|  BUYING PROPERTY IN SPAIN or PORTUGAL
There are some important differences compared to the system in the UK or Ireland when buying property overseas. A typical transaction will normally take the following route, though this is an outline guide only. By the time you have found the right property, you will need to be ready to proceed quickly. At this stage, you need the services of your independent lawyer, who will check and approve the contract of sale provided by the seller, or prepare a contract themselves. You would normally now lodge a deposit on the property, usually around £2000 to take the property off the market.
INDEPENDENT LEGAL ADVICE
We strongly recommend that you use the services of a local English-speaking lawyer experienced in property law and with good knowledge of the area you are buying in, your local contact will always make sure you are introduced to one and at the same time will help you to open a local bank account. In the case of resale, the lawyer will check that the property belongs to the seller, is free of debts and has the necessary building permissions. For new construction, the same checks will be made on the land, along with a background and financial check on the builder. When your lawyer is satisfied on the above matters, your signed contract and deposit will be released to the seller. At this point, a "full" deposit of 10% or more of the purchase price will normally be payable.
The contract will state the date(s) for subsequent payment(s) that make up the balance due, which need to be carefully observed. You will of course be provided with a copy. Your lawyer can also arrange an N.I.E. (foreigners identity number) and residency application as appropriate. On completion day, both parties, or their representatives with suitable power of attorney, will appear before the Notary - a government official responsible for the execution of public documents - to ensure compliance with the prevailing law. The Notary acts for neither party, and does not replace the need for your own lawyer, but witnesses the signing of the Escritura de Compraventa (the transfer deed). At this time the balance of the purchase money will be paid to the seller, and any remaining purchase tax and fees will be paid. You will then have the keys to your property and a copy (Copia Simple) of the title deed until the formal deed comes to you from the land registry. At every stage, both here and there, we will be on hand to co-ordinate and answer any questions you may have that are not covered by your lawyer. Similar procedures apply in Portugal. If you are using a mortgage to buy, some of the above will be slightly different. TYPICAL COSTS Please CONTACT US for any specific advice you may need on buying your property. WILLS
Your lawyer will advise you, but it is usually best to make a local Spanish or Portuguese will to deal with your property and other assets there. At the same time you can be advised on ways to minimise your exposure to inheritance and capital gains taxes. | |
