Mallorca Villas Apartments Fincas

When a suitable property has been found and a purchase price agreed you then appoint a notary [lawyer] preferably English speaking.

The notary will then conduct any appropriate searches and draw up a terms of purchase usually accompanied by a non refundable deposit of anything up to £4000 to take the property off the market.

Contracts are normally drawn up within 3 months and the sale is formally completed when the title deeds of purchase [escritura pública] are signed in front of the notary together with final balance transfer.

Your notary will then inform the local land register of the transfer of ownership.

As a general rule you need to add approximately 10% to your agreed purchase price to cover all essential fees and taxes.

TAXES :-   Property Transfer Tax [ITP] : Usually 7% of the property value as expressed in the deed of conveyance. Stamp Duty [AJD] : Can be up to 1% of the property value. Annual Property Tax [ Impuesto Bienes Inmuebles] :  local property tax usually less than in the UK. VAT [IVA] : 7% of the value of a new build instead of transfer tax. Capital Gains : If the vendor is a non resident, the buyer is obliged to withhold 3% of the agreed purchase price and to pay this amount to the Spanish Tax Authorities on behalf of the vendor. Contribucion Territorial Rustica : This is same as IBI but for properties located in rural areas. Rubbish Collection Tax : [Tasas y Cargas] collected locally.

Disasters can easily be avoided by using a little common sense and locating a good independent Spanish lawyer who speaks fluent English.

Disclaimer: The above information is intended only as a basic guide without representations or warranties of any kind. All clients should seek their own independent advice when purchasing or selling property abroad.