The first step in purchasing an apartment in Spain is to complete your research before making a decision. Therefore, follow the instructions we provide. You won’t be able to purchase a flat in Spain under ideal circumstances unless you have thoroughly understood how to do it.
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Foreigners searching for a vacation spot or a place to make real estate investments are increasingly choosing Spain as their destination. Numerous individuals relocate inside their own nation, either for professional or academic purposes or just out of personal choice.
Equinox Urban Housing is committed to making the process easier for you because of this. We go above and beyond to make sure you will be completely at rest when you entrust your real estate affairs to us since we think real estate is more than simply buying and selling houses. Equinox offers secure apartment rentals or purchases throughout Spain.
Here is a helpful guide on purchasing Spanish real estate that will help you get started and understand the process of buying secure real estate in Spain. It contains details about the purchasing procedure, the paperwork required, and potential problems.
Who Acquires Real Estate in Spain?
Purchasing a home in Spain is not subject to any limitations. In Spain, anybody may purchase real estate, including homes, apartments, and land. A Golden Visa can also be applied for by anybody who purchases a home valued at more than €500,000, since the Spanish government promotes foreign investment.
Requirements and Required Documents
It takes certain paperwork to purchase real estate in Spain, just like it does anywhere else in the globe. Fortunately, foreigners purchasing real estate in Spain does not differ much from locals in this regard. The NIE (Foreigners Identification Number), a special number required for all transactions in Spain, is the only additional item you will require. The NIE is available from a Spanish police agency or the Spanish consulate in your place of residence.
It is essential to establish a bank account in Spain since you will need to pay taxes, utilities, and other communal costs associated with your home.
Similarly, it is beneficial to designate a tax agent to assist with tax returns after you own property in Spain.
The Procedure and Terms for Purchasing Real Estate in Spain: Dealing with Sellers
Purchasing a property in Spain will probably involve the following steps, however they may vary based on the kind of property and the financing arrangement:
Step 1: Establish a Purchase and Related Cost Budget
Finding the average selling price of properties in the area you wish to buy a property in Spain is a necessary first step. Using one of Spain’s real estate selling websites is the simplest approach to verify prices. Additional purchasing expenses to include in your budget are:
– A 19% Vat for new homes and a 5–10% property transfer tax, depending on the age of the buyer, for properties that are already owned.
– Depending on the transaction amount, notary and public property registry costs range from 1.5% to 2.5%.
Step2: Obtain an NIE
Your tax identity number (NIF), which is necessary for all legal and financial transactions in the nation, should be obtained by scheduling an appointment with the Spanish Tax Office. When applying for the NIE/NIF, you will need to provide your passport, a properly completed EX-15 application form, and a valid Spanish visa if you are not a resident of the EU.
Step 3: Create a Bank Account in Spain
Opening a bank account is a must to making any purchases in Spain. Throughout the purchasing process, this account will be required for every transaction. You need your passport and NIE in order to create a bank account in Spain. Please be aware that any cash that you bring into the country that is worth more than €10,000 must be declared at customs.
Step 4: Look for Spanish Properties
In Spain, the majority of private property owners utilize internet marketplaces in addition to real estate brokers to sell their homes. As a result, using these services to look through the various flats for sale is simple. The price, size, and location criteria found on most websites assist purchasers in focusing their search on the houses they want in the places of their choice.
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 the Ideal Property
Properties-wise, the Spanish real estate market offers an abundance of options. There are many different kinds of homes available, ranging from brand-new construction to homes with some historical significance. Furthermore, in Spain, everything, including the ground on which the home is situated, instantly becomes yours upon completion of the acquisition procedure, as the concepts of freehold and leasehold are not applicable.
Step 6: Arrange Visits to Property
Even though prospective buyers may virtually inspect houses thanks to current technology, it is always preferable to see the property before making a purchase. You can get assistance with viewings and trips to the neighborhoods you are interested in from a local real estate agent.
Step 7: Checks for Due Diligence on Properties
Your real estate agent should make sure that every detail regarding the property is accurate once you have found your dream home. Making sure the structure was constructed lawfully is part of this. It’s crucial to ascertain whether there are any limitations on changes, as you could choose to add on to or renovate your house after purchasing.
Step 8: Secure Funding
You cannot rely on banks or mortgage lenders that are not registered with the EU if you intend to use a mortgage to purchase an apartment in Spain. In Spain, residents can borrow up to 80% of the property’s worth, whereas non-residents can only borrow between 60 and 70% of its value. In Spain, a mortgage can last up to 30 years and have an annual interest rate of 2.5% or higher.
Selecting a Mortgage Lender in Step 9
In Spain, there are several mortgage lenders, each with their own conditions and interest rates. Speak with a local mortgage expert for professional assistance to guarantee value for money.
Step 10: Present a Proposal
Making an offer on the property via the seller’s real estate agent is the next step after obtaining the necessary financing. The offer is up to the seller to accept or reject.
Step 11: Execute the Initial Agreement
If your offer is accepted by the seller, you should go ahead and make the property reservation. Usually, we discuss a deposit of €3,000. Subsequently, both parties consent to signing the draft contract (Arras). In Spain, the payment often equates to 10% of the property’s overall worth. It’s crucial to understand that if you decide to change your mind, you will forfeit the deposit; but, if the seller cancels the buy and sale agreement, you will receive a double refund.
Step 12: Execute the Sales Agreement.
The final agreement should be signed by both parties in front of a notary public. All required papers will be certified by the notary public and copies will be provided. At that point, the outstanding debt and all taxes owed must be paid. The seller covers real estate costs, which are included into the total sales price. Within two to three months, you will receive the original copy of the sales deed.