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Owning a property in spain

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Sale (9,984)Rent to Own (740)New Construction (763)
692,000
* €/m2
Buying property in Spain
247 m2 | 5 bedrooms | 8 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Buyers of new residential properties must pay 10% Value Added Tax (VAT). Buyers of new houses must also pay stamp duty at varying rates, from % to %. It's not hard to understand why Brits are top of the list of foreign buyers of Spanish property. As well as a flourishing expat community and a. At present VAT (known as IVA in Spain) is 10% on the purchase price of residential properties (villa, apartment, etc), and 21% for commercial properties and plots.

Though not strictly transaction costs like fees and taxes, there are other costs to bear in mind when buying a home in Spain. After all, they all come out of the same pocket — namely yours. Once you have got the funds in place, you will need to pay the vendor on the day you complete the purchase. It all depends on the deal you have with your bank. Make sure you clarify this with your bank before you ask for the cheque.

Once you own a property you will need to furnish it. The cost of furnishing a property depends entirely upon what you want. However as a very general rule of thumb a 2 bedroom apartment will cost around 10, to 15, Euros to furnish nicely if you buy everything new. Of course there is no limit to how much you can spend, though you can also get away with less than 10, if you are on a tight budget all from IKEA, for example. This is normally paid by the vendor, but it can become a problem for the buyer if the vendor fails to pay it.

Buyers have to be particularly careful with this tax when the vendor does not live in Spain. See the section below on costs to bear in mind when selling property in Spain for more information. Find out more about building surveys in Spain. There will of course be costs associated with owning a property in Spain. Some of these will be maintenance costs, such as cleaning, repairing, reforming, utility bills, rubbish collection, and so on.

These will be determined by the size and type of the property you buy. Obviously a large villa with a garden and pool will require much more effort and cost to maintain than a small apartment. For cleaning a figure of 10 Euros an hour is fairly typical throughout Spain. Apart from the general maintenance costs referred to above, there are a number of costs in the form of taxes and fees that property owners in Spain face. A local tax on the ownership of property in Spain, irrespective of whether the owner is a resident or not.

Calculated on the basis of the valor catastral an administrative value that is usually lower than the market value, sometimes considerably so set by the town hall the tax rate goes from 0. This tax has been changed several times in recent years. For the latest situation see Spanish Wealth Tax Patrimonio. Not rented out Non-resident property owners who do not rent out their property and who do not have any other source of income in Spain pay income tax based on the value of their property.

Rented out If non-residents rent out their property and receive an income in exchange, they are obliged by law to declare this income and pay taxes on it. The tax rate depends on the level of income. Owners of property that is part of any development, building, or complex in which common zones are shared with other owners are by law obliged to be members of the community of owners, known as the Comunidad de Propietarios.

This will entail paying community fees for the upkeep of the common areas, and any other services that the community vote for. The fees will vary according to the magnitude of the common areas, the costs of maintaining them, and the services that the community vote for. A budget for annual community expenses is approved by majority vote of all owners or representatives who are present at the annual general meeting of the Comunidad de Propietarios.

Household insurance will vary according to the circumstances of the owner and the type of property. However it should be born in mind as a cost that all property owners will face. It is calculated on the basis of the valor catastral an administrative value that is usually lower than the market value, sometimes considerably so of the property.

The amount to be paid will depend on how long the seller has owned the property: the longer the period of time during which the seller has owned the property, the higher the amount of tax. Be warned that if the vendor fails to pay it, the buyer then becomes liable for the unpaid tax, with interest!

That means the new owners starts accumulating unpaid IBI tax bills without notification , plus penalties and interest, all without knowing it. When the vendor is a non-resident, the law states the buyer is liable for this tax, even if the parties have agreed that the vendor will pay.

The safest way to play this, from a buyer point of view, is to agree to pay this tax using funds deducted from the agreed sale price. This is particularly relevant when buying from a vendor who does not live in Spain non-resident. When buying property in Spain, always keep digital and hard copies of all invoices related to your purchase. Likewise, if you ever do building work on the property once you own it, keep copies of all licences and invoices. You may be able to offset these expenses against capital gains when you sell, and so reduce your Spanish capital gains tax on property sales.

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Skip to content. Leave a Reply Cancel Reply You must be logged in to post a comment. This is partially due to the popularity of short-term holiday lets. Now, some authorities in Spain are already seeking to curb this trend, with Madrid set to bring in new rules in to regulate the holiday let sector.

In fact, Spain encourages investment by foreigners, both resident and non-resident. You will require a financial number which can acquire by visiting a police station with your passport. This typically happens on the day for Spanish or EU citizens but may take a few weeks for others.

This is not a work permit, but it will allow you to live in the country. As it is easy for foreigners to buy property in Spain, there are websites and estate agents catering to almost every language and nationality. Many British real estate websites also list Spanish properties, with some online portals listing thousands of options. However, these mostly focus on holiday homes, so you may prefer to use a Spanish site, such as the ones listed below.

Estate agents provide a wealth of information about the region, are bilingual, and often deal with overseas buyers. However, regulation is relatively low and unscrupulous estate agents do exist, so be wary of anyone who asks for payments upfront or suggests cutting corners.

Always remember that you can choose your own notary, mortgage provider and so forth — you do not need to use a service suggested by the estate agent. On occasion, the large numbers of inexperienced foreign buyers have provided an opportunity for unscrupulous developers and estate agents to sell properties that are not legitimate. In some cases, planning permission has not been acquired before building, and properties are eventually torn down by the local government.

In others, the quality of the property has not been up to scratch or as indicated, resulting in costly repairs. The British Foreign Office has issued notices warning expat buyers to be cautious and not take unnecessary risks. They recommend, at minimum checking:. Most of this information can be provided by the land registry and accessed by making a request by email, phone, fax or in person. You can find the appropriate land registry office by vising the national website: www. While malicious intent is rare, caution is advisable when buying a property which does not yet exist.

At minimum you should:. As a non-resident, you may also buy land and have a property built yourself. In this case, good legal advice is even more important as you will need to ensure that contracts with builders are appropriate and watertight. In Spain, any mortgage or debt tied to a property is transferred to the new owner when the property is sold. Debts may include:.

The process of buying a property in Spain usually runs as follows. The buyer then arranges any mortgage they require, although they should have already discussed their needs with the mortgage provider. The contract of sale escritura de compravento is usually signed in front of a notary, at which point the full sale price, taxes and other costs become due. The services of a notary are not legally necessary to complete the sale. But it is advisable and required by many mortgages.

The seller is responsible for hidden defects in the property, even if they are not aware of them. However, in practice gaining restitution for such defects can be difficult and costly.

Paying the costs and taxes associated with buying a home can be completed by the buyer or their agent. The buyer is also responsible for registering the property. Following the crash, Spanish banks were reformed with significant IMF involvement. This reduced the number of lenders in operation, and significantly increased the regulation and oversight of the industry.

As a result, many banks began to lend less and mortgage rates and terms became less favourable. Mortgage lenders will not complete on a mortgage agreement until you own a property. The buyer usually pays the fees. They vary from region to region. Many are negotiable — there are no fixed fees for lawyers or estate agents.

Costs paid by the buyer include:. This is typically their only cost. Capital gains tax is paid on the profit of selling your home, i. You may be able to claim a reduction on the capital gains tax to account for inflation; or if you are purchasing another property in Spain; or if you are over 65 and have lived in the property as your main residence for more than three years. Your residential status does not affect the application of capital gains tax either, as capital gains tax should be paid in Spain for property owned in Spain even if you are no longer a resident.

Any lawyer practising in Spain should be registered with the local bar association Colegio de Abogados. They will have a registration number that you can ask for and then verify with the bar association. Naturally, registration does not guarantee honesty or competence, but it is a good minimum standard to insist on.

Many governments provide lists of lawyers and translators who speak both Spanish and another language.

226,000
* €/m2
Total transaction costs are moderate in Spain
210 m2 | 10 bedrooms | 1 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
At present VAT (known as IVA in Spain) is 10% on the purchase price of residential properties (villa, apartment, etc), and 21% for commercial properties and plots. Introduction. This guide sets out essential information for British nationals wanting to buy property in Spain, including advice on legal advice, buying in certain. With an option contract, you pay the seller a deposit, and the seller sells the property at the agreed price as long as you do so within the timeframe.

I wanted entertainment options—Orquesta de Valencia, multiple venues for opera, ballet, the Berklee College of Music campus, and more. When I bought my apartment I was 64 years old. I concluded that income would be a good thing and appreciation potential less important.

If you have celebrated your 50th birthday your time horizon might dictate a much different set of guidelines for a purchase. My original intention was to spend six months a year in Valencia and six months in another country, probably in North America. That is still my long-term plan. Spain is ranked in the top eight best health care systems in the world. Valencia opened the largest hospital in Europe five years ago. A Spanish private health insurance policy for a person aged 65 or older is euros per month.

Some countries offer expedited residency with a reasonable property purchase, a modest business investment, or a monetary deposit in a local bank. Spain offers a Golden Visa with a purchase of , euros or more. This minimum requirement limits the number of applicants to a small universe of wealthy investors. Many countries have a significantly lower tax rate for foreign investors. Portugal, under the Non-Habitual Resident program, grants significant reductions during the first 10 years after an individual declares Portugal to be his or her tax residency.

Spain offers no such abatement program. The good news? As of January , the foreign currency exchange rate of the U. This does not include the modest property appreciation I have realized. Apartment purchases in Valencia today, converting from U. These management costs can be reduced with property rentals longer than 30 days, but long-term rentals are not as lucrative as short-term rentals.

Now a writer, Mike currently aspires to find a rural cottage in a country yet to be determined that complements his Spanish apartment in the central historic district of Valencia. The Overseas Property Alert features a weekly dispatch from our far-flung network of editors, experts, and friends detailing the best opportunities today for purchasing, owning, and managing global real estate.

Wednesday, May 27, January 23, Share on Facebook Share on Twitter. Let me explain… Recently I was looking at properties with an American couple of retirement age, who were in Valencia for the first time.

First Things First I share this story because when buying a property overseas , you must be clear about your objectives. Initial Considerations 1. Urban Or Rural? Ask yourself: Is owning and driving a car in a foreign country too daunting? Does an isolated location concern me because of potential security issues? Large Or Small? Ask yourself: Do I prefer a rural location; and if so, how important is my proximity to a city versus the privacy I gain from a more remote area?

Apartment Or House? Ask yourself: Is a beach important? Or do I prefer mountains? Is learning a foreign language too scary? Is the lack of certain American cultural attractions a deal breaker?

Part-Time Or Full-Time? Ask yourself: Will I view this property as a primary residence or as a vacation or part-time home? This decision can determine the level and cost of decoration and personalization of the space. If you have a complaint against a notary or gestor administrativo, contact the professional council of which they are a member.

See residency requirements in Spain. You should check that planning permissions are in order and the property is a legal build. This is particularly important when buying off-plan or direct from a developer. The town hall can tell you whether the building has all licences and permissions and what type of land it is. If the property is built on rural land or land that is not classified for construction, you should ask the regional government to confirm construction is authorised.

If you are buying an off-plan property, confirm that the property has been certified as finished by a registered architect and registered as a new build in the property register. In the case of a private build the previous owner built their own house and decided to sell before 10 years had lapsed you will need to request these details separately. You should check the latest town plan to see whether or not the plot you wish to buy has any building restrictions, is in a green zone or includes a public pathway or similar.

You can do this at to the town planning urbanismo department of the local town hall. You should have the property surveyed. This is not obligatory, but it is wise to get a chartered surveyor to check the property. You should know the cadastral value of the property and how much purchase tax will be due.

On completion, the public deed should contain an accurate description of the property. You should register the property in your name with the Land Registry as soon as possible to ensure full protection of your rights. The notary can even send advance notification to the Land Registry electronically once the public deed is signed.

If you are considering purchasing a coastal property you should contact the Coastal Demarcation office in your region to get a certificate to certify that the property is not affected by the Coastal Law. Be extremely careful if the Land Registry record shows that the property you wish to buy is built on rural land.

In normal circumstances the government reserves this type of land for agricultural use and you need to check with the municipal and regional authorities to ensure that full planning permission has been obtained for residential use.

Buying off-plan property inevitably involves higher risk than buying re-sale property. If you are considering buying off-plan in Spain there are a number of points to consider.

Make sure you have a bank guarantee aval bancario to cover your stage payments. Developers of off-plan properties are legally obliged to secure all deposits with a bank guarantee.

However, bear in mind that this obligation only comes into force once the developer has planning permission, so you should ask to see this before making any payments. You can also check this at the Land Registry, because if the description of the future building is registered, the registrar will have seen evidence that the licence exists and work has begun following the approved design.

You should ensure that the bank guarantee is individual and not a collective guarantee covering the whole development, which does not give the same protection. You should also request proof that your payments are deposited in a special escrow account, which can only be used for the construction of the specified development. You can visit any Mercantile Registry office or use the Land Registry website.

Make sure you obtain a copy of the cadastral certificate giving the exact boundaries and square metres of your land. Ensure the developer has insurance covering damage caused by structural defects to the building. This insurance should be included in the property manual libro del edificio that the developer gives you. You should also get a planning certificate for the plot you wish to buy from the town planning Urbanismo department of the town hall.

This will include information such as whether the plot has any building restrictions, is in a green zone, includes a public footpath or if there are any current plans to build a motorway etc. Once construction has finished, and before you sign the title deed, ask for proof from the seller that the construction has been finished in accordance with the description given in the plans.

