Buying guide Spain HusmanHagberg

Buying a property in Spain

PROPERTY TAX In Spain, you pay an annual municipal and a state property tax, both based on the assessed value of the propoerty. The municipal tax rate varies between different municipalities and is 0.4–1.1% of the assessed value, and the state tax rate is at approximately 0.25–0.5% of the assessed value. You do not pay any property tax in Sweden on the Spanish property. EXAMINING THE PROPERTY In Spain, second-hand properties are sold in ”existing condition”. As a buyer, you are responsible for carefully examining the property before you sign the purchase contract. Deviations from this must be stipulated in the contract. It is wise to take help of external experts such as a legal representative and technical architect.

CLOSING THE DEAL When you and the seller have found an agreement, a reservation contract and a purchase contract are written. These state the price and date of entry, among other details. At the same time, you pay a reservation fee or down payment as a guarantee that you will complete the deal. RESERVATION FEE AND DEPOSIT When buying a new development property, a reservation agreement with the developer is written and a reservation fee of approximately 3,000–6,000 EUR is paid. When buying an existing property, you often pay a reservation fee of about 5,000 EUR, followed by a down payment that is normally 10% of the purchase price. The final payment of the purchase price normally takes place on the day of entry.