New Developments - buying off-plan

This simply means that the development being promoted has not yet been constructed, but architects' plans (hence off-plan), artists' impressions and other details will be available. Developers' representatives and New Shores staff will also be on hand to offer expert advice and answer any questions you may have. This will enable you to make an informed decision about any property you're interested in buying.

Before reserving a property

It is essential that any additional expenses are considered before making an offer. Costs are unlikely to exceed 11% of the overall purchase price.

The largest of these charges is IVA (impuesto sobre el Valor Añadido) and is currently set at 7% of the purchase price (or 16% when buying a plot of land).

Reservation deposit

An initial deposit ranging between €2,000 and €10,000 is commonly required in order to secure the property. The property is subsequently taken off the market and the price is frozen.

Instruct a lawyer

At this stage it is advisable to instruct a referred lawyer in Spain who can then assist in any legal matters relating to the property. A lawyer can guide you through the process of obtaining a Tax Identification Number or NIE (Numero de Identificación de Extranjeros) as well as opening a Spanish bank account. Such formalities are usually completed within a month.

The preliminary contract

The signing of a Private Contract (Contrato de Compraventa) usually takes place 30 days after the reservation deposit is paid. Further payment is required at the time of signing and depending on the developer this may fluctuate between 15%-35% and with some developments, may be staggered across the construction period.

When the property is finished

The contract/deed (Escritura de Propiedad) is signed and the remaining 70-80% of the purchase price can be paid using a mortgage

New Shores International Real Estate - 01322 400971