How to buy a property in Spain
There are many nuances that need to be considered if you decide to buy property in Spain. What you need to know about choosing a region and the location of an object, how to choose a home and conclude a deal - our specialists have prepared a detailed material about these and other features of buying real estate in Spain.
Purpose of buying real estate
The purpose of the acquisition is the first thing to decide before buying a property. What you need to purchase depends on why you need it. Most often, buying a home in Spain is done for:
Seasonal holidays on the Mediterranean coast;
"Wintering" in a more comfortable Spanish climate;
Moving and permanent residence;
Accommodation during study or internship;
Accommodation for the elderly;
Promising investment and rental income.
The key to choosing the right real estate is a clear understanding of the objectives of its acquisition. For example, for a seasonal vacation, the priority will be the factor of proximity to the sea. In this case, small apartments near the beach are suitable. During your studies in Spain, it is better to choose accommodation located in a place with good transport links. Two or three-room apartments on the coast will be a good investment.
Choosing a region for buying property in Spain
Real estate of all types in Spain is in high demand. But among foreign citizens, resort housing is of the greatest interest. Objects located in:
On the Costa Blanca;
In Catalonia;
On the Costa Brava;
In Malaga;
In Marbella;
In Estepona.
More affordable offers are worth choosing on the Costa Blanca. On the Costa Brava, housing costs are much higher. And Andalusia is rich in VIP-level offers.
If you are not a fan of popular areas, pay attention to Valencia, Castellon, Benidorm, Calpe. In these cities, you can find very decent properties at attractive prices.
New buildings and secondary market
Of course, when buying real estate, you need to decide in which market the transaction will be concluded - in the primary or secondary. As for the Spanish new buildings, then transactions with them can be considered safe, since the construction is funded by the escrow account system. To buy a new building you need:
Choose a suitable object and book it;
Start paying the cost of the property. Typically, the payment scheme includes 5 payments;
The last payment is made after receiving the keys.
It should be borne in mind that Spanish new buildings are rented mainly in fine finishing with high-quality repairs and furniture, and in some cases - with household appliances.
As for the secondary market, the choice is very wide. Despite the fact that sales in the primary market are growing, the bulk of transactions are still in the secondary market.
Housing types
In addition to the usual apartments and houses, the following types of housing are often found in Spain:
Townhouses - two-storey buildings for several families with separate entrances;
Bungalows are one-story houses with an open veranda;
Finki - houses with a large plot of land for farming;
Masia - country houses of architectural value.
The choice of this or that type of real estate is determined by your goals and objectives. For a seasonal holiday, you can choose an apartment or bungalow. For permanent residence, a practical townhouse is suitable. It is possible to rent a cottage, townhouse, apartment profitably.
Purchase procedure
In order not to be mistaken with the choice, you need to carefully examine the objects, selecting among them those that best meet your needs. Evaluate the benefits of each option on a five-point scale so you have a clear idea of which one is better.
When the object is selected, you can proceed to the purchase procedure. This requires:
Get a NIE - number of a foreigner, which is required for transactions;
Open an account with a local bank;
Make sure that the object is legal;
Conclude an agreement on the reservation of the object;
Post a deposit.
The official sales document in Spain is Escritura Publica. It is signed only at a notary in the presence of the buyer, seller, translator and bank representative when applying for a loan. At this moment, the final settlement is carried out between the parties to the transaction. The buyer becomes the new owner after signing the Escritura Publica. The original of the agreement is transferred to the Property Register for registration.
Real estate taxes
If you made a purchase on the secondary market in Spain, you need to pay taxes and fees such as:
Transfer of ownership tax - 10% of the property price;
Notary fees - 1.5% of the price.
Buying a new building involves paying:
Documenting tax Actos Jurídicos Documentados - 1% of the price;
Notary and registration costs - 1.5% of the property value;
VAT - 10%.
The mortgage is accompanied by additional costs: for the assessment of the object - about € 400, opening and processing of a loan - about 1 - 1.5%.
Property maintenance in Spain
When buying a home with a mortgage in Spain, it must be insured without fail. The amount of insurance is usually up to € 500 per year. The life of the borrower is also insured - up to € 1200 per year. The owner is obliged to pay IBI tax - Impuesto sobre Bienes Inmuebles annually. Its size is determined by the area of the object. For a standard apartment - from € 100 to € 500, for a villa - about € 2000.
An important item of expenses for the maintenance of housing is utilities. They need to be paid monthly, as well as the maintenance of the local area. For three people, utility costs will be approximately € 20, € 25, € 50 per month for water, gas and electricity, respectively.
Rental income
Buying real estate is not only the acquisition of your own home for personal residence, but also the opportunity to rent this home and receive a stable income. During the season, up to 90% of housing on the coast is rented, and there are residents for each apartment, because the flow of tourists and vacationers in Spain is very high. You can rent an apartment, apartment or house by the day, by weeks or for a long time. Thus your income will be 3 - 7% per year. On average, a home worth € 100,000 brings in about € 5,000 a year. And with proper management, income can be 10-15%.
Assistance in buying property in Spain
The best way to safely and profitably buy a home on the Spanish coast is to seek professional help. The specialists of our agency will not only provide you with detailed advice on transactions in the Spanish market, but will also select promising objects for you and take on the solution of all related tasks. Buying real estate in Spain with Rusol Prime guarantees the right choice, favorable conditions and a transparent deal. To start cooperation, please contact us