This is issued as a certificate certificado final de obra. You can also check this at the Land Registry. You will need this document to connect to electricity and water companies. Developers cannot force you to complete without this licence.

Consider asking a chartered surveyor to check the property. This is not obligatory but it is wise to obtain a professional opinion on the property before you complete. Members of the RICS are qualified and experienced professionals offering independent and impartial advice.

The Spanish College of Architects in each province also offers a list of independent specialist surveyors. If the developer does not build your property by the deadline in the contract, or services and utilities are not completed and connected to standard, or the habitation certificate cannot be issued, you are legally entitled to:. If you want to cancel the contract, you should get independent legal advice. Once you have consulted a lawyer, the first step is to write to the developer to explain that due to non-compliance with the contract, you want to cancel the contract and request that the deposits paid so far are returned, as well as the accrued interest.

You should include any relevant documents for example. You should write to the developer using Burofax, so you can prove that you have sent the documents and that the developer received them. If the developer does not respond to you within the specified timeframe, you should contact the claims department of the bank or savings bank responsible for the guarantee to request a refund of the payments made. Should the bank not comply, the only remaining course of redress is to instruct a lawyer to take a civil case against the bank.

If you believe you have been a victim of fraud and you have neither a bank guarantee nor an insurance policy from the developer, you should seek independent legal advice regarding taking criminal legal action through the courts and register a statement with the police.

From the 1 June , all homes for sale or to let in Spain are required by law to have an energy efficiency certificate. If you are offering your property for rent after this date, you will need to obtain an energy certificate first. If you want to let your property to tourists on a short-term basis, you must ensure that you are doing so in accordance with Spanish law.

The regulations on letting tourist apartments apartamentos turisticos and holiday homes viviendas vacacionales to tourists will vary depending on the region where the property is located. If you are planning on making a return by renting out your property on a short-term basis,seek independent legal advice and check the local laws at the town hall or the tourist department of the regional government before you buy.

Be aware that the marketing of private residential property to tourists is strictly regulated in many regions of Spain. Owners who are caught illegally advertising or letting out their properties without complying with local legislation can be liable for significant fines. If you are planning to buy an apartment which is part of a residential block, you should also check whether there are any rules set by the committee of owners that prohibit or restrict short-term letting.

You may want to consider hiring a Spanish letting agent to assist with finding tenants, drawing up rental contracts and managing the property on your behalf. In some regions, it is obligatory to use a specialist tourist apartment management company for short-term rentals to tourists.

Owners who let their properties on a long-term basis are free to do so within the terms set out by the national rental law. However, it is worth seeking professional advice to make sure that you are complying with Spanish legislation and that you are using the correct rental contract.

In Spain, there are different types of contracts depending on how long the property is due to be let. You can get copies of these contracts from tobacconists.

You must ensure that you declare your rental income to the Spanish tax authorities Agencia Tributaria whether you are resident in Spain or not. Taxation is a complex issue, and it is advisable to seek the advice of an accountant or professional tax adviser with comprehensive and up to date knowledge of both the UK and Spanish tax regulations.

Equity release schemes are schemes which are designed to allow homeowners to release equity from the value of their property as income, a lump sum or a mixture of both. A reverse mortgage hipoteca inversa is one form of equity release which allows homeowners to borrow money against the value of their home, which is used as collateral. Reverse mortgages are generally marketed at retired homeowners who are over 65 years old. If you are considering an equity release scheme, such as a reverse mortgage or lifetime loan, it is advisable to check that the company offering the mortgage is registered with the financial regulator for the securities markets, the Comision Nacional de Mercado de Valores CNMV and that they do not have any warnings issued against them.

A list of financial companies which are not authorised to operate in Spain and those subject to an ongoing investigation is available on the CNMV website.

Seek independent legal advice prior to signing any contracts to make sure the information the company has given you is correct, there are no abusive clauses in the contract and you are fully aware of your rights. Be suspicious of financial companies or agents who try to persuade you into signing a reverse mortgage agreement as a way of avoiding or reducing your tax obligations. If you have any concerns about your tax obligations for example inheritance tax you should seek the advice of an experienced professional tax advisor who can advise you independently.

If you are not happy with the scheme you have been sold, the first step is to submit a complaint to the company responsible for your investment. If after 2 months, you are not satisfied with the response or do not receive a response, you are entitled to complain to the CNMV. Although the CNMV final reports are not binding, they will comment on the conduct of the company or person against whom the complaint has been made.

Where the report favours the customer, the company involved is required to notify the CNMV of any action taken to resolve the matter. If you believe you have been a victim of a fraud involving an equity release scheme you can register a statement with the police and seek independent legal advice on taking action through the courts. Further information for victims of fraud is available on the fraud page.

Timeshare ownership is well established in Spain. However, there are also many unscrupulous companies, some of which claim to provide various incentives including stock market investments and discounts on airfares and accommodation when exchanging existing time-share ownership or taking out membership of holiday clubs. Spanish Property Insight provides information and advice on buying a property in Spain.

Expat forums, English-language newspapers and talking to local residents and other British nationals who have already made the move can really give you a feel for an area and give you insight on any local problems. The Spanish Ombudsman is responsible for defending the fundamental rights and civil liberties of citizens by monitoring the activity of public authorities. If you have a complaint about any public authority, you can submit a complaint to either the regional or national ombudsman.

If you are facing problems with your property in Spain, there are many residents associations who may be able to provide support and advice as well as put you in touch with others who have had similar experiences. Abusos Urbanisticos Almanzora No.

Finca Parcs Action Group. This information is provided as a general guide and is based upon information provided to the embassy by the relevant local authorities and may be subject to change at any time with little or no notice.

435,000
* €/m2
Footnotes to Transaction Costs Table
160 m2 | 7 bedrooms | 4 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Factors to be aware of when buying Spanish property include property scams, high capital gains tax, and fluctuations in the Spanish real estate market. Buying property abroad can be a minefield but is likely necessary as part of your dream move to the sun. Let our guide to buying property in. Introduction. This guide sets out essential information for British nationals wanting to buy property in Spain, including advice on legal advice, buying in certain.

Be aware of agencies that ask for payment upfront, as these may be unregulated and not follow best practices. You can also visit property websites such as idealista. British-based financial institutions are usually a good starting place, with high street lenders such as Santander having a major presence in Spain. There are no legal restrictions on getting a mortgage from a Spanish bank as a British citizen but it could be more difficult as credit checks are performed locally and Brits will not be aware of the intricacies of this process.

But whatever choice property buyers decide to make, they will undoubtedly have to transfer money from a UK bank account to Spain in order to place a deposit and pay legal or valuation fees. Reducing unnecessary fees and charges when buying property in Spain is an important consideration for most house-hunters. Using companies that specialise in international money transfers such as TransferWise can help you save significant amounts. However, you may only get given a rate of 1. I share this story because when buying a property overseas , you must be clear about your objectives.

The preeminent question should be whether you are buying primarily as an investment or as a lifestyle purchase intended to bring you a better life experience. This is not an article full of tax details and financial recommendations. I am not an accountant, and you probably have a unique financial portfolio that most likely requires a specialist.

Also, given the U. What I will share is the path that led me to Valencia in the hope that this might help you with your own decision… even though my path may convince you that Valencia and possibly all of Spain is not right for you. Here is a list of the influencers that I used to determine if Spain was the best option for me.

I have also included some important questions I considered during my search but which may also apply to a property search in any country. I chose Valencia because I wanted a pedestrian friendly, walkable city that would allow me to live downtown without owning a vehicle. Ask yourself:. I spent most of my life in Nashville, Tennessee.

The metropolitan area of Valencia is estimated to be approximately 1. So my transition to Valencia was easier than if I had chosen a much larger city such as Barcelona population 4. I wanted a significant university presence.

Valencia has a university with an estimated 50, students at its three main campuses. I wanted history. Valencia was founded in B. I wanted entertainment options—Orquesta de Valencia, multiple venues for opera, ballet, the Berklee College of Music campus, and more. When I bought my apartment I was 64 years old. I concluded that income would be a good thing and appreciation potential less important.

If you have celebrated your 50th birthday your time horizon might dictate a much different set of guidelines for a purchase. My original intention was to spend six months a year in Valencia and six months in another country, probably in North America. That is still my long-term plan. Spain is ranked in the top eight best health care systems in the world. Valencia opened the largest hospital in Europe five years ago. A Spanish private health insurance policy for a person aged 65 or older is euros per month.

Some countries offer expedited residency with a reasonable property purchase, a modest business investment, or a monetary deposit in a local bank. This condition is very unlikely to apply when purchasing from a developer. These are the additional expenses you are likely to face when buying any property in Spain, regardless of whether the property is new or not.

Estate agency fees or commissions are paid by the seller, unless otherwise agreed. If the buyer uses a search agency then search fees are paid by the buyer.

Despite the ability of the internet to bring together buyers and sellers without the need for an agent most people still use agents to find property in Spain. You are strongly advised to hire a lawyer to help you during the buying process. Your lawyer drafts and reviews contracts on your behalf and can explain all the legal and administrative issues you face. Your lawyer should also carry out any necessary due diligence checking ownership claim of the seller, charges on the property, permits, etc.

This will vary according to the complexity of the purchase. Be warned that some lawyers charge 1. Your best option is to try and find a good lawyer who is prepared to charge on an hourly basis. Legal fees for a purchase without any complications and charged on an hourly basis should be in the region of 1. If you choose to buy with a mortgage then this will incur several additional costs. First there will be the property valuation that the mortgage provider will require before granting the mortgage.

This is paid for the by the buyer and can cost around Euros. Then there will be the costs of the mortgage itself. This varies according to the provider, and even according to the particular branch.

Finally a mortgage will increase the Notary expenses. Notary expenses are nearly always paid by the buyer and are calculated in relation to the purchase price declared in the deeds of sale.

In many cases however Notary fees are more like 0. Expenses related to inscribing the sale with the land registry are also nearly always paid by the buyer, and are calculated in relation to the purchase price declared in the deeds of sale. Though not strictly transaction costs like fees and taxes, there are other costs to bear in mind when buying a home in Spain.

After all, they all come out of the same pocket — namely yours. Once you have got the funds in place, you will need to pay the vendor on the day you complete the purchase. It all depends on the deal you have with your bank. Make sure you clarify this with your bank before you ask for the cheque. Once you own a property you will need to furnish it. The cost of furnishing a property depends entirely upon what you want. However as a very general rule of thumb a 2 bedroom apartment will cost around 10, to 15, Euros to furnish nicely if you buy everything new.

Of course there is no limit to how much you can spend, though you can also get away with less than 10, if you are on a tight budget all from IKEA, for example. This is normally paid by the vendor, but it can become a problem for the buyer if the vendor fails to pay it. Buyers have to be particularly careful with this tax when the vendor does not live in Spain.

834,000
* €/m2
6 Reasons You Should Reconsider Buying Property In Spain
133 m2 | 3 bedrooms | 3 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
There are no rules that restrict the purchase of property in Spain to only EU citizens. This is a point to make clear straight away as the uncertainty can lead to​. With an option contract, you pay the seller a deposit, and the seller sells the property at the agreed price as long as you do so within the timeframe. 6 Reasons You Should Reconsider Buying Property In Spain. In June , I bought a home in Valencia, Spain. You are probably asking.

However as a very general rule of thumb a 2 bedroom apartment will cost around 10, to 15, Euros to furnish nicely if you buy everything new. Of course there is no limit to how much you can spend, though you can also get away with less than 10, if you are on a tight budget all from IKEA, for example.

This is normally paid by the vendor, but it can become a problem for the buyer if the vendor fails to pay it. Buyers have to be particularly careful with this tax when the vendor does not live in Spain. See the section below on costs to bear in mind when selling property in Spain for more information. Find out more about building surveys in Spain. There will of course be costs associated with owning a property in Spain.

Some of these will be maintenance costs, such as cleaning, repairing, reforming, utility bills, rubbish collection, and so on.

These will be determined by the size and type of the property you buy. Obviously a large villa with a garden and pool will require much more effort and cost to maintain than a small apartment. For cleaning a figure of 10 Euros an hour is fairly typical throughout Spain. Apart from the general maintenance costs referred to above, there are a number of costs in the form of taxes and fees that property owners in Spain face.

A local tax on the ownership of property in Spain, irrespective of whether the owner is a resident or not. Calculated on the basis of the valor catastral an administrative value that is usually lower than the market value, sometimes considerably so set by the town hall the tax rate goes from 0.

This tax has been changed several times in recent years. For the latest situation see Spanish Wealth Tax Patrimonio. Not rented out Non-resident property owners who do not rent out their property and who do not have any other source of income in Spain pay income tax based on the value of their property.

Rented out If non-residents rent out their property and receive an income in exchange, they are obliged by law to declare this income and pay taxes on it. The tax rate depends on the level of income. Owners of property that is part of any development, building, or complex in which common zones are shared with other owners are by law obliged to be members of the community of owners, known as the Comunidad de Propietarios.

This will entail paying community fees for the upkeep of the common areas, and any other services that the community vote for. The fees will vary according to the magnitude of the common areas, the costs of maintaining them, and the services that the community vote for. A budget for annual community expenses is approved by majority vote of all owners or representatives who are present at the annual general meeting of the Comunidad de Propietarios. Household insurance will vary according to the circumstances of the owner and the type of property.

