How to buy a land in Fuerteventura (pt. II)
That’s what comes after the Nota Simple, the last steps for finalizing the buying of the land.
What are the remaining step to make for becoming owner? No worries, it’s easy. All you need to do to buy a land in Fuerteventura is summed up in those easy steps:
1. Get the Nota Simple and study it well, as we saw in Post #5
2. Reserve the land with the Contrato de Arras, (go to Point 3 if you already have the money)
3. Pay and go to the notary for finally signing the change of ownership.
4. Pay taxes and commissions (we’ll see how much).
5. Go to the Registro de la Propriedad (Property Registry) for registering the new property.
1. Get the Nota Simple
We talked in depth about that in Post #5. Read it and you’ll understand pretty much everything that really matters about the Nota Simple.
2. Reserve the land
Predictable as it is, after you’re as sure as you can on the land you want to buy there’s a further, easy step to be made: it’s time to transfer some smelly pieces of paper we agreed to call money for reserving the land.
I agreed with Carlos (the ex-owner of the land) to give him a 10% deposit for reserving it.
As you can see from the image below the Contrato de Arras (contract for the deposit) is very simple, nothing more than a short gentlemen agreement that states who pays, how much and to whom, with terms and conditions in case one of the parts returns on its feet. You can download my contrato de arras here.
The Contrato de Arras (Deposit contract)
In my case I had a timing problem with the bank loan asked in Italy because, according to italian bureaucracy traditions, it took ages to have everything set up. That might have been a problem because I would have passed the date I agreed with Carlos, but I explained him the situation and we agreed a 10-days extension to the agreed dates.
Again, thank you Carlos and again you can download this further document here.
Document for the extension of the validity of the Contrato de Arras
3. Pay what misses and go to the notary
Once I finally had money on the bank account I transferred the remaining amount to Carlos and we set the date for the meeting with the notary. It was Feb the 12th 2016. An awesome sunny, bright, dry, warm day, 100% Fuerteventura style. My soul was the same.
I chose to give him the remaining money via bank transfer because I found all other options too complicated, especially with local banks; their conditions were heavy and very very very old. It looks like banks don’t understand that paloelithic era is over and we’re almost in 2020.
BBVA refused the transfer (because, even if it’s me paying it, it was under my parents’ names), Santander and Bankia were dodgy and not welcoming at all (so they can go fuck themselves), and all the other few banks I talked with didn’t convince me. Imagine that Sabadell bank asked me more than 300 euros for a bank cheque I was supposed to need for the transaction. If we translate this, it means 300€ for having my own money on a piece of paper printed in maybe 2 seconds. That’s crazy to me, that’s being thieves.
So I decided to risk a bit more (not that much because I really trusted Carlos) doing a bank transfer 3 days before the set meeting with the notary. But this way I had no need to open a new, heavy, paleoplithic bank account. Much more lightweight and no more money to spend.
Total cost of the money transfer: 2€. Hola Sabadell.
With Carlos we chose his trusted friend Emilio Mario Romero Fernández as the notary. We went there in the agreed date and everything went super smooth. Fast, funny and smooth. I was told it would have costed approximately 400€.
After few days they told me that the processed papers were ready to be collected and that the total amount for the notary has been 397,50€ (see the image below or download the document here).
The invoice of the Notary
4. Pay taxes and commissions
The taxes I had to pay are two, IGIC (Canary Island VAT) and the tax for the transmission of the act. How much?
- The IGIC for land buying was 7%, so I had to pay 4200€. A big impact on my tiny budget but no (legal) way to avoid it and avoid future problems.
Note: I had to pay IGIC before going to the notary because the piece of land was already “urbanised”. Carlos put both electricity and water connections on the soil, causing a rise of the value of the land because of its “urbanisation”. It is called Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana. This tax is something that I would have paid afterwards, in any case. I just anticipated it, so nothing that really matters.
- The tax for property transmission was 1% of the value of the land, so 600€, but just because I already paid the IGIC for the “urbanised” land. Otherwise it would be the total amount of IGIC and transmission tax in one shot. The payment (as every situation where money leave your pockets) is a very easy, fast and smooth process; with the copies of the official act that the notary gave to me I went to Puerto del Rosario, at the Hacienda (the admininstration and tax office), they filled some papers and I went to the bank for paying the amount.
Below is the photo of the document and you can also get it here (PDF).
The tax invoice receipt
Back to the Hacienda to show the receipt, some few more papers and, voilà, tax chapter closed! Again, I found kind, smiley and knowledged people. Thank you.
5. Register the land
For registering the land after the change of property all you have to do is going to the Registro de la Propriedad (property registry office) of the municipality of your land (the same place where you can get the Nota Simple) and ask for the registration of the land you just bought. They’ll made you fill a simple paper and everything is done. As simple as that.
Receipt of the payment at the Property Registry
waited a bit (more than one month) but it was the final step and thus I had no rush. I was called to collect the papers, as you can see from the image above (that you can download here as a PDF) I had to pay 175,96€. After paying the whole chapter of buying the land was closed. AWESOME.
As a conclusion I think it would be useful resuming all the costs involved. Basing on what we saw here’s what you should expect if you want to buy a 60k land in Fuerteventura:
Land price: 60.000,00€
Transmission tax: 600,00€
Registro de la Propriedad: 175,96€
TOTAL COST: 65373,46€
But let me end this post by saying a big thank you to Carlos. You’ve been so available, professional, kind and friendly, allowing a novel like me to have a super-positive experience, making everything easy and smooth like if I was an experienced trader. THANK YOU CARLOS!