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Gran Canaria

Playa del Ingles

Maspalomas

San Agustin

Arguineguin

Puerto Rico

Santa Brigida

Las Palmas

Legal Advice

The agent will give you information about the outgoings payable every year to maintain the property, namely the Annual Real Estate Tax (IBI), the community fees, the charges for rubbish collection, the water rates, the electricity charges and the Property Income and Wealth Tax in respect of the property you wish to buy.

LEGAL ADVICE AND ASSISTANCE
Choosing the right estate agency is your guarantee that Spanish Legal requirements are met, that the property is registered to the vendor’s name and that it is free of any mortgages, charges, encumbrances, debts or other liabilities.
The terms should not be limited solely to price but should cover in detail all your requirements like the completion date, the form of payment etc. Once you have appointed your chosen agency they will explain the procedure involved in buying in Spain and the associated costs.
The next step after paying the reservation deposit is to evidence the terms of purchase in writing. At this stage the estate agent will draw up the private contract. It is customary to pay a deposit of 10 per cent of the price on exchange of contracts, which is not normally refundable if the purchaser defaults.
Conversely, if the vendor fails to perform his obligations, you will be entitled to the resolution of the contract and claim damages or either demand the obligatory fulfilment of the contract.
Before your agency exchanges contracts they will have completed his searches and investigations in the Land Registry in respect of the property. Finally on the day fixed for completion we will go with you to the Notary Public to sign the Title Deed, making the final payment to the vendor who will simultaneously pass over possession of the property to you, handing, you the keys. At this stage the sale is completed.
Immediately after completion, the notary will fax details of the title deed to the local Land Register to inform them of the identity of the new owner so as to prevent the property being sold twice. In this way the Notary and the Land Register act together to protect and guarantee your interests.
You will then have to pay the relevant taxes and have the original title deed submitted to the Land Register for registration of your title. We can also arrange for the transfer to your name of utilities and services such as water and electricity and organize their payment through a local bank. The purchase of the property will involve the following expenses.

The Fees: Notary, who charges according to a fixed scale, his charges may range from 480.81 Euros for a property price of 120,202.42 Euros to 901.52 Euros for a property price of 6,010,121.00 Euros. Land Registry, as a rule of thumb, 40% of what the Notary charges. The Taxes: If you are buying a re-sale property you are obliged to pay Transfer Tax (ITP) at 6,5%. If you are buying a new property or a property in the course of construction from a promoter, developer or habitual trader, then you should pay VAT (IVA) at 7% in mainland Spain or 5 % on the canarie islands plus Stamp Duty at 0.5%. The VAT (IVA) rate increases to 16% in mainland Spain or 5 % in the canarie islands if you are purchasing plots of land, commercial premises or garage spaces.

Plusvalia is a tax levied by the local Town Hall based on the particular area where the property is located, on the surface area of the land, on the catastral value and on the date of the previous title deed. This tax may range from a few Euros to as much as several hundred on larger properties with a lot of land. By law the vendor is obliged to pay this tax but it is common practice for the parties to negotiate on who is to assume this liability. Finally bear in mind that your lawyer will charge fees for his professional services, that normally will range from 1% to 2% of the price plus VAT (currently at 16%). We can assist you in applying for a mortgage through a Spanish Bank, as interest rates in Spain are currently very competitive. The period of the loan can extend to 240 months and the amount borrowed may be up to 75% of valuation or purchase price, whichever is the lower. Most banks offer variable interest rates from 3.25% up to 5.50% for the first period and Euribor + 1.25% up to Euribor + 1.50% for the following periods. The penalty for early cancellation is 1% of the capital amortized.

Estate Agent in Gran Canaria.