Finding information before making a decision is the first step for anybody looking to purchase an apartment in Spain. Thus, be mindful of the actions we recommend. You won’t be in the greatest position to purchase an apartment in Spain unless you have thoroughly understood how to do it.
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For foreigners seeking a vacation spot or a place to make real estate investments, Spain has grown in popularity. In their own nation, a lot of individuals relocate for employment, education, or just personal preference.
Because of this, Equinox Urban Housing is committed to making the process easier for you. We take the extra effort to make sure you will feel completely at rest when you leave your real estate concerns in our hands since we think that real estate is more than simply buying and selling homes. Through Equinox, you can rent or purchase an apartment safely in any area of Spain.
Here is a comprehensive guide on purchasing property in Spain to help you get started and ensure that you buy securely. It contains details on what paperwork is required, how to purchase, and potential problems.
In Spain, Who Is Able to Purchase Real Estate?
Purchasing a home in Spain is unrestricted. Anybody can purchase real estate in Spain, including homes, apartments, and land. Additionally, anyone who purchases a home for more than €500,000 is eligible to apply for a Golden Visa because the Spanish government promotes foreign investment.
Required Records and Requirements
Purchasing real estate in Spain necessitates some paperwork, just as in any other country. Fortunately, purchasing real estate in Spain as a foreigner is not all that different from what natives do. All you really need is the NIE (Foreigners Identification Number), which is a special number required for any kind of transaction in Spain. The NIE can be obtained from a Spanish police agency or from the Spanish consulate in your native country.
In Spain, you will need to pay taxes, utilities, and other communal costs associated with your home, thus you will need to establish a bank account.
Similarly, it’s easy to designate a tax agent to assist with tax returns once you purchase real estate in Spain.
How to Purchase Real Estate in Spain: The Procedure and Terms with Sellers
The following steps will probably be included in the process of purchasing property in Spain, however it may take longer depending on the kind of property and the financing arrangement:
Budgeting for the Purchase and Associated Expenses is Step 1
Finding the average selling price of homes in the area you wish to buy in Spain is a necessary first step in the house-buying process. The simplest approach to verify pricing is to use one of the Spanish real estate marketplaces. Add the following additional buying expenses to your budget:
– A 19% Vat on new homes, and a 5–10% property transfer tax based on the age of the buyer for existing properties.
– 1.5 to 2.5% of the purchase price, depending on the notary and public property registry costs.
Next, obtain your NIE.
Since your tax identity number (NIF) is required for all legal and financial transactions in the nation, you should schedule an appointment with the Spanish Tax Office to receive it. Your passport, a properly completed EX-15 application form, and a valid Spanish visa (for non-EU citizens only) are needed when applying for the NIE/NIF.
Open a Spanish bank account in step three.
Before making any purchases in Spain, you must create a bank account. Every transaction during the purchasing process will require this account. Your passport and NIE are required in order to open a bank account in Spain. Keep in mind that any cash that you bring in from overseas that over €10,000 must be declared at customs.
Step 4: Seeking Spanish Real Estate
In addition to real estate companies, the majority of private owners in Spain sell their homes online. As a result, you may use these services to quickly browse the flats that are for sale. Buyers may focus their search on the homes they want in the places they want with the aid of price, size, and location criteria found on most websites.
If you’re not sure how reliable internet searches may be, a real estate company like Equinox can assist you in finding the perfect home without requiring you to visit to Spain.
Step 5: Select Your Ideal Home
There are plenty of properties available on the Spanish real estate market. A variety of housing kinds are available to you, ranging from recently constructed homes to those with some historical significance. Furthermore, nothing in Spain is subject to the notions of freehold or leasehold, so when the purchase procedure is finished, you own everything—including the ground on which the home is situated.
Step 6: Schedule Visits to Properties
It is preferable to inspect a home in person before making a purchase, even when contemporary technologies enable prospective purchasers to view houses digitally. You can get assistance from a nearby real estate agent when it comes to showings and trips to the neighborhoods you are considering.
Step 7: Checks for Property Due Diligence
After you’ve found the perfect home, your real estate agent should make sure all the details are accurate. As part of this, make sure the structure was constructed lawfully. Finding out if there are any limitations on changes is also crucial, as you might wish to enlarge or renovate your house after purchasing.
Step 8: Obtain Loans
If you want to use a mortgage to purchase an apartment in Spain, you should be aware that banks or mortgage lenders that are not registered with the EU cannot be relied upon. Spanish citizens are allowed to borrow up to 80% of the property’s worth, but non-residents are only allowed to borrow between 60 and 70%. In Spain, a mortgage can have a maximum term of 30 years and an interest rate of at least 2.5% annually.
Step 9: Select a Mortgage Provider
Spain is home to a large number of mortgage lenders, each with their own conditions and prices. You should get expert assistance from a nearby mortgage advisor to guarantee value for money.
Step Ten: Present a Proposal
Using the seller’s real estate agent, submit an offer on the property once you have secured the necessary financing. The offer may be accepted or rejected by the seller.
Sign the preliminary contract at step eleven.
You should go ahead and reserve the property if the seller accepts your offer. We often discuss a deposit of €3,000. The signing of the preliminary contract (Arras) is then agreed upon by both parties. The price paid in Spain is typically 10% of the property’s total value. It is crucial to understand that you will forfeit the deposit if you decide to change your mind, but that you will receive a double return in the event that the seller cancels the buy and sell agreement.
Sign the sales contract in step twelve.
In front of a notary public, both parties should sign the final agreement. Copies of all the required paperwork will be certified by the notary public. At that point, all taxes owed and the outstanding debt must be paid. Real estate commissions are paid by the seller and factored into the total amount of the sale. The genuine sales deed document will be sent to you in two or three months.