The Buying Process
Choose a broker
Always choose an authorized and registered broker who can find the right property for you and who can also give you guidelines during the exploratory talks with the owner.
Choose a lawyer
It is advisable to hire a lawyer in Spain who can advise and guide you from the start of the purchase process during the purchase. He will explain to you the necessary legal guarantees for the purchase of the property and check whether the conditions set by the Spanish law are met, for example, whether the property is free of loads, debts and rights and whether all taxes and service costs have been paid to the homeowners' association.
The investigation of the property
The examination of the property depends on the choice you have made (a new building or existing house/house and/or plot of land etc.) If you choose a lawyer in your own country this can considerably slow down the purchase process and increase the costs of lawyers.
After finding a suitable object, the broker will complete a reservation form with you. By means of this form, the property is reserved for you and the price is fixed. A deposit of € 3.000 to € 15.000 must be paid. Therefore, before you come to Spain, you must prepare and have this amount available. We advise you to pay this amount by credit card. It is not advisable to pay via a check issued by a foreign bank because the processing takes about 14 days. Such a delay can still cause the sale to fail. Signing the private purchase contract Approximately 14 days after the signing of the reservation contract, the next step in the purchase process is signing the private purchase contract between the buyer and the seller (or their legal representatives). Your lawyer has terminated his audit and investigation of the property at that time and will have arranged the procedure for settling any outstanding debts with the owner. When you sign the private purchase contract, you pay 10% of the purchase price of the property. You must transfer this amount to your own Spanish bank account. The opening of a Spanish bank account can be arranged by your lawyer. We have been able to stipulate favorable conditions for our customers from a number of Spanish banks. You also have the option to transfer this amount to your lawyer's account.
Signing the private purchase contract
Approximately 14 days after the signing of the reservation contract, the next step in the purchase process is signing the private purchase contract between the buyer and the seller (or their legal representatives). Your lawyer has terminated his audit and investigation of the property at that time and will have arranged the procedure for settling any outstanding debts with the owner. When you sign the private purchase contract, you pay 10% of the purchase price of the property. You must transfer this amount to your own Spanish bank account. The opening of a Spanish bank account can be arranged by your lawyer. We have been able to stipulate favorable conditions for our customers from a number of Spanish banks. You also have the option to transfer this amount to your lawyer's account.
The notarial purchase contract
In Spain, a purchase was officially completed after signing the notarial deed of ownership at a notary, paying the agreed price and transferring ownership to the buying party. In the case of buying a new building, it can take up to 18 months for the signing to take place. Normally you must make interim payments every 2 to 4 months by means of bills of exchange, transfers or checks.
After the deed of ownership has been signed, the notary will send a copy to the regional land registry. Your lawyer will also pay the transfer taxes in your name and register the title deed. Registration of the deed in the property register can take several months. Your lawyer can also have the contracts and accounts for facilities of the local utilities such as water and electricity put on your name.
If you buy a new home, the developer is obliged to issue a bank guarantee for every payment.
Some project developers offer free bank guarantees, while others charge for this. A bank guarantee protects your payments. In the event that the project developer does not complete the construction, goes bankrupt, or does not deliver the project within the agreed time, and you do not want to wait, all payments will be refunded.
In Spain, the new building will be delivered without water and electricity connections. These provisions can also be arranged by your lawyer. After completion, this process can take four weeks in Spain.
We therefore advise you not to make plans to use your home during this period. The law provides for a 10-year guarantee against contamination errors.
There are three types of fees and two taxes involved in buying property in Spain.
As a rule of thumb, you can assume that the costs are about 11% to 14% of the purchase price.
If you take out a mortgage in Spain, there will be about 3% extra costs.
Fee for the lawyer: amounts to 1% of the purchase price, with a certain minimum wage depends on Law firms, Notarial costs: depending on the purchase price, Registration costs: normally 60% to 80% of the notarial costs
When purchasing an existing building, you only pay the transfer tax. This tax has been reduced in Andalucia to 7 % for whatever amount. (Andalucia is becoming a tax heaven)
Before it was For instance:
The purchase price is 450,000 euros, you pay 8,000 euros over 400,000 euros and 9% for the remaining 50,000 euros. Transfer tax is paid to the signing of the notarial purchase deed.
For new buildings, you currently pay 10% VAT plus 1.2% stamp tax.
Plus Valia: this tax concerns the appreciation of the land and must be paid according to the law by the seller. The charge may vary depending on the municipality and the area of the plot.
Any other costs include:
- For the provision of water and electricity
- Putting the accounts for utility services in your name and having them pay via an automatic payment order
- Representation in owners association
- Fiscal Representation
- NIE number (Spanish Sofi number)
- Bank account
- Notarial proxies
- Annual costs and taxes associated with your property
- Municipal real estate tax
- Income tax on the property for non-resident owners
- Utility bills
- Insurances Service
- Community fees
Spanish banks are happy to provide a mortgage to non-residents who buy real estate in Spain.
The term of the mortgage depends on the age of the mortgagee, but can often be 20 years.
The amount of the mortgage can be up to 70% of the appraisal value of the property, depending on your income and assets.
Most banks apply the rule that your monthly income should be about three times the monthly payment amount.
The bank needs the following documents to take out a mortgage:
- a copy of your last tax return
- salary slips from the last three consecutive months.
- Self-employed persons must be able to submit
- an audit certificate from the last financial year, certified by the accountant a bank reference with address, telephone, fax, name of the manager and your bank account number
If you are employed:
- a letter from the company where you work (duration of appointment and nature of the contract)
- a list of assets, current debts, such as loans, personal loans etc
- bank statements from the last three months.
