Natalie This buying property in Spain guide aims to make every first-time buyer knowledgeable about the Spanish real estate market. Whether homebuyers want budget property below 100K or high-end real estate with six-figure prices, buying in Spain as a foreigner or any other country is nothing short of monumental. Before doing anything, the first step is to sort out your finances.
Decide how much money to spend and where will it come from. Will it involve selling or mortgaging UK property or selling other assets to raise the necessary amount? When purchasing any property, also consider all extra costs involved. Buyers who do not sort their finances out often get attached to an investment property they can’t afford to buy. Therefore, financial plans are the most crucial step for purchasing property without unexpected problems.
Buying Property in Spain Guide
1: Determine Your Spanish Property Budget
Once you have determined how much to spend on your new first home in Spain, eliminate properties outside this budget. Also, consider the following critical financial points
- How much available hard cash there is.
- Work out monthly mortgage payments and interest rates if borrowing.
- Decide whether to re-mortgage your UK home to release equity.
- Add up all Spanish fees and taxes the average homebuyer must pay.
- Determine the maximum budget for the property, fees and taxes included.
- Add up the overall cost of home ownership in Spain per annum.
2: Closing Costs for Buying in Spain
There are further costs apart from the purchase price involved. These costs depend…
- Whether the property is new build or resale
- The property purchase price
- Whether buying the property with a mortgage
Allow approximately 10% to 12% of the total purchase price for fees and taxes. So, buyers in Spain with a 150,000€ budget should consider an extra 16,000€ for costs. The fees and taxes incurred when house buying include the following:
- Transferring tax for the deed on a resale home in Spain
- ITP – Levied at 8% across Spain. (ITP is levied at 10% in the Costa Blanca region, except for Murcia)
- Notary fees in Spain- approximately 400€ to 900€
- Land Registry fees in Spain– roughly half the cost of notary fees
- Fees for independent lawyers, usually between 1,000€ and 2,000€
- Property bought with mortgages also evokes valuation fees
- Stamp duty – approx. 1.5% of the mortgage deeds, and a lender’s commission, which is generally around 1% of the capital loans
- On new build property, buyers pay 10% VAT rather than an ITP
- On new builds, 1.5% of the purchase price goes on stamp duty
3: Buying Property for Holidays in Spain
Buying a Holiday Home: Through our many years of experience as international estate agents, people often ask is worth buying a property in Spain for summer use. So naturally, for foreigners owning a second home in Spain has appeal, and the holiday property market is one of the most popular destinations globally for foreign buyers. We can list many reasons why buying property is a good idea, but whether it is worth it depends purely on expectations and motivations. This article will cover all aspects to consider when purchasing, including popular destinations in Spain, pitfalls to avoid and questions to ask.
4: Buying Your First Home in Spain
Once your finances are sorted, find your perfect home. The housing market in Spain is full of apartments and villas for sale; hence do not compromise. Instead, decide on a new property, resale or off-plan home and then begin your property search by browsing our latest listings. Each contains everything to know, including the type of property, number of bedrooms, bathrooms, home features, price, and location in Spain. Also listed are contact details to find out more via email or arrange viewings.
NIE and Bank Account: To buy a home in Spain, you need a NIE, which is your Foreigner Identification Number, before paying the deposit. We will help you via the district that you plan to buy in. Then we will head to the bank afterwards. There are a few reasons to open a Spanish bank account. While not legally required, you can pay taxes, and utilities, get a local mortgage and transfer money for the purchase.
Contract of Sale Process: Before starting the buying process in Spain, there are some things to consider when getting your contract of sale. Firstly, ensure there are no legal fees or debts by the seller by checking with the Land Registry. Also, ensure that future urban planning will not affect the property’s living status. A solicitor in Spain can do both. Some British buyers, at this point, also get a survey, although it is not legally required. Finally, after the sale is complete, get a public deed for the property, as signed before the notary. At this point, pay the cost of granting the deed, register the property with the Spanish Property Registry, and finally get your keys.