However it should be born in mind as a cost that all property owners will face. It is calculated on the basis of the valor catastral an administrative value that is usually lower than the market value, sometimes considerably so of the property. The amount to be paid will depend on how long the seller has owned the property: the longer the period of time during which the seller has owned the property, the higher the amount of tax.

Be warned that if the vendor fails to pay it, the buyer then becomes liable for the unpaid tax, with interest! That means the new owners starts accumulating unpaid IBI tax bills without notification , plus penalties and interest, all without knowing it.

When the vendor is a non-resident, the law states the buyer is liable for this tax, even if the parties have agreed that the vendor will pay. The safest way to play this, from a buyer point of view, is to agree to pay this tax using funds deducted from the agreed sale price. This is particularly relevant when buying from a vendor who does not live in Spain non-resident.

When buying property in Spain, always keep digital and hard copies of all invoices related to your purchase. Likewise, if you ever do building work on the property once you own it, keep copies of all licences and invoices. You may be able to offset these expenses against capital gains when you sell, and so reduce your Spanish capital gains tax on property sales.

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Financial Distress Solutions. Spanish Property Insight Everything you need to know about property in Spain. Remember Me. Forgot password? Click here to reset. New User? The contract of sale escritura de compravento is usually signed in front of a notary, at which point the full sale price, taxes and other costs become due. The services of a notary are not legally necessary to complete the sale.

But it is advisable and required by many mortgages. The seller is responsible for hidden defects in the property, even if they are not aware of them. However, in practice gaining restitution for such defects can be difficult and costly. Paying the costs and taxes associated with buying a home can be completed by the buyer or their agent. The buyer is also responsible for registering the property. Following the crash, Spanish banks were reformed with significant IMF involvement.

This reduced the number of lenders in operation, and significantly increased the regulation and oversight of the industry. As a result, many banks began to lend less and mortgage rates and terms became less favourable. Mortgage lenders will not complete on a mortgage agreement until you own a property.

The buyer usually pays the fees. They vary from region to region. Many are negotiable — there are no fixed fees for lawyers or estate agents. Costs paid by the buyer include:. This is typically their only cost. Capital gains tax is paid on the profit of selling your home, i.

You may be able to claim a reduction on the capital gains tax to account for inflation; or if you are purchasing another property in Spain; or if you are over 65 and have lived in the property as your main residence for more than three years. Your residential status does not affect the application of capital gains tax either, as capital gains tax should be paid in Spain for property owned in Spain even if you are no longer a resident.

Any lawyer practising in Spain should be registered with the local bar association Colegio de Abogados. They will have a registration number that you can ask for and then verify with the bar association. Naturally, registration does not guarantee honesty or competence, but it is a good minimum standard to insist on.

Many governments provide lists of lawyers and translators who speak both Spanish and another language. The Spanish government also provides a list of accredited translators page in Spanish, follow first link in article text for up-to-date PDF.

You may change your settings at any time. Your choices will not impact your visit. NOTE: These settings will only apply to the browser and device you are currently using. Search for:. Buying property in Spain. Last update on May 21, The Spanish property market Spain suffered during the global financial crisis and ensuing property market crash.

Should you rent or buy in Spain? Can foreigners buy property in Spain? Buy a property, get a visa Spain currently offers a golden visa program for property owners. Buying a home in Spain: where to find real estate As it is easy for foreigners to buy property in Spain, there are websites and estate agents catering to almost every language and nationality. Illegal properties For a long time, Spain has been popular with overseas buyers looking for holiday homes.

They recommend, at minimum checking: The credentials of any lawyers or estate agents used; the land registry Registro de la Propriedad ; that appropriate planning permission has been obtained; that there are no outstanding debts attached to the property, such as a mortgage; that the property is as described and structurally sound either a surveyor or an architect can do this.

Buying off plan or a new-build home The worst property scams in Spain, as elsewhere, involve unfinished or unbuilt properties. At minimum you should: Check the company exists; check online at www.

Ensure that the project is registered with the land registry. Check that planning permission has been granted by enquiring at the local city hall. Enlist an independent party for any translations. Demand proof that any sums paid e. Debts transfer with property In Spain, any mortgage or debt tied to a property is transferred to the new owner when the property is sold.

Buying a Spanish property The process of buying a property in Spain usually runs as follows. Legal requirements The services of a notary are not legally necessary to complete the sale. Funding purchase: deposits and mortgages Following the crash, Spanish banks were reformed with significant IMF involvement. Fees and charges The buyer usually pays the fees. Flat lay of business concept Capital gains tax Capital gains tax is paid on the profit of selling your home, i.

Choosing a reliable lawyer Any lawyer practising in Spain should be registered with the local bar association Colegio de Abogados.

392,000
* €/m2
158 m2 | 7 bedrooms | 2 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
With an option contract, you pay the seller a deposit, and the seller sells the property at the agreed price as long as you do so within the timeframe. 6 Reasons You Should Reconsider Buying Property In Spain. In June , I bought a home in Valencia, Spain. You are probably asking. Buyers of new residential properties must pay 10% Value Added Tax (VAT). Buyers of new houses must also pay stamp duty at varying rates, from % to %.

There are no legal restrictions on getting a mortgage from a Spanish bank as a British citizen but it could be more difficult as credit checks are performed locally and Brits will not be aware of the intricacies of this process.

But whatever choice property buyers decide to make, they will undoubtedly have to transfer money from a UK bank account to Spain in order to place a deposit and pay legal or valuation fees. Reducing unnecessary fees and charges when buying property in Spain is an important consideration for most house-hunters.

Using companies that specialise in international money transfers such as TransferWise can help you save significant amounts. However, you may only get given a rate of 1. With its borderless account you can also activate euro account details free without any minimum deposit requirements. This way you can convert your pounds into euros when rates are favourable and hold your euros, and more than 40 other currencies, and make payments as and when you need.

We urge you to turn off your ad blocker for The Telegraph website so that you can continue to access our quality content in the future. When all is well, the parties are advised to sign a preliminary contract, a Contrato privado de compraventa. The estate agent will hold these funds in a bonded client account. As a precaution, it would be wise to put your deposit into an escrow account, a blocked account where neither party can get at them until the sale is closed.

If you intend to raise finance for the purchase, make sure that the sales agreement has an arres agreement i. However, it is possible to sign the contract without such a deposit and while technically you have the right to sue a seller who subsequently withdraws, with an arres agreement in place you are entitled to twice your deposit as compensation in the event that the seller decides to withdraw.

You pay the balance of the purchase price and all fees when you and the seller have signed the Escritura de compraventa, the definitive contract equivalent to the Deeds of the property. If you are buying a new property, you do not own the property until the work is completed, and you are in receipt of relevant certificates. In Spain, the notary is a public official and is required to witness the deed of sale. But getting expert, independent legal advice in addition to the notary is recommended to protect your own interests.

The notary prepares the official contracts and makes sure they comply with Spanish regulations. The notary enters the sale on the local property registers Registrio de las Propriedad to protect against third party claims. If there is common ownership, a Community of Owners must be established through which community charges can be shared. If your property is in an apartment block then the situation relating to the Horizontal Division should be clear, especially in new developments. The property transfer tax is paid at the relevant tax office.

With the right due diligence, it is acceptable in Spain to do as the Spaniards do — pay the down payment directly to the seller at the time of signing the down payment agreement. In general, non-resident buyers in Spain can enjoy the same mortgage conditions as Spaniards, i.

Other important information to bear in mind is that mortgages in Spain are normally taken out for a minimum of five years and a maximum of thirty , with the maximum age of 75 years for completing the mortgage.

It should also be noted that each institution has its own risk criteria, in which the country of residence can be included, and that properties abroad are not usually accepted as collateral, as it is difficult to reach them.

You can read more about getting a mortgage in Spain in this article. When you buy a property in Spain , you will be obligated to pay some taxes. Property taxes vary wether you are buying a brand new property or a resale property. When buying a resale property a property that has changed hands at least once you will be required to pay the Transfer Tax or ITP in Spanish, that is levied on a sliding scale depending on the purchase price.

For more information about property tax in Spain , you can check the linked article. If you are going to buy a property and want to save yourself future problems , it is advisable to seek a dvice from a property lawyer in Spain. The savings far exceed the cost of legal fees. Buying your home is usually the largest investment for most individuals. Even those who own several properties tend to invest cautiously in the real estate market.

Real estate companies always u se the services of lawyers before making an investment. In short, the services of a lawyer are often more useful for preventive than corrective purposes. Before entering into the purchase of a property, basic tasks of research and analysis must be carried out. It is important to check that the property is in order and that the contracts of purchase and sale and, where appropriate, mortgage loan, will not end up causing problems.

In addition, tax burdens represent a significant percentage of the operation. It is therefore a good idea to know this extra before you get a fright. If you are buying a property in Spain and need legal advice, you can contact with our real estate lawyers. Contact us!

118,000
* €/m2
Should you rent or buy in Spain?
174 m2 | 3 bedrooms | 4 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
There are no rules that restrict the purchase of property in Spain to only EU citizens. This is a point to make clear straight away as the uncertainty can lead to​. There are no restrictions on. Buyers of new residential properties must pay 10% Value Added Tax (VAT). Buyers of new houses must also pay stamp duty at varying rates, from % to %.

In fact, Spain encourages investment by foreigners, both resident and non-resident. You will require a financial number which can acquire by visiting a police station with your passport. This typically happens on the day for Spanish or EU citizens but may take a few weeks for others.

This is not a work permit, but it will allow you to live in the country. As it is easy for foreigners to buy property in Spain, there are websites and estate agents catering to almost every language and nationality. Many British real estate websites also list Spanish properties, with some online portals listing thousands of options. However, these mostly focus on holiday homes, so you may prefer to use a Spanish site, such as the ones listed below. Estate agents provide a wealth of information about the region, are bilingual, and often deal with overseas buyers.

However, regulation is relatively low and unscrupulous estate agents do exist, so be wary of anyone who asks for payments upfront or suggests cutting corners. Always remember that you can choose your own notary, mortgage provider and so forth — you do not need to use a service suggested by the estate agent. On occasion, the large numbers of inexperienced foreign buyers have provided an opportunity for unscrupulous developers and estate agents to sell properties that are not legitimate.

In some cases, planning permission has not been acquired before building, and properties are eventually torn down by the local government. In others, the quality of the property has not been up to scratch or as indicated, resulting in costly repairs.

The British Foreign Office has issued notices warning expat buyers to be cautious and not take unnecessary risks. They recommend, at minimum checking:. Most of this information can be provided by the land registry and accessed by making a request by email, phone, fax or in person. You can find the appropriate land registry office by vising the national website: www.

While malicious intent is rare, caution is advisable when buying a property which does not yet exist. At minimum you should:. As a non-resident, you may also buy land and have a property built yourself. In this case, good legal advice is even more important as you will need to ensure that contracts with builders are appropriate and watertight. In Spain, any mortgage or debt tied to a property is transferred to the new owner when the property is sold.

Debts may include:. The process of buying a property in Spain usually runs as follows. The buyer then arranges any mortgage they require, although they should have already discussed their needs with the mortgage provider. The contract of sale escritura de compravento is usually signed in front of a notary, at which point the full sale price, taxes and other costs become due.

The services of a notary are not legally necessary to complete the sale. But it is advisable and required by many mortgages.

The seller is responsible for hidden defects in the property, even if they are not aware of them. However, in practice gaining restitution for such defects can be difficult and costly. Paying the costs and taxes associated with buying a home can be completed by the buyer or their agent.

The buyer is also responsible for registering the property. Following the crash, Spanish banks were reformed with significant IMF involvement. This reduced the number of lenders in operation, and significantly increased the regulation and oversight of the industry. As a result, many banks began to lend less and mortgage rates and terms became less favourable. Mortgage lenders will not complete on a mortgage agreement until you own a property. The buyer usually pays the fees.

They vary from region to region. Many are negotiable — there are no fixed fees for lawyers or estate agents. Costs paid by the buyer include:. This is typically their only cost. Capital gains tax is paid on the profit of selling your home, i. You may be able to claim a reduction on the capital gains tax to account for inflation; or if you are purchasing another property in Spain; or if you are over 65 and have lived in the property as your main residence for more than three years.

Your residential status does not affect the application of capital gains tax either, as capital gains tax should be paid in Spain for property owned in Spain even if you are no longer a resident. Any lawyer practising in Spain should be registered with the local bar association Colegio de Abogados. They will have a registration number that you can ask for and then verify with the bar association. Naturally, registration does not guarantee honesty or competence, but it is a good minimum standard to insist on.

Many governments provide lists of lawyers and translators who speak both Spanish and another language. The Spanish government also provides a list of accredited translators page in Spanish, follow first link in article text for up-to-date PDF. You may change your settings at any time. You can also check this at the Land Registry.

You will need this document to connect to electricity and water companies. Developers cannot force you to complete without this licence.

Consider asking a chartered surveyor to check the property. This is not obligatory but it is wise to obtain a professional opinion on the property before you complete. Members of the RICS are qualified and experienced professionals offering independent and impartial advice. The Spanish College of Architects in each province also offers a list of independent specialist surveyors.

If the developer does not build your property by the deadline in the contract, or services and utilities are not completed and connected to standard, or the habitation certificate cannot be issued, you are legally entitled to:. If you want to cancel the contract, you should get independent legal advice. Once you have consulted a lawyer, the first step is to write to the developer to explain that due to non-compliance with the contract, you want to cancel the contract and request that the deposits paid so far are returned, as well as the accrued interest.

