Spain is a beautiful country, so you are about to make a great decision if you are thinking of living there.
The sunny weather, along with the traditional world-famous food, is just another reason to make Spain your home. The nightlife, the lifestyle, the culture, and many other components are good reasons to make you want to buy a property in Spain. The process of buying property in Spain may seem long and difficult. However, once you read the steps below, you will see that it is easy.
Provided that you already have a property in mind, here is a step-by-step process of buying a property in Spain:
Get the NIE Number (Foreigner Identity Number). You must get the NIE number so you can be identified as a foreigner. You can get this number at a Spanish embassy or consulate. There are two types of NIE numbers: the temporary NIE number if you don’t want to live in Spain and the resident NIE number if you want to live there.
Open a Bank account. If you want to make transactions easier, you need to open a bank account. You can pay the notary fees, which are required in the process of buying property in Spain.
Negotiation of price. After finding a property you want to purchase, you have to negotiate its price with the seller. You must check the prices in the market before you negotiate. You can do this by using online valuation sites or by hiring an estate agent.
Look for a mortgage. You need to start looking for a mortgage after checking the prices. Then, after seeing the different rate types, you should decide which to choose.
Sign the reservation contract. After you have decided on a price for the seller, you should sign a contract (contrato de reserva) so that it won’t be advertised anymore.
Deposit agreement. After you state your intention of buying the property, you need to sign the deposit agreement (contrato de arras). The total amount the bank will lend you will be based on the results of the valuation (the official value).
Official evaluation of your mortgage. The bank will offer a valuation specialist, or you can find one on your own.
Prepare the required documents:
The nota simple (property report) which can be obtained in person at any registry office in Spain.
TheITE (inspección técnica de edificios), confirming that the building or house is structurablly ok.
The property deed (escritura pública).
Sign the title deedsat the notary. After the notary writes the property needs and the agreement with the seller, he will help you to understand the contract before signing it. Then, you will visit the notary for the official signing of the sale deed.
Register the property. The final step is to register the property you bought in the property registry. You are the owner now, so you have to pay the property transfer tax.
Property Transfer Tax When Purchasing a Property in Spain
The property transfer tax depends on the type of property you are purchasing.
The property tax for a second-hand house is equal to 10%.
For a new property, the VAT is 10%, plus 1,5%, which you must pay as a new registration.
If you are under 32, then the VAT is 5%.
The Duration of Property Purchasing in Spain
Buying a property may take weeks, depending on the type of property.
If you are buying a property with no former debts and all paperwork ready, then it can take three to four weeks.
If you are buying a property that requires an architect’s certificate or you need a mortgage, then it may take five to eight weeks.
If the property you buy is not properly registered or part of an inheritance proceeding, it may take more than eight weeks.
Costs of Purchasing Property in Spain
Except for the property transfer taxes that you must pay when you buy a property in Spain, you must also make other payments.
Estate agency fees – 2% and 15% of the sale price.
Legal fees – 1% of the sale price.
Mortgage costs – the property valuation that the mortgage provider is around 500€. The mortgage can be around 1%.
Notary costs – 0.1% to 0.4%, plus additional costs for the paperwork can be 0.5%. If you are using a mortgage, you will have to pay 0.1% of the value of the mortgage for large mortgages and 0.4% for small mortgages.
Land Registry Inscription Fees – 0.1% to 0.3% of the declared price of the property.
The Cheapest Cities to Purchase Property in Spain
These are some of the cheapest Spanish cities to purchase a property in:
Lleida
Castellón de la Plana
Murcia
Huelva
Costa Blanca
Alicante
Elche
Torrevieja
Orihuela
Cadiz
Santiago De Compostela
Finding a Property in Spain
You can use different options to purchase a property in Spain. The most preferred options are online portals. They are easy to use and very helpful because you can easily find a property of your preference by simply clicking on the location you want to live in, the prices, or any other features they may offer.