The Tax System: Spain sets tariffs at national and regional levels, so the amount depends on location. However, homeowners can also pay directly via Spanish bank accounts. This is the most straightforward course of action when paying the annual legal taxes on Spanish property for sale. Ask your local tax office about which taxes you are subject to in your local area of Spain.
Managing your Property: Resident associations engage property management services for all the properties in their care. Otherwise, property management services can keep the keys, look after your property while you are away, and arrange to fix any problems. Be careful when choosing your management service to ensure you get the best service available.
5: Where to Buy Property in Spain
Costa Blanca: Everything about the 200-kilometre Costa Blanca of Spain appeals to house buyers, from gorgeous beaches, new golf courses, quaint villages, and competitive property prices. Certain areas stand out against the rest. In addition, Costa Blanca is an ideal place for buy-to-let rental investments in Spain, thanks to its thriving tourism industry.
Comprising new and old town parts, British buyers love Javea. The expat community and tourism industry present a thriving destination. Everything, including supermarkets, bars, restaurants, beaches, and transport links, is within walking distance, making this suitable for non-car owners.
With beautiful weather and easy to get to geographical location, the Alicante region lures in buyers by offering everything and anything. As well as the city, coastal destinations offer miles of sandy beaches and promenades emphasising seaside lifestyles. Golfers flock for professional courses, while water sports enthusiasts enjoy sailing, diving, and adrenaline-filled activities. Anyone looking for beachside locations in Spain should look at properties near Playa Del Postiguet, San Juan, and Albufereta.
Also within the Alicante province, Torrevieja deserves admiration. Much development over twenty years has occurred because of increased foreign buyers’ interest. Ranked as Spain’s healthiest area to live because of the massive Salt Lake affecting the climate, Torrevieja offers beautiful beaches and 320 days of sunshine. Punta Prima, a top tourist destination, is favoured to buy property in Torrevieja.
Costa Del Sol: Named the coast of the sun, the Costa Del Sol is famous for tourism and foreign house sales in Spain. The region holds several beach resorts worth looking at for an ideal real estate investment. Perfect places within this coastline stretch include Malaga, which splits into the central city and smaller coastal resorts. All do tourism and real estate investment professionally, while promoting modern trends with traditional Andalusian charm. Property buyers can expect all-encompassing nightlife, shopping scenes, and frequent air travel links.
Marbella, Spain’s most glamorous destination, backed by the Sierra Blanca Mountain range and fronting the Mediterranean Sea, belongs to the Malaga province. Food lovers enjoy many Michelin star restaurants; otherwise, 16 miles of stunning beaches attract many potential expats looking to move to Spain. Don’t forget about the famous and exclusive Golden mile leading into Puerto Banus that offers luxury homes for sale.
Mallorca Island: For island living in Spain, look no further than family-friendly Mallorca, and 500 kilometres of beautiful beaches. The capital Palma, on the south coast, offers diverse local amenities. Otherwise, house buyers also look at Alcudia, Formentor, Llevant, and Raiguer. Alongside the beachside lifestyle, Mallorca promotes active sports through golfing, sailing, windsurfing, fishing, and trekking trails.
About Living in Spain: For many global expats, living in Spain is the best life move they have ever made. The proof of how famous the country is to foreigners is in statistics. Although many expatriates live there, one significant community has over 300,000 foreigners. Indeed, for many, especially retirees, moving to Spain was fulfilling an ideal life dream. This article looks at what potential property purchasers in Spain need to know if they plan to reside in the country all year round.
About Us: We are Spot Blue, a professional estate agent company that helps people invest in real estate overseas, and we hope you found this buying in Spain guide useful. Our expert knowledge and advice on Spain’s property market stem countrywide, with specific attention to the southern part, including the Andalusia region. So, before buying, contact us today to discuss houses for sale in Spain. Otherwise, our blog section includes helpful information for anyone looking at renting, buying property, the Spanish real estate market, and more about the buying property in Spain guide.
