01. Question: How to find out in Spain whether the seller
is also the estate owner
Ensure yourself by proving the property right of the seller through
presentation of his notary sales contract with register note of
the land register or an actual summary of land register.
02. Question: Which object information are to be obtained
before conclusion of sales contract and what's the difference
between the Spanish estate right and the German right?
Before you make a written or verbal agreement (also verbal agreements
can be valid according to the Spanish estate right) ensure yourself
of the object taken into consideration, especially of following
a) charges, b) quality of building land, c) development schemes
of community, d) existing rent- or lease contracts, e) debts of
tax for which the real estate is responsible, f) possibly existing
delays of shares within the comunity.
03. Question: Why often so called form contracts are applicable
when purchasing a Spanish estate?
Since in general you conclude private written contracts before
the actual notary sales contrat of estate (= Escritura) by which
the contract partners buyer and seller agree to a " deal
for obligation and fulfillment" mostly so called form contracts
are applicable. It's true that these are easy to fill in but often
are only well-meant for the contract partner who drafted the form.
Balanced individual contracts are causing, however, often headache.
Insisting on individual agreements can admittedly influence the
mood in the contract negotiations and change mostly the result
04. Question: Which further contract components besides the
usual sales contract contents should be recorded in the private
Be sure that you get confirmed in writing even apparently unimportant
assurements and obvious things which are taken as a matter of
course through your contract partner. Furthermore, you also should
always define in the contract which right is to be applicable.
When making arrangements of means you should act as per motto:
"trust is good - safety better" and check which guarantees
are offered through the contract partner for fulfillment of the
contract contents even if also legal steps should have to be taken.
05. Question: Which subjects should you especially take into
consideration when for instance purchasing a site?
a site you should pay attention that it has the minimum size for
a later construction.
06. Question: Why it is generally recommended to have a competent
For all deals with sites and especially in difficult subject questions
(purchase by auction) you should always engage a competent consultant
(a well-known and competent real estate agency , lawyer etc.)
since his fees ( from abt. 600 Euro resp. up to 1 % of the purchase
price as rough idea) is often only just a small part of a damage
which possibly might occur.
07. Question: Why should the buyer insist on an immediate
conclusion of the notary sales contract?
The buyer should
insist on immediate conclusion of the notary sales contract and
registration as owner in the land register even if instalment-payments
have been agreed upon so that no further rights of third parties
can be registered in between.
08. Question: What has to be considered when purchasing a
new building estate which is not yet ready built when signing
the sales contract?
If an object is purchased which is still being
built and not yet ready built and if in this connection the usual
purchase price instalments are agreed upon the seller (Promotor)
has to give to the buyer as guarantee of effected instalments
the prove of payment guarantee resp. a bank guarantee.
09. Question: What makes a good real estate partner resp.
consultant and why his engagement is recommended?
Whith the choice of an experienced and reliable consultant you
will enjoy your purchase right from the beginning. He should be
a real local consultantto show you quite a godd selection in objects
and to assist you to get acquainted with the surrounding.
10. Question: Which object documents and informations should
be looked in and checked up?
After selection of an object you should have a look in the following
object documents: a) IBI = yearly payable property tax. From this
you can see the land register value of the estate on which are
basing further tax. b) land register = registro de la propiedad
in the land registry (here all estates are registered by the Escritura
Publica), available for everybody and from which you can find
out among others the actual property conditions and name of the
owner. Here additionally all mortgages and other claims have to
be registered. Only there you can see whether the estate is clear.
You should never buy an estate unless having checked an actual
copy of the Nota Simple (= copy of land register), c) community
of proprietors = the urbanisation or the apartment building will
be administrated by the legally stipulated and registered Comunidad.
When looking at the last receipt covering the monthly or yearly
payable Cuota de Comunidad (= dues of community/public housing
allowance) you will see how much you actually have to pay. Get
a copy of the statutes and a record of the latest meeting as ferom
this eventual problems are resulting such as lack of water, claims
in construction, forthcoming bigger investments orthelike. Furthermore
you can learn by this your rights and duties as a joint owner.