You should include any relevant documents for example. You should write to the developer using Burofax, so you can prove that you have sent the documents and that the developer received them. If the developer does not respond to you within the specified timeframe, you should contact the claims department of the bank or savings bank responsible for the guarantee to request a refund of the payments made. Should the bank not comply, the only remaining course of redress is to instruct a lawyer to take a civil case against the bank.

If you believe you have been a victim of fraud and you have neither a bank guarantee nor an insurance policy from the developer, you should seek independent legal advice regarding taking criminal legal action through the courts and register a statement with the police.

From the 1 June , all homes for sale or to let in Spain are required by law to have an energy efficiency certificate. If you are offering your property for rent after this date, you will need to obtain an energy certificate first. If you want to let your property to tourists on a short-term basis, you must ensure that you are doing so in accordance with Spanish law.

The regulations on letting tourist apartments apartamentos turisticos and holiday homes viviendas vacacionales to tourists will vary depending on the region where the property is located.

If you are planning on making a return by renting out your property on a short-term basis,seek independent legal advice and check the local laws at the town hall or the tourist department of the regional government before you buy. Be aware that the marketing of private residential property to tourists is strictly regulated in many regions of Spain.

Owners who are caught illegally advertising or letting out their properties without complying with local legislation can be liable for significant fines. If you are planning to buy an apartment which is part of a residential block, you should also check whether there are any rules set by the committee of owners that prohibit or restrict short-term letting.

You may want to consider hiring a Spanish letting agent to assist with finding tenants, drawing up rental contracts and managing the property on your behalf. In some regions, it is obligatory to use a specialist tourist apartment management company for short-term rentals to tourists. Owners who let their properties on a long-term basis are free to do so within the terms set out by the national rental law. However, it is worth seeking professional advice to make sure that you are complying with Spanish legislation and that you are using the correct rental contract.

In Spain, there are different types of contracts depending on how long the property is due to be let. You can get copies of these contracts from tobacconists. You must ensure that you declare your rental income to the Spanish tax authorities Agencia Tributaria whether you are resident in Spain or not.

Taxation is a complex issue, and it is advisable to seek the advice of an accountant or professional tax adviser with comprehensive and up to date knowledge of both the UK and Spanish tax regulations.

Equity release schemes are schemes which are designed to allow homeowners to release equity from the value of their property as income, a lump sum or a mixture of both. A reverse mortgage hipoteca inversa is one form of equity release which allows homeowners to borrow money against the value of their home, which is used as collateral. Reverse mortgages are generally marketed at retired homeowners who are over 65 years old.

If you are considering an equity release scheme, such as a reverse mortgage or lifetime loan, it is advisable to check that the company offering the mortgage is registered with the financial regulator for the securities markets, the Comision Nacional de Mercado de Valores CNMV and that they do not have any warnings issued against them.

A list of financial companies which are not authorised to operate in Spain and those subject to an ongoing investigation is available on the CNMV website. Seek independent legal advice prior to signing any contracts to make sure the information the company has given you is correct, there are no abusive clauses in the contract and you are fully aware of your rights.

Be suspicious of financial companies or agents who try to persuade you into signing a reverse mortgage agreement as a way of avoiding or reducing your tax obligations. If you have any concerns about your tax obligations for example inheritance tax you should seek the advice of an experienced professional tax advisor who can advise you independently. If you are not happy with the scheme you have been sold, the first step is to submit a complaint to the company responsible for your investment.

If after 2 months, you are not satisfied with the response or do not receive a response, you are entitled to complain to the CNMV. Although the CNMV final reports are not binding, they will comment on the conduct of the company or person against whom the complaint has been made.

Where the report favours the customer, the company involved is required to notify the CNMV of any action taken to resolve the matter. If you believe you have been a victim of a fraud involving an equity release scheme you can register a statement with the police and seek independent legal advice on taking action through the courts. Further information for victims of fraud is available on the fraud page. Timeshare ownership is well established in Spain.

However, there are also many unscrupulous companies, some of which claim to provide various incentives including stock market investments and discounts on airfares and accommodation when exchanging existing time-share ownership or taking out membership of holiday clubs. Spanish Property Insight provides information and advice on buying a property in Spain. Expat forums, English-language newspapers and talking to local residents and other British nationals who have already made the move can really give you a feel for an area and give you insight on any local problems.

The Spanish Ombudsman is responsible for defending the fundamental rights and civil liberties of citizens by monitoring the activity of public authorities. If you have a complaint about any public authority, you can submit a complaint to either the regional or national ombudsman. If you are facing problems with your property in Spain, there are many residents associations who may be able to provide support and advice as well as put you in touch with others who have had similar experiences.

Abusos Urbanisticos Almanzora No. Finca Parcs Action Group. This information is provided as a general guide and is based upon information provided to the embassy by the relevant local authorities and may be subject to change at any time with little or no notice.

The FCO and the British embassy will not be liable for any inaccuracies in this information. British nationals wishing to obtain any further information must contact the relevant local authority.

Hyperlink for Spanish Insights changed to the list of published guides. Information added about letting and the new property energy efficiency certificates. To help us improve GOV. It will take only 2 minutes to fill in. Skip to main content. Home Help for British nationals overseas Europe. Guidance Spain: buying property. Published 22 March Last updated 5 July — see all updates. Introduction This guide sets out essential information for British nationals wanting to buy property in Spain, including advice on legal advice, buying in certain areas, complaints and more.

Legal advice We strongly recommended that you choose an independent lawyer who specialises in Spanish land law urbanismo. Spanish notaries A Spanish notary public will prepare the contract of sale and issue the public deeds.

As the purchaser, you have the right to choose which notary you use. Find English-speaking notaries British estate agents, promoters and lawyers If you choose to work with a British estate agent, promoter or lawyer, check that: they are qualified, reliable and have experience operating in Spain they are registered with the Law Society in the UK they specialise in international transactions If your lawyer is based in Spain, ask for their registration number and check that they are registered and practising with the local bar association Colegio de Abogados.

More information can be found on their services here Property disputes: legal aid If you are involved in a property dispute and do not have enough money to pay the costs of a court case, you can apply for legal aid. Translators If you do not have a good understanding of Spanish, make sure that you get all contracts and documents translated by an independent translator. Mortgages Do your homework: you should analyse and compare different products and services offered by lending companies. You should also check with the Bank of Spain that the lender is authorised to operate in Spain There are a range of mortgages on offer and you should pay special attention to the interest rate and repayment period, fees for setting up the mortgage as well as early repayment and cancellation fees.

Tax The Spanish tax authority, the Agencia Tributaria provides some information on its website in English. Fraud See property fraud guidance. Complaints against the legal system If you believe your lawyer has been negligent and has not met their obligations, you should first complain to the provincial bar association. Complaints should be in writing and in Spanish. In the case of a private build the previous owner built their own house and decided to sell before 10 years had lapsed you will need to request these details separately You should check the latest town plan to see whether or not the plot you wish to buy has any building restrictions, is in a green zone or includes a public pathway or similar.

It is also wise to get a certificate from the town hall proving that there are no unpaid rates from previous years the cadastral certificate giving the exact boundaries and square metres of your land - this will be linked to the land register record by a cadastral reference number. You should ensure that the property and land description contained in both records matches the licence of first occupancy or habitation certificate issued by the town hall. Developers cannot force you to complete without this licence receipt to prove all utility bills have been paid by the previous owner if applicable, a certificate signed by the President of the Community of Property Owners stating that there are no outstanding debts.

You should be aware that if you later find that there are such debts outstanding, as the new owner, you assume the debts for the current and previous year 2years in total as from 1 June , all homes for sale or to let in Spain are required by law to have an energy efficiency certificate.

If you are considering buying a property, the seller is obliged to show you this certificate On completion, the public deed should contain an accurate description of the property. Buying property in certain areas If you are considering purchasing a coastal property you should contact the Coastal Demarcation office in your region to get a certificate to certify that the property is not affected by the Coastal Law. Buying property off-plan Buying off-plan property inevitably involves higher risk than buying re-sale property.

Before you pay Make sure you have a bank guarantee aval bancario to cover your stage payments. Before you sign the title deed Once construction has finished, and before you sign the title deed, ask for proof from the seller that the construction has been finished in accordance with the description given in the plans. Cancelling the contract If the developer does not build your property by the deadline in the contract, or services and utilities are not completed and connected to standard, or the habitation certificate cannot be issued, you are legally entitled to: cancel the contract and have the deposits returned plus interest extend the deadline, allowing the developer to complete the property If you want to cancel the contract, you should get independent legal advice.

Renting out your property From the 1 June , all homes for sale or to let in Spain are required by law to have an energy efficiency certificate.

767,000
* €/m2
103 m2 | 4 bedrooms | 5 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Introduction. This guide sets out essential information for British nationals wanting to buy property in Spain, including advice on legal advice, buying in certain. Factors to be aware of when buying Spanish property include property scams, high capital gains tax, and fluctuations in the Spanish real estate market. 6 Reasons You Should Reconsider Buying Property In Spain. In June , I bought a home in Valencia, Spain. You are probably asking.

Let me explain…. Recently I was looking at properties with an American couple of retirement age, who were in Valencia for the first time. Our initial communications had led me to believe that they were interested in a property in the central historic district that would serve as their home for part of the year and provide some rental income when they were not in residence.

I had thought that the primary purpose of their purchase was to provide an alternative life experience. It was now clear that return on investment was paramount. I share this story because when buying a property overseas , you must be clear about your objectives.

The preeminent question should be whether you are buying primarily as an investment or as a lifestyle purchase intended to bring you a better life experience. This is not an article full of tax details and financial recommendations. I am not an accountant, and you probably have a unique financial portfolio that most likely requires a specialist. Also, given the U. What I will share is the path that led me to Valencia in the hope that this might help you with your own decision… even though my path may convince you that Valencia and possibly all of Spain is not right for you.

Here is a list of the influencers that I used to determine if Spain was the best option for me. I have also included some important questions I considered during my search but which may also apply to a property search in any country. I chose Valencia because I wanted a pedestrian friendly, walkable city that would allow me to live downtown without owning a vehicle. Ask yourself:.

I spent most of my life in Nashville, Tennessee. The metropolitan area of Valencia is estimated to be approximately 1. So my transition to Valencia was easier than if I had chosen a much larger city such as Barcelona population 4. I wanted a significant university presence. Valencia has a university with an estimated 50, students at its three main campuses.

I wanted history. Valencia was founded in B. I wanted entertainment options—Orquesta de Valencia, multiple venues for opera, ballet, the Berklee College of Music campus, and more. When I bought my apartment I was 64 years old.

I concluded that income would be a good thing and appreciation potential less important. If you have celebrated your 50th birthday your time horizon might dictate a much different set of guidelines for a purchase. My original intention was to spend six months a year in Valencia and six months in another country, probably in North America.

See the Living in Spain guide for brief information on taxation. See property fraud guidance. If you believe your lawyer has been negligent and has not met their obligations, you should first complain to the provincial bar association.

If their response is unsatisfactory, you can take your complaint to the regional and then national bar associations. If you have a complaint about the way a court has handled your case, contact the General Council of the Judiciary. If you have a complaint against a notary or gestor administrativo, contact the professional council of which they are a member.

See residency requirements in Spain. You should check that planning permissions are in order and the property is a legal build. This is particularly important when buying off-plan or direct from a developer. The town hall can tell you whether the building has all licences and permissions and what type of land it is.

If the property is built on rural land or land that is not classified for construction, you should ask the regional government to confirm construction is authorised. If you are buying an off-plan property, confirm that the property has been certified as finished by a registered architect and registered as a new build in the property register. In the case of a private build the previous owner built their own house and decided to sell before 10 years had lapsed you will need to request these details separately.

You should check the latest town plan to see whether or not the plot you wish to buy has any building restrictions, is in a green zone or includes a public pathway or similar. You can do this at to the town planning urbanismo department of the local town hall. You should have the property surveyed. This is not obligatory, but it is wise to get a chartered surveyor to check the property. You should know the cadastral value of the property and how much purchase tax will be due. On completion, the public deed should contain an accurate description of the property.

You should register the property in your name with the Land Registry as soon as possible to ensure full protection of your rights. The notary can even send advance notification to the Land Registry electronically once the public deed is signed. If you are considering purchasing a coastal property you should contact the Coastal Demarcation office in your region to get a certificate to certify that the property is not affected by the Coastal Law.

Be extremely careful if the Land Registry record shows that the property you wish to buy is built on rural land. In normal circumstances the government reserves this type of land for agricultural use and you need to check with the municipal and regional authorities to ensure that full planning permission has been obtained for residential use. Buying off-plan property inevitably involves higher risk than buying re-sale property. If you are considering buying off-plan in Spain there are a number of points to consider.

Make sure you have a bank guarantee aval bancario to cover your stage payments. Developers of off-plan properties are legally obliged to secure all deposits with a bank guarantee. However, bear in mind that this obligation only comes into force once the developer has planning permission, so you should ask to see this before making any payments. You can also check this at the Land Registry, because if the description of the future building is registered, the registrar will have seen evidence that the licence exists and work has begun following the approved design.