In any case, it is advisable to have a Spanish will made in Spain that relates exclusively to your Spanish assets. By not compiling a will, your heirs can become involved in time-consuming and expensive legal proceedings. As a foreigner, it is usually the case that the Spanish authorities do not oblige you to follow Spanish succession law. You can leave your property to the person of your choice for as long as the law in your country allows it.
Selling real estate
- Capital gains tax: a non-resident of Spain transfers 19% to the Spanish tax authorities on the sales profit.
- If the seller is non-resident when selling real estate the buyer's lawyer will withhold 3% of the sales price and pay it directly to the tax authorities as a withholding tax on the possible obligation to pay the capital gains tax. Your lawyer will be happy to inform you about exceptions.
- Plus Valia: tax on the appreciation of the land Honorary for the lawyer Commission of the broker.
- If you have a mortgage on your property, you also have to pay the costs of the resolution of the mortgage to the bank as well as the resulting registration and notary fees.
...Because we treat each of our clients' properties as if they were our own
When do you need a Rental and /or Property Management company?
If your rental property is located far from where you live, counting on a property management company can be invaluable in dealing with the many issues that you will not be able to handle from far away.
If you view rental property ownership strictly as an investment and want little or nothing to do with the day-to-day management of your properties and if your time is limited.
If you have no time and no experience how to advertise your property, determinate the price and find suitable websites (holiday rentals)
We can offer you Simple Rental property Service and /or Comprehensive property management services which means we handle the day-to-day tasks of managing the property so that you don't have to. Because we treat each of our clients' properties as if they were our own, every detail is accounted for. Services include marketing the property, screening applicants, coordinating lease signings, collecting rent payments, responding to owner and tenant requests, and arranging for repairs /cleans when needed.
We offer you the following contract options with ImmoMoment :
1. Simple 'Rent my property out 'Service –No management (related only to clients of ImmoMoment and strictly only during the rental period)
- We evaluate the property and determine an advertising rental rate
- Taking Photos
- Recommendations for improvements for more successful rentals of the property
- Marketing the property on our websites for long or /and short term Rental - Work with other realtors and leasing agents to find a tenant
- Advising you on recommendable websites and platforms to advertise your property for rent
- Contact perspective tenants, daily base lead management
- Lease contract preparation for all rental properties
- Update you on the present rental law and legal obligations
- When we find the tenant for you: We Prepare Photographic Inventory / In Person service for Tenant check In-Tenant check out / Inspect of the property's condition when the client moves out / Provide tenant/owner estimated damages return the balance of the security deposit to the tenant / Arrange Cleaning /maintenance when it is necessary during the tenancy
2. Key Holding Service
This service consists in the custody and handing over of keys, a service that would be of great benefit in the event that you may have accidentally forgotten or lost your keys. It is very simple; we keep a set of your keys in our office so that you may collect them in case you have left them in your native country, or lost them or find yourself in similar situations just as if repair men's or delivery service need to access your property so they can pick up the keys from our office as per your authorization.
3. Full Property Management Services; No more Pain and hassle that you are not in control of what is happening with your property and who to call if you need to send an electrician or your Wi-Fi is not working...
This an Exclusive agreement for the management and rent of your property during the year for a fair yearly fee.
It means we handle the day-to-day tasks of managing the property so that you don't have to.
Services include marketing the property for rental (including all services mentioned in nº 1-Simple Rent My Property Out” and for the fees indicated) and nº 2-Key Holding
*Monthly Inspection visit * Arrange repairs /maintenance /arrange cleans and laundry when needed during the whole year, *Manage owners bills (electricity, telephone, IBI ...)* Coordination of any needed contractors* Key Holding ... and much more...
Our fees and service list prices related to the packages are available on request!
This isn't intended to be a comprehensive list of property management services, but it should give you a fair idea of the scope of our property management and rental services!
Thank you and we hope to see you as a property owner of ImmoMoment.
We are a rental agency and property management company serving the main areas of the Costa del Sol for over 20 years.
We are working for high-quality property owners to lease and manage their properties to quality, and we make sure to find well-screened tenants.
Our Team will be your first point of contact and are able to assist you with any enquiries you have during the rental process.
Our holiday and long term rental database is updated weekly to ensure you have access to properties as they become available. The team at ImmoMoment are dedicated to providing a personal, professional and friendly service to our tenants and owners and are ready now to assist with your enquiries.
At ImmoMoment we believe in matching the right tenant with the right property. We understand the importance of finding a place that’s right for you that includes all the features to suit your lifestyle. Our tenants are assigned to experienced Property Manager, equipped with direct phone/email access, to ensure your application and tenancy runs as smoothly as possible.
Detailed below is a brief outline of how to Lease a Property through ImmoMoment.
Your ImmoMoment consultant will be your first point of contact and is able to assist you with any enquiries you have during the inspection and application process.
Long Term Rentals:
For Long Term Rental property when you have found the right property you will be required rental references, evidence of income and proof of identification. You must also advise if you own any pets.
After you have submitted an Application your references will be verified and the property owner will be consulted. Once approved, you will be required to sign a lease contract /booking form. Photographic inventory needs to be signed on check in on any cases. Damage deposit is also required for long term or holiday rental.
- To book your Holiday Home is easy with us
- We hold all necessary licenses and only offering properties with Touristic Registration and we meet all real estate guidelines.
- No Scam - No 'fake' holiday homes
Once you picked up your available vacation home, the property owner will be consulted: Once approved, the reservation procedure, confirmation and check-in instructions will be sent to you. No fine print, all paperwork will be clear and easy to read and understand.
We offer a quick response to problems, questions, lock outs and emergencies. Together with our housekeeping staff we prepare and inspect the property for your enjoyment.
We offer in person an efficient check in and out process.
Last but not least, WE CARE. We really do want you to have an enjoyable memory filled experience and hope that you will be part of the ImmoMoment family each time you return to Spain.