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Casa Nova Properties Service:

We inform you about our service during the purchase transaction

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Dear interested party,
our goal is to make the purchase process simple, safe and manageable in the interest of all parties involved. Therefore, we would like to explain our services to you in the following:

Preparation of a purchase option contract (contrato de arras):
Once you have decided on your dream property, we will prepare this preliminary contract, which will include the personal data of the contracting parties, the cadastral data of the property, the purchase amount, the down payment amount and the individual deadlines for the transaction. There are no rules for the period until the final notary date, here the will of both contracting parties decides. Both contracting parties sign this contract. Only then the agreement is binding and the seller will take the property off the market (Important for the buyer because of a possible intermediate sale to secure the desired property!)

Compliance with the European General Data Protection Regulation of 25.5.2018: For the entire preparation of the notary appointment, the processing of the personal data of the parties to the contract is necessary. You give us permission by signing the purchase option contract. We assure you that this personal data will be disclosed only to the persons and offices directly involved in the preparation of the notary appointment (lawyer, bank, interpreter, notary's office, property registry, community of owners, if applicable). You have the right at any time to obtain from us information about all bodies that have received personal data!

Payment of the purchase amount:
The buyer pays within the agreed period the deposit as agreed (usually 10%) in most cases to the notary escrow account of the notary where the deed is to be signed later, or to an account of the owner.

The remaining purchase amount should be transferred within the option period in time before the notary appointment to its own bank account at a Spanish bank, which was set up in time, or to the account of an appointed lawyer.

Please note the following rules (under the Money Laundering Act), which must be observed: the transfer must be made from its own account of the buyer and the purpose must be specified.
The Spanish bank of the buyer issues the appropriate bank checks before the notary appointment. about the amounts of the individual bank checks we inform as brokers in time and are happy to assist in contact with the bank. It is after arrangement also a lightning transfer from the buyer to the salesman possible, it is to be noted that the purchase sum must be received with the Verkäufer.

Tax Number (N.I.E.): Every property owner in Spain needs an identification tax number, which is issued once. This can be ordered from the Spanish Consulate. It can also be applied for through a gestoria (service company) e.g. the notary's office. Of course, this tax number does not automatically mean tax residency in Spain, but is a requirement for all contracts (such as electricity supplier, telephone, bank). If you do not need financing, this N.I.E. number can still be requested at the notary appointment.

Spanish bank account:
We help you to open the necessary account at a Spanish bank with a German-speaking contact person, which you need for the payment of e.g. electricity bill, telephone, community fees.

Application for a mortgage:
We will be happy to assist you in applying for a mortgage with a Spanish bank. As a rule, they finance up to 60% of the purchase price. Please note that the processing takes some time due to the examination of the necessary documents. The legal rules have just been changed to strengthen the rights of the borrower. We will be happy to inform you about the currently applicable regulations.

Cadastral number of the property (Referencia catastral del inmueble):
. With the cadastral number we obtain a current information from the responsible land registry (informaci6n registral) and thus learn all tax-relevant data of the property, such as size of the plot, construction area, last transfer of ownership, This is important basic data for the option contract.

Property Register (Registro de la Propiedad):
This document will tell us if there are any encumbrances of any kind such as mortgages, third party rights, attachments or tax or duty debts. All these encumbrances will be cancelled until the sale (under control of the notary and our lawyer), because you will acquire a property completely free of encumbrances.

Existing deed of sale (Escritura de Compraventa):
Based on the old deed of sale, we check who is the current owner (individual, partnership, company, powers of attorney, usufruct). So that you know who exactly is your contractual partner.

Property tax certificate (IBI y basura):
The previous owner submits to us the last paid bill of the property tax, so that you know what annual current payment you have to make. With the property tax, the amount for garbage and garbage disposal is collected annually. In the municipality of Calvia, for example, these taxes are paid in July.For the current year, the amount is allocated proportionally to the seller and buyer.

Submission of the energy certificate:
. For several years, also in Spain, the presentation of this certificate is required when changing ownership (certificado de eficiencia energetica). The certificate must have been registered with the administration. This certificate is issued by an architect and has a validity of 10 years. We organize this for you!

