Pricing and funding

An important section to throw more light on the process of purchasing in Spain. As is usual in many European countries (& unlike the UK), additional to the advertised purchase/selling price you will need to allow in the region of an additional 10% to cover various taxes and associated purchase costs (often refered to as Gastos). Should you be utilising a Spanish Euro Mortgage, it is wise to allow for an additional 2% on top of this sum to cover the additional ‘title Deed’ and the additional Land Registry for the mortgage element. Quite often the seller or developer will request that a lower sum than the purchase/selling price is declared in the notary. A common practice here in Spain and is best to ask for more details from your legal advisor regarding the individual circumstances of each sale. In reality, this only proves to be a liability for the buyer if you are buying with a quick sale in mind. If however, your plans are long term it is not too much of an issue providing your legal representative is comfortable with your individual scenario.

Other factors worthy of consideration within this section are mortgaging and currency exchange. There are a wide range of mortgage products available, including other currencies (Yen and Sterling mortgages are available for those with an entrepreneurial flair, as are Islamic mortgages). We have independent Financial advisors, with a broad based knowledge of the mortgage market in Spain, who are available for free advice & consultations. Regarding Currency Exchange, we have a number of currency experts who are able to offer in-depth information in this field. There are a few unique methods available to offer a ‘time frame’ if the exchange rate is not particularly favourable at your given time for transfer of funds.

One final (and important) point is that of payment structures. With almost all transactions, a reservation deposit of 3,000 Euros is required at the outset of contract signing. The next payment is generally 30 days after the contract signing and will vary from 10% (in extreme cases) to 50% being required by some developers. Having a special arrangement with our developers, the usual schemes are 3,000 at reservation and 25% in 30 days. One or 2 may request a further 15% over the following 3 months, however we will negotiate the terms on your behalf to suit your individual budgets & timetable. Importantly, we only operate with those quality developments where bank guarantees are available. It is usual, however, that these can only be requested once your funds have been received.

Money is an important subject, and should you have any queries at all in this department please feel free to contact us for ‘No Charge’ advice. If we do not have the answer, we certainly have a specialist on hand who will.