Our Services
Buying or selling a property, especially in a foreign country, can be intimidating and confusing. The laws and regulations plus the procedures followed are probably very different than what you are accustomed to. Our job is to make it easy, problem free and understandable for you.
The Buyer
Finding your ideal home
Buying a home is an important decision and a major investment. Our goal is to provide you with the information necessary for making the correct choice. We will help you to find the home that suits your budget and your lifestyle. For a client to find the perfect home on his own would take a lot of time and effort.
The buying process
The contract
When you have found the home you wish to purchase, discuss your decision with us. Your offer should include the price you want to pay and the terms and conditions of purchase. We will advise the seller of your offer and, if accepted, we will make a sales contract which includes:
- Seller’s and Buyer’s personal details
- roperty specifications
- Purchase price and terms of payment
- Non-binding translation in language of your choice
- A deposit will be required upon the signing of the sales contract.This is usually 10% of the purchase price.
You must provide
- A passport or identification card
- NIE (Spanish identification number) obtained in Spain
- Home address
- Civil state (single, divorced or married in community or separation of goods).In the case of separation of goods a legalized copy of your matrimonial contract with apostille and official translation is required. In case the translation is done in your home country, an apostille of the translator is also required.
- First names of parents
- Spanish bank account
- Two color photos
If you require a mortgage, we can help you to obtain one with a Spanish bank.
Investigation of the property
We protect your interests by making sure that the property is currently registered and that there are no debts attached to the property. We ascertain what property taxes (IBI) and outstanding bills are due. These include community fees, water, gas, electric, telephone and alarm bills. We also determine the value added tax (Plus Valia) due at the time of the closing.
We hire a professional and independent service firm, Interhelp Service, to obtain this information. They have many years of experience in doing this and they are very reliable.
Transfer of the title deed (escritura) at the notary
The notary in Spain does not perform the same duties as the notary or solicitor in your home country. Here the notary makes a deed (escritura) where he writes down the wishes of the parties involved, judges their identity and legal capacity and composes the document according to the parties’ instructions. He makes sure that it fits the legal requirements. He also cautions both parties about the obligations each must fulfil as a result of making the agreement.
The choice of the notary is made by the party paying the notary’s fees. This is usually the buyer. We accompany you to the notary and provide translation of the proceedings.
Property Registration
You are not obligated to submit your new title deed to the Property Registry, but we strongly recommend that this be done immediately after the closing. Otherwise, you cannot sell the property. Interhelp Service can arrange for the tax declarations of the purchase and submit the deed at the appropriate Property Registry, if you choose. Their costs are 350 euros plus VAT.
Taking possession of the property
Handing over the property and the keys normally takes place once the full purchase price is paid and the deed signed. This is usually at the notary’s office.
Transfer of services
Once the deed has been signed, you can then transfer services such as water, gas, electricity and alarm. We recommend that you put the services in your name and set up a direct debit to your Spanish bank account to prevent payment problems. Stadman International helps you to do this using the services of Interhelp Service. Sometimes the utility companies will charge you a small fee for transferring the name and a greater fee if it is a first time connection.
Insurance
This becomes your responsibility once you take possession of the property. We are not affiliated with any insurance agencies or companies, but we can provide recommendations for both property and medical insurance.
Buyer’s costs
In addition to the purchase price of the property, you can expect to pay:
- Notary fees are based on a formula incorporating the deed value and the number of pages in the deed. The Property Registry fees are also based on a formula using the deed value. We do not know in advance exactly what you will be charged. On a property of 500,000.00€, the two fees together with the handling fee of the inscription are usually 2,500.00€ to 3,000.00€.
- The Transfer Tax (I.T.P) is at present 10% of the deed value if you buy a resale property. If the property is new, stamp duties will be charged at 1.5% plus the VAT currently at 10%.
- There are some fees charged by the utility companies to you for transferring services from the previous owner’s name to your name. They normally range from 100 to 200 euros per utility. For new contracts, the cost may be up to 800 euros.
- We recommend that you hire a fiscal representative to handle your annual taxes. Interhelp Service can be your fiscal representative. Their fees for calculating the rentable value tax (if you do not rent out your property) are approximately 85 euros plus VAT annually per property owner. In case you would have to pay for wealth tax or on the income of the rent, more tax declarations will have to be made and the price changes. If you register with them, they will do your taxes each year automatically.
- Besides, they can also be your representative for the municipality. Most of the municipalities have their own office that collects outstanding debts, the SUMA. This office will reclaim all your outstanding costs by registered mail or publishing your name in the state's bulletin. If you sign a representation with Interhelp Service for a one-time 100 euros plus VAT, they will keep you informed about outstanding debts and will only charge you their extra handling fee if they indeed have to contact you or pay your outstanding amounts.