You should ensure that the bank guarantee is individual and not a collective guarantee covering the whole development, which does not give the same protection. You should also request proof that your payments are deposited in a special escrow account, which can only be used for the construction of the specified development.

You can visit any Mercantile Registry office or use the Land Registry website. Make sure you obtain a copy of the cadastral certificate giving the exact boundaries and square metres of your land.

Ensure the developer has insurance covering damage caused by structural defects to the building. This insurance should be included in the property manual libro del edificio that the developer gives you.

You should also get a planning certificate for the plot you wish to buy from the town planning Urbanismo department of the town hall. This will include information such as whether the plot has any building restrictions, is in a green zone, includes a public footpath or if there are any current plans to build a motorway etc.

Once construction has finished, and before you sign the title deed, ask for proof from the seller that the construction has been finished in accordance with the description given in the plans.

This is issued as a certificate certificado final de obra. You can also check this at the Land Registry. You will need this document to connect to electricity and water companies.

Developers cannot force you to complete without this licence. Consider asking a chartered surveyor to check the property.

This is not obligatory but it is wise to obtain a professional opinion on the property before you complete. Members of the RICS are qualified and experienced professionals offering independent and impartial advice.

The Spanish College of Architects in each province also offers a list of independent specialist surveyors. If the developer does not build your property by the deadline in the contract, or services and utilities are not completed and connected to standard, or the habitation certificate cannot be issued, you are legally entitled to:. If you want to cancel the contract, you should get independent legal advice. Once you have consulted a lawyer, the first step is to write to the developer to explain that due to non-compliance with the contract, you want to cancel the contract and request that the deposits paid so far are returned, as well as the accrued interest.

You should include any relevant documents for example. You should write to the developer using Burofax, so you can prove that you have sent the documents and that the developer received them. If the developer does not respond to you within the specified timeframe, you should contact the claims department of the bank or savings bank responsible for the guarantee to request a refund of the payments made. Should the bank not comply, the only remaining course of redress is to instruct a lawyer to take a civil case against the bank.

If you believe you have been a victim of fraud and you have neither a bank guarantee nor an insurance policy from the developer, you should seek independent legal advice regarding taking criminal legal action through the courts and register a statement with the police.

From the 1 June , all homes for sale or to let in Spain are required by law to have an energy efficiency certificate.

If you are offering your property for rent after this date, you will need to obtain an energy certificate first. If you want to let your property to tourists on a short-term basis, you must ensure that you are doing so in accordance with Spanish law.

The regulations on letting tourist apartments apartamentos turisticos and holiday homes viviendas vacacionales to tourists will vary depending on the region where the property is located. If you are planning on making a return by renting out your property on a short-term basis,seek independent legal advice and check the local laws at the town hall or the tourist department of the regional government before you buy.

Buying property in Spain after Brexit is something that is keeping all of us thinking.. Questions like, should I buy property in Spain after Brexit? Is it safe? Is it wise? Will you be able to rent it out?

The prices of property after Brexit, will they go up? Even healthcare, pensions, work, or living in Spain. All that and much more in our curated article. Quick inforgraphic, full in depth article below the infographic. Want to hare this Image On Your Site?

Simply add this code :. There are no rules that restrict the purchase of property in Spain to only EU citizens. This is a point to make clear straight away as the uncertainty can lead to misinformation and concern. In Spain, if you can pay the purchase price you can own the property. Throughout the years, citizens from outside the EU borders like Norway or America have been buying property in Spain without any issue, and the fact that Britain will exit the EU will not change this rule, nor there will be a specific rule pointing out UK citizens.

Not only you are absolutely able to buy a house in Spain, but the Spanish government is always trying their best to encourage non-EU residents to purchase a property in Spain with deals like the Golden Visa scheme.

Think about it, Spain benefits enormously from outsiders buying property and living in there, even after Brexit.

871,000
* €/m2
289 m2 | 1 bedrooms | 10 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Factors to be aware of when buying Spanish property include property scams, high capital gains tax, and fluctuations in the Spanish real estate market. Buyers of new residential properties must pay 10% Value Added Tax (VAT). Buyers of new houses must also pay stamp duty at varying rates, from % to %. With an option contract, you pay the seller a deposit, and the seller sells the property at the agreed price as long as you do so within the timeframe.

Seek independent legal advice prior to signing any contracts to make sure the information the company has given you is correct, there are no abusive clauses in the contract and you are fully aware of your rights. Be suspicious of financial companies or agents who try to persuade you into signing a reverse mortgage agreement as a way of avoiding or reducing your tax obligations. If you have any concerns about your tax obligations for example inheritance tax you should seek the advice of an experienced professional tax advisor who can advise you independently.

If you are not happy with the scheme you have been sold, the first step is to submit a complaint to the company responsible for your investment. If after 2 months, you are not satisfied with the response or do not receive a response, you are entitled to complain to the CNMV.

Although the CNMV final reports are not binding, they will comment on the conduct of the company or person against whom the complaint has been made. Where the report favours the customer, the company involved is required to notify the CNMV of any action taken to resolve the matter. If you believe you have been a victim of a fraud involving an equity release scheme you can register a statement with the police and seek independent legal advice on taking action through the courts.

Further information for victims of fraud is available on the fraud page. Timeshare ownership is well established in Spain. However, there are also many unscrupulous companies, some of which claim to provide various incentives including stock market investments and discounts on airfares and accommodation when exchanging existing time-share ownership or taking out membership of holiday clubs.

Spanish Property Insight provides information and advice on buying a property in Spain. Expat forums, English-language newspapers and talking to local residents and other British nationals who have already made the move can really give you a feel for an area and give you insight on any local problems.

The Spanish Ombudsman is responsible for defending the fundamental rights and civil liberties of citizens by monitoring the activity of public authorities. If you have a complaint about any public authority, you can submit a complaint to either the regional or national ombudsman. If you are facing problems with your property in Spain, there are many residents associations who may be able to provide support and advice as well as put you in touch with others who have had similar experiences.

Abusos Urbanisticos Almanzora No. Finca Parcs Action Group. This information is provided as a general guide and is based upon information provided to the embassy by the relevant local authorities and may be subject to change at any time with little or no notice. The FCO and the British embassy will not be liable for any inaccuracies in this information.

British nationals wishing to obtain any further information must contact the relevant local authority. Hyperlink for Spanish Insights changed to the list of published guides. Information added about letting and the new property energy efficiency certificates.

To help us improve GOV. It will take only 2 minutes to fill in. Skip to main content. Home Help for British nationals overseas Europe. Guidance Spain: buying property. Published 22 March Last updated 5 July — see all updates. Introduction This guide sets out essential information for British nationals wanting to buy property in Spain, including advice on legal advice, buying in certain areas, complaints and more.

Legal advice We strongly recommended that you choose an independent lawyer who specialises in Spanish land law urbanismo. Spanish notaries A Spanish notary public will prepare the contract of sale and issue the public deeds. As the purchaser, you have the right to choose which notary you use. Find English-speaking notaries British estate agents, promoters and lawyers If you choose to work with a British estate agent, promoter or lawyer, check that: they are qualified, reliable and have experience operating in Spain they are registered with the Law Society in the UK they specialise in international transactions If your lawyer is based in Spain, ask for their registration number and check that they are registered and practising with the local bar association Colegio de Abogados.

More information can be found on their services here Property disputes: legal aid If you are involved in a property dispute and do not have enough money to pay the costs of a court case, you can apply for legal aid. Translators If you do not have a good understanding of Spanish, make sure that you get all contracts and documents translated by an independent translator.

Mortgages Do your homework: you should analyse and compare different products and services offered by lending companies. You should also check with the Bank of Spain that the lender is authorised to operate in Spain There are a range of mortgages on offer and you should pay special attention to the interest rate and repayment period, fees for setting up the mortgage as well as early repayment and cancellation fees. Tax The Spanish tax authority, the Agencia Tributaria provides some information on its website in English.

Fraud See property fraud guidance. Complaints against the legal system If you believe your lawyer has been negligent and has not met their obligations, you should first complain to the provincial bar association. Complaints should be in writing and in Spanish. In the case of a private build the previous owner built their own house and decided to sell before 10 years had lapsed you will need to request these details separately You should check the latest town plan to see whether or not the plot you wish to buy has any building restrictions, is in a green zone or includes a public pathway or similar.

It is also wise to get a certificate from the town hall proving that there are no unpaid rates from previous years the cadastral certificate giving the exact boundaries and square metres of your land - this will be linked to the land register record by a cadastral reference number. You should ensure that the property and land description contained in both records matches the licence of first occupancy or habitation certificate issued by the town hall. Developers cannot force you to complete without this licence receipt to prove all utility bills have been paid by the previous owner if applicable, a certificate signed by the President of the Community of Property Owners stating that there are no outstanding debts.

You should be aware that if you later find that there are such debts outstanding, as the new owner, you assume the debts for the current and previous year 2years in total as from 1 June , all homes for sale or to let in Spain are required by law to have an energy efficiency certificate.

If you are considering buying a property, the seller is obliged to show you this certificate On completion, the public deed should contain an accurate description of the property. Buying property in certain areas If you are considering purchasing a coastal property you should contact the Coastal Demarcation office in your region to get a certificate to certify that the property is not affected by the Coastal Law.

Buying property off-plan Buying off-plan property inevitably involves higher risk than buying re-sale property. Before you pay Make sure you have a bank guarantee aval bancario to cover your stage payments. Before you sign the title deed Once construction has finished, and before you sign the title deed, ask for proof from the seller that the construction has been finished in accordance with the description given in the plans. Cancelling the contract If the developer does not build your property by the deadline in the contract, or services and utilities are not completed and connected to standard, or the habitation certificate cannot be issued, you are legally entitled to: cancel the contract and have the deposits returned plus interest extend the deadline, allowing the developer to complete the property If you want to cancel the contract, you should get independent legal advice.

Renting out your property From the 1 June , all homes for sale or to let in Spain are required by law to have an energy efficiency certificate. Short-term lets If you want to let your property to tourists on a short-term basis, you must ensure that you are doing so in accordance with Spanish law. Long-term lets Owners who let their properties on a long-term basis are free to do so within the terms set out by the national rental law. Letting taxes You must ensure that you declare your rental income to the Spanish tax authorities Agencia Tributaria whether you are resident in Spain or not.

Equity release schemes Equity release schemes are schemes which are designed to allow homeowners to release equity from the value of their property as income, a lump sum or a mixture of both. Problems with timeshare property Timeshare ownership is well established in Spain. Related content Spain: register your residency Living in Spain: useful information Property fraud guidance France: buying property Spain: doctors.

Not only you are absolutely able to buy a house in Spain, but the Spanish government is always trying their best to encourage non-EU residents to purchase a property in Spain with deals like the Golden Visa scheme. Think about it, Spain benefits enormously from outsiders buying property and living in there, even after Brexit. Also, there are signals that the Spanish construction sector has started to rise and is moving once again.

The number of UK citizens making the choice to buy property and live in Spain has actually risen a lot lately , due specifically to Brexit. So, should I buy a property in Spain after Brexit? Continue reading and if you are interested check our properties below. Our special pick of houses and villas in Spain. Like the first point, your nationality or citizenship will not have an impact on the price you pay for a property. Regarding the notary fees, to buy a property in the UK you simply exchange the property contracts, pay the vendor and the property belongs to you, is a simple procedure.

Following this you add your title to the property in the land register. The fee you pay to the notary is controlled by the Spanish government and is based on the number of clauses in the property deeds and the declared value of the property.

We analyze here how reliable a Spanish notary is. Finally, the fluctuation of the Pound and Euro is constant and can influence how much the currency is worth and how much you pay to buy a property in Spain, especially with the consequences of the Brexit deal.

This is something to have in mind when you're thinking of buying a property in Spain post Brexit. Regarding the issues of Brexit, whether you are a resident or non resident you have to be aware of the Property Taxes in Spain regarding the purchase, sale or ownership of your property.

Tourism is still one of the most important industries in Spain and the UK is the biggest source of this, as 18 million Brits visit Spain every year. With this said, it is likely that the Spanish government does their best to keep this flow going, meaning they will make it as easy as possible for UK citizens to buy, visit or stay in Spain. You may change your settings at any time. Your choices will not impact your visit. NOTE: These settings will only apply to the browser and device you are currently using.

Search for:. Buying property in Spain. Last update on May 21, The Spanish property market Spain suffered during the global financial crisis and ensuing property market crash. Should you rent or buy in Spain?

Can foreigners buy property in Spain? Buy a property, get a visa Spain currently offers a golden visa program for property owners. Buying a home in Spain: where to find real estate As it is easy for foreigners to buy property in Spain, there are websites and estate agents catering to almost every language and nationality.

Illegal properties For a long time, Spain has been popular with overseas buyers looking for holiday homes. They recommend, at minimum checking: The credentials of any lawyers or estate agents used; the land registry Registro de la Propriedad ; that appropriate planning permission has been obtained; that there are no outstanding debts attached to the property, such as a mortgage; that the property is as described and structurally sound either a surveyor or an architect can do this.

Buying off plan or a new-build home The worst property scams in Spain, as elsewhere, involve unfinished or unbuilt properties. At minimum you should: Check the company exists; check online at www. Ensure that the project is registered with the land registry. Check that planning permission has been granted by enquiring at the local city hall. Enlist an independent party for any translations. Demand proof that any sums paid e.

Debts transfer with property In Spain, any mortgage or debt tied to a property is transferred to the new owner when the property is sold. Buying a Spanish property The process of buying a property in Spain usually runs as follows.

