Non residents’ Guide to Buying a property in Menorca
Buying or moving house is an important moment. It is a project for the future, a dream come true. It should be exciting, but sometimes it can become a complicated process causing unnecessary headaches!
It doesn’t need to be this way though! Casas en Menorca are here to accompany you throughout the whole purchase process, from start to finish. We make sure that we fully explain everything you need to know when buying a property in Menorca with maximum security and transparency.
How to buy a property if you are a non-resident in Spain
In order for a person who does not reside in Spain to buy a home, the first thing to do is obtain the N.I.E. number (Identification Number for Foreigners), this is issued by the Spanish Government. The process is very simple and our company can take care of this. We will make your appointment and accompany you to the corresponding police station.
The next step is to open a Spanish bank account to enable you to make the transfers and payments corresponding to the purchase. We can suggest various financial entities with which you can work with in Menorca, and put you in contact with their representatives and assist you at all times.
We do not make any charge for either of these services to you.
What expenses are involved when buying a home in Spain?
The two most important purchase costs are detailed below:
The first is the Property Transfer Tax, which is calculated on the purchase price of the property as follows: 8% on properties under 400.000€ and increasing to 9% on properties costing between 400.000€ and 600.000€, and for properties over 600.000€, 10% is applied.
The second is the fee for the Notary and the Property Land Registry Office, which amounts to approximately 1% of the purchase price, when not requesting a mortgage.
If you need to request a mortgage, then you will also need to take into account this additional expense which depends on the amount you need to borrow and could represent approximately 2%. Casas en Menorca can put you in touch with banks or mortgage brokers who can assist you with this part of the purchase.
Finally, you may wish to enlist he services of a solicitor to act on your behalf throughout the purchase. Once again, we are happy to give you recommendations of the best lawyers available on the island who can help you, and who speak your language.
What do I need in order to put the Title Deeds of the property in my name?
The first requirement is to sign a private contract of purchase/sale to reserve the house. This contract is drawn up by our sales department in the language requested by you. The contract sets out the price, conditions and dates previously agreed upon for signing.
Upon signing this contract, the purchaser will pay a deposit to ensure the reservation of the property, which is usually 10% of the property’s sale price. Spanish law establishes that if the vendor accepts a better offer after having already accepted a deposit, he would have to return twice the amount in order to cancel the contract, and if the purchaser were to cancel the contract he would lose the deposit.
In order to formalise the details of the contract, our company is in charge of previously requesting a certificate from the Property Land Registry Office to prove the legality of the property and if it is affected by a mortgage.
The next step is to sign the Title Deeds for the property before a Notary. Our sales department will advise you of the various notaries we work with in the area, contact them, set a date for the signing and help you or your lawyer prepare all the necessary documentation for the date of the signing of the Title Deeds.
If you are not able to attend personally on the day of the signing of the Title Deeds, you can nominate a legal representative by means of a Power of Attorney in favour of the chosen person. This Power of Attorney can be obtained either in Menorca or in your own country by going to a Spanish Consulate. We can also help you with this.
Buy with peace of mind and transparency. Take advantage of our services without having to pay any extra fees; all of this is included in the purchase price of the property.
Menorca awaits you! We are waiting for you!