Certificate of Habitability (Cedula de Habitabilidad):
. This certificate confirms that the property complies with the approved plans. The presentation of this certificate is important when buying a new construction property in order to sign contracts with utility companies. It is also desired by the buyer today when purchasing an existing old property. The validity is also here in each case 10 years. The preparation is done with the help of an architect. We make the contact for you.

Existing utilities:
The previous owner informs us about the existing contracts for electricity, water, gas supply, telephone and Internet providers, insurance for buildings and household goods. We will help you with the takeover according to your wishes!

Community costs (Comunidad):
. If it is an apartment or a house in a condominium, the owner is obliged to present at the notary appointment a certificate from the community of owners (or administration) that the current charges are paid. This way you will know at the same time how much this monthly levy is. These levies are settled between the seller and the buyer in case of advance payments. If the community of owners has recently passed resolutions on future special payments (e.g. for repairs), these payments must be settled between the contracting parties. Any credit balance in a reserve fund remains in the property and is automatically transferred to the buyer.

Attorney support:
We as a real estate agent take care of the provision of all necessary documents before the notary appointment. Should you require further legal assistance, this is subject to a fee.

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Recommendations:
We will be happy to give you recommendations for opening a Spanish bank account, for a lawyer and for a tax consultancy office. Please ask our sales managers.

Signing the deed of sale at the notary:
. We will help you every step of the way until the notary appointment. At this appointment, of course, an interpreter will be present to translate the purchase deed for you and will also be listed in the deed. At this notary appointment the entire purchase is finally settled, the payment of the purchase sum takes place and you receive the keys for your dream real estate!

Congratulations!

Accruing one-time taxes and costs for the buyer:
A: The buyer pays a real estate transfer tax (only for the property itself, not for furniture and other) in the following amount:

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Up to the purchase price of 400,000 €

it is 8%

From 400,000 € to 600,000 €

are 9%

Over 600,000 €

Each 10%

Over 1,000,000 €

Each 11.5%
(from 1.1.2022)

Example: purchase price 1,500,000 €

Up to 400,000 €

32,000 €

From 400,000 € to 600,000 €

18,000 €

From 600,000 € to 1,000,000 €

40,000 €

From 1,000,000 € to 1,500,000 €

57,500 €

gives

147,500 €

Exceptions: When buying a new construction property from the developer, a value added tax (IVA) of 10% applies. In addition, a notarization tax (impuesto sobre actos juridicos documentados) of 1.5% applies here.

When buying a property from a developer, a VAT of 21% is due, plus the notarization tax.

B: The buyer pays the costs of the notary for the notarization. These are based on the purchase price.

C: The buyer pays the fees for the registration of the property in the land register. These are also based on the purchase price.

The land transfer tax, the fees for notary and land registry must be paid within one month after the notary appointment. We recommend that you have the individual payments processed through the Gestoria des Noatriats, so that no deadlines are missed. There is a fee for this service, which is based on the purchase amount.

All other taxes and costs are borne by the seller, such as the ad valorem tax (Plusvalia), other cancellation costs for a mortgage, possibly a 3% tax withholding (Retencion) and the broker's commission. These items are deducted directly from the total purchase price at the notary.

Annual taxes and costs for the owner:
. A: The property tax and the garbage fees are to be paid annually to the respective municipality (e.g. in the municipality of Calvia in July) For this purpose please sign a direct debit authorization from your Spanish account.

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B: An income tax for non-resident owners on the owner-occupied property is payable annually. This is based on the cadastral value. It should be handled by a tax advisor or lawyer you trust.
Example: cadastral value 300.000€, of which 1,1%, of which 19% (in 2017) tax, results in 627,00€.

C: In the case of a property in a community residential complex (comunidad), according to the rules of the resolutions of the owners' meeting, the proportionate community costs (according to the percentage of ownership) are to be paid.

General:
Please keep in mind that high late payment penalties are levied in Spain for failure to meet payment deadlines! Therefore, we strongly advise that the buyer assigns a Gestoria or a tax advisor of his confidence to handle these matters (tax authority, land registry, land registry, notary, service agency).

February 2022