reflected in the selling documents, but also in the selling price.
During the process of conveyancing in Spain, our Spanish lawyers will verify all these aspects, as they are the basis of any fair sale. In the case in which our team will discover any issues, the new potential buyer will be able to make an informed decision about the investment and this is one of the most important matters for all home buyers.
A part of the work developed by our team of conveyancing lawyers in Spain is to maintain a close connection with the seller of the property and his or her lawyers, in order to negotiate various stipulations of the selling agreement, if necessary. Since a large part of the documents that are involved in the sale of a Spanish property is concluded through the notary public, our team of lawyers in Spain will prepare the entire file that has to be analyzed by the notary.
Mind that, although our attorneys have the capacity of representing clients in almost all the procedures concerning the sale of a real estate property, lawyers can’t complete these steps, as the sole entity allowed to sign specific documents is the notary public, according to the law in Spain.
However, our conveyancing lawyers in Spain can ease the procedure, as they know what types of documents the notary will require, but also the minimum conditions such documents will need to include in order to be reviewed and signed by the notary.
Through the power of attorney, the legal document which grants the right to be represented by another entity, our team of Spanish lawyers will be able to complete the Land Registry procedures on your behalf and will guide through the tax obligations you must fulfill in meantime. For more details on how our attorneys can represent you during conveyancing in Spain, you can always address to us.
What are the taxes charged when buying a property in Spain?
Please mind that if you are local citizen or resident or you are a foreigner and you wish to purchase a property, you will have certain tax obligations when the transfer of ownership in made. Given that there are numerous institutions involved, and each one may charge its own processing fees, the notary, our team of conveyancing lawyers in Spain and others, you should expect to pay the following:
- notaries in Spain will charge a fee for the processing of the documents based on the value of the property – in most cases you need to pay between EUR 600 to EUR 1,000;
- one of the main institutions involved is the Land Registry, where the new owners of a property will have to register their documents – the institution charges between EUR 400 and EUR 650 for the registration of the title deeds, after they were reviewed and signed by the notary;
- conveyancing in Spain can also imply the payment of the value added tax, in the case in which the buyers purchase a new property, which did not have a previous owner – in 2021, the standard VAT rate is charged at 10% from the selling price of the property;
- another type of tax charged to properties that did not have a previous owner is the Documented Legal Acts Tax, charged at various rates, depending on the location of the property – the tax is imposed by each Autonomous Community in Spain and it is applied at rates ranging from 0.5% to 2% of the price of the property.
Legal documents needed for Spanish conveyancing
You will also need to provide some documents in order to complete your conveyance process in Spain. Some of the papers are as follows: a foreigners identification number (NIE) which is mandatory for Spanish property purchasers before the signing of the title deed, a power of attorney (“poder special”) in case you wish our lawyers to act on your behalf of you and represent you in legal matters, and documents prepared at a notary’s office in order to legalize them.
At the end, once the financial aspects are set with the bank, the purchase deeds have to be signed at the notary and translated from Spanish into your language; then the ownership of the property is transferred to you and registered in your name. You can feel free to contact our Spanish law firm as we can offer you conveyancing advice when buying a property in Spain and give you further details on the taxes and costs that will arise in the acquisition process.