Legal requirements The services of a notary are not legally necessary to complete the sale. Funding purchase: deposits and mortgages Following the crash, Spanish banks were reformed with significant IMF involvement.

Fees and charges The buyer usually pays the fees. Flat lay of business concept Capital gains tax Capital gains tax is paid on the profit of selling your home, i. Choosing a reliable lawyer Any lawyer practising in Spain should be registered with the local bar association Colegio de Abogados.

Finding a translator Many governments provide lists of lawyers and translators who speak both Spanish and another language. Related articles. July 1, A guide to Spanish mortgages. Housing Listings. May 28, 2 bedroom Apartment for sale in Pedreguer. May 28, 2 bedroom Apartment for sale in El Mojon. May 28, 3 bedroom Townhouse for sale in Facheca.

424,000
* €/m2
137 m2 | 5 bedrooms | 8 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
At present VAT (known as IVA in Spain) is 10% on the purchase price of residential properties (villa, apartment, etc), and 21% for commercial properties and plots. Factors to be aware of when buying Spanish property include property scams, high capital gains tax, and fluctuations in the Spanish real estate market. Buying property abroad can be a minefield but is likely necessary as part of your dream move to the sun. Let our guide to buying property in.

Regarding the notary fees, to buy a property in the UK you simply exchange the property contracts, pay the vendor and the property belongs to you, is a simple procedure.

Following this you add your title to the property in the land register. The fee you pay to the notary is controlled by the Spanish government and is based on the number of clauses in the property deeds and the declared value of the property.

We analyze here how reliable a Spanish notary is. Finally, the fluctuation of the Pound and Euro is constant and can influence how much the currency is worth and how much you pay to buy a property in Spain, especially with the consequences of the Brexit deal. This is something to have in mind when you're thinking of buying a property in Spain post Brexit.

Regarding the issues of Brexit, whether you are a resident or non resident you have to be aware of the Property Taxes in Spain regarding the purchase, sale or ownership of your property. Tourism is still one of the most important industries in Spain and the UK is the biggest source of this, as 18 million Brits visit Spain every year. With this said, it is likely that the Spanish government does their best to keep this flow going, meaning they will make it as easy as possible for UK citizens to buy, visit or stay in Spain.

Is to everyone's good. Finally, the biggest uncertainty is whether you can move to Spain in your brand new property or not. We will have to wait for negotiations to resume so we can know more about this matter. Do you like our article? Share it with your friends in the link on the top of our page.

This is something that is keeping everyone awake and could have a potential impact on UK citizens after Brexit. In terms of the process to rent the actual property legally in Spain it will be the same. At the moment, buying Spanish property is a good investment. Only a Gestor Administrativo with the GA kite mark is professionally qualified and certified to process paperwork directly with the Spanish administration. More information can be found on their services here. If you are involved in a property dispute and do not have enough money to pay the costs of a court case, you can apply for legal aid.

More information is available on the European E-Justice Portal. If you are resident in Spain, you should apply to the local bar association. You may need to find a new lawyer with specific expertise for example, specialist civil lawyers for compensation claims against private parties such as agents, developers or banks, and specialist public body litigants contencioso administrativo for claims against local, regional or state authorities.

If you do not have a good understanding of Spanish, make sure that you get all contracts and documents translated by an independent translator. You can find a list of accredited translators and interpreters in Spain on the Spanish Ministry for Foreign Affairs website. Do your homework: you should analyse and compare different products and services offered by lending companies.

If you have any doubts about the terms and conditions, ask the lender to explain. You should also check with the Bank of Spain that the lender is authorised to operate in Spain. There are a range of mortgages on offer and you should pay special attention to the interest rate and repayment period, fees for setting up the mortgage as well as early repayment and cancellation fees. If you cannot keep up the mortgage repayments, the Spanish bank could repossess your property in Spain.

If the value of the property is less than the total debt outstanding you are in negative equity , the bank may pursue your UK assets to recover the mortgage shortfall using a European Enforcement Order. Make sure you fully understand the mortgage agreement you sign. If you have any doubts check with the branch during the 10 working-day period after the binding offer has been provided.

If for any reason you cannot keep up the mortgage repayments, you should speak to your bank immediately before defaulting on repayments to discuss the options available. Further information on mortgages in Spain is available from the Spanish Mortgage Association.

The Spanish tax authority, the Agencia Tributaria provides some information on its website in English. See the Living in Spain guide for brief information on taxation. See property fraud guidance. If you believe your lawyer has been negligent and has not met their obligations, you should first complain to the provincial bar association.

If their response is unsatisfactory, you can take your complaint to the regional and then national bar associations. If you have a complaint about the way a court has handled your case, contact the General Council of the Judiciary. If you have a complaint against a notary or gestor administrativo, contact the professional council of which they are a member. See residency requirements in Spain. You should check that planning permissions are in order and the property is a legal build.

This is particularly important when buying off-plan or direct from a developer. The town hall can tell you whether the building has all licences and permissions and what type of land it is. If the property is built on rural land or land that is not classified for construction, you should ask the regional government to confirm construction is authorised.

If you are buying an off-plan property, confirm that the property has been certified as finished by a registered architect and registered as a new build in the property register.

In the case of a private build the previous owner built their own house and decided to sell before 10 years had lapsed you will need to request these details separately.

You should check the latest town plan to see whether or not the plot you wish to buy has any building restrictions, is in a green zone or includes a public pathway or similar. You can do this at to the town planning urbanismo department of the local town hall. You should have the property surveyed. This is not obligatory, but it is wise to get a chartered surveyor to check the property. You should know the cadastral value of the property and how much purchase tax will be due.

On completion, the public deed should contain an accurate description of the property. You should register the property in your name with the Land Registry as soon as possible to ensure full protection of your rights. The notary can even send advance notification to the Land Registry electronically once the public deed is signed.

If you are considering purchasing a coastal property you should contact the Coastal Demarcation office in your region to get a certificate to certify that the property is not affected by the Coastal Law. Be extremely careful if the Land Registry record shows that the property you wish to buy is built on rural land.

In normal circumstances the government reserves this type of land for agricultural use and you need to check with the municipal and regional authorities to ensure that full planning permission has been obtained for residential use. Buying off-plan property inevitably involves higher risk than buying re-sale property. If you are considering buying off-plan in Spain there are a number of points to consider. Make sure you have a bank guarantee aval bancario to cover your stage payments.

Developers of off-plan properties are legally obliged to secure all deposits with a bank guarantee. However, bear in mind that this obligation only comes into force once the developer has planning permission, so you should ask to see this before making any payments. You can also check this at the Land Registry, because if the description of the future building is registered, the registrar will have seen evidence that the licence exists and work has begun following the approved design.

You should ensure that the bank guarantee is individual and not a collective guarantee covering the whole development, which does not give the same protection. You should also request proof that your payments are deposited in a special escrow account, which can only be used for the construction of the specified development.

You can visit any Mercantile Registry office or use the Land Registry website. Make sure you obtain a copy of the cadastral certificate giving the exact boundaries and square metres of your land. Ensure the developer has insurance covering damage caused by structural defects to the building. This insurance should be included in the property manual libro del edificio that the developer gives you.

You should also get a planning certificate for the plot you wish to buy from the town planning Urbanismo department of the town hall. This will include information such as whether the plot has any building restrictions, is in a green zone, includes a public footpath or if there are any current plans to build a motorway etc.

Once construction has finished, and before you sign the title deed, ask for proof from the seller that the construction has been finished in accordance with the description given in the plans. This is issued as a certificate certificado final de obra. You can also check this at the Land Registry. See the section below on costs to bear in mind when selling property in Spain for more information.

Find out more about building surveys in Spain. There will of course be costs associated with owning a property in Spain. Some of these will be maintenance costs, such as cleaning, repairing, reforming, utility bills, rubbish collection, and so on. These will be determined by the size and type of the property you buy. Obviously a large villa with a garden and pool will require much more effort and cost to maintain than a small apartment.

For cleaning a figure of 10 Euros an hour is fairly typical throughout Spain. Apart from the general maintenance costs referred to above, there are a number of costs in the form of taxes and fees that property owners in Spain face.

A local tax on the ownership of property in Spain, irrespective of whether the owner is a resident or not. Calculated on the basis of the valor catastral an administrative value that is usually lower than the market value, sometimes considerably so set by the town hall the tax rate goes from 0. This tax has been changed several times in recent years.

For the latest situation see Spanish Wealth Tax Patrimonio. Not rented out Non-resident property owners who do not rent out their property and who do not have any other source of income in Spain pay income tax based on the value of their property.

Rented out If non-residents rent out their property and receive an income in exchange, they are obliged by law to declare this income and pay taxes on it. The tax rate depends on the level of income. Owners of property that is part of any development, building, or complex in which common zones are shared with other owners are by law obliged to be members of the community of owners, known as the Comunidad de Propietarios.

This will entail paying community fees for the upkeep of the common areas, and any other services that the community vote for. The fees will vary according to the magnitude of the common areas, the costs of maintaining them, and the services that the community vote for.

A budget for annual community expenses is approved by majority vote of all owners or representatives who are present at the annual general meeting of the Comunidad de Propietarios. Household insurance will vary according to the circumstances of the owner and the type of property. However it should be born in mind as a cost that all property owners will face. It is calculated on the basis of the valor catastral an administrative value that is usually lower than the market value, sometimes considerably so of the property.

The amount to be paid will depend on how long the seller has owned the property: the longer the period of time during which the seller has owned the property, the higher the amount of tax.

Be warned that if the vendor fails to pay it, the buyer then becomes liable for the unpaid tax, with interest! That means the new owners starts accumulating unpaid IBI tax bills without notification , plus penalties and interest, all without knowing it.

When the vendor is a non-resident, the law states the buyer is liable for this tax, even if the parties have agreed that the vendor will pay. The safest way to play this, from a buyer point of view, is to agree to pay this tax using funds deducted from the agreed sale price. This is particularly relevant when buying from a vendor who does not live in Spain non-resident. When buying property in Spain, always keep digital and hard copies of all invoices related to your purchase.

Likewise, if you ever do building work on the property once you own it, keep copies of all licences and invoices. You may be able to offset these expenses against capital gains when you sell, and so reduce your Spanish capital gains tax on property sales. You must be logged in to post a comment.

300,000
* €/m2
287 m2 | 5 bedrooms | 8 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Introduction. This guide sets out essential information for British nationals wanting to buy property in Spain, including advice on legal advice, buying in certain. It's not hard to understand why Brits are top of the list of foreign buyers of Spanish property. As well as a flourishing expat community and a. At present VAT (known as IVA in Spain) is 10% on the purchase price of residential properties (villa, apartment, etc), and 21% for commercial properties and plots.

Let me explain…. Recently I was looking at properties with an American couple of retirement age, who were in Valencia for the first time. Our initial communications had led me to believe that they were interested in a property in the central historic district that would serve as their home for part of the year and provide some rental income when they were not in residence. I had thought that the primary purpose of their purchase was to provide an alternative life experience.

It was now clear that return on investment was paramount. I share this story because when buying a property overseas , you must be clear about your objectives. The preeminent question should be whether you are buying primarily as an investment or as a lifestyle purchase intended to bring you a better life experience. This is not an article full of tax details and financial recommendations. I am not an accountant, and you probably have a unique financial portfolio that most likely requires a specialist.

Also, given the U. What I will share is the path that led me to Valencia in the hope that this might help you with your own decision… even though my path may convince you that Valencia and possibly all of Spain is not right for you. Here is a list of the influencers that I used to determine if Spain was the best option for me.

I have also included some important questions I considered during my search but which may also apply to a property search in any country. I chose Valencia because I wanted a pedestrian friendly, walkable city that would allow me to live downtown without owning a vehicle. Ask yourself:. I spent most of my life in Nashville, Tennessee. The metropolitan area of Valencia is estimated to be approximately 1. So my transition to Valencia was easier than if I had chosen a much larger city such as Barcelona population 4.

I wanted a significant university presence. Valencia has a university with an estimated 50, students at its three main campuses. I wanted history. Valencia was founded in B.

I wanted entertainment options—Orquesta de Valencia, multiple venues for opera, ballet, the Berklee College of Music campus, and more.

When I bought my apartment I was 64 years old. I concluded that income would be a good thing and appreciation potential less important. If you have celebrated your 50th birthday your time horizon might dictate a much different set of guidelines for a purchase.

My original intention was to spend six months a year in Valencia and six months in another country, probably in North America. It should also be noted that each institution has its own risk criteria, in which the country of residence can be included, and that properties abroad are not usually accepted as collateral, as it is difficult to reach them. You can read more about getting a mortgage in Spain in this article.

When you buy a property in Spain , you will be obligated to pay some taxes. Property taxes vary wether you are buying a brand new property or a resale property. When buying a resale property a property that has changed hands at least once you will be required to pay the Transfer Tax or ITP in Spanish, that is levied on a sliding scale depending on the purchase price. For more information about property tax in Spain , you can check the linked article.

If you are going to buy a property and want to save yourself future problems , it is advisable to seek a dvice from a property lawyer in Spain. The savings far exceed the cost of legal fees. Buying your home is usually the largest investment for most individuals. Even those who own several properties tend to invest cautiously in the real estate market.

Real estate companies always u se the services of lawyers before making an investment. In short, the services of a lawyer are often more useful for preventive than corrective purposes.

