Buying a property in Spain step by step

23rd December 2019 Off By krzys

The procedure of buying a property in Spain may seem complicated, but with the help of experienced specialists, the transaction can be carried out really quickly. Here is a short guide for people planning to invest in Spain.

Purchase of real estate in 5 steps

Offer selection

After determining purchase criteria and specifying expectations, our specialist in the Spanish real estate market prepares offers tailored to the requirements of a particular client. Then, among the real estate proposals we send, he chooses the ones that interest him the most. Then we invite him for an initial reconnaissance and show around selected houses or apartments.

We help find attractive air connections, pick up from the airport and lodge in apartments that we manage or in the facility chosen by the client. The apartments are presented in a pleasant atmosphere. We also tour the area, show the most interesting attractions and facilities such as school, hospital and shops.

Real estate booking in Spain

When the customer makes the final decision about choosing a specific property, he should book it. It provides the buyer with protection against selling the selected house or apartment to other interested parties.

The reservation is based on a preliminary sale contract, during which a down payment of EUR 2,500 to 6,000 is paid, which will be included in the purchase price of the property in question. The reservation agreement also specifies the date of signing the notarial deed, during which ownership will be transferred.

Signing of a notarial deed

The notarial deed is signed in Spanish. At the client’s special request, a Polish translator and / or lawyer may be present on site. In the interests of our clients, we cooperate with the best notary and law firms that guarantee the security of the transaction.

Preparation of documents

To be able to sign the notarial deed, you will need to have the following documents:

Spanish tax identification number NIE (numero de identificacion de estranjero) – this number is obtained at the branch of the Spanish police during a meeting previously booked via the online platform. Our specialist can help in booking the visit and the meeting itself. He chooses the most convenient meeting date for the client and is present during the meeting. The help of a professional is a guarantee of communication with representatives of local authorities.

Confirmation of opening an account in a Spanish bank – there are many banks in Spain – each of them has different fees for keeping the account, transfers and other transactions. Our specialist will advise which offer will be most beneficial for the future investor.
Passport or ID card.

Financing the purchase of real estate – a mortgage in Spain

Many Polish investors decide to finance the purchase of real estate in Spain with a mortgage. Spanish banks offer them both to people working in Poland and abroad. Considering the attractive interest rate and the possibility of spreading the loan repayment over a dozen or so decades, it turns out that the average annual cost of installments can be repaid from a part of the revenues generated by renting the property. This makes investment in Spain even more attractive.

Going deeper into the details of real estate lending, it is worth mentioning the need to have a down payment of 30% of the property value. For example, if you buy an apartment for 100,000 euros, you must have 30,000 euros of your own contribution.

What else do you need to know about buying a property?
Additional costs

When buying a property in Spain, we must also take into account the need to pay VAT, which is 10%. This is an ITP tax (impuesto sobre transmisiones patrimoniales). Across Spain, the amount of this tax depends on the region – usually between 6% and 10%. In the province of Alicante is 10% and must be paid within 30 days of the purchase of the property. It is worth assuming that additional costs, including VAT and legal services, will range from 13 to 14% when purchasing real estate.

Profitability of investments in Spain

Compared to the purchasing reality in Poland, the above values ​​may be surprising. However, it is worth remembering that the prices of a wonderful, seaside apartment with a complex of swimming pools and saunas are at the level of apartment prices in crowded centers of Polish cities. In addition, the investment potential of real estate in Spain far exceeds that in Poland.

The investment profitability is shaped by two variables. The first is the increase in the value of real estate, which has remained at a level of 3-7% since the end of the crisis. The next and most important is regular income possible to achieve thanks to holiday rentals for tourists coming to the coast.

Professional real estate service – tourist rental

Our property management specialists will help you rent effectively and carelessly calculate investment returns. They will ensure that they obtain the licenses required by Spanish law to rent their property legally. They will make sure that your house or apartment is rented as often as possible, bringing the highest possible profits. They also look after your guests so that they spend an unforgettable vacation and recommend your apartment to friends.