Throughout our lives we make a lot of decisions. Some easier than others, with direct consequences in the short and medium term. One of these decisions is the purchase of a property whether it is housing or local, since it’s one of the most important investments that the majority of the citizens will make in their lives. Therefore, we must acquire a house with the maximum possible guarantees.
Here is a guide to make it easy for you to buy a property. Pay attention!
In the first place, the best way to protect your home from the potential risks you’re exposed to is by taking out home insurance. In this way, in case the house suffered any damage (floods, humidity etc) we would have both the house and the property inside completely protected, which means, insured. At the same time, it’s essential to hire the services of water, electricity or gas. Without this you will not be able to enjoy your property!
Procedures to make
Another aspect to consider is the price agreed with the seller and the associated expenses of approximately 10% or 15% of the total value. We know that the acquisition of a property is an important procedure, so for this reason you must take this factor into account.
Change ownership in the cadastre
On the other hand, you can’t forget cadastral procedures. When you purchase a property, you have to communicate the change of ownership tot the municipal cadastre in which it’s located. This procedure can be done within two months of signing the deed of purchase.
It’s necessary to carry out the above procedure as the Spanish Ministry of Finance keeps a detailed administrative record of the immovable property that exists in the territory and the relationship of its owners. If we change ownership by sale or other similar cases, we must activate a change of cadastral ownership.
One of the functions of this register is to serve tax justice and, therefore, this change involves the taxation of new taxes. The cadastre includes urban, rustic and other special properties in a description of their physical, legal and economic characteristics
Registering the housing in the property registry
Another important step is the registration of the house in the Land Registry, and essential procedure in order to extend the filing seat in the Land Registry with an effective of 60 days, and mandatory to access, if necessary, a Mortgage.
The Land Registry is a State institution that responds to the need for security in the real estate market. Currently, it’s a very important aspect in the purchase of a property as it guarantees us the informative balance between the owner of the property and the buyer.
Pay taxes
One the public deed of sale has been granted to the notary, the corresponding taxes must be settled within a maximum period of one month. If the sale is due, VAT must be paid, and besides this, 1% or 1,5% of the deed price has to be paid as well.
On the other hand, we have to count on the taxes that have to be paid to the Treasury, including the Property Tax (IBI). This compulsory paid on an annual basis and depends on the real estate, which can both include the purchase of flats and houses as well as premises or garages.
When you have a property, this tax must be paid no matter what, regardless of whether you don’t get any benefit from this property, that is, even if you don’t rent it, live in it or you are making a commercial profit.
Property management
With all this, it’s very important to have an industry professional to take care of visiting the property and manage how to keep the property clean in case it’s not rented and thus avoid its deterioration, or have someone looking for a tenant in case you want to rent the house and manage collections, support incidents and supervise the property.
If you want to buy a property in Barcelona or Greece don’t hesitate to contact us, we offer you the best service and we also take care of the management of your properties.
Soraya Rocha
Office Manager & After Service Specialist Orience International