Do you want to buy a house? Documents required, taxes to pay and financing methods
Acquiring a home represents one of the most significant financial decisions in anyone’s life. When you find a home that meets your expectations and you wish to purchase it, it is crucial to engage the services of a specialized lawyer. This professional will oversee the purchase process, ensuring the security of your investment.
To begin, the lawyer will require your personal documentation, such as your passport, to process the Foreign Identification Number. Additionally, you will need to provide proof of the origin of the funds with which you plan to make the purchase. Following this, the lawyer will conduct a legal and registry audit of the property to ensure it is free from liens, mortgages, embargoes, or any other legal impediments.
For greater security, it is common to recommend an inspection of the property by an architect or surveyor. This review aims to confirm that the existing constructions comply with the granted licenses and that there are no urban planning infractions.
Regarding the costs associated with the purchase, you will need to cover the Property Transfer Tax, which varies between 8% and 13% of the property value, in addition to notary and registry fees. For new construction properties, VAT is applied, currently at 10%, and the Stamp Duty, which ranges between 1.5% and 2.5%. By law, the municipal capital gains tax falls on the seller.
For financing, you can opt for your home bank or look for options at local entities in Palma de Mallorca, which often offer loans to foreigners after assessing their financial solvency. This loan will be secured by a mortgage on the property, ensuring full payment of the same.
Answered by: D. Manuel Montis
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