The following is a general guide to purchasing new and resale property in Spain. However, this guide does not attempt to cover all legal and financial points and prospective purchasers are recommended to seek professional advice.

PURCHASE PROCEDURE
As in many EU. countries property in Spain is registered on a property register.

The Contract
When you have decided upon the property to purchase, the agreement will normally be contained in a private contract. The document should contain details of the agreed purchase price; payment of deposit; provision for payment of the balance of the purchase monies; any extras that you have agreed to purchase and the intended date for completion together with all other relevant terms and conditions.

Once you have paid your deposit (usually 10%, depending on time between initial contract and completion) there is then a binding agreement between both Buyer and Seller. A specific agreement (called arras) may be entered into between Seller and Buyer, where either party may rescind the contract, the Seller returning double the deposit or the Buyer losing the deposit.

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The Community of Owners
When there is common ownership or sharing of facilities between owners, in every development in Spain a Community of
Owners must be established through which community charges can be shared. If your development is contained in an apartment
block then the law is that relating to the Horizontal Division ("Ley de la Propiedad Horizontal").

If you are purchasing in a new development it is essential that both the Deed of Horizontal Division and the rules of the
Community have been explained to you and approved on your behalf as they are very important contributions to your future
enjoyment of the property.

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Conveyance (Escritura de Compraventa)
The sale and purchase of all property in Spain requires to be registered in the Land Registry. They maintain details of the
property and record financial charges and other matters which may affect the title.

The Notary - el Notario - prepares the Conveyance - la Escritura - from the information supplied to him by the Seller or his
lawyer - el Abogado . He will check compliance with Spanish law. However, the Notary does not check the title to the property,
although he will make a check at the Land Registry immediately prior to the signing of the Escntura to ensure that there are
no undisclosed charges on the property. Before the completion the Notary will check to ensure that no adverse entries have been
made beyond those disclosed or to which the purchase may be subject. Once the formalities have been completed before the
Notary, the Escritura Publica must be delivered to the Land Registry for the title to be recorded in the Registry of Property -
Registro de la Propiedad . Before doing so, however, it is necessary to ensure that all taxes have been paid.

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PURCHASE EXPENSES
The total expenses incurred in the purchase should not, on average amount to more than 10% of the purchase price. The individual expenses are as follows:

Stamp Duty (Transfer Tax)
There is no stamp duty threshold and you will be required to pay at the appropriate rate based on the declared price. If you purchase a new residence from a developer I.V.A. (VAT) is charged at the rate of 8% on the declared price. In addition, the so-called Legal Documented Acts Tax at a rate of 0.5% is also applicable. In other cases the stamp duty is charged at 8% of the declared price. If the property being purchased is solely land upon which a property is to be constructed and is bought from an established business the applicable rate is the full I.V.A. rate (currently 18%).

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Land Registry Fees
The fees of the Property Registrar for registering your escritura in the Register will be assessed on a scale fee related to the declared value.

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Plus Valia
This tax is paid to the Local Authority and is a form of Capital Gains Tax that is payable on the increase in value of the land since the last purchase. It should be stressed that this tax is based on the increase in value of the land, and not on any buildings erected upon it. The obligation to pay this tax falls upon the Vendor, but the Vendor may attempt to require the Purchaser to meet this - care should therefore be exercised where the contract refers to the Purchaser paying - todos los gastos - all the expenses of the transaction - which would include the Plus Valia tax.

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Notarial Fees
A fee is charged by the Notary to prepare and legalize the Escritura. This is also a scale fee on the declared value.

Particularly if you are a property owner on the Montgo, please come to us to market your property. As we are the only estate agent on the Montgo, prospective purchasers specifically looking for property in the area come to us first. We aim to provide the best selection of properties for sale on the Montgo, Valls and surrounding areas.

We will give you an honest and realistic valuation based on the current market and our specific knowledge of the area.

Your property will be extensively marketed by us and additionally, due to our relationships with other leading estate agents in the area, we can assure you of maximum coverage. Please use the form on the contact us page to request a valuation.

When buying or selling a property overseas, one of the most important factors to consider is how to exchange your currency. It is as important as negotiating the price.

Purchasers of property abroad are always keen to negotiate a good price, but most fail to realise that they can also achieve significant savings by receiving the best currency exchange rates.

Whilst the natural inclination is to go to your local High Street bank to transfer funds abroad, this is usually a fairly expensive way of doing it. Exchange rates and commissions provided by high street banks are significantly less favourable than those offered by our specialist foreign exchange partner.

Our currency partner can help you achieve commercial exchange rates, have tools available to protect you from adverse exchange rate movements and will make the whole process simple and straightforward from start to finish.

We recommend the services of the Foremost Currency Group (FCG) with whom we have negotiated preferential exchange rates for our clients. Transactions arranged through FCG are always at the most competitive rates, and the service is fast, efficient and hassle free.

• Security of funds – Authorised by the Financial Services Authority (FSA) under the Payment Services Directive; client funds are held in segregated Client Accounts.
• Guaranteed commercial rates of exchange for now and up to 2 years in the future
• No fees and No commissions on exchange of currency
• Specialists in Foreign Currency Transactions, with calls answered personally in the UK
• A Stress Free Personal Service
• Full Compliance with H M Customs & Excise
• Registered with UK Money Transmitters Association

We have our own dedicated broker at FCG to assist you with your currency requirements. Get in touch with Steven Worrall (slw@fcgworld.co.uk) to find out how much you can save.