11. Question: What about the tax and fees when purchasing
a plot in Spain and who bears which fees and expenses?
can calculate with approx. Plus/minus 10 % of the contract value
for tasx, fees and additional costs as rough idea. Notary fees
are fixed legally, have to be paid from the buyer and are amounting
to at least 300 Euro, registration fees for the property transfer
are amounting between 120 to 300 Euro and will be paid from the
buyer, the land acquisitation tax amounts to 6 % of the contract
value for second hand estates resp. 7 % value added tax (=IVA)
for the purchase of a new building from the promotor and has also
to be paid from the buyer. The consultant has to ask for the increase-in-value-tax
in individual cases in the town hall and it will be calculated
out of differece amount between sales price less former purchase
price = increase in value (=Plusvalor). It has to be paid the
seller. The seller also bears the estate agent fees (approx. 5
% of contract value for the engaged agent through him.
12. Question: How to find the ideal real estate consultant?
We, Joyespaña Inmobiliaria S.L., recommend ourselves as
your personal consultant due to following reasons: a) we know
the Costa del Sol since many years and in those dys had the same
questions ( who is a good consultant, what have I to do, is it
working well, who guarantees a good success of my investment,
is it a reasonable price, who takes care for the so called "after-sales-service"
such as legal and fiscal consultation and assistance, insurance,
administration, who looks for a house-maid, a good school for
the children, who takes care for my house (property) during my
absence, who reconstructs my object in case of need, who looks
for the gardener or poolboy etc.), therefore your requests, requirements,.
Questions etc. are well-known to us. b) We are living with our
families since years on the COSTA DEL SOL and are doing different
busine for many years with success, such as in the promotor-,
real estate-, consulting- and trading-range, c) We will successfully
consult you, will have "Time for you, your family and requests"
any day and time since also your reference is very important for
us! d) we are cooperating only with first-class addresses and
give just the best service to our clients.
13. Question: What's the difference in purchasing a real estate
in Germany to Spain?
a. A purchase of a property will already be effected through
a private written contract with handing over the keys or the notarial
certificate (escritura).In Germany you get owner just by registrationin
the land register.
b. The registration in the land register is not necessaryly
stipulated in Spain, however, very important since others could
purchase the plotcredulously. As per German right this registration
is urgent and essential.
c. In Spain your registration remark and your right o obtain
a property will be secured by an asiento de presentacion between
notarial contract and registration in the land register taking
into consideration of certain periods of time.
d. Without certification in the land register you will
not be owner in Germany. In Spain you will not get any securityfor
your real estate property without registration without registration
in the land register.
e. The notary is acting in Spain just on demand if there
should be a request about the land register situation before signing
the contract as well as an information to the land register as
the certification with notice of non-negotiability is concerned.
A notary is acting like this automatically in Germany.
f. Before certification the German notary automatically
looks into the land register. In Spain the notary is not obliged
to do so. Everybody can get here a nota simple (information about
plot) from the land registry.
g. The Spanish communities levy an increase-in value-tax
which has to be paid as per law from the seller. In Germany there
is not existing such a tax. All further tax when purchasing a
real estate are at least similar in both countries.
h. The seller has to keep back in Spain 5 % of the purchase
price if he sells to a non-resident who can get back the amount
when he files a tax return. In Germany the seller is not liable
for any tax owings of the buyer.
i. A particular acceptance declaration for an inheritance
is not required in Germany. The legal situation in Spain requires
the acceptance of the inheritance (aceptación de la herencia)
before the sale of an inherited plot.
j. Every representative wgo can present a notarial power
of attorney is able to purchase a plot in Germany. In Spain there
is the same proceeding, however, you need additionally an official
translation and the international apostilla.
14. Question: How about the actual demand and why to ned a
In Spain there is presently an incredible boom and many Europeans
are presently active with requirements on the real estate market.
Nevertheless it must be clear to interested purchases that abroad
there are besides the other language also other laws and customs.
Who, however, is active on the market with a good agent with know-how
and his contacts ( such as interpreter, lawyer and tax consultant,
architekt and engeneer, etc.) will eliminate all risks.
