How to buy a property on the Costa Blanca, Spain

How do I know the steps I should take to buy a villa in Guardamar del Segura, Orihuela Costa, Ciudad Quesada, Benijófar, Calpe, Benidorm, Alicante etc?

Some people choose to buy their home on their own, unfamiliar with the area and risking unpleasant surprises. Our recommendation would be to use the services of a real estate agency, because in addition to having the help of a professional to guide you through the sucessive steps, the buyer pays absolutely nothing to the real estate agency for its services.

Our solution:

Six Seconds Properties is a real estate agency specialized in the area of the Costa Blanca, which covers from Orihuela Costa, Ciudad Quesada, Torrevieja, Guardamar del Segura, Alicante, Benidorm, Finestrat, Altea, Calpe, Moraira, Denia, to many other locations and urbanizations.

As connoisseurs of the various areas, with a strong local presence, and after receiving the buyers´ requirements, we take care of moving, offering and guiding our clients to find their ideal home, allowing them to save time and effort.

When a buyer contacts Six Seconds Properties to find their home, we select those properties that may be of interest to him, we organize personalized tours, never group tours, explaining every detail, and given advise so that they can make a choice with as much information as possible. 

HOW TO CHECK THE LEGAL SITUATION OF THE PROPERTY?

First of all, it is necessary to check from a legal point of view that everything is correct with the home of your choice. For this, the intervention of a lawyer will be necessary to certify each of the legal aspects, to transmit absolute tranquility in the acquisition of our new real estate property.

Our solution:

Six Seconds Properties has direct contact with specialized lawyers on the Costa Blanca, with extensive professional experience who can take care of all the necessary procedures, such as:

- Obtaining the property certificate from the Land Registry Office. This certificate will confirm who the owners of the property are and the existence of any charges on it, such as mortgage loans that have not yet been paid.

- Verification in the corresponding City Council of the existence of the construction license and / or habitability certificate.

- Check that the owners are up-to-date with the payment of housing services - such as water and electricity -, municipal taxes and community expenses. Obtaining the corresponding certificates and invoices.

WHAT DOCUMENTS AND PROCEDURES DO I NEED, IF I AM A FOREIGNER, TO BUY A VILLA ON THE COSTA BLANCA?

Foreigners who wish to acquire a home in Spain need to meet a series of requirements, which depend on the situation in which they are in our country.

Our solution:

Our lawyer can take care of all the procedures. Among these, we highlight the following:

- Open a bank account in a Spanish bank.

- Obtaining the Foreigner Identification Number (NIE), necessary for any legal action in Spain.

- Apply for a residence permit or a non-residence certificate.

- In the event that the buyer cannot or does not wish to be physically present to carry out the legal procedures, he can grant powers of representation to his lawyer to carry them out on his behalf.

HOW TO RESERVE THE PURCHASE OF THE CHOSEN HOUSE?

Once we have decided on the property we want to buy, we have to reserve it. To do this, we have two possibilities, the delivery of a deposit or the signing of a deposit contract. These are the differences:

- Delivery of a deposit: normally the deposit to reserve a home amounts to approximately € 6,000. We must know that, if the buyer changes his mind and decides not to complete the operation, the seller keeps the deposit in compensation for the damage caused by the temporary interruption of the sale process. In the event that it was the seller who backed down, he would be obliged to return the signal to the buyer.

- Deposit contract: The deposit is basically the same as a signal, only with two important differences. The amount is usually 10% of the sale price and not only oblige the buyer to complete the operation, but also the seller. Moreover, if the seller changed his mind and decided not to complete the transaction, he would have to give the buyer twice the amount received as a deposit (that is, 20% of the value of the home).

 The earnest money is therefore a safer way to guarantee the purchase a property. If we give a deposit, the amount will be lower, but it will be easier for the buyer to back out of the sale, for example it a better offer comes up.

We recommend signing a deposit contract, if we think we have found the property we are looking for. This way we will be more relaxed about the possibility of being left without it.

