NEWS  April 2008                                

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When you have found your dream home, there are additional purchase costs which amount to approximately 10% of the purchase price. 

The main cost is the purchase tax. On resales this is called I.T.P. (Impuesto de transmisiones patrimoniales) which is 7% of the purchase price.On new properties you pay VAT (IVA) at 7% plus 1% stamp duty. However on plots of land and commercial premises VAT is charged at 16%. James recomends this.

We recommend a Spanish lawyer who will give you legal and fiscal advice and who will also carry out the title search. We can introduce you to an English speaking lawyer whose fees are around 1%.The lawyer will also apply for a NIE number (Numero de identificacion para extranjeros) which is required for purchasing a property and for tax payments.  

The Notary prepares the title deeds (Escritura) and presides over the actual signing. The Notary fees are approximately 1%. Finally there is a property registry fee of approximately 0,5% for registering the property deeds in your name. email us      propertycasa@gmail.com

It is quite common to pay a deposit of approximately 10% of the purchase price in Spain. With this payment the property will be reserved for you and it will be taken off the market. In this case you both sign an option contract. Should you decide to pull out of the deal, the owner of the property receives the 10%. However, if the owner pulls out of the deal, he has to pay the 10% deposit and an additional compensation of another 10% to you. SEARCH Google type in gmail  james  uk  mobile   to find more web sites.   visit   www.mallorca.uk.net