Property in Spain
Buyers Guide - continued
If your property is being bought off-plan, you will first receive a deed of declaration of new construction, plus an occupancy permit. You will be required to make staged payments throughout the building process (normally three payments, with the final one due once building work has completed) and, once your home is ready, you sign a deed of sale which, just like with a resale purchase contract, will be witnessed by the notary. For secondhand properties, it normally takes between six to eight weeks from the time you place your deposit to the time you sign the final contract (escritura).
Mortgages are available in both the UK and Spain, with the maximum mortgage currently available being 80%, which means that you have to provide a deposit of 20% of the property's purchase price. It is also important to consider additional legal fees, stamp duty and property taxes before committing to a purchase because these will usually amount to an additional 10% of the purchase price, so be sure you can afford this additional expense before going ahead!
Additional Information
Residencia: You should decide whether you wish to apply for official residence (residencia) in Spain before you proceed with your purchase. Becoming a resident in Spain can help speed up Spanish mortgage applications and also carries additional tax and inheritance benefits. If you plan to spend more than six months a year in Spain, then it is advisable to apply for official residence.
Spanish Will: It is essential to draw up a separate will in Spain, regardless of whether you have one in the UK or not. Spanish inheritance laws differ to British ones, so take the advice of your solicitor and draft a will which covers all your assets in Spain.
NIE: A NIE number is an essential document for anybody buying a property in Spain. It is easy to obtain and you require one to do the following:
* Apply for a mortgage or loan
* Buy or sell a property
* Buy or sell a vehicle
* Obtain a job
* Inherit assets in Spain
* Insure property
* Pay Taxes
* Sign on to social security
To obtain your NIE number, you must attend your local police station and visit the Foreigners Department (Departmento de Extranjeros). This can be a fairly lengthy and arduous process, so be sure that you are armed with all the relevant paperwork - it is not an experience you want to have to go through twice! Take with you the following:
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Your passport and a photocopy of your passport number and photo
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Your full address in Spain (either the address of your rented accommodation, a friend's address or the address of the property you intend to purchase)
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Written reason for applying. This can be either a letter from your bank in Spain or your lawyer, stating that you are purchasing a property, or an employer, if you have a job lined up.
An official will then fill in the paperwork for you and present you with a stamped copy of the application form. Take this copy with you when you return to collect your number, usually between four to six weeks later.