Beren Selective HomesBeren Selective Homes
EVERYTHING YOU NEED TO KNOW

The Purchasing process

How to buy your home

Why the Costa Blanca?

The Costa Blanca is one of the most popular places for foreign buyers thanks to the diversity of rural towns, fishing and cosmopolitan cities where you can live.
It is a very accessible place from anywhere in Europe thanks to the El Altet-Elche-Alicante International Airport, which is the 6th busiest airport in Spain, and also to the airport of San Javier (Murcia) which has recently been completely revamped. In addition, it has several high-speed trains that link the province of Alicante with the main Spanish cities and are some of the fastest and economically fair in Europe.
Another option is to drive around the area on the Mediterranean motorway that runs along the coast along practically the entire coastline, so moving within the region is very easy.
The multitude of services and leisure offered in the province is one of the most popular factors among our buyers: hospitals, international schools, supermarkets, golf courses, marinas, amusement parks, zoos, mountain routes, outdoor markets, festivities, museums, theaters, restaurants, etc. make it one of the best places in Europe to settle down.

Why Beren Selective Homes?

Beren Selective Homes has more than 25 years of construction experience. We work with the best
suppliers of the area to guarantee the best qualities in all our promotions.
Our extensive experience accumulated with more than 300 building projects, together with the excellent human capital and being highly qualified is a guarantee of success for our promotions.
Because of our standing and quality of the services we provide, we have been recognized as a 5 Star Company by the Miguel Hernández University of Elche.

Legal steps before buying a property

If you are a foreigner and want to buy a property you will need to:
1. Obtain the NIE (Foreigner Identity Number) at the offices of the National Police.
2. Open a bank account in Spain. It is a good idea to choose a branch that speaks a language that you can understand.
3. It is recommended that you choose a lawyer specialized in Spanish urban planning. The system of transfer of Spanish property is different from EU countries and must guarantee that the people involved in the transaction are qualified professionals who are experts in the operation of said system.

Reservation of the property

The buyer deposits a quantity as a guarantee that he or she will buy the property within a certain period and the seller agrees to sell it within that period. Both parties may terminate the contract in accordance with the conditions agreed upon.

Signature of the private purchase contract

In this contract, the following payment periods will be established:
1. Signature of “purchase option contract” and handing over of € 10,000 + VAT (10%) € 11,000 (*)
Payment by bank transfer or credit card.
At this time, a signed copy of the purchase option agreement will be handed over to the customer.
2. Within 15 days, you will have to transfer 25% of the total price (including the corresponding VAT), less € 11,000, amount already paid in advance.
When this amount is received, the purchase option will be exercised.
3. Within 30 days following the signature of the purchase option contract, another 25% of the total amount will be paid (VAT included).
At this moment 50% of the total amount will have been paid with its corresponding VAT and the construction of the house will begin.
4. The remaining 50% will be transferred a few days before the signature of the notarial deed.
(*) If the client’s payment instrument does not allow him to pay the € 11,000 at the same time, BEREN would accept the charging with a credit card the amount of € 3,000, giving a receipt to the customer for that amount, obligating the customer to pay the € 8,000 remaining until completion of the purchase option price (€ 11,000) within the proceeding 48 hours.
You will be given a signed copy of the purchase option contract as soon as the full amount of € 11,000 is paid.

Signing of the deed of purchase and sale and delivery of keys

The deed of purchase and sale will be signed before a notary. This document must contain an exact description of the property.
When the buyer signs this document he must pay the remaining 50% of the amount of his property. The notary will send a notification to the Land Registry electronically. Later, the buyer must register the property in his or her name in this register. The writing will be written entirely in Spanish since it is an official document. For this reason, the buyer will need a lawyer who can provide good advice and can translate it.
Normally, the keys to the home are delivered to the buyer when the deed of sale is signed and at that moment the owner of the property is considered both legally and economically, being subject to the rights and obligations that may arise. At that time, the buyer can finally start enjoying their new home.

Useful information

Taxes on the purchase of properties

A) New construction properties
VAT: 10%
IAJD (Tax on Documented Legal Acts): 2% approx. Includes notary fees and registration in the Land Registry.
B) Second-hand properties
ITP (property transfer tax): 6-10% depending on the location of the property.
IAJD (Tax on Documented Legal Acts): 2% approx. Includes notary fees and registration in the Land Registry.
Example:
VAT 10%: 20.000,00 €
AJD 2% approx: 4.000,00 €
Connection to the electricity supply approx: 424,00 €
Water connection approx: 150,00 €
NIE: 75,00 €
Lawyer: 1% máx. 4000€ 2.000,00 €
TOTAL: 26.649,00 €

Taxes and annual expenses

1. IBI (Real Estate Tax). It is a municipal rate that depends on the value of the home.
2. Tax of non-residents. It is a tax paid by foreigners to have a home in Spain and not reside in Spain, that is, all foreign people who pay their taxes in a country other than Spain.
3. Rubbish collection Rate: Municipal garbage collection tax.
4. Community expenses. If the home is located in a community residential complex, it is very likely that you will have annual maintenance costs of swimming pool and gardens, among others.

Do you need a mortgage?

If you are a foreign client and want to apply for a mortgage in Spain, it is necessary that you meet the following requirements:
– Net income must be at least three times the sum of all loan payments.
– The amount requested can not be greater than 50-60% of the value of the home.
– A credit report from the client’s country of origin.
– The age of the youngest party can not exceed 75 years.
In case you want a mortgage for the purchase of your property, we can help you in the process. We work with a large number of banks that will offer you the most advantageous option according to your financial profile.

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