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Email: marbella@ascenso.com ● Phone or Whats-app: (+34) 609 604 014
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Legal Advice

Legal advise. 5 check points for trouble free property purchase.

1. THE RIGHT ESTATE AGENCY

Choosing an effective and efficient Estate Agent, can make property purchase a pleasure from the start. The agency should offer a good selection of properties in the most convenient and desired area so that you become familiar with the same. Selecting a professional Real Estate Company, like ASCENSO PROPERTY GROUP MARBELLA S.L. , will save you time and money.

2. INSTRUCT A LAWYER

property-lawyers

A local lawyer should be instructed for your protection and to study the property in order to analyse that there are no Legal nor Fiscal liabilities.

Please click on LAWYERS to obtain a list of experienced lawyers fluent in the language of the client who will undertake all the necessary checks, carefully and swiftly.

For informative purposes you should bare in mind that the legal fees would go up to 1% on the purchase or sale price of your property.
As a summary please find below the main activities of a Law Firm relating the purchase of a property.

  • Providing client with break down of taxes and disbursements as well as general advise as required during the process.
  • Obtaining the necessary documentation on the property from the vendor and/or its advisers.
  • Ensuring the property is up to date in all its payments.
  • Carrying out searches at the Land Registry, Town Hall and Cadaster.
  • When required ensuring that the property meets with all the requirements of the Local Zoning Regulations. Further standard clarifications with the Council as may be required.
  • Granting of an Urbanistic report on the property.
  • Drawing up/vetting option agreement and handling the payment of the deposit on the same.
  • Drawing up minute Purchase Sale Title Deed, advising client on its completion and advising client on its execution.
  • Ensuring payment of taxes and registration of the Title Deed.

3.    FEES AND TAXES

As an indication, Taxes and Disbursements with regards of a purchase of a property should go up to 10% being:

  • Notary Fees. They are fixed by Law depending on the purchase-sale price of the property, number of pages and number of real-estate being bought. The notary’s fee scale is fixed by law.
  • Land Registry Fees. Costs are calculated as Notary Fees. It is strongly advisable to register the property in the purchasers name at the land registry. Your lawyer should be responsible to make sure this important detail.
  • In case of a re-sale Transfer Tax will be applicable. This is a regional tax that will go up to 8% (<400.000 €) to 9% (400.000-700.000 €) to 10% (>700.000 €) of purchase price. In the event of the purchase of a new property, sold by a promoter-developer, VAT (I.V.A) will be applicable. This is a National Tax and it is 10% on the purchase price plus 1.2 % stamp duty.
  • Plusvalía Tax is a local tax calculated on the number of days that the land belonging to the property was in hands of the vendor and the value of the same. By law this is to be paid by the vendor although the parties involved can decide the opposite.
  • FEES AND TAXES
    • In accordance with Spanish law, the buyer is responsible for:
    • Transfer Tax (I.V.A. + stamp duty when buying from a promoter)
    • Registration fees
    • Notary fees
    • Legal fees
    • The Seller is responsible for:
    • His own capital gains tax which is 21% of the gain.
    • Plusvalía Tax
    • Legal Fees.

In practice who pays what is negotiated with the final selling price and this must be stipulated, as well as listing the contents/fittings to be included in the sale, when the owner accepts your final offer (in writing). The professionals of ASCENSO PROPERTY GROUP MARBELLA S.L. will of course make sure that the final bill of the instructing party is as low and efficient possible.

4.    RUNNING COSTS OF A PROPERTY IN SPAIN

  • RATES, IBI (Impuesto de Bienes Inmuebles) AND GARBAGE COLLECTION.These are Local Taxes to be paid on a yearly bases. The amounts will be calculated on the catastral value of the property and to give an indication the amount relating rates would be less than 1.000 Euros/year on a property of 500.000,00 Euros while the garbage collection costs are not relevant. Your Spanish Local lawyer would be checking that there are no outstanding Tax bills assuring that the same will be paid by the vendor if applicable.
  • COMMUNITY OF PROPERTY OWNERS
    In many occasions there is a community of owners in place which is a legally registered body that does manage al the services provided to the community such as security and maintenance of garden and pool between others.Ascenso Real Estate advise to check the latest receipt for the payment of monthly or yearly maintenance charges cuotas de comunidad in order to learn which is the yearly fee. Approach the president or the administrator for a copy of the meeting minutes and the community by laws. The minutes could highlight problems, such as failing water supply and the regulations will confirm your rights.
  • INCOME TAX.An Income Tax would be due in Spain, payable on a yearly bases, in the event that a individual is an owner of a property in Spain. This income tax is based on the catastral value of the property (if available) and as an indication you should bare in mind that the tax will be lower than 1.200,00 Euros/year taking into account the same property of 500.000,00 Euros.

5.    THE RIGHT ESTATE AGENCY !!!

Once again, please do not hesitate to contact any of the professionals of ASCENSO PROPERTY GROUP MARBELLA S.L. in order to assist and help you through all of these steps above mentioned.