Before entering into the purchase of a property, basic tasks of research and analysis must be carried out. It is important to check that the property is in order and that the contracts of purchase and sale and, where appropriate, mortgage loan, will not end up causing problems. In addition, tax burdens represent a significant percentage of the operation.

It is therefore a good idea to know this extra before you get a fright. If you are buying a property in Spain and need legal advice, you can contact with our real estate lawyers.

Contact us! Buy a house in Spain in Table of Contents. What do you need to buy a house in Spain? You will require a financial number which can acquire by visiting a police station with your passport.

This typically happens on the day for Spanish or EU citizens but may take a few weeks for others. This is not a work permit, but it will allow you to live in the country. As it is easy for foreigners to buy property in Spain, there are websites and estate agents catering to almost every language and nationality. Many British real estate websites also list Spanish properties, with some online portals listing thousands of options. However, these mostly focus on holiday homes, so you may prefer to use a Spanish site, such as the ones listed below.

Estate agents provide a wealth of information about the region, are bilingual, and often deal with overseas buyers. However, regulation is relatively low and unscrupulous estate agents do exist, so be wary of anyone who asks for payments upfront or suggests cutting corners. Always remember that you can choose your own notary, mortgage provider and so forth — you do not need to use a service suggested by the estate agent. On occasion, the large numbers of inexperienced foreign buyers have provided an opportunity for unscrupulous developers and estate agents to sell properties that are not legitimate.

In some cases, planning permission has not been acquired before building, and properties are eventually torn down by the local government. In others, the quality of the property has not been up to scratch or as indicated, resulting in costly repairs. The British Foreign Office has issued notices warning expat buyers to be cautious and not take unnecessary risks.

They recommend, at minimum checking:. Most of this information can be provided by the land registry and accessed by making a request by email, phone, fax or in person. You can find the appropriate land registry office by vising the national website: www. While malicious intent is rare, caution is advisable when buying a property which does not yet exist.

At minimum you should:. As a non-resident, you may also buy land and have a property built yourself. In this case, good legal advice is even more important as you will need to ensure that contracts with builders are appropriate and watertight.

In Spain, any mortgage or debt tied to a property is transferred to the new owner when the property is sold. Debts may include:. The process of buying a property in Spain usually runs as follows. The buyer then arranges any mortgage they require, although they should have already discussed their needs with the mortgage provider.

The contract of sale escritura de compravento is usually signed in front of a notary, at which point the full sale price, taxes and other costs become due. The services of a notary are not legally necessary to complete the sale. But it is advisable and required by many mortgages. The seller is responsible for hidden defects in the property, even if they are not aware of them.

However, in practice gaining restitution for such defects can be difficult and costly. Paying the costs and taxes associated with buying a home can be completed by the buyer or their agent.

The buyer is also responsible for registering the property. Following the crash, Spanish banks were reformed with significant IMF involvement. This reduced the number of lenders in operation, and significantly increased the regulation and oversight of the industry.

144,000
* €/m2
140 m2 | 7 bedrooms | 9 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
With an option contract, you pay the seller a deposit, and the seller sells the property at the agreed price as long as you do so within the timeframe. Factors to be aware of when buying Spanish property include property scams, high capital gains tax, and fluctuations in the Spanish real estate market. It's not hard to understand why Brits are top of the list of foreign buyers of Spanish property. As well as a flourishing expat community and a.

You are probably asking yourself why someone who owns property in Spain would be writing this article. Let me explain…. Recently I was looking at properties with an American couple of retirement age, who were in Valencia for the first time. Our initial communications had led me to believe that they were interested in a property in the central historic district that would serve as their home for part of the year and provide some rental income when they were not in residence.

I had thought that the primary purpose of their purchase was to provide an alternative life experience. It was now clear that return on investment was paramount. I share this story because when buying a property overseas , you must be clear about your objectives. The preeminent question should be whether you are buying primarily as an investment or as a lifestyle purchase intended to bring you a better life experience. This is not an article full of tax details and financial recommendations.

I am not an accountant, and you probably have a unique financial portfolio that most likely requires a specialist. Also, given the U. What I will share is the path that led me to Valencia in the hope that this might help you with your own decision… even though my path may convince you that Valencia and possibly all of Spain is not right for you. Here is a list of the influencers that I used to determine if Spain was the best option for me. I have also included some important questions I considered during my search but which may also apply to a property search in any country.

I chose Valencia because I wanted a pedestrian friendly, walkable city that would allow me to live downtown without owning a vehicle. Ask yourself:. I spent most of my life in Nashville, Tennessee. The metropolitan area of Valencia is estimated to be approximately 1.

So my transition to Valencia was easier than if I had chosen a much larger city such as Barcelona population 4. I wanted a significant university presence. Valencia has a university with an estimated 50, students at its three main campuses.

I wanted history. Valencia was founded in B. I wanted entertainment options—Orquesta de Valencia, multiple venues for opera, ballet, the Berklee College of Music campus, and more.

When I bought my apartment I was 64 years old. I concluded that income would be a good thing and appreciation potential less important. If you have celebrated your 50th birthday your time horizon might dictate a much different set of guidelines for a purchase. My original intention was to spend six months a year in Valencia and six months in another country, probably in North America.

That is still my long-term plan. Spain is ranked in the top eight best health care systems in the world. Valencia opened the largest hospital in Europe five years ago. A Spanish private health insurance policy for a person aged 65 or older is euros per month. Some countries offer expedited residency with a reasonable property purchase, a modest business investment, or a monetary deposit in a local bank.

Spain offers a Golden Visa with a purchase of , euros or more. This minimum requirement limits the number of applicants to a small universe of wealthy investors. Many countries have a significantly lower tax rate for foreign investors. Portugal, under the Non-Habitual Resident program, grants significant reductions during the first 10 years after an individual declares Portugal to be his or her tax residency. Spain offers no such abatement program.

The good news? As of January , the foreign currency exchange rate of the U. This does not include the modest property appreciation I have realized. Even healthcare, pensions, work, or living in Spain. All that and much more in our curated article. Quick inforgraphic, full in depth article below the infographic. Want to hare this Image On Your Site? Simply add this code :. There are no rules that restrict the purchase of property in Spain to only EU citizens.

This is a point to make clear straight away as the uncertainty can lead to misinformation and concern. In Spain, if you can pay the purchase price you can own the property. Throughout the years, citizens from outside the EU borders like Norway or America have been buying property in Spain without any issue, and the fact that Britain will exit the EU will not change this rule, nor there will be a specific rule pointing out UK citizens.

Not only you are absolutely able to buy a house in Spain, but the Spanish government is always trying their best to encourage non-EU residents to purchase a property in Spain with deals like the Golden Visa scheme.

Think about it, Spain benefits enormously from outsiders buying property and living in there, even after Brexit. Also, there are signals that the Spanish construction sector has started to rise and is moving once again.

The number of UK citizens making the choice to buy property and live in Spain has actually risen a lot lately , due specifically to Brexit. So, should I buy a property in Spain after Brexit? Continue reading and if you are interested check our properties below. Our special pick of houses and villas in Spain. Like the first point, your nationality or citizenship will not have an impact on the price you pay for a property.

Regarding the notary fees, to buy a property in the UK you simply exchange the property contracts, pay the vendor and the property belongs to you, is a simple procedure. Following this you add your title to the property in the land register. The fee you pay to the notary is controlled by the Spanish government and is based on the number of clauses in the property deeds and the declared value of the property.

We analyze here how reliable a Spanish notary is. Finally, the fluctuation of the Pound and Euro is constant and can influence how much the currency is worth and how much you pay to buy a property in Spain, especially with the consequences of the Brexit deal. This is something to have in mind when you're thinking of buying a property in Spain post Brexit. Regarding the issues of Brexit, whether you are a resident or non resident you have to be aware of the Property Taxes in Spain regarding the purchase, sale or ownership of your property.

Tourism is still one of the most important industries in Spain and the UK is the biggest source of this, as 18 million Brits visit Spain every year.

549,000
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195 m2 | 9 bedrooms | 4 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
Introduction. This guide sets out essential information for British nationals wanting to buy property in Spain, including advice on legal advice, buying in certain. There are no restrictions on. It's not hard to understand why Brits are top of the list of foreign buyers of Spanish property. As well as a flourishing expat community and a.

You can also check this at the Land Registry. You will need this document to connect to electricity and water companies. Developers cannot force you to complete without this licence. Consider asking a chartered surveyor to check the property.

This is not obligatory but it is wise to obtain a professional opinion on the property before you complete. Members of the RICS are qualified and experienced professionals offering independent and impartial advice. The Spanish College of Architects in each province also offers a list of independent specialist surveyors. If the developer does not build your property by the deadline in the contract, or services and utilities are not completed and connected to standard, or the habitation certificate cannot be issued, you are legally entitled to:.

If you want to cancel the contract, you should get independent legal advice. Once you have consulted a lawyer, the first step is to write to the developer to explain that due to non-compliance with the contract, you want to cancel the contract and request that the deposits paid so far are returned, as well as the accrued interest. You should include any relevant documents for example.

You should write to the developer using Burofax, so you can prove that you have sent the documents and that the developer received them.

If the developer does not respond to you within the specified timeframe, you should contact the claims department of the bank or savings bank responsible for the guarantee to request a refund of the payments made. Should the bank not comply, the only remaining course of redress is to instruct a lawyer to take a civil case against the bank. If you believe you have been a victim of fraud and you have neither a bank guarantee nor an insurance policy from the developer, you should seek independent legal advice regarding taking criminal legal action through the courts and register a statement with the police.

From the 1 June , all homes for sale or to let in Spain are required by law to have an energy efficiency certificate. If you are offering your property for rent after this date, you will need to obtain an energy certificate first. If you want to let your property to tourists on a short-term basis, you must ensure that you are doing so in accordance with Spanish law.

The regulations on letting tourist apartments apartamentos turisticos and holiday homes viviendas vacacionales to tourists will vary depending on the region where the property is located. If you are planning on making a return by renting out your property on a short-term basis,seek independent legal advice and check the local laws at the town hall or the tourist department of the regional government before you buy.

Be aware that the marketing of private residential property to tourists is strictly regulated in many regions of Spain. Owners who are caught illegally advertising or letting out their properties without complying with local legislation can be liable for significant fines.

If you are planning to buy an apartment which is part of a residential block, you should also check whether there are any rules set by the committee of owners that prohibit or restrict short-term letting. You may want to consider hiring a Spanish letting agent to assist with finding tenants, drawing up rental contracts and managing the property on your behalf. In some regions, it is obligatory to use a specialist tourist apartment management company for short-term rentals to tourists.

Owners who let their properties on a long-term basis are free to do so within the terms set out by the national rental law. However, it is worth seeking professional advice to make sure that you are complying with Spanish legislation and that you are using the correct rental contract.

In Spain, there are different types of contracts depending on how long the property is due to be let. You can get copies of these contracts from tobacconists.

You must ensure that you declare your rental income to the Spanish tax authorities Agencia Tributaria whether you are resident in Spain or not. Taxation is a complex issue, and it is advisable to seek the advice of an accountant or professional tax adviser with comprehensive and up to date knowledge of both the UK and Spanish tax regulations.

Equity release schemes are schemes which are designed to allow homeowners to release equity from the value of their property as income, a lump sum or a mixture of both. A reverse mortgage hipoteca inversa is one form of equity release which allows homeowners to borrow money against the value of their home, which is used as collateral. Reverse mortgages are generally marketed at retired homeowners who are over 65 years old.

If you are considering an equity release scheme, such as a reverse mortgage or lifetime loan, it is advisable to check that the company offering the mortgage is registered with the financial regulator for the securities markets, the Comision Nacional de Mercado de Valores CNMV and that they do not have any warnings issued against them.

A list of financial companies which are not authorised to operate in Spain and those subject to an ongoing investigation is available on the CNMV website. Seek independent legal advice prior to signing any contracts to make sure the information the company has given you is correct, there are no abusive clauses in the contract and you are fully aware of your rights.

Be suspicious of financial companies or agents who try to persuade you into signing a reverse mortgage agreement as a way of avoiding or reducing your tax obligations. If you have any concerns about your tax obligations for example inheritance tax you should seek the advice of an experienced professional tax advisor who can advise you independently. If you are not happy with the scheme you have been sold, the first step is to submit a complaint to the company responsible for your investment.

If after 2 months, you are not satisfied with the response or do not receive a response, you are entitled to complain to the CNMV. Although the CNMV final reports are not binding, they will comment on the conduct of the company or person against whom the complaint has been made. Where the report favours the customer, the company involved is required to notify the CNMV of any action taken to resolve the matter.

If you believe you have been a victim of a fraud involving an equity release scheme you can register a statement with the police and seek independent legal advice on taking action through the courts. Further information for victims of fraud is available on the fraud page. Timeshare ownership is well established in Spain. However, there are also many unscrupulous companies, some of which claim to provide various incentives including stock market investments and discounts on airfares and accommodation when exchanging existing time-share ownership or taking out membership of holiday clubs.

Spanish Property Insight provides information and advice on buying a property in Spain. Expat forums, English-language newspapers and talking to local residents and other British nationals who have already made the move can really give you a feel for an area and give you insight on any local problems.

The Spanish Ombudsman is responsible for defending the fundamental rights and civil liberties of citizens by monitoring the activity of public authorities. If you have a complaint about any public authority, you can submit a complaint to either the regional or national ombudsman.

