Property Purchase Procedure
How to purchase a property in Gibraltar, from signing a contact to the fees involved...
The sale procedure in Gibraltar is very similar to that in the UK. Once a property has been found, the next step is to find a building society or bank to help finance the property with a mortgage, although it is advisable to have already discussed this with a chosen bank while searching for a suitable property to buy. Most banks and building societies will insist that a survey is carried out on the chosen property before agreeing to lend any money.
A deposit of two percent of the price of the property is the norm when a property has been found, usually on a 'subject to contract' basis. Once the offer has been received solicitors are instructed by both the buyer and the seller. The seller's solicitor prepares a draft contract ,which is then reviewed by the buyer's solicitor. During this time the buyer arranges finance and a survey. Once contracts have been approved and all amendments agreed upon, the two parties can exchange contracts and a further deposit (usually an additional eight percent of the purchase price) is paid. From this point on, both parties are bound to transaction.
Purchase costs and stamp duty
Stamp duty is not payable on the first £260,000 for first and second time buyers. Stamp duty is also payable on the value of the mortgage.
- Find out about the amount of stamp duty due on the purchase of a property
The legal fees for a property purchase vary and are generally between approximately 0.5 and 1 percent of the purchase price.
Finally, there is fixed fee of £125 for recording the transaction with the office of the Land Titles Registry.
Tax reductions are available for first time buyers in Gibraltar, these include a mortgage interest allowance and a home purchase allowance.
- Find out more about tax allowances for first time buyers in Gibraltar
- Information about land and property from the Gibraltar Government