If you are a first time buyer of a property in Spain, there will inevitably be quite a few questions along the way. The buying process in Spain is straightforward, but we guide you in this process for a hassle-free purchase.
Below is a list of frequently asked questions of many who went before you and are now enjoying their place in the sun. If you have any questions or doubt, please feel free to contact us for a personal chat. Finally, the purchase of a home is tailored!
The best way to feel the real Spain and the real estate market in general, is to visit your chosen area. You can do this on your own, but you can save a lot of your precious time and reduce stress by using the help and guidance of a local broker. We are specialized in your chosen area and aware of all available properties in this area. And we also know which properties are better to left out of your selection because there are legal problems or because the owner is not a motivated seller and therefore there is not much room to negotiate a good price. You will get a unique insight into opportunities and the environment that you might otherwise miss if you had tried to do everything yourself!
The question is how long you are prepared to wait: the time between sale and delivery can often be up to one and a half years if the construction still has to start. This time can extend up to three years, for example in large apartment complexes with a car park underneath. One advantage is that you have plenty of time to sell your current property, if you have one.
Yes, you can have a Spanish mortgage on your Spanish property. Banks are a bit tougher but, depending upon your situation, it is still possible to get a mortgage to buy the house of your dreams. In general, the bank will give a maximum of 70% mortgage (non-residents) on the valuation of the property if the property is in a residential area (urban). For properties in the countryside (classified as ‘rustica’) lower percentages will be available.
In your budget you should take into account the costs of purchase. You should allow for additional costs to total approx 10-13% of the purchase price. The main part of this cost is 7% transfer tax (existing construction) or 10% VAT + 1,25% duty stamp (new built). Then there are notary fees, legal fees, land registry costs and set-up fees if you need a mortgage.
The amount of the taxes & costs vary by municipality, type of housing and personal consumption (utilities, phone & internet).
To buy a property in Spain you need a valid passport and a NIE number (tax number). The NIE number applicaion must be done personally at the Policia Nacional in Spain. Within a few weeks of making the application you can retrieve your will receive you NIE number.
There are no other documents required as a foreigner to own property in Spain.
We highly recommend you hire a local Spanish lawyer (most of them speak fluent English or even your own language). A lawyer can make your purchase a lot easier and prevent a lot of stress. Your questions can be answered only by someone who knows the market and understands the area where you want to buy and from whom you want to buy.
You will need a Spanish bank account to transfer money for the purchase of your property and for contracting water and electricity. You need to apply for this in person and will need your passport. If required, we can introduce you to a bank.
We advise you to make a Spanish will to avoid complications for your heirs who will inherit your property in Spain. The costs are relatively low and your lawyer can arrange this at the same time as your purchase.
The seller has to pay two taxes:
The answer to this question is not simple, if only because nobody can look into the future.
There is nothing wrong with waiting, but do you want to enjoy your new lifestyle now? You do not just buy a property because of the price, but a good number of years in order to live, for holidays or as a (semi) permanent residence. Therefore, in addition to finances, emotional reasons play a part also. And you want to enjoy NOW, don’t you?
Reasons why to buy now: