±JOIN OUR FREE NEWSLETTER
±Compare Expat Providers
±Expat Focus Partners
±Latest Financial Articles
· Life Down Under – 10 Things You Didn’t Know About Living In Australia
· The Top 5 Things American Expats Need To Know When Filing US Taxes Abroad
· Expat Focus Financial Update April 2018
· Expat Focus Financial Update March 2018
· Moving Abroad, Before And After Brexit
· Expat Focus Financial Update February 2018
· How To Navigate Brexit When Sending Money Abroad
· Expat Focus Financial Update January 2018
· Top Tips for Buying a Property Overseas in 2018
Buying PropertyBack to top Back to main Skip to menu
Gibraltar - Buying Property
When buying a property in Gibraltar the process is very similar to the one in the United Kingdom. There are no particular restrictions on foreign nationals buying a property in this territory, although those without residency permits or work permits must go through an application process with the Gibraltar government. Those who intend to buy a property in the name of a Gibraltar Offshore Company must know that there may be some tax breaks, so it is highly advisable to get some independent advice from a financial advisor prior to purchasing.
All deeds to properties have to be registered with the Supreme Court and most of new properties are leasehold rather than freehold. As in the UK, buyers must see the property first, and find out more about the price. It is necessary to pay a reservation fee, an amount of 2%, which is held while the sale is conducted.
There are numerous additional fees which any buyer should take into consideration. The first of these is a stamp duty fee of 1.26% of the purchase price, and there is an additional 0.13% if a mortgage is involved. There is a small fee for registering the deeds with the Supreme Court and the office of the Land Titles Registry. All buyers must also consider their legal costs, and these charges can vary. Finding a lawyer should not be a problem as Gibraltar has a huge number of them. When the agreement is in place, a further 8% of the purchase price is added to the 2% already in escrow, and when this stage is completed, both sides are obliged to go through with the sale.
How to buy property in Gibraltar
Buying a property can be both an exciting and daunting process. However, some experienced lawyers in Gibraltar can help expats to avoid potential problems and protect their interests throughout. The whole procedure for purchasing a property and the services that can be expected are explained in the four steps below.
1. Identifying a property & paying a holding deposit
Once a purchaser decides to buy a property, a holding deposit should be normally paid to the vendor. In most cases, estate agents represent vendors and they usually request a 2% deposit, payable by the buyer. This way the property is being taken off the market. The 2% deposit is later deducted from the purchase price.
2. Investigating title & exchanging contracts
The next step is to instruct lawyers who initially carry out a search at the Land Registry and investigate the title to the desired property. This is important in order to ensure that title to the property is properly constituted and that there are no mortgages secured against it on completion. In addition, Preliminary Enquiries Before Contract are sent to the vendor’s solicitor. These enquiries cover a variety of matters relating to the property, such as whether alterations requiring consent or planning permission have been made to the property, whether Energy Performance Certificates have been obtained, and whether the vendor has experienced any problems with neighbours or the management company.
After that, a purchase agreement is drawn up by the vendor’s lawyers and delivered to the buyer's lawyers for approval. This agreement sets out the purchase price and the terms and conditions under which the property is being sold. Until a purchase agreement is signed, negotiations take place on a "without prejudice" and on a "subject to contract" basis. This means that until both sides have signed the agreement, no binding contract is made for the sale of the property. The signing of the purchase agreement by both sides is also known as "exchange of contracts".
After the exchange of contracts, both sides must go through with the transaction. If one party does not complete after the exchange of contracts, the other side can sue the defaulting party and force them to proceed with the process. In this case, the defaulting party is liable for all costs and consequences resulting from non-completion.
If a purchaser or vendor pulls out before exchanging contracts, he/she is not generally liable to the other side. However, if a holding deposit has been paid to an estate agent, they may be entitled to retain a proportion of this. This largely depends upon the terms under which the deposit was paid to the estate agent. Most estate agents ask buyers to sign a memorandum of sale or a reservation agreement. Buyers should read the terms of these carefully and ask their lawyers to review them before signing.
The next stage is for the lawyers to draw up a Deed of Assignment, in case of the property being leasehold, or a Deed of Conveyance if the property is freehold. This deed is approved by the vendor’s lawyers and by all parties to the transaction as well. These often include the management company of an estate and the original developer. This deed is the document by which the buyer becomes the owner of the property.
Once the deed is approved, a completion statement is drawn up by the buyer's lawyers. This includes details of the purchase price to be paid, the amount of money being advanced by a bank or building society and stamp duty and registration charges payable to the government. At this stage lawyers ask buyers to provide the balance of all required funds needed to complete the purchase of the property. These funds are paid into the lawyers’ client account and payment is made by them to the vendor’s lawyers.
If obtaining a mortgage, the funds will be requested from the bank or building society by the buyer's lawyers. Buyers only need to provide the balance of the required monies over and above the amount of the mortgage advance. Once the deed is executed by all parties and the purchase price paid, the original historic title documentation and the keys to the property are handed over to the buyer's lawyers.
4. Registering the deeds & paying stamp duty
It is important to know that all properties purchased for £200,000 or less are exempt from stamp duty. If the buyer is a first or a second time buyer, the threshold is £260,000 and the property purchase is also exempt from stamp duty. In all other cases, stamp duty needs to be paid to the Gibraltar Government. The deeds to the property also need to be registered at the Land Registry and extra costs are payable to effect this.
Where to look for a property
The best place to start looking for new properties is on the internet. There are numerous websites that offer precise information about properties available for buying in Gibraltar.
Read more about this country
Expat Health Insurance Partners
Our award-winning expatriate business provides health benefits to more than 650,000 members worldwide. In addition, we have helped develop world-class health systems for governments, corporations and providers around the world. We want to be the global leader in delivering world-class health solutions, making quality health care more accessible and empowering people to live healthier lives.
AXA - Global Healthcare
As the global healthcare specialists for AXA, the world’s number one insurance brand, we can help you get fast access to expert medical care, whenever and wherever you need it. All our plans include evacuation and repatriation, a second medical opinion service and extra support from a dedicated case manager if you’re diagnosed with cancer. You’ll also have 24/7 support from our caring multilingual team - we’ll always remember you’re a person, not a case number.
At Bupa we have been helping individuals and families live longer, healthier, happier lives for over 60 years. We are trusted by expats in 190 different countries and have links with healthcare organisations throughout the world. So whether you're moving abroad for a change of career or a change of scene, with our international private health insurance you will always be in safe hands.
Cigna has worked in international health insurance for more than 30 years. Today, Cigna has over 71 million customer relationships around the world. Looking after them is an international workforce of 31,000 people, plus a network of over 1 million hospitals, physicians, clinics and health and wellness specialists worldwide, meaning you have easy access to treatment.