Buying property Catalonia

Step by step guide to purchasing with The Catalan Estate Agency & Co Barcelona Estate Agency.

 When you have selected the property that you wish to purchase the process is generally as follows:Obtain your NIE - Número de Identidad de Extranjero – Spanish tax number – you will retain this same number for all financial and offi cial transactions and Spain. You will need to make provisions to have this by the time you have your appointment to sign the sale deed – Escritura - at the office of the Notary. NIE is an abbreviation for Número de identidad de extranjero, this is a document that is issued by the Spanish authorities and is a fiscal identification number for non-Spanish (‘foreigners’) people. The NIE is a requirement for anyone purchasing or selling a property in Spain whether resident or non-resident and for anyone who is to lease a property, find employment or start work in Spain. It is used by the various government departments to keep a track on taxation due, you will also be asked for this number by utility service providers.  How to apply for a NIE – EU Nationals.(i) Apply in person in Spain(ii) Apply in person via a Spanish Consulate in your home country – or wherever you reside.(iii)Authorise a third party to apply for the NIE on your behalf – via a power of attorney -poder. The documentation you need for your application:1.Your original passport, plus a good photocopy of the main page – this is the page that contains all the details about you. please note that UK passport holders are required now to produce (at some police stations) a copy ALSO of the first 2 pages of the passport, as this determines whether the holder of the passport is a resident of The Channel Islands (non EU).2. If you are a Non EU national you will need additionally to produce evidence that you have entered Spain legally -such as the document completed for the Spanish customs -declaración de entrada.3..2 copies of the appropriate form for the NIE application – Solicitud de NIE.4.. Although NOT generally required take 2 passport size colour photos5. Although NOT generally required take your contract to purchase or lease contract or employment contract with you – in case you are asked to justify why you are applying for the NIE.You will need to RETURN in person – or give the receipted documents to someone who will act on your behalf – to the police station at a later date – be guided by the offi cials who deal with your request. The time to prepare such documentation varies enormously throughout Spain – in Oveida Asturias for example you can apply for and receive the NIE within the hour but in Tortosa Catalunya you will have to wait for approximately 2 weeks. Remember to return with your receipted copy of the NIE application and (if you had to pay a fee) the receipted payment form. After the application for the NIE (see aside)

 Check out the Nota simple informativa........

 This is a document that is obtained from the Property Registry (Registro de la Propiedad) .It will confirm;1.The owner of the property2.The type and size of property3.Detail any debt, mortgage or loan that is charged on the property.

  When you are satisfied with the detail sign the contract to purchase...

Usually the seller and purchaser will sign a contract to sell/purchase the property. This contract is usually dealt with by the selling agent and will;1. Detail the seller details and purchasers’ details2. Detail the price3. Details the property address and type of property.4. Detail whether finance or mortgage is involved5. Set a date when the completion or escrow is to be dealt with by a Notary public.At the signing of the contract a deposit it usually paid – generally 10%. Usually, in Spain the contract is an ‘arras’ type contract which means that if the purchaser withdraws from the contract, they lose their deposit; if the seller withdraws, they have to refund double the deposit paid.

If you need a mortgage to purchase in Spain.

Always ensure that your contract states that you are dependent upon a mortgage to complete the purchase otherwise you may lose your deposit, if because of tardiness by the lending company you are unable to fulfil the contractual obligations.The documents typically required by a lender are:

• Your DNI/NIE• Your work contract

• Your last 3 salary receipts• Your latest income tax return

• Your contract with the vendor

• Proof that the property tax (IBI) on the house is paid up.

• Details of any other mortgages or loans that you may have

• Copies of property deeds, both in Spain and overseas

• Details of your employment history

• Details of your assets both in Spain and overseas

• Spanish non-residents: A certifi cate of non-residency (form available from the bank)

• Spanish residents -if self-employed (autonomous): Local tax paid on economic activities (IAE)

• Spanish residents -if self-employed (autonomous): IVA (VAT) tax you paid for the last tax quarter and the last year

• If married any prenuptial agreements.

If you are granted a mortgage you will be required to pay for the services of an appraiser –‘tasador’- usually between 300-500 Euros. The appraiser will certify, as a licensed architect that the property is fit for purpose, so even if you don’t need a mortgage, but have doubts about structure of the property, you might wish to secure the services of a tasador. After the application for the NIE  (above)Check out the Nota simple informativa........This is a document that is obtained from the Property Registry (Registro de la Propiedad) .It will confirm;1.The owner of the property2.The type and size of property3.Detail any debt, mortgage or loan that is charged on theproperty. When you are satisfied with the detail sign the contract to purchase...Usually the seller and purchaser will sign a contract to sell/purchase the property.This contract is usually dealt with by the selling agent and will;1. Detail the seller details and purchasers’ details2. Detail the price3. Details the property address and type of property.4. Detail whether finance or mortgage is involved 5. Set a date when the completion or escrow is to be dealt with by a Notary public. Completion of the property sale - certifying the transfer of property.In Spain, a property transfer must be dealt with by a notary. The appointment to attend the Notary office will have been agreed between the parties. The Notary prepares a new escritura for each property transfer/ sale and will have made certain checks into the validity of the sale. At the notary appointment.All the parties involved in the sale/ transfer will be required to produce up to date proof of identity, purchaser and vendor produce NIE and/or DNI (ID for Spanish citizens), the purchaser will be required to produce a cheque drawn on a Spanish bank for the agreed purchase price. The Notary will read the escritura (in Spanish) to the two parties –purchaser and vendor - if both parties agree to the contents of the ‘escritura’ deed, it is signed by them and then the notary signs using his firma protocolizada. TaxesThere are taxes of approx. 10% of the purchase price due by the purchaser for the sale and the registration of the escritura at the land registry. The vendor has to pay ‘plus valia’ tax – capital gains – on any gain made.