Buying Property in Gibraltar

Buying Property in Gibraltar

Gibraltar Properties for Sale – Find your dream home in Gibraltar with C21 Real Estate.

Discover the charm of living in Gibraltar with C21 Real Estate Gibraltar, your trusted partner in property search and purchase. With an extensive range of houses for sale and a stellar reputation for exceptional customer service, we are the preferred choice for local, national, and international buyers alike.

Our intuitive property search tool enables you to explore a diverse selection of properties available across Gibraltar effortlessly. Whether you’re a first-time buyer stepping onto the property ladder, upgrading to a larger home, or relocating, we streamline the process to help you find your dream home with ease.

We recognize that buying a home is a significant investment, possibly the largest you’ll make in your lifetime. When you choose C21 Real Estate Gibraltar, we are committed to guiding and supporting you at every step of this journey, making the process less daunting and more transparent.

Already have a budget in mind and know the type of property you’re interested in? Simply use our search bar above to browse available houses for sale in your desired area. For those seeking more information on the buying process or exploring the various property categories available, continue reading to learn how we can assist you further.

C21 Gibraltar, selling real estate, fulfilling dreams, delivering results.

 Gibraltar Properties for Sale – Home for sale Gibraltar

Buying property in Gibraltar is relatively simple and is very much based on the English conveyance procedure. Once you have selected the property you wish to acquire and agreed a purchase price with the vendor a 2% deposit payment is made to secure the property. The deposit is usually held by the agent as stakeholders in a client deposit account and will be fully refundable should the sale not be completed for whatever reason. 

Gibraltar Properties for Sale are divided into three main categories.

1. New Developments aimed principally at wealthy buyers, sold off plan with a phased payment profile to align with the buildings completion. This enables the investor to either keep or flip and onward sale prior to the completion.

2. Restricted Developments, new and existing which were built in cooperation with the government to offer affordable housing for those with fewer funds. These properties whether for Resale or Off plan are usually cheaper but this is because they come with restrictions ie 3 years residency requirement and inability to sublet. For sale Gibraltar properties, villas for sale in Gibraltar, buy house Gibraltar.

3. Older style properties once owned by the British Armed Forces that are being renovated for sale. These are classified in Gibraltar as properties for Resale. Houses for sale Gibraltar.

There are no particular restrictions on foreign nationals buying a property in Gibraltar, 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. Houses for sale Gibraltar, Homes for sale Gibraltar.

Most properties in Gibraltar are Leasehold owned by the Government and managed through the Land Property Services. There are a few of the older buildings that are freehold but not many. When any transaction is completed all deeds to properties have to be registered with the Supreme Court in Gibraltar.

There are a number of fees to consider when buying a property. In the main these are Stamp duty paid which is a percentage of the purchase price. Registration fee with the Land Registry, Supreme Court fee and of course the legal course for undertaking the conveyancing which can vary considerably in Gibraltar. If you would like help finding a suitable Lawyer or the contact details of good tax advisor, please contact us.

The Buying Process made simple 

1. Identifying a property & paying a holding deposit – Property to buy Gibraltar

Once you have found your property, you pay a 2% deposit to the estate agent who holds this money in Escrow. The enables the property to be taken off the market. The 2% deposit is later deducted from the purchase price and is refundable if you decide not to proceed.

2. Investigating title & exchanging contracts 

The next step is to instruct lawyers who carry out a search at the Land Registry to check the title to the property, any restrictions, impending developments that may be nearby, current mortgage and charges against the property etc.. Preliminary Enquiries Before Contract are also sent to the vendor’s solicitor to ask for clarity on a wide range of points such as building alterations, planning consent, Energy Performance Certificates, Warranties/Guarantees in place, knowledge of problems with neighbours, property issues etc. . The gathering of all this information is to protect your interest and make sure you understand what you are buying fully.

The purchase agreement is drawn up by the vendor’s lawyers and sent to your Lawyer 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. When in the contract is signed by both sides it is is known as “exchange of contracts”.

Once this is done, both parties are duty bound to complete the sale/ purchase. If either party default, the defaulting party is liable for all the costs and consequences of pulling out and not going through with the sale.

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.

3. Completion

A Deed of Assignment, for a leasehold, or a Deed of Conveyance for a freehold property is then drawn up . This deed is approved by all parties to the transaction and may 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.

The buyers Lawyer will provide a Completion showing 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

No stamp duty is payable by first and second time buyers on the first £260,000 of the purchase cost.

There are a number of duties and disbursements as follows:

1) Stamp Duty: The Gibraltar Stamp Duties Act 2005 (as amended by the Stamp Duties (Amendment) Act 2010) relates only to transactions involving real estate property situate in Gibraltar. The rates of duty applicable are as follows:

(i) Nil % where:
a. The property value does not exceed £200,000, or
b. The property value does not exceed £260,000 in those instances where the purchaser is a first-time buyer or second-time buyer, or
c. Where the property is being transferred between spouses or, following the dissolution of a marriage, between former spouses.

(ii) 2% on the first £250,000 and 5.5% on the balance, where the property value exceeds
£200,000 but does not exceed £350,000, and

(iii) 3% on the first £350,000 and 3.5% on the balance where the property value exceeds
£350,000.

Additionally, if the property is purchased with the assistance of a mortgage, stamp duty is charged at the rate of 0.13% where the amount borrowed does not exceed £200,000 and 0.20% for amounts in excess of £200,000.

2) Land Titles Register: a fee of £125 per deed is charged for recording the transaction in the Land Titles Register.

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