If you are facing problems with your property in Spain, there are many residents associations who may be able to provide support and advice as well as put you in touch with others who have had similar experiences. Abusos Urbanisticos Almanzora No. Finca Parcs Action Group. This information is provided as a general guide and is based upon information provided to the embassy by the relevant local authorities and may be subject to change at any time with little or no notice.

The FCO and the British embassy will not be liable for any inaccuracies in this information. British nationals wishing to obtain any further information must contact the relevant local authority. Hyperlink for Spanish Insights changed to the list of published guides. Information added about letting and the new property energy efficiency certificates. To help us improve GOV. It will take only 2 minutes to fill in. Skip to main content. Home Help for British nationals overseas Europe. Guidance Spain: buying property.

Published 22 March Last updated 5 July — see all updates. Introduction This guide sets out essential information for British nationals wanting to buy property in Spain, including advice on legal advice, buying in certain areas, complaints and more. Legal advice We strongly recommended that you choose an independent lawyer who specialises in Spanish land law urbanismo.

Spanish notaries A Spanish notary public will prepare the contract of sale and issue the public deeds. As the purchaser, you have the right to choose which notary you use. Find English-speaking notaries British estate agents, promoters and lawyers If you choose to work with a British estate agent, promoter or lawyer, check that: they are qualified, reliable and have experience operating in Spain they are registered with the Law Society in the UK they specialise in international transactions If your lawyer is based in Spain, ask for their registration number and check that they are registered and practising with the local bar association Colegio de Abogados.

More information can be found on their services here Property disputes: legal aid If you are involved in a property dispute and do not have enough money to pay the costs of a court case, you can apply for legal aid. Translators If you do not have a good understanding of Spanish, make sure that you get all contracts and documents translated by an independent translator. Mortgages Do your homework: you should analyse and compare different products and services offered by lending companies.

You should also check with the Bank of Spain that the lender is authorised to operate in Spain There are a range of mortgages on offer and you should pay special attention to the interest rate and repayment period, fees for setting up the mortgage as well as early repayment and cancellation fees.

Tax The Spanish tax authority, the Agencia Tributaria provides some information on its website in English. Fraud See property fraud guidance. Complaints against the legal system If you believe your lawyer has been negligent and has not met their obligations, you should first complain to the provincial bar association. Complaints should be in writing and in Spanish. In the case of a private build the previous owner built their own house and decided to sell before 10 years had lapsed you will need to request these details separately You should check the latest town plan to see whether or not the plot you wish to buy has any building restrictions, is in a green zone or includes a public pathway or similar.

It is also wise to get a certificate from the town hall proving that there are no unpaid rates from previous years the cadastral certificate giving the exact boundaries and square metres of your land - this will be linked to the land register record by a cadastral reference number. You should ensure that the property and land description contained in both records matches the licence of first occupancy or habitation certificate issued by the town hall.

Developers cannot force you to complete without this licence receipt to prove all utility bills have been paid by the previous owner if applicable, a certificate signed by the President of the Community of Property Owners stating that there are no outstanding debts. You should be aware that if you later find that there are such debts outstanding, as the new owner, you assume the debts for the current and previous year 2years in total as from 1 June , all homes for sale or to let in Spain are required by law to have an energy efficiency certificate.

If you are considering buying a property, the seller is obliged to show you this certificate On completion, the public deed should contain an accurate description of the property. Buying property in certain areas If you are considering purchasing a coastal property you should contact the Coastal Demarcation office in your region to get a certificate to certify that the property is not affected by the Coastal Law. Buying property off-plan Buying off-plan property inevitably involves higher risk than buying re-sale property.

Before you pay Make sure you have a bank guarantee aval bancario to cover your stage payments. Before you sign the title deed Once construction has finished, and before you sign the title deed, ask for proof from the seller that the construction has been finished in accordance with the description given in the plans.

Cancelling the contract If the developer does not build your property by the deadline in the contract, or services and utilities are not completed and connected to standard, or the habitation certificate cannot be issued, you are legally entitled to: cancel the contract and have the deposits returned plus interest extend the deadline, allowing the developer to complete the property If you want to cancel the contract, you should get independent legal advice.

Renting out your property From the 1 June , all homes for sale or to let in Spain are required by law to have an energy efficiency certificate. Want to hare this Image On Your Site? Simply add this code :. There are no rules that restrict the purchase of property in Spain to only EU citizens. This is a point to make clear straight away as the uncertainty can lead to misinformation and concern.

In Spain, if you can pay the purchase price you can own the property. Throughout the years, citizens from outside the EU borders like Norway or America have been buying property in Spain without any issue, and the fact that Britain will exit the EU will not change this rule, nor there will be a specific rule pointing out UK citizens. Not only you are absolutely able to buy a house in Spain, but the Spanish government is always trying their best to encourage non-EU residents to purchase a property in Spain with deals like the Golden Visa scheme.

Think about it, Spain benefits enormously from outsiders buying property and living in there, even after Brexit. Also, there are signals that the Spanish construction sector has started to rise and is moving once again.

The number of UK citizens making the choice to buy property and live in Spain has actually risen a lot lately , due specifically to Brexit. So, should I buy a property in Spain after Brexit? Continue reading and if you are interested check our properties below. Our special pick of houses and villas in Spain. Like the first point, your nationality or citizenship will not have an impact on the price you pay for a property.

Regarding the notary fees, to buy a property in the UK you simply exchange the property contracts, pay the vendor and the property belongs to you, is a simple procedure. Following this you add your title to the property in the land register. The fee you pay to the notary is controlled by the Spanish government and is based on the number of clauses in the property deeds and the declared value of the property.

We analyze here how reliable a Spanish notary is. Finally, the fluctuation of the Pound and Euro is constant and can influence how much the currency is worth and how much you pay to buy a property in Spain, especially with the consequences of the Brexit deal.

This is something to have in mind when you're thinking of buying a property in Spain post Brexit. Regarding the issues of Brexit, whether you are a resident or non resident you have to be aware of the Property Taxes in Spain regarding the purchase, sale or ownership of your property. Tourism is still one of the most important industries in Spain and the UK is the biggest source of this, as 18 million Brits visit Spain every year. With this said, it is likely that the Spanish government does their best to keep this flow going, meaning they will make it as easy as possible for UK citizens to buy, visit or stay in Spain.

Is to everyone's good. Finally, the biggest uncertainty is whether you can move to Spain in your brand new property or not.

754,000
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118 m2 | 3 bedrooms | 8 bathrooms | Furnished | Parking place | Swimming-pool | Gardens
It's not hard to understand why Brits are top of the list of foreign buyers of Spanish property. As well as a flourishing expat community and a. 6 Reasons You Should Reconsider Buying Property In Spain. In June , I bought a home in Valencia, Spain. You are probably asking. There are no restrictions on.

The number of UK citizens making the choice to buy property and live in Spain has actually risen a lot lately , due specifically to Brexit. So, should I buy a property in Spain after Brexit? Continue reading and if you are interested check our properties below.

Our special pick of houses and villas in Spain. Like the first point, your nationality or citizenship will not have an impact on the price you pay for a property.

Regarding the notary fees, to buy a property in the UK you simply exchange the property contracts, pay the vendor and the property belongs to you, is a simple procedure. Following this you add your title to the property in the land register. The fee you pay to the notary is controlled by the Spanish government and is based on the number of clauses in the property deeds and the declared value of the property.

We analyze here how reliable a Spanish notary is. Finally, the fluctuation of the Pound and Euro is constant and can influence how much the currency is worth and how much you pay to buy a property in Spain, especially with the consequences of the Brexit deal. This is something to have in mind when you're thinking of buying a property in Spain post Brexit. Regarding the issues of Brexit, whether you are a resident or non resident you have to be aware of the Property Taxes in Spain regarding the purchase, sale or ownership of your property.

Tourism is still one of the most important industries in Spain and the UK is the biggest source of this, as 18 million Brits visit Spain every year. With this said, it is likely that the Spanish government does their best to keep this flow going, meaning they will make it as easy as possible for UK citizens to buy, visit or stay in Spain.

Is to everyone's good. Finally, the biggest uncertainty is whether you can move to Spain in your brand new property or not. We will have to wait for negotiations to resume so we can know more about this matter. Yes, that is usual in Spain. Unlike in most western countries where the down payment is paid to an escrow agent closed account, trustee, Notary, etc. Any risk can be reduced to very little with some basic reviews , for example, making sure that the time between the payment of any deposit and the final sales deed is not excessively long, making sure the seller is not a company on the verge of bankruptcy, and confirming that the outstanding amount of the mortgage does not equal the purchase price in which case the down-payment cannot be paid to the seller because the whole purchase price has to be paid to the bank.

With the right due diligence, it is acceptable in Spain to do as the Spaniards do — pay the down payment directly to the seller at the time of signing the down payment agreement.

In general, non-resident buyers in Spain can enjoy the same mortgage conditions as Spaniards, i. Other important information to bear in mind is that mortgages in Spain are normally taken out for a minimum of five years and a maximum of thirty , with the maximum age of 75 years for completing the mortgage. It should also be noted that each institution has its own risk criteria, in which the country of residence can be included, and that properties abroad are not usually accepted as collateral, as it is difficult to reach them.

You can read more about getting a mortgage in Spain in this article. When you buy a property in Spain , you will be obligated to pay some taxes.

Property taxes vary wether you are buying a brand new property or a resale property. When buying a resale property a property that has changed hands at least once you will be required to pay the Transfer Tax or ITP in Spanish, that is levied on a sliding scale depending on the purchase price. For more information about property tax in Spain , you can check the linked article.

If you are going to buy a property and want to save yourself future problems , it is advisable to seek a dvice from a property lawyer in Spain. The savings far exceed the cost of legal fees. Buying your home is usually the largest investment for most individuals. Even those who own several properties tend to invest cautiously in the real estate market.

Real estate companies always u se the services of lawyers before making an investment. In short, the services of a lawyer are often more useful for preventive than corrective purposes. Before entering into the purchase of a property, basic tasks of research and analysis must be carried out. It is important to check that the property is in order and that the contracts of purchase and sale and, where appropriate, mortgage loan, will not end up causing problems.

In addition, tax burdens represent a significant percentage of the operation. But whatever choice property buyers decide to make, they will undoubtedly have to transfer money from a UK bank account to Spain in order to place a deposit and pay legal or valuation fees. Reducing unnecessary fees and charges when buying property in Spain is an important consideration for most house-hunters.

Using companies that specialise in international money transfers such as TransferWise can help you save significant amounts. However, you may only get given a rate of 1. With its borderless account you can also activate euro account details free without any minimum deposit requirements.

This way you can convert your pounds into euros when rates are favourable and hold your euros, and more than 40 other currencies, and make payments as and when you need. We urge you to turn off your ad blocker for The Telegraph website so that you can continue to access our quality content in the future. Visit our adblocking instructions page.

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With an option contract, you pay the seller a deposit, and the seller sells the property at the agreed price as long as you do so within the timeframe. There are no restrictions on. It's not hard to understand why Brits are top of the list of foreign buyers of Spanish property. As well as a flourishing expat community and a.

Despite the ability of the internet to bring together buyers and sellers without the need for an agent most people still use agents to find property in Spain. You are strongly advised to hire a lawyer to help you during the buying process. Your lawyer drafts and reviews contracts on your behalf and can explain all the legal and administrative issues you face.

Your lawyer should also carry out any necessary due diligence checking ownership claim of the seller, charges on the property, permits, etc. This will vary according to the complexity of the purchase. Be warned that some lawyers charge 1.

Your best option is to try and find a good lawyer who is prepared to charge on an hourly basis. Legal fees for a purchase without any complications and charged on an hourly basis should be in the region of 1. If you choose to buy with a mortgage then this will incur several additional costs.

First there will be the property valuation that the mortgage provider will require before granting the mortgage. This is paid for the by the buyer and can cost around Euros.

Then there will be the costs of the mortgage itself. This varies according to the provider, and even according to the particular branch. Finally a mortgage will increase the Notary expenses. Notary expenses are nearly always paid by the buyer and are calculated in relation to the purchase price declared in the deeds of sale.

In many cases however Notary fees are more like 0. Expenses related to inscribing the sale with the land registry are also nearly always paid by the buyer, and are calculated in relation to the purchase price declared in the deeds of sale. Though not strictly transaction costs like fees and taxes, there are other costs to bear in mind when buying a home in Spain. After all, they all come out of the same pocket — namely yours.

Once you have got the funds in place, you will need to pay the vendor on the day you complete the purchase. It all depends on the deal you have with your bank. Make sure you clarify this with your bank before you ask for the cheque. Once you own a property you will need to furnish it. The cost of furnishing a property depends entirely upon what you want. However as a very general rule of thumb a 2 bedroom apartment will cost around 10, to 15, Euros to furnish nicely if you buy everything new.

Of course there is no limit to how much you can spend, though you can also get away with less than 10, if you are on a tight budget all from IKEA, for example. This is normally paid by the vendor, but it can become a problem for the buyer if the vendor fails to pay it. Buyers have to be particularly careful with this tax when the vendor does not live in Spain.

See the section below on costs to bear in mind when selling property in Spain for more information. Find out more about building surveys in Spain. There will of course be costs associated with owning a property in Spain. Some of these will be maintenance costs, such as cleaning, repairing, reforming, utility bills, rubbish collection, and so on. These will be