Buying Guide - please read before buying A property

  • The Prices

    As our commissions are the lowest for many resales we can pass the saving on to the buyer!

  • Prices

    When buying in Spain you will need to add approximately 11% - 12% to the prices shown to get the total cost, this includes 7% Property Tax and a further 4% - 5% which covers your solicitor fees, mortgage fees and other legal costs such as notary fees. However if you are buying a property which is approx less than €85,000 we have found that your fees could be higher than 12% as the Notary and Land Registery have a minimum fee which could mean you pay around 14% in taxes and fees in total. This has only come to light due to the extremely low property prices available today. Please Note that on New Properties the Property Tax is only 4% not the fomentioned 7%, from the 1st January 2013 New Properties Property Tax rises to 10%

  • MMV

    It has been brought to our attention that there is a Minimum Market Value which the Murcia Regional Inland Revenue can use to receive extra Property Tax. This has only now come to light due to the extraordinary low prices. MMV is the value that the Murcian regional government say that the property is worth, these values were done around two years ago so are always more than what you will buy the property for.

  • You can appeal against paying this extra tax and so far the buyers have won the vast majority of cases, however this cannot be guaranteed.

  • There are a number of estate agents who will not mention MMV as it does not come to light until after the completion. We are very different to your average overseas agent and believe that our customers should know the facts about buying a property in Spain before paying any deposits.

    See example below:

    • Property price agreed €120.000
    • Normal Property Tax 7% = €8.400
    • MMV from Murcia Regional Inland Revenue €150.000
    • Difference = €30.000
    • *Extra Tax 7% = €2.100
    • So the total tax that you *MAY have to pay is €10.500

  • Offers

    The majority of our properties are open to offers, which we can give guidance to. However the properties that have the lowest prices may simply be priced to sell with no or very little movement.

  • Deposits

    All our properties can be reserved with a €5.000 deposit which can be paid with a credit/debit card, this removes the property from the market. You wil then be required to pay a second deposit 21-28 days after the first deposit to cover 10% of the total cost of the property.
    See example below:

    • Property price agreed €120.000 - Total amount of deposit required 10% = €12.000
    • First deposit of €5.000 - on agreement of price
    • Second deposit €7.000 - 21-28 days later

    However on occasions the completion can be within four weeks, in these circumstances your solicitor and the sellers solicitor can negotiate the second deposit being paid at the time of completion.

  • Nie

    When buying property in Spain you will NIE number (National Insurance Number). The laws have changed in recent months and you will need to go in person to Cartagena or Murcia to register for your NIE number. However either ourselves or your solicitor would accompany you. Once registered your solicitor can collect your NIE certificate on your behalf.

  • Legal Representation

    Whenever buying a property we would always recommend independent legal representation. There are a number of local solicitors that speak many languages including English. If you do not want to keep flying back to Spain during the buying process we would recommend you grant your solicitor Power of Attorney with POA your solicitor can get you your NIE number, open a banck account and also set up your utilities. The solicitor will only action anything once they have written approval by you. The costs of a solicitor varies between 1% - 2% of the purchase price.

  • Banks

    You well need to open a Spanish Bank account when buying a property. We have negotiated free banking and other special offers which are exclusive to customers of the resorts with one ot the biggest banks in Murcia Spain. However you are always free to use which ever bank suits you best.

  • Mortgages

    We currenty have selected properties available with 90% mortgages, these are normally bank repossession properties. For others properties we can often get you anywhere between 60% up to 70% mortgages using the same bank as who the sellers mortgage is with.

  • Completion

    It normally takes 5 - 8 weeks from the time of your deposit being paid to completion.

  • Looking after your property

    Once you have your keys we can give you guidance on local key holders. Your keys holders will look after your property offer cleans, laundry services and general maintenance.

  • Renting your property

    We have long been the number 1 site Google for Polaris World Hildays renting out over 200 Polaris properties over the last few years, so we can give truly expert advice on how to maximize your property for renting.

  • Running costs

    The costs of running a property will vary from one property to another. To give you a better idea on costs, below is an approximate guide for an apartment. Please Note that the community fees stated on our website are for guide purposes only, they could be more or less. You can find out the exact fees via your solicitor.

    • Apartment Monthly Running Costs
    • €120 - Community fees
    • €60 - Standard charges for Gas, Electric and Water
    • Apartment Annual Costs
    • €250 - Key holder fees
    • €250 - Council Tax
    • €200 - Insurance

    Total for the year €2.740

  • Anything else

    Even though we have covered the majority of question we are frequently asked there may be something we missed, if so give us a call on 0845 4021930.