Costa del Sol

Buying process

Once you have chosen the property you wish to purchase, the first step is to agree and secure the price by means of a Reservation Contract (The buyer, vendor and agent all sign this document). Upon signing this contract a holding deposit should be placed with your lawyer whilst all the necessary checks are carried out on the property.

Las Brisas Golf If you do not already have a bi-lingual Spanish registered lawyer, Garratt Homes can introduce you to one for a free preliminary consultation.

Should your lawyers discover any irregularities with the potential purchase your holding deposit will be returned in full. (Your lawyers will check that the property is ‘as advertised’, with all its build and plot metres duly registered, that the vendors hold and can convey full legal title, the property is free from debt, there are no sitting tenants etc.etc.).

Once and only when your appointed lawyers have certified that the property is all in order should you proceed to the next step. A Private Purchase Contract is signed with the vendor and it is standard practice to make non-refundable 10% payment at this time.

Larios Malaga Upon signing the PPC, a Notary date is set where the remainder of the money will be paid and the Title deeds are signed. This takes place before the Public Notary and in Spain the Notary holds these Title deeds in their offices. You will be issued with a copy on the day and will receive an official copy shortly afterwards. The property must then be registered in the Registro de la Propiedad (Property Registry) as a matter of public record. This will usually take a couple of months. From the date of the signing you will be responsible for the Rates, Utilities and Community fees (if applicable). Organizing these last few details is normally a job best done by your lawyer, who will arrange to have all these matters paid through direct debit if you so require.

Six weeks is a normal period of time from Reservation contract to completion at the Notary. However, the process can be made quicker or slower to suit the needs of each party and is open to negotiation.

There are of course, costs associated with the purchase of property in Andalucia, Spain. These can vary between 8% and 12% depending on the type of property and its price:

  • New build property Tax 10% IVA ( VAT on the purchase of a brand new property )
  • ITP Transfer tax on the purchase of a resale property starts at :

    8% for property up to 400,000€.
    9% for property up to 700,000€.
    10% for property over 700,000€.
(Up to the first 400,000€ - 8% IVA is paid, then from 400,000 to 700,000€ - 9% is paid, and so on....)
  • A further 1.5% AJD (Stamp duty) is payable for brand new property only – it does not apply to resale property.
  • 1%, Standard lawyers conveyancing fee.
  • 1% Notary and Property Registry fees.
  • 1% Ancillary costs. Provision of funds for direct debits, house insurance etc.

 There may be a mortgage element to your purchase. If this is the case, Garratt Homes can recommend the services of first class mortgage brokers or introduce you directly to the banks with the most favourable financing to suit your needs. There are associated costs with obtaining a Mortgage, normally around 2% of the loan value.

Should you require further information on available financing or the requirements in Spain for obtaining a mortgage, please don’t hesitate to contact Garratt Homes.

When transferring funds to Spain, it is advisable to use the services of a Foreign Exchange broker. They will considerably reduce the cost of transferring funds by obtaining a far better exchange rate than those on offer by the high street banks. Please contact Garratt Homes for further details on recommended the currency brokers.

Andalucia leads the way as property sales start to pick up all over Spain.

From figures released to today by the INE (Spanish national institute of statistics) Sales were up 13.7% this September year on year and up 14.9% from the previous month.11/11/2014

Who’s been buying in Spain?.....And are the British still the number one buyers?

If you’ve been following the Spanish property market a little, wondering if the time is right to get into the market, you’ll have started to notice articles referring to early signs of recovery particularly on the Costas and Islands.03/11/2014

The long awaited…………Upturn in the Spanish Property Market.

The number of houses sold is up. The number of mortgages granted is up. The number of foreign buyers is up. The number of new construction projects is up and yes, in some key areas, the prices are starting to go up too. After a seven year slide...06/09/2014

Spanish Government measures for the property market.

The newly elected Partido Popular (Conservative) party has introduced a raft of measures relating to the under-performing property market. These measures are directed both at stimulating certain sectors of the market and generating extra tax revenue.08/01/2012

Spanish Government reduces VAT on New Property Purchases by 50%.

In an unexpected move on Friday of last week, the Spanish government decided to slash VAT on the purchase of new property from 8% to 4%. Applicable immediately, this discounted tax measure will last until the end of the year -31st December 2011.23/08/2011

Spanish Property prices continue to bounce along the bottom.

Many commentators have been looking to call the bottom of the market after the turbulence of the last 3 years and it would now appear that we are there or thereabouts.....19/11/2010

Tinsa estimate a further 20% drop in Spanish house prices in 2009

Tinsa, a Spanish property valuation company used by several high street banks,has signalled that house prices will drop a further 20% over 2009. 01/03/2009

Monthly mortgage payments set to drop by largest amount in five years.

The Euribor, which is linked to the Central European Bank's base lending rate, is set to close the month of December at 3.47%.28/12/2008

Offer extended. Luxury Marbella Townhouses. Reduced by 100,000€

Situated in the prestigeous Marbella location of Cabopino. Standard prices were from 450,000€ - 515,000€. These marvellous luxury homes can now be purchased for 350,000€ - 415,000€. 28/06/2008

Euribor at lowest level for eight months.

Against the trend of bad news in the financial markets, the Euribor fell again to 4.381% (22.01.08). This is well below the rate at the end of 2007 where the rate had spiked to 4.79%.28/01/2008

Spanish property prices end the year lower than they started.

Despite starting the year well with property prices rising in all Spanish regions,2007 has ended in December with prices 0.28% below where they started in January. According to Facilisimo.com, the region of La Rioja has been the worst affected, dropping 11.08% to 2159€/m2 , Madrid and Barcelona haven't avoided the falls dropping 2.38% to 3479€/m2 and 3.05% to 3777€/m2 respectively. 05/01/2008

Euribor falls again for second month in succession.

The Euribor, the Central European Bank's base lending rate, is set to close the month of November at 4.60%.29/11/2007

Bargain Property.Luxury Marbella Townhouses. Reduced by 100,000€

Situated in the prestigeous Marbella location of Cabopino, these high quality south facing residences boast fantastic sea views. Golf lovers can also choose south west facing homes overlooking Cabopino Golf (Par 71). Standard prices were from 450,000€ - 515,000€. These marvellous luxury homes can now be purchased for 350,000€ - 415,000€. 06/09/2007

Spanish Mortgage rate set to fall

The Euribor, the Central European Bank's base lending rate, is set to close the month of October at 4.65%.12/07/2007

Price of resale property falls in several Spanish regions

Resale property prices have fallen for the third consecutive month in thirteen Spanish regions including the province of Malaga.12/07/2007

Deutsche Bank release strong Spanish economy report

The Deutsche Bank have issued a report on the Spanish economy entitled Spain 2020, the success story continues.12/07/2007

Domincan Republic. JUST RELEASED. 30.10.07

Fantastic new property investment just released in the Dominican Republic. This product, previously only available to the Spanish investment market is now available through Garratt Homes.12/07/2007