This page is reproduced by kind permission of Alonso & Haro Solicitors

Alonso & Haro Solicitors (also called A & H Solicitors) is an independent group of Solicitors with offices in Vera (Almeria), Cartagena (Murcia) and La Manga (Murcia). Our aim is to provide a broad based, professional and personal legal service for all of our clients.

Alonso & Haro specialise in the following areas:

• Purchase and Selling (conveyancing)
• Litigation
• Wills
• NIE's

Alonso & Haro has also collaborated with an independent group of Financial Advisors that specialise in Tax, Mortgages and Financial Planning.

Purchasing a property in Spain does not have to be a complicated and stressful process; using the services of i) an independent and professional Lawyer and ii) and independent and regulated Financial Advisor will help ensure that you are protected.

Alonso & Haro aim to walk all our clients through every aspect of the purchase and the planning of such, so that our clients have total peace of mind and confidence in their property acquisition.

It is imperative that our clients understand that buying in Spain under Spanish Law has little resemblance with the English system. The processes for purchasing property and for the setting up of a Mortgage or Will are completely different.

The following is a brief outline of your requirements and those of Alonso & Haro on purchasing and mortgaging in Spain.

1. NIE

Regardless of purchasing a new property off plan, key ready or a resale, the first step that must be taken is for clients to apply for their NIE Number (Numero de Identificacion de Extranjero). This is the unique reference number for all non domestic home owners. This number is provided by the Spanish Police and it is the unique number that is required by the Tax Office in order for Taxes to be paid. Without the original certificate showing this number purchases can not be completed.

Applications for your NIE number for United Kingdom Residents can be made through the Spanish Consulate in the UK, although this is not the norm. There are offices in London, Manchester, Edinburgh and Dublin. The Partners at Alonso & Haro will talk you through the applications if assistance is required. If you are coming to Spain and would like to make your application directly through the Spanish Police, your Solicitor will accompany you – this is the norm.

Applications for NIE numbers made through the Spanish Consulate in the UK will take between 3 and 6 months. Applications made directly in Spain will take up to 1 month but can be achieved within a matter of days depending upon circumstancies.

1. MORTGAGES

In Spain, as a Non Resident, lenders will not normally provide you with 100% Mortgages. Typically lenders will provide between 70% and 80% of the valuation of the property. Up to 90% could be a possibility but you should consult with an Independent Financial Advisor specialising in this area. We will make a recommendation to you. (Note that spanish home 4u CAN secure guaranteed 100% mortgages for spanish home 4u clients subject to status and depending upon the property).

It is essential that all of our clients are aware that in Spain it is the lenders that carry out the valuation. The shortfall between the mortgage agreed and the purchase price plus costs is paid in cash by you, the client.

The expenses which are relevant to the property purchase will be deducted by the bank from your mortgage at the Notary’s office.

1. WILLS

It is imperative that all of our clients have a Spanish Will as assets in Spain are not covered by a UK Will. The creation of a Spanish Will gives our clients the flexibility to distribute their assets as they choose both now and in the future. To not have a Will leaves you exposed to being ‘Intestate’ with the distribution of assets according to Spanish Law which you may not have wished for as well as exposure to Inheritance Tax. The original copy of the Spanish Will is kept by the Notary in Spain in accordance with Spanish Law.

1. EXPENSES

On top of the purchase price of any property there are expenses which will range from 12% to 15% dependant upon whether a mortgage is involved.

These expenses are made up of the following:

A) Expenses which are involved on the property:

• IVA (VAT) of 7%
• Stamp Duty 1% (except on re-sales)
• Notary Fees
• Land Registration

B) Expenses which are involved on the mortgage:
• House Insurance
• Stamp Duty
• Set up Fees
• Notary Fees
• Valuation Fees

Some of these costs are negotiable but all of these costs (bar the valuation and application fees) will be paid by the Bank on your behalf post Notary, and these costs will be deducted from the amount of money that the Bank is providing for the Mortgage.

1. OFF PLAN PURCHASES

This is a very popular type of purchase in Spain where the home has not yet been built. We will ensure that the Developer has all the essential paperwork and Licences in place. Without meticulous checking this can be a minefield for the unsuspecting purchaser. Alonso & Haro, as specialists in the field of Conveyancing, will ensure the following:

• Checking that the contract has Completion Clauses.
• Checking the Developer has Bank Guarantees.
• Checking all Building Licenses and Building Guarantees.
• Checking and Preparing Purchase Contract.
• Notary accompaniment on Final Payment and Final Transfer.

When a purchase has been completed the Title Deed is then taken to the Land Registry to register you as the owner. This process takes between 2 to 5 months dependant on the area.

1. RESALE PURCHASES

The process of buying a property straight from a vendor (as opposed to an Off Plan purchase for completion in the future) is generally far quicker. However, a resale purchase remains just as intricate. For a resale purchases it is imperative that;

• Vendor and purchaser agree the transfer dates and the transactions are made within that time frame. The Land Registration documents and Land Boundaries have to be checked for legality.
• Solicitors will draft the purchase contracts with all the appropriate clauses. The deposit and payments terms will be negotiated between vendors and buyers.
• Your Solicitor arranges for the connection of the utilities (electricity/water) in your name and arranges the Direct Debits. We will do the same with the Council Taxes.
• It will be your Solicitor who will the pay taxes on your behalf if there is not a bank involved in the transaction.

Pilar Alonso
Managing Partner
Solicitor

Telephone: (0034)  902 104 338

Personal Mobile: (0034) 616 910 803

EMail:  This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Want to know more?
Contact us with absolutely no obligation by clicking on the ‘Contact Us’ icon on our home page, or by sending us an email at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or request us to call you by clicking on the ‘Call Back’ icon on our home page or for an informal chat with us NOW call us on our personal lines Andy (0034) 65 443 1052 or Larry (0034) 67 105 7958.