Further to my previous article on Off Plan Property, I thought I would clarify what payments are normal during the process and when you are likely to have to pay them. If you buy at least 6 months before the development hand over (or completion) the payment process is like this:

When you have found a property you are interested in you will first have to pay a deposit, which is normally about 6000€ to take the property off the market. A month after this payment you will have to sign the private contract and also pay between 10-20% of the property price. During the construction of the property you will have to pay monthly or quarterly payments reaching a total of 10-20% of the price (in some cases theses payments are due according to different stages of the construction of the property). The outstanding amount is thereafter due to be paid upon signing the title deed or can be taken over as a mortgage.

When buying a property in a development that is nearly finished it is custom to only make two initial payments – a deposit of about 6000€ and then 20-40% when signing the private contract and then the outstanding amount or mortgage upon signing the title deed.

There are then a number of other initial costs to take into consideration, which add up to about 10% of the total price of the property:

To buy a new property the buyer has to pay VAT and a stamp duty, which is 7.5% (7% VAT and 0.5% stamp duty). The buyer will also need to pay for the new official title deed ‘la escritura’ stating who is the owner of the property. This is made by a public notary and the price is about 500€ depending on the price of the property. All properties in Spain also have to be registered in the ‘Registro de Propiedad’ and the deed need to be changed into the new buyers name, which costs about 400€.

Apart from the above obligatory costs there are other costs, which will increase the total amount. It can always be recommended to seek legal help and advice from an independent lawyer before you sign the final contract. The cost of this assistance is about 1% of the property price. If you need a mortgage loan to finance the purchase there is normally a 1% application fee charged by the lender (this is 1% of the
mortgage, which is about 0.7% of the total price).

About Almerimar

Almerimar is located in the region of Andalucia, Spain. The nearest airport is 30km away in Almeria. Other airports that are within 3 hours include Malaga, Murcia, Granada, and Alicanti. Other holiday resorts in the region include Mojacar , Aguadulce and Roquetas de Mar

Almerimar is also one of the largest marinas in Spain with over 2,000 births and excellent boatyard facilities.