Conveyancing is the transfer of the legal title of a property from one person to another. A typical conveyancing transaction includes two vital indicators: the transfer of contracts and the completion, whereby the legal title passes. The system of conveyancing is constructed to safeguard that of the buyer. Conveyancing fees in Spain, outlines the total payment made to a professional person or public bodies in exchange for advice or services.
Conveyancing fees in Spain are dependent on whether you employ a foreign or Spanish lawyer and on the sale price of the property. Supplementary examples of conveyancing fees in Spain are associated with the taxes and legal fees relating to the sale and purchase of the property. The costs and taxes on selling a Spanish property can be in the range of 10-15% of the sale price, in total.
The following is a reminder of the principal areas to consider for conveyancing fees in Spain
1. Estate Agency Fee: The seller covers the estate agency fee. The relevant percentage of the fee needs to be individually negotiated in each case. The fee is established by the nature and location of the property.
2. Energy Performance Certificate: Spanish property owners are legally required to have a relevant Energy Performance Certificate. The energy performance certificate forms a paltry part of the conveyancing fees in Spain.
3. Tax Retention on a Spanish property transfer: The buyer has to retain 3% of the declared sale price and pay this to the Spanish Tax Authority when purchasing a property from a non-Spanish resident owner.
4. Plus Valia Tax: A transferral of a Spanish property interest necessities that the local town hall is entitled to charge Plus Valia Tax, which is calculated by reference to the rateable value of the property and the period of ownership.
5. Community Administrator Certification: It is standard procedure that the seller pays all outstanding community charges up to the date of completion. The charge for the provision of this certificate ranges from 50-100 Euros.
6. Capital Gains Tax: A seller of a Spanish property might potentially face a responsibility to account for any profit in Spain or in their home country.
7. Legal Fees: Expert independent legal representation is imperative when selling a Spanish property. The cost depends on the value of the transaction and its complexity. Legal fees form a large part of the conveyancing fees in Spain.
8. Bank Charges: Bank charges in Spanish property transactions can be high. Certain Spanish banks may even charge to receive funds and to transfer funds following completion.
9. Mortgage Redemption Charges: If the property is owned subject to a mortgage, then prior to agreeing to a sale, the terms of redemption of the mortgage must be established with the bank.
10. Notary Costs: It is often the case that the buyer pays the Notary fee. However, sellers need to be aware that this is an area of possible negotiation. The expense of the Notary fee is contingent on the value and complexity of the transaction.
11. Property Registry: The buyer generally always bears the Property Registration cost, The Property Registration cost is usually around 0.5-0.75%.