Lawyers and notaries: The buyer should not save on the
wrong side. It's true that a legal consultation causes low additional
costs, gives, however, the necessary legal- and consulting security
to the buyer. We have best contacts to the relevant lawyers with
different native languages (German, English, Spanish, Dutch, French
etc.) who all are members in the Spanish Chamber of Attorney and
thus are offering the relevant service to our clients to get translated
and explained all contracts in their mother tongue. In contrary
to other countries notaries in Spain are not obliged to check
the contracts but just have the duty with look at land register.
It is important that the rights of the purchase will immediately
be registered after the Escritura (= notarial certification of
the private written real estate sales contract) in the land register.
The notary has to be encouraged to register immediately the effectuation
of the sales contract of plot in the land register and the resulting
owner rights for the buyer. This especially refers to a purchase
of plot as the buyer otherwise runs the risk not to be owner of
building - at eventually agreed promotor measurements.
15. Question: Which advise could you give me for the construction
of a building (technical/heating)?
Today's standard should always be the installation of a central
heating resp. at least the necessary pre-installation and a good
warming insolation, the planning of a storage room, installation
of insolated glas windows (generally of synthetics resp. aluminium
due to weather, in special cases even wooden windows), installation
of solar cells, low energy systems etc.) In order to calculate
just the net living area you should generally deduct from the
Spanish measure 30 % of the mostly stated constructed size.
16. Question: Which specialities are occuring to the agent/consultant
and who pays the courtage.
In Spain meanwhile there is existing the so called liberty of
profession in the real estate business i.e. here everybody is
allowed to arrange real estates. The agent courtage recommended
from the chamber of commerce is generally 5 % of the purchase
price volume - up to 10 % is normal - which has in general to
be paid from the buyer.
17. Question: Who arranges valuations/estimations and what
about the costs in general?
They are recommendable and are amounting
in general up to 1 % of the estimation value depending on the
object size and can be executed through size experts or even agents.
If financing (=mortgages) the valuation in general will be effected
through an expert of a bank.
18. Question: To what do you have to pay attention when purchasing
a new building with regard to contract arrangement, bank-guarantee
When purchasing serious promotor objects , individual and
detailed construction plans with fixed date of termination , penalty
for delay of time, fixed total price and cpl. Construction description
are today's standard. In general the promotor gives a corresponding
bank-guarantee of a first-class bank for each payment of purchase.
The purchaser as client should in any case take into consideration
an insurance ( similar to liability insurance for building and
client in Germany).
19. Question: Which tax are due for the buyer/seller?
From each real estate business the Spanish government claims tax
- a short record of tax which are due for buyer and/or seller
when purchasing an estate.
(ITP) Land acquisition tax: It's due for all second hand deals
and has to be paid from buyer. The property will be transferred
in the land register only if it has also been paid. Basis of the
calculation is the sales price of plot stated in the Escritura
resp. private contract.
(IVA) Sales tax: Instead of land acquisitation tax the sales
tax is due always if purchased from a promotor who is obliged
to pay value added tax (in Germany for new buildings, first transfer
of chalets, apartments, villas etc.), is amounting to 7 % of the
purchase price and has to be paid from the buyer. When selling
shops in general the sales tax is also due and amounts to 16 %
(Plusvalia) Increase in value tax: It's also called increase
in value tax for land and has to be paid from the seller on the
value increase of the plot (building and other construction will
not be valuated) during his possession-time. The hight of tax
refers to the land registervalue of the estate in the relation
of the ownership-time of the seller and amounts to approx. 16
- 30 % of the evaluated increase in value. Generally approx. 5
% of the agreed purchase price will be kept back on a notary trust
account until final determination - buyer and seller are commonly
respnsible for the payment.
Speculation tax, retention of income
tax: Buyers of real estates should ask their consultant if
they should have to pay 5 % as retention of the income tax or
not - if purchasing a real estate from a non-resident seller he
should therefore be very careful. Non-resident sellers have to
pay tax on the profit out of the sale (= difference between purchase-
and sales price as per escritura details) with estimated 35 %.
Residents, however, just pay 18 % if they have owned the estate
at least one year before sale. A tax-free sale is always possible
if the sales object has been owned to the seller already at the
qualifying date per 31.12.1996 for 10 years. A resident with first
domiciliation in Spain has further advantages if he reinvests
the sales price in a housing within Spain . by this the sales
profit is tax-free. A tax consultant will explain you all details.