Buyers Guide - Your guide to buying property in Fuerteventura
The conveyancing process in Fuerteventura
The Spanish legal system is different from other European legal systems. Nevertheless, it is possible to make checks and enquiries similar to those made in your country.
You may have heard about the pitfalls of buying property in Spain but provided you have appropriate legal advice, purchasing a property in Spain is as safe as in the UK .
Purchase contract
There are different types of contracts in Spain when purchasing a property.
It is customary in Spain for buyers to sign a preliminary agreement with payment of a fee to take the property off the market. Since the contract is signed it will become legally binding upon the parties.
New property
When buying a new property the main things to be checked are the following:
- The vendors are the registered owners of the property
- The legal description of the property and its boundaries
- Whether there are any debts, charges or mortgages attached to the property.
- The outline planning permission and building license.
- That bank guarantees or insurance policies will be issued to secure the payments made until completion of your property.
The Canary Island Tax regime is different than the one in mainland Spain . There is an incentive for buying properties in Fuerteventura , as for properties under construction IGIC or Canary Island Tax will be paid at 5% of the purchase price rather than VAT at 7%.
In addition to this you will also have to pay AJD or Document Tax at 0,5 % of the purchase price, rather than 1% as in mainland Spain .
Notary's fees for the drafting and legalisation of the escritura or title deeds . These will amount to approximately 400€ to 500€. depending on the price of the property.
Land Registry fees for registering the property, in the region 500€.
The escritura
The escritura or title deeds is the public purchase document showing who the vendor and buyer are, the purchase price and containing an accurate description of the property.
It needs to be signed (on completion) before a Notario or Spanish Public Notary and then must be sent to the Land Registry for title to be registered once all taxes have been paid.
Wills/inheritance
If you own a property in joint names it will not automatically pass to the survivor co-owner.
It is not necessary to make a Spanish will but it is advisable and prudent to do so.
There are various allowances and ways of leaving Spanish property which can help reduce Spanish Inheritance Tax.