Buying and Selling guide

A Quick Guide to Buying
1. Decide on your preferred area, the type of property you want and what you can reasonably afford. Remember that prices in Ibiza and the Balearics are generally much higher than the rest of Spain so a little flexibility is essential.

2. Once you have found your desired property ensure that you have an independent valuation. This should be done through a local bank and can be organised by your estate agent. There is a charge but it is essential, as this will give you an indication of its true value and any potential problems.

3. Once you are happy that everything is in order with your desired property negotiate the final price with the owner through your estate agent. Remember that the property is only worth what you are prepared to pay for it so go in with an offer that reflects your own value.

4. Once an offer is accepted by the owner ensure that a ¨compra-venta¨ contract (literally translated means buy/sell) is signed between buyer and seller. This ties all parties in to the agreement and specifies a completion date.

5. The contract will stipulate that a 10% deposit is paid to the seller. The estate agent in a clients account usually holds this until completion of the purchase. This 10% will be taken off the outstanding amount at the time of purchase

6. If the compra-venta contract is broken by the buyer then the seller keeps the 10% deposit less any applicable fees.

7. If the compra-venta contract is broken by the seller then the buyer is entitled to all the deposit back plus the same again less any applicable fees.

8. On the agreed date all parties will meet at the public notary and sign all the deeds over and the seller will hand the keys over to the buyer.

Important Note for Buyers
When buying a property in Spain you need to calculate to spend an extra 10% of the purchase price to cover all applicable costs. These costs include 7% IVA (VAT) plus solicitors and notary fees.

A Quick Guide to Selling
1. Get your property valued. Always get a second opinion and make sure you agree with the pricing before putting it on the market.

2. Put your property with an established estate agent such as Ibiza Property Shop. Do not sign an exclusive agreement - this will tie you to one agent and severely limit your options.

3. Most estate agents will charge a maximum of 5% commission to sell your property. This is always negotiable and may well be lowered during the selling process.

4. Your property is only worth what somebody is prepared to pay for it so be ready to negotiate.

5. Ensure that your property is clean and presentable before showing prospective clients around.

6. Once an offer is accepted by you ensure that a ¨compra-venta¨ contract (literally translated means buy/sell) is signed between buyer and seller. This ties all parties in to an agreement and specifies a completion date.

7. The contract will stipulate that a 10% deposit is paid to the seller. The estate agent in a clients account usually holds this until completion of the purchase. This 10% is taken off the outstanding amount at time of purchase.

8. If the compra-venta contract is broken by the buyer then the seller keeps the 10% deposit less any applicable fees.

9. If the compra-venta contract is broken by the seller then the buyer is entitled to a full refund of all the deposit plus the same again less any applicable fees.

10. On the agreed date all parties will meet at the public notary and sign all the deeds over and the seller will hand the keys over to the buyer.

Important Note for Sellers
Residents of Spain have to include the property sale in their next tax return. Non-residents have to pay a 3% tax on the money received for their property sale. Usually the buyer will only pay the non-resident seller 97% of the agreed price and pay the other 3% directly to the Hacienda (Tax Office). The emphasis is then on the buyer to pay the tax not the seller.