How to Buy a Property in Spain as a Foreigner – Five Steps
Spain is considered one of the most promising countries for investment in real estate and one of the most popular resort areas, which attracts tens and hundreds of thousands of tourists every year. To buy property in Spain will be a good solution for making money on renting out, for a vacation during the holiday season or for moving on a permanent basis. Over 300 sunny days a year, mild climate, local culture and amazing nature, as well as hundreds of other features of Spain attract all foreigners who want to change the atmosphere for a holiday or change their lives for the better forever.
Five easy steps that will help a foreigner buy a house in Spain
Buying property in Spain for foreigners who decide to do it on their own can be a daunting task. We strongly recommend that you turn to professionals to get all the necessary help in the search and selection of real estate. If you do not trust third parties and are ready to face all the difficulties on your own, then this article is for you! Read on and find out how to buy property in Spain as a foreigner in five steps.
Step One: Choose the Type of Property
The first and most important thing is to start looking for the right type of property for you. You can do this on your own or by contacting real estate companies, many of which are ready to offer a selection based on your preferences free of charge. Consider where you would like to live: in an apartment, penthouse, villa or maybe a bungalow? Different Spanish properties have different advantages and unique features that other types do not have.
Step Two: Choose How to Make a Purchase
If you are going to buy property as a foreigner on your own, read on this article and learn additional information about the country: features of the regions, types of real estate, prices in certain cities, how to fly from your country to Spain and much more. If you decide to turn to real estate agents, they will independently select properties for you, tell you about all the features and, in most cases, help you solve all the difficulties with the laws and taxes of this country.
Step Three: Plan Your Budget and Include Taxes
In Spain, the buyer of real estate mostly bears all taxes and associated legal costs on their own. Keep this in mind when planning a budget for your future home. Taxes may vary slightly depending on the region you choose, but still, on average, they are as follows:
● Property Transfer Tax. It is different for the primary and secondary market. If you buy a house from a developer (new), you must pay 10% of its value. If you are buying a resale property, the property transfer tax can be between 6% and 10% depending on the chosen region and the value of the house.
● Notary fees and related legal advice, if required.
● Legal costs ranging from 1% to 2% and including VAT.
● Obtaining a certificate of ownership of a house or apartment, as well as a land registration tax – from 1% to 2.5%.
Step Four: Get a NIE
Paying a property tax in Spain for foreigners requires you to open your personal account – NIE. Without it, you will not be able to draw up a sale and the purchase agreement, receive income and perform most financial transactions. If you decide to buy property in Spain as a foreigner on your own, you will need to find a company that, for an additional fee, will help you deal with obtaining a NIE. If you decide to trust a real estate agency – agents and lawyers will help you on pre-agreed conditions.
Five: Sign the Contract and Make an Advance Payment
The final stage will be the preparation for the purchase and the signing of a letter of intent or a contract of sale (contrato privado de compraventa). A letter of intent allows you to reserve a property for a certain period and secure all communications from the developer, while making an advance payment of a fixed percent of the total value of the property (the size depends on the developer). The sale and purchase agreement, depending on the agreed conditions, may also include either a part of the amount (when buying a mortgage), or the full amount with further re-registration of the selected property.
Buying property in Spain as a foreigner is easy
Can a foreigner buy property in Spain? Now you know both the answer to this question and how to do it step-by-step. Whether to spend time on additional study of all the intricacies of taxation and other legislation of this country, or turn to professionals and save a great deal of your time and effort – the choice is yours. Real estate in Spain is waiting for you, do not waste your time and act today!
