Buying A Property

Our Services & Some Frequently Asked Questions

I’m thinking of buying a property in Spain, how do I proceed? -  Firstly… “with caution”.

It is important to be aware that Mediterranean customs and culture are different to Northern Europe so it is always best that you know a little about the buying process in advance. Do not worry as Sundrenched Villas will be there to assist through every step of your purchase.

What are the likely costs over and above the agreed purchase price?

For a cash purchase:

  • 10% tax, a form of V. A. T.
  • 1% fee payable to notary and registration office.

For a purchase via a mortgage: All the expenses mentioned above, plus

  • 1% commission to the bank for reviewing your application.
  • 1% tax on the registration of a mortgage.
  • 1% notary fee for the mortgage.
  • Compulsory survey, - Approximately 250 to 350 euro’s.
  • Compulsory household building insurance. – starting from around 200 euro’s.
  • Non-obligatory mortgage protection insurance in case of death, loss of employment or injury leading to incapacity.
Please note these are ESTIMATED costs provided for guidance only, the fees and charges can vary from bank to bank.

Sundrenched Villas can introduce you to a bank and assist you with your mortgage application.

Now that your 'dream property' has been found by us, what is the next step?

Caveat Emptor: let the buyer be aware. Before signing a purchase / sale contract and handing over a hard earned deposit, Sundrenched Villas insist on seeing a copy of the Title Deed (escritura or even better a “Copia Simple”, this will show if there are any debts or embargoes on the property.

We can do this for you! The notary here will contact the land registration office and confirm that there are no debts associated with the property and register the property at the Land Registry.

If the property belongs to a community then a certificate has to be provided by their administration company to show proof of up to date payments of any community expenses.

Once again Sundrenched Villas can help!

Assuming that the 'Copia Simple' is fine and you are ready to pay a deposit and sign a purchase and sales contract, how much is a normal deposit?

Usually 10% of the agreed purchase price but you can leave a holding deposit prior to organising the payment of the full deposit.

Sundrenched Villas will guide you through this.

Is this returnable to me if I do not go ahead?

This is a difficult question to answer as it depends on the circumstances. The best type of contract is a “Contracto de Aras”, this stipulates:

  • The buyer will lose his deposit if he or she fails to complete due to a change of mind, A clause can be inserted covering other possible reasons for failing to complete, mortgage refusal, Covid 19.
  • To protect the purchaser against heavy costs arranging mortgage etc and then the seller changing their mind, the seller promises to return an amount equal to DOUBLE the deposit if they decide not to sell.
  • Once this transaction goes through normally in an estate agents office or Lawyers office, a date is agreed when the deal will be finalised at the Notary office. Some days before the agreed date, a copy of the deeds, passports, identity cards etc are left with the notary so that they can commence drawing up the sales contract. This is when you will need a NIE number (it is like a national insurance number) which Sundrenched Villas will organize for you. nb all persons being registered on the deeds will require a NIE number.

On the day, contracts are exchanged between all parties concerned, seller, buyer (and bank manager, if a mortgage is involved). If the buyer or seller’s are non-Spanish, the documents have to be officially translated into the native language before signing. As a non-resident, you would also require a resident of Spain to act as your fiscal representative, once again Sundrenched Villas can assist you with this matter.

What else do we do for our clients?

We make sure that all the outstanding bills have been paid up to date by asking the seller for their last utility bills, SUMA bill (rates) etc. We can assist in finding the right mortgage for you and help you open a bank account here in Spain. We can even help you with foreign exchange transfers via a currency company.

We can introduce you to a fiscal representative (this is a company that will look after any taxes and represent your deeds if you are a non-resident). This company will also change the utility bills into your name.

We can introduce you to lawyers that speak your language and are based here within the Alicante region.

Selling a property: An additional point to bear in mind when selling a property as a non-Spanish resident. i.e. If you don’t have your “Tarjeta de Residencia”. The notary will retain 3% of the sale price on the property deeds for the tax authorities to cover any possible tax liabilities. After 3-9 months all or part of this money will be returned to the seller if you have not made any capital gains on the sale. Once again Sundrenched Villas with the assistance of your legal representative can assist you with this process.

Sundrenched Villas will gently take you by the hand and guide you through every step of your purchase and beyond. Any questions - please ask one of our friendly staff as we will only be too happy to assist you with any queries or questions.

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