How to buy a house in Spain? Don’t worry, it’s a simple process. Buying any kind of property is stressful, but buying one overseas may be especially daunting. However, if you put in the time and effort into learning about the product and the market, you will find that making a purchase is far less stressful. We can’t get around bureaucratic hoops and the delays they cause, after all. On the other hand, we can get ready for it and know exactly what to expect at every stage. In the meanwhile, here are ten steps on how to become a homeowner in Spain. Keep in mind that if you buy a house in Spain with us, we will accompany you through every stage.
Tips for Purchasing a Home in Spain
Budgeting and Financial Planning
In Spain, many people who are looking to buy a house jump right in and start looking. But first, you’ll need to figure out how you’ll pay for the property and the associated closing costs. Considerations include available funds, monthly mortgage payments, and annual maintenance fees. There is no use in purchasing a high-end villa if you cannot afford the recurring costs of upkeep and repair. Whether you’re buying a brand-new construction or a pre-owned home, as well as whether you use a mortgage or pay cash, your closing expenses will be different.
ITP, notary fees, land register fees, attorney fees, appraisal fees for mortgaged properties, and stamp duty are all part of the closing costs that typically range from 10 to 12 percent. Instead of an ITP, purchasers of newly constructed homes pay a 10% VAT plus 1.5% of the purchase price in stamp duty. Keep in mind that although Spanish real estate prices are fixed in Euros, the foreign currency you are using to make the purchase will result in a price difference. For preferable conversion rates and reduced bank transfer costs, a foreign exchange business like WISE is worth looking into.
Methods of Getting a Mortgage
When purchasing an off-plan home, it is not uncommon for the developer to provide a mortgage with preferential terms and conditions. However, most non-Spaniards do not raise funds in Spain but rather in their own countries. We can help purchasers apply for a mortgage in Spain, but they need keep in mind that their monthly payments shouldn’t be more than 35% of their net monthly income (or their combined monthly income if they’re applying as a couple). Consider additional fees and interest of 3-4% of the total loan amount.
Purchase Your Idyllic Spanish Home Today
Check out the available apartments and villas in Spain on our website. Each ad describes the home’s price, location, amenities, images, floor plans, and contact data so that interested parties may inquire more by email or schedule viewings. When we take potential buyers on a tour, we don’t only show them houses; we also point out local amenities like supermarkets, pubs, restaurants, schools, and transportation hubs.
The drawbacks of constructing a home in Spain far outweigh the benefits. In Spain, it might be difficult to acquire the necessary permits to renovate or rebuild an old home on a plot of land. When budgeting for a home’s construction, don’t forget to factor in money needed for the lot, the notary, and the land registry.
Sending an Offer and First Deposit
In Spain, prospective buyers can make an offer and put down a deposit. Your deposits are maintained in your name and can be paid using a credit card or a bank transfer. You need to have the funds accessible immediately, or else you risk losing the deal to another buyer. This down payment secures the purchase price, verifies the buyer’s seriousness about purchasing, and removes the home from sale to prevent a gazumping.
Spanish lawyers
Hire a Spanish lawyer after you have paid the required retainer. Pick one who is fluent in the language you speak and has knowledge of the local area. Your attorney will verify that the seller is the legal owner of the property, that the structure is being delivered as advertised, that there are no liens against the home, and that all utilities and taxes are paid up to date. If you’re buying off the plan, a lawyer will also make sure the developer has insurance and bank guarantees to protect your investment.
Additional identification, funding, ownership, and transactional facts may also be requested. The sample nota will also be used for other Spanish documents. This is a copy of the house and land deed. Additionally, it shows whether or not there are problems with mortgages or collateral. IBI stands for “Impuestos Sobre Bienes Immuebles,” or “Community Tax,” and records of the Basura Y Alcantarillado tax reflect the property’s financial standing. Your attorney will inspect all of these to ensure a seamless sale on your part.
Typically, attorneys get one percent of the total acquisition price of the property plus value added tax at the rate of sixteen percent. Request power of attorney from your attorney if you need someone else to sign on your behalf while purchasing real estate. If you’re buying a property before it’s built, this could be helpful because you don’t always get the occupancy permits until weeks after the house is finished being built. Additionally, utilities such as water and power cannot be switched over without proper occupancy permits.
Details to Think About When Signing a Sales Contract in Spain
When you acquire your contract of sale, there are a few things you should keep in mind. Obtain a letter from the Land Registry beforehand to make sure there are no costs involved. Make sure that the property’s viability is not threatened by any proposed changes to the surrounding area’s urban planning as well. If you are not physically present in Spain at the time of the sale’s closing, you can authorise a third party to do both checks on your behalf.
Spanish Tax ID NIE and Bank Account
Getting a Foreigner Identification Number, or NIE, is the next step. The NIE number can be obtained either through the Spanish embassy in your home country or from any Spanish police station. Your passport will suffice as proof of identity. Both plastic and paper versions of the NIE card are available, and both have a fiscal number and visa card capabilities for making purchases and other types of transactions. Taxes, mortgages, and payments related to recorded real estate can all be paid with ease and convenience using a Spanish bank account, but doing so is not mandated by law. It can also be used for regular monthly expenses.
Titles and Property Administration
The final step is for the seller to hand over the deed to the property in the presence of a public notary. The final payment and keys will be given to you at this time. As part of this process, you will also register the property with the Spanish Property Registry. If you buy a home in Spain that is part of a homeowners’ association, the association will assist you in maintaining your property. To oversee all of the properties under their jurisdiction, homeowner’s organisations frequently hire professional property managers. For those who wish to invest in Spanish real estate but currently reside in another country, this can be a tremendous relief. If you prefer, property management companies will hold onto your keys and watch over your home while you’re away.
Further Information on Purchasing Spanish Real Estate
As a result, we hope you’ve learned a great deal from this article. In case you haven’t made up your mind yet, our article highlighting the six most frequented stores should help. Those considering a real estate investment in Spain will find a plethora of options available to them. The towns, cities, and small coastal resorts all around Spain offer something special to the international real estate market because they have been popular vacation and second home destinations for Britons and other nationalities for decades. In addition, feel free to contact us if you have any further inquiries or concerns about purchasing a home in Spain.
Should I Pack Up and Move to Spain? There is no easy yes or no response to this question. The answer is conditional on factors like whether or not you have a family and hence need a stable income. Obviously, everyone has their own unique motivations for relocating to Spain. But many foreigners now living in Spain support the plan fully. According to a survey from last year, there are approximately 380,000 registered residents of Spain, with Britons making up a disproportionately large fraction of non-Spanish nationalities despite Brexit. If you’re debating whether or not to uproot your life and start over in a foreign nation, this article will help you weigh the pros, cons, and what you need to know before making the leap. Contact us to buy or sell your property in Spain fast online.
