Buying in Catalunya

Farming report from Tortosa, southern Catalunya.
November 7th 2008. The olive harvest has begun, locals and newcomers alike are working to get in the ripening fruit. The weather helps, sunshine and light breezes. Unfortunately after some October rain, the fruit is swelled with water, so the oil content is relatively low, and of course the price follows the quality.

Why delay your move?

	The legal system in Catalunya
The Spanish property law system in Catalunya is based on a title registration system and Legal Officers approved by the State and known as 'Notarios'. This makes buying easy, safe and much quicker than in the United Kingdom. When you have found the property you wish to buy, we will help you to reach agreement on price, and to agree a date for completion to take place to suit both seller and buyer. Depending on the time required before completion, you may be asked to pay a deposit usually of 10% and at the same time to sign a simple contract which protects both parties, but you need to be aware that there is no equivalent of the 'subject to contract' system here in Spain. Deposits are non returnable if you change your mind. Where an early completion is agreed, many sales proceed by way of an informal initial agreement and progress direct to completion. It is possible for the transfer to take place at the office of a Notary in London, but we recommend that you arrange to be in Catalunya for completion, where we can arrange to use an English speaking Notary, so that any last minute hitches can be simply cleared. The Notario will have confirmed that the title is valid and that there are no outstanding charges against the property, and on payment of the balance of the price, ownership will be transferred to you. You will receive a copy of the Escritura, the deed of transfer drawn up by the Notario, and you will be asked to pay an estimate of the taxes and costs due on the purchase. All of this will be done at one simple meeting, and at the end, on the same day, you will have full rights, and where applicable, the keys! A few months later, after registration of title with the various Taxing and Registration Authorities, you will be able to collect the formal Escritura from the Notario, and to receive or pay any balance of taxes and fees due.
Information and Representation
During the buying process, when you are close to making your choice, we will be able to show you the official registration plan and usually a copy of the Escritura of the seller, which will detail any shared or common rights applying to the property. The Notario, being a State Official, represents the interests of both parties, and normally the seller does not employ a separate lawyer, so it is not normally thought necessary for the buyer to employ a separate legal representative. If ownership of the property is complicated, or there are any matters on which you are unclear, then if you wish, you may of course consult an 'Abogado' for advice, naturally at your cost. Buyers have been pleased with the help and advice given by the firm whose link appears here http://solicitorsinspain.com
Preparing for Purchase
Because the system is quick and easy, it is necessary to make some preparations before finally agreeing to buy. Firstly, you will need to open a Bank Account in Spain. Many Banks are represented in the towns in the area, and it is a simple matter to open a 'cuenta corriente'. Just go along to one of the bank branches convenient to your area of purchase with Passport and an initial deposit. We will be pleased to introduce you to a local Bank which we find very helpful, and where all the staff have some English, the senior staff excellent English. The simplest way to provide funds for purchase is then to arrange a telegraphic transfer from your home country Bank account to the Spanish account. At the time of completion, you will be asked for a Bank Cheque for the amount stated in the Escritura (see below), and usually to pay the balance in cash. The Notario will also ask for the payment of estimated costs and taxes in cash. Recently, the Registration and Taxation Authorities have tightened the system for identification of buyers, and where previously, purchase could be done just with a British Passport, it is now necessary to have an NIE (number for identification of Foreigners). This involves a little work and in September 2008, a fee of 9€, and we suggest that on an early visit, you put this in hand, as there is currently a 6 week wait to get an appointment to submit the forms. We can provide the forms and guidance on completion, and you then take the necessary copies of the form, copies of Passports, and yourself to the Tortosa office of the National Police force at the appointed time, where they process the application, and under a recent new system, issue the NIE number at the same time.
Costs and Taxes
The purchase of property in Spain is subject to the imposition of a purchase tax payable by the purchaser. The rate is usually 7% but on the declared value of the purchase, which may be less than the agreed price. This is customary in Spain. The declared value will depend on the circumstances in each purchase, and we can guide you on this matter. As a rule of thumb, allow 10% of the agreed price to cover Tax and Notario and registration fees and you will then be sure to have some of that provision in hand after purchase.

To see some information about water and electricity in the rural areas, click the link to 'The Area' below

Remember, you can get in touch by email to keith@catalunya-homes-made-easy.net

Or telephone 0034 629 010233, and ask for Keith, Lizzie or Annie (each day, 8.00 till 8.00 GMT)