- You may find it necessary to have a postal address here, which does not necessarily come with your property. You can arrange this also through Interhelp Service at a cost of approximately 120 euros plus VAT annually.
- The cost of Property Insurance varies depending on the value insured and the coverage provided. You can compare quotes and coverage from different companies.
- If you have a mortgage, there are the bank fees, notary fees and registration fees to be paid because this involves another official document (escritura). You can compare the terms and rates offered by different banks. The notary and registration fees are set forth in a table that the notary has. The bank can help you with this.
The Seller
Marketing your property
First impressions are so important to the prospective buyer. An attractive home with a well maintained garden has a much greater selling potential. Our property evaluation will help you find out how much your home is worth and about the costs that may arise with the sale. We know what buyers in this area desire and can advise you on improvements that can be made and how best to market your property. It is worth it to ask us for our advice.
Our photographer will take a portfolio of photographs using professional equipment. These will be high quality digital photographs that are produced especially for our website and mobile apps.
We promote the properties through our highly ranked website, apps, printed and digital brochures, the digital window displays and billboards. We will also send information to local and international brokers with whom we have a collaborating agreement. However, our best advertising has always been the recommendations of our happy customers and our good reputation.
When we have a potential buyer, we make an appointment with you and the buyer to visit your home. We accompany the buyer and explain the features of the property in his language.
The selling process
We will present to you any offers made to purchase your property and negotiate for you the terms and a final price. There is usually a period of negotiation before a final agreement is reached. Our job is to bring the two parties into a final agreement resulting in the sale of your property.
The contract
Once a verbal agreement has been reached, we prepare a sales contract which includes:
- Seller’s and Buyer’s personal details
- Property specifications
- Purchase price and terms of payment
- Non-binding translation in language of choice
A deposit will be required upon the signing of the sales contract. This is usually 10% of the purchase price. It is paid either into our reserve client account or directly to you, depending on the terms of the contract.
You must provide
- Passport or identity card
- NIE (Spanish identification number) obtained in Spain
- Home address
- Bank account details
- Copy of the title deed
- Invoices or payment receipts for water, electricity, gas, telephone and alarm
- Proof of payment of your current property taxes (IBI)
- Name and contact details of the administrator of the community for verification of fee payment
- Current Liveability Certificate (cedula)
- Energy Efficiency Certificate
Investigation of the property
You are obligated to deliver the property free of debts and liens. We ascertain what property taxes (IBI) and outstanding bills are due. These include community fees, water, gas, electric and alarm bills. We also determine the value added tax (Plus Valia) due at the time of the closing.
We hire a professional and independent service firm, Interhelp Service, to obtain this information. They have many years of experience in doing this and they are very reliable.
Transfer of the title deed (escritura) at the notary
The notary makes an escritura where he writes down the wishes of the parties involved, judges their identity and legal capacity and composes the document according to the parties’ instructions, making sure that it fits the legal requirements. He also cautions both parties about the obligations each must fulfil as a result of making the agreement.
The choice of the notary is made by the party paying the notary’s fees. This is usually the buyer. We accompany you to the notary and provide translation of the proceedings.
Handing over the property
Handing over the property and the keys normally takes place once the full purchase price is paid and the deed signed. This is usually at the notary’s office. The property must then be vacated.
Seller’s costs
- Plus Valia is a tax based on the incremental value of the land which the property occupies over the amount of years you have owned it.
- Property Tax (IBI) is always collected in September of every year. A portion may be due for the current year.
- Community fees must be paid. A portion may be due for the current year.
- Utilities must be paid up to date. There is also a charge for the Energy Performance Certificate which must be provided. This is charged by the firm that you employ to assess your energy performance.
- A non-resident retention of 3% of the deed value is held back and sent to the tax bureau (Hacienda) on your behalf. This is to cover any capitals gains tax due on the profits of the sale. After capitals gains taxes are calculated and filed by you, you may get a refund or you may owe more. It is only for non-residents. If you are resident, this is not withheld if you are documented as a taxpayer in Spain, but you may still be liable for capitals gains tax depending on your situation.
- Mortgage cancellation fees are charged by your bank anywhere from 0.5% to 1% on the balance of your outstanding mortgage.
- Notary and Registration fees for mortgage cancellation from 600.00€ to 1000.00€ are usually retained at the time of closing.
- The Agents Commission is where you receive the best value for the amount paid. We issue a tax deductible invoice for our services.
When we have completed the sale, we will have made both parties happy and content and Stadman International will have new and old friends who will always be welcome at our office.
