Buyers Guide

Mijas Costa property investment

Buyers Guide

Finding the Right Spanish Property requires careful thought and taking into account of the right factors such as location, building quality and market trends. Mila Inverstments are based on the Costa del Sol and have excellent local knowledge and an experienced team to provide you with advice and guidance through the whole process.

When deciding where to buy, look at the local amenities, accessibility and security as they will all affect your future sale price or rental income.

The buying process in Spain is relatively simple, but because you buying in a foreign country it advisable to get a reputable agent who already has successful developments in Spain , and your own independent solicitor. Mila has six proven developments, which will give you a good idea of their experience and expertise.

When you find the property you wish to buy you will be required to pay a deposit or reservation fee of around 10% upon signing a private sale contract. The property will then be immediately taken off the market and the price fixed.

If the vendor pulls out of the sale, he is legally required to pay you double the payment in compensation. If you pull out of the sale or fail to complete on the date fixed then you will lose your deposit payment.

You need to be sure that the payment is refundable subject to legal checks on ownership, planning permission, boundaries and legal description of the property. With resale properties charges and debts incurred by the previous owner can be registered against the property and you will inherit them on completion. It is your lawyer's job to ensure you buy the property free of any debts.

Once the legal checks have been undertaken to your satisfaction the sale is performed before a Public Notary who acts as a legal representative of the State and checks the legal documents and witnesses the signatures.

The final payment is made at the time of sale and this transaction is recorded in the Title Deed (Escritura de Compraventa) signed before the Public Notary. If you are unable to attend in person at the signing you should give a Power of Attorney to your lawyer.

Once completion has taken place, certain fees and taxes (Transfer Tax on a resale property, IVA and Stamp Duty on a new build , lawyer, notary, land registry, etc) must be paid, and are normally in the region of 10-12% of the purchase price of the property.

If you are planning on buying a property in Spain we recommend that you apply for an NIE number (ID number) at your earliest convenience as this number is required when carrying out any financial transaction here.

These numbers are issued at the National Police Station in the town where you are purchasing the property and you need to apply in person.

You will need your passport and a photocopy of it, and be asked to complete the application form in duplicate using black ink. You should go to your nearest National Police Station between the hours of 9.00 am and 2.00 pm to complete the NIE application form, but be prepared to queue .

Mila are able to recommend a reputable lawyer to act on your behalf. They also have experienced staff (some bilingual) who can help you through this whole process.