Whether you pay a deposit (arras) or a deposit, they will be considered as amounts paid on account, which will be deducted from the total price of the property at the time of formalizing the sale. The deposit contract does not imply a greater disbursement at the end of the transaction.

Our solution:

Once the options have been explained and whatever the buyer's choice is, we participate in the preparation of the deposit contract or the delivery of the deposit, being in permanent contact with the lawyer in charge of drawing up the final documents, and being a faithful ally of our customer.

WHAT IS THE SIGNATURE PROCESS BEFORE A NOTARY FOR THE PURCHASE OF THE PROPERTY?

The signing of the deed of sale before a notary is the decisive moment in the purchase of a villa on the Costa Blanca.

Seller and buyer agree through the deposit contract the distribution of the deed expenses. Usually the buyer assumes all the expenses of said grant, being able to choose the notary office in this way.

Our solution:

Six Seconds Properties provides its clients with a list of the main notaries in the area, with extensive professional experience, so that they can make their choice.

We collaborate with the lawyer, send the notary all the information that may be relevant in the drafting of the deed of sale, and we accompany all our clients on the day of signing.

In the event that it is not possible or convenient for the buyer to travel to Spain for a specific procedure, he may grant powers to the lawyer to sign on his behalf.


WHAT ARE THE TAXES ON THE PURCHASE OF A HOME ON THE COSTA BLANCA?

After the signing of the deed of sale, it is time to comply with the taxes that correspond to the buyer, which in general terms stands at 11.5% of the price.

 We must distinguish between new homes - purchased directly from the developer or builder - and second-hand homes.

 New housing: in these properties, the buyer pays 10% of the value as Value Added Tax (VAT), and the Tax on Documented Legal Acts is added, which in the Valencian Community the general rate is 1.5%.

The amount of VAT varies if it is a commercial premises or a garage not attached to a home, as well as there are bonuses for certain cases in the Tax on Documented Legal Acts.

 Second-hand housing. In the case of second-hand homes, the buyer pays the Tax on Patrimonial Transmissions, which in the Valencian Community the general rate is 10%, plus the Tax on Documented Legal Acts mentioned above, which is 1.5%.

There are bonuses in these taxes depending on different factors.

For its part, the seller will be responsible for paying the Tax on the Increase in Value of Urban Land, or also called Municipal Capital Gain.

Our solution:

Six Seconds Properties, together with the specialist lawyers with whom it collaborates, provides its clients with all the information necessary to comply with all the requirements of the Spanish Treasury, and advice to qualify for any of the discounts or special tax rates, if possible.

HOW TO REGISTER MY NEW HOME AT THE LAND REGISTRY OFFICE?

We have already signed the deed of sale of the property, having legal effects between buyer and seller, but to be valid before third parties they must be registered in the Property Registry.

The registration costs correspond exclusively to the buyer and are stipulated by law and according to a scale that depends on the value of the property.

our solution:

Our lawyers can take care of this procedure, presenting the deed, filling in the corresponding taxes, and removing the deed after its registration.

ARE THERE EXPENSES AFTER THE PURCHASE OF THE HOUSE?

A distinction must be made between annual expenses and monthly expenses.

Annual:
 - Real Estate Tax (IBI). It is a municipal tax that is levied on real estate in a percentage, variable depending on each City Council, of the property's cadastral value. Before formalizing the purchase of a property, the seller must provide a copy of the last IBI receipt paid.

- Garbage collection rate: It is an annual tax charged by municipalities for the aforementioned service.

Monthly:
Community Expenses: These are the fees paid to the Community of Owners for the services and maintenance of the common areas when the property is located in an urbanization or condominium.

Our solution:

Six Seconds Properties is committed to verifying and checking that all taxes are being calculated correctly, and in the case of community fees, to requiring the seller to provide a certificate issued by the community of owners, if they are up to date at the time of the deeds.

The information contained in this section has been collected as an orientation guide for potential property buyers in Spain, without implying any contractual obligation. In addition, all laws and regulations are subject to change, to which we will always be very attentive.


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