The challenges of the real estate sector, is the underlying theme that has been discussed in the recent Sustainable Urban Development Forum organized by the newspaper El País and sponsored by Castellana Norte District.
The Spanish regulatory complexity is one of the difficulties that the housing market and complete legal certainty lives the objective to be achieved
Even so, experts agree that it is unlikely that a new bubble, especially by the lack of mortgage financing. In 2006 about 1.3 million loans were granted. In 2014, this figure barely reached 350,000 nationwide and is expected period of price stability in housing.
In these sense, if you intend to purchase a property in Majorca from a foreign country like England or Germany, you should consider that both the jurisdiction and the processes to be carried out and the roles of professionals involved in it are different. Throughout the whole process, the presence of a lawyer is essential to be responsible for providing obligatory advice to clients on legal, tax and legal liabilities acquired during the action of sale.
Juan Mateu Bou, as specialist in Property Law in Mallorca and advisor in the process of purchasing properties, advices us about the aspects that we must consider.
“For a foreign buyer is essential to have the services of a firm of lawyers specialising in real estate law with multilingual abilities to offer totally reliable and understandable advice to the customer” affirms Juan.
Which are the initial steps when acquiring a property in Mallorca from a foreign country?
The “due diligence” is the first step, it include the process of accessing information contained on the Title Registration, which is a public record. This Registration will confirm the registered owner of the property and provide information on any charges outstanding on the property.
The final step is the urban location of the property and the recognition of its existence by the planning authority covering the area in which the property lies.
What happens once the buyer has decided to purchase a property?
This is the moment when the purchaser can puts down a deposit or down payment. The agreement of transfer of ownership is formalised before a Public Notary in accordance with the terms of the contract. Once the contract is completed, the transfer or delivery of the property is made to the purchaser.
The Transaction is done before a Notary Public, a public notary certifies the capacity of the parties and the content of the title-deed.
What are the payments that must be made?
Property Transfer Tax (currently a progressive tax from 8 to 10%) has to be paid to the Balearic Islands Tax Authorities within 30 days of completion, in accordance with a general tax rule; also VAT (IVA in Spain) might also be applicable in other types of transactions.
What should we do once this process is complete?
Once finished the purchasing process are many formalities to be done like notify the utility companies (electricity, water, etc) of the change of ownership and organise payment arrangements with Spanish Banks.
Ripoll Mateu Solicitors understand that it is vitally important for any purchaser of a property in Spain to obtain independent and professional advice. Ripoll Mateu can advise you on all matters relating to the purchase of your property. Our customers confirm the safety and benefits of our work
You can contact us through our form in our website, we will attend with no obligation. Our team is committed to providing the best work processes to provide you with the best results, in a constant quest for professional excellence establishing external collaboration when circumstances require.