When purchasing a property in Spain you are required to pay a 10% deposit (this is non returnable).  A private contract is then drawn up for the buyer and seller with a Spanish lawyer.  If the buyer fails to complete the sale, he automatically loses his deposit.

If the seller finds another buyer for the same property, the first buyer can then claim twice the amount his/her deposit back.

The contract sets out all the details of the agreement, i.e. when the last payment will be paid.

The final stage is the Escritura de Compraventa, this is signed by the buyer and seller in front of a Spanish Notario to make it legally binding.  Otherwise you can make a power of attorney, allowing another person or the Lawyer to sign on your behalf if you can not be present.  

The Notario is an official of the State who makes sure that the contracts are legal.  

A translation is usually given in English at the Notary office.

The Spanish Notario Public - the Notario - although a lawyer, does not give any legal advice to the vender or the buyer.  The job of the Notario is to witness the signing of the deeds and to ensure the state taxes are paid on completion of a sale.  It's normal for all parties to be present when the deeds of sale is read, signed and witnessed by the Notario, although either party can give someone a power of attorney (poder especial) to represent them for an additional cost.  Once the Escritura has been signed, the purchase price of the property is then handed over to the vendor.  Proof of this payment is then noted in the Escritura, which is then registered in the local register.  If the seller is a non-resident, 5% is withheld from the purchase price and paid to the Spanish Tax Agency as Capital Gains Tax.

Before preparing the Escritura, the Notario ensures that the buyer has received the property as stated on the contract and that the vendor has got the correct price.  The Notario also advises on taxes which are due on the property.  Notaries collect their fees from both the vendor and the buyer.  These fees are charged in accordance with sliding scale or charges set by the Spanish government.

After the signing of the Escritura and payment of the purchase price and fees, the Notary will pass the purchaser a copy (copia simple) of the Escritura and keys to the property.

If you're moving over to Spain, it's important to make sure that all eventualities are covered.

In particular, it's vital to ensure that you have adequate insurance, including travel insurance, building and contents insurance, health insurance and car insurance.

It is extremely risky not to have health insurance, as if you have an accident and you are uninsured, you could be facing some very expensive medical bills.  Also, Spanish health insurance doesn't cover car accidents, which are covered by car insurance - always check the extent of your cover with any policy.
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Unfortunately, moving to Spain does not mean that you can evade the tax man.  Spain has an inheritance and gift tax (Impuesto sobre Sucesiones y Donaciones) on money received as an inheritance or as a gift, which is applicable to both residents and non-residents alike.

In particular, the rules relating to foreign wills in Spain can create legal problems for your heirs, so it is easier to make a Spanish will to dispose of your Spanish assets and a separate will for assets in England.  You are not tied to the Spanish law of compulsory heirs, so you will be able to leave your assets to whoever you wish, as long as your own national law permits this.  Your estate, however will be subject to Spanish inheritance tax.

There are very few ways around Spanish inheritance taxes, although careful planning will help to reduce levels of taxation, which is due after the first 16,000 euros.  Although this may seem small, this does only apply to each inheritor and not whole estate.  Further exemptions are also in place for children (direct family members) under 21.

If you are an official resident of Spain and you leave your property to a spouse or child who is also a resident, you may be eligible for a 95% reduction in its value for inheritance tax purposes.

• Ensure your passport is valid until you next intend to return to the UK.

• Spanish law states that a person who has been in Spain for six months must either leave or apply for a residence permit.

• Have passport photographs to hand, especially if you intend to apply for jobs.

• Set up a current account early.  The bank will issue cards with your account details on, which you can present to your employer and other official bodies.

• Take photocopies of vital documents and keep them safe.

• Find your local doctor and dentist.

• Arrange adequate insurance.

• Take advantage of your resident's tax status as you now have a number of tax advantages over non-residents.

Make sure you have adapters for any electrical equipment you bring.  TVs and videos on British (PAL-1), French (SECAM) and North American (NTSC) systems don't function in Spain, which uses the PAL B/G standard.  There is no TV licence in Spain.

You will need to contact the utility providers to have these services reconnected; arrange a standing order with your bank.
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There is no quarantine requirement needed now for a suitably documented pet.  The pet must be micro chipped and vaccinated against rabies, for which you will receive a PETS re-entry Certificate (PETS 1).  It cannot re-enter the UK until six months after the blood test to confirm immunity.

Bear in mind that the timing of the mandatory worm and tick treatment before re-entry into the UK is also crucial.  More information is available from the Department for Environment, Food and Rural Affairs (DEFRA).  Call 0870 2411710 or see www.defra.gov.uk/animalh/quarantine

• PETS Re-entry Certificate and other documentation.

• Food and water, food bowls.

• Pet-carrying box and lead.

• Toys and blanket.

• Treatments and medicines.

• Litter tray and accessories

Bringing a right-hand drive vehicle into Spain can be more trouble that it is worth.  It's worth selling your UK model and buy a left-hand drive car.

Consider, also, that Spanish police make a point of checking foreign-plate cars, cracking down on foreigners living and working illegally in Spain.

The EU stipulates that insurance is fully transferable between member states - but in practice it is often very messy and costly.  Far better to arrange car cover with a Spanish company.  For the first six months, you do not have to exchange your European driving licence for a Spanish one.  Residents need a Spanish driving licence in addition to their home driving licence.  Non-residents face on-the-spot fines for traffic violations.
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Local knowledge and contacts are essential for building projects to succeed.

Make sure you know, right down to the last fixture and fitting, if possible, how much a conversion or renovation is likely to cost.

If you buy to convert, make sure you have the relevant planning permission, get as many quotes from local builders as possible and be prepared.

Be very prepared...

Are usually in the region of 1% of the selling price (Depending on the Lawyer).  NB. It is essential to have the assistance of a solicitor when purchasing a property to handle all paperwork and to check that there are no existing debts on the property you are purchasing, they will also help when transferring the electric, water bills etc in to your name.

To check that all contracts/deeds are raised and a secondary search is done before the deeds are signed.

To Check legality.

If you purchase a resale property, you will pay 7%  of the property value (depending on area).  On new property you pay 7% IVA (VAT) of the value also 16% payable on the purchase of the land and stamp duty.  When paying your tax, you pay tax on the declared value (the owner can declare that he is selling the property for a less amount to avoid paying too much tax).

We can provide help with mortgages in conjunction with one of Spain's leading banks.

Majority of Spanish banks will lend up to 70% being a non-resident in Spain or 80% being a resident on the valuation of the property.  NB. The percentage loaned by the bank is based on what the surveyor says the property is worth, NOT WHAT THE OWNER'S ASKING PRICE IS.  A fee for the surveyor is payable before the valuation can be done.

Bank statements/proof of income, P60 are needed for bank purposes when applying for a mortgage in Spain.

The information above is a general guide of the fees incurred when purchasing a property in Spain.
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