Other options are real estate agents or professional property finders. Talking to a real estate agent is a good idea because they have market knowledge and access to property portfolios. Buying agents, who are also known as professional property finders, are a good option to consider because they will find properties based on your requirements. After they see your budget and your preferences about location or number of rooms, you can save time by visiting only the properties that the professional buyer has matched to your preferences.
Can non-residents purchase property in Spain? Yes, non-residents can purchase property in Spain. As previously mentioned, non-residents are still required to obtain an NIE to carry out the purchase, whether or not they are EU citizens. The NIE must be requested at the General Immigration Office.
The Spanish Golden Visa grants automatic residency in Spain when you purchase property for 500,000€ or more. This can be any type of property: home, commercial, land, or a combination of properties. The golden visa does not require you to be in Spain 183 days of the year.
Viewing property in Spain and making an offer. Once you've found a property you like, you'll usually need to make an offer through the seller's estate agent. ...
Now, as with any other country in the European Shengen area, you are allowed to stay in Spain for up to 90 days in any 180-day period visa-free. For most people buying a property in Spain as a holiday home or those who will split their time between Spain and the UK, this is ample.
There are no restrictions on buying property in Spain, whether it's commercial, residential or land. In fact, Spain encourages investment by foreigners, both resident and non-resident.
Spain's government has announced that it intends to eliminate the country's Real Estate Golden Visa, which allows third country nationals who invest at least EUR 500,000 in real estate (without a mortgage) to reside and work in Spain for three years.
Spain residency obtained through the Golden Visa program requires a minimum real estate investment of EUR 500,000 (reduced to EUR 350,000 using a leaseback option). Spain citizenship, i.e. the European passport, is available to Golden Visa holders after ten (10) years in permanent resident status.
For a Spanish mortgage, you will generally need a minimum deposit of 30% of the property's purchase price, with borrowing rates currently starting around 2% (lower for premium clients). “The maximum mortgage for non-residents is 70% of the purchase price or valuation, usually depending on which is lower.
When buying property in Spain, you should expect to pay between 8% and 11.5% in taxes, but this can differ between new and resale properties. For a new property, you will have to pay 1.5% of the purchase price on stamp duty and VAT (IVA) which is imposed at 10% of the purchase price.
Do I need to have a Spanish bank account to buy a property in Spain? The funds for the purchase of any property in Spain need not come from a Spanish bank account, although that is certainly the most sensible way to proceed.
Spain has a huge area which makes land prices very low. Spain produces a huge amount of its own food and wines. Spain is warm most of the year. That makes housing and food cheap, fuel costs low and that enables lower wages to be offered.
In layperson's terms, buying property in Spain is considered a safe investment. It's highly unlikely that you'll lose any money if you take the plunge – provided you seek expert guidance and support throughout the buying process.
The answer to this question depends solely on your financial situation and risk tolerance. If we compare the long-term benefits, buying a property with a mortgage could be a better investment. You'll be investing in a property for yourself rather than paying monthly rent to another owner.
When the UK exited the EU, some specific requirements were made for Brits who wanted to buy a home in Spain. British people now must have a visa to stay in Spain for more than 90 days out of 180 days, known as the Schengen 90/180-day rule.
The answer is yes; US citizens can get mortgages in Spain. For most US citizens, you will need proof of identity and income, which is usually the last 3 paychecks, or if you're self-employed, then you'll need your tax declaration (business and personal) from the previous 3 years plus the business accounts.
Yes, you can get residency by buying a property in Spain.
This residency is called Golden Visa or Spain Investor Visa and grants non-EU investors the ability to live, work, and study in Spain by investing in real estate. It's essential to have the foreigner's identity number (NIE) to continue this process.
When buying property in Spain, you should expect to pay between 8% and 11.5% in taxes, but this can differ between new and resale properties. For a new property, you will have to pay 1.5% of the purchase price on stamp duty and VAT (IVA) which is imposed at 10% of the purchase price.
Introduction: My name is Clemencia Bogisich Ret, I am a super, outstanding, graceful, friendly, vast, comfortable, agreeable person who loves writing and wants to share my knowledge and understanding with you.
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