Buying Property in Spain
With the exception of a few areas like the border regions and the military occupied areas, the foreigners and the residents can buy properties in Spain. Just like it is with many other European countries, the notary assigned by the buyer plays a pivotal role in the property purchase. The primary role of the notary is to verify the authenticity of the seller and be aware of the encumbrances on the property. This is done by consulting the papers on the property from the Property registry books.
The fees of the notary are on cumulative scale which is established and is based on the price of the property. The notary has to execute and deliver the deed within 2 days of initiating the process unless advised by the buyer to do otherwise. The documents include power of attorneys from the buyer and the seller and the original property title of the seller.
If the seller is an individual and not a businessman, the transfer of the property is subject to the property transfer tax at percentage rate of the property depending on the location. There is additional VAT at 16%. These paid off, the public deed is sent to the Land and Property Registry where the entry dates give priority. This deed then carries the entry’s date and is registered within 15 days. The transfer is valid as of the execution of the sale as mentioned in the public deed and the delivery of the property.
The total fee of registration cannot be more than EUR 1900. This fee excludes the fees of any third party agents that the buyer might have sought the assistance of. There are 25% discounts offered for housing purchases, and the low income housing has a fixed fees of EUR 36 per entry and EUR 100 per editorial deed.
Buying Property in Aruba
Foreigners can buy property in Aruba just as its residents can. There are two ways to purchase a property. Either one can purchase property on property land or else take a lease from the government for a period of 60 years, paying yearly lease. Mortgage for purchase is available through the local bank. The fee for closing the deal is a minimum of 1% of the loan amount or $500, whichever is higher.
It is advised that the purchase be made in foreign currency; as this makes it easy to deal with the rate exchanges.
For purchase, a buyer has to pay a transfer tax that amounts to 6% when the property value is higher than AWG 250.000 and 3% if lower. Add to this the notary fee which is approximately 1% to 2% of the selling price.
Once a property is chosen, one should make all agreements with the owner of the property verbally before drawing up a contract, to avoid any problems in future. A buyer should also ask for an inventory list from the seller.
When buying a property, all sales and legal work are handled by a local notary. This notary is chosen by the buyer, approved by the Aruban government of your choice and is appointed by the Dutch Majesty. After the notary is appointed, 10% of the property value is put in escrow. The transfer of ownership is completed only when the notary has registered a transcript of the deed of transfer of title in the public registers with the Department Land Registry Office and Public Registers.
Closing takes about 10 weeks, depending on the transaction.
The tap water in Aruba is desalinated by reverse osmosis process and is very pure and safe to drink. Most properties in Aruba don’t have standard warm water facility; however this could be installed on request.
Buying Property in the Netherlands
There are no restrictions for foreigners buying property in Netherlands either for their own use or for investment purposes. Once a buyer has decided on a property, he/she chooses a notary to assist in completion of purchase. It is a mandate in Dutch Law to hire a notary for registration process of the property. Some notaries charge by the hour while the others charge a percentage of the sales value.
The first thing that the notary does is to conduct a title search at the Land Registry and conducts research regarding the representation of the buyer and the seller. He also verifies the authority of the seller. Then he/she prepares a deed of the transfer and provides for a transfer of a property that is free of mortgages. These checks can be made online for all the deeds and property related documents. Details of the older properties are provided on demand and scanned documents are sent by mail. For companies, the notary must conduct research with the Trade Register with respect to specific information of the company. At times the cooperation of 3rd parties is required for seeking all the information and the process can be completed within 4 days.
For the execution of the transfer deed, the parties involved either must be present or should have granted power of attorney. The transfer tax is paid to the notary who in turn pays it to the Tax Authorities after registration, along with the deed. Sometimes VAT is applicable instead of transfer tax. The tax authorities then check the deed for tax aspects. After the check is complete, a statement is sent to the notary with the deed saying that the verification is done. The true copy of the deed is then registered at the relevant Land Registry office. The submission is done by internet and the notary receives a receipt. Then the notary finally checks for any changes between execution and registration of the deed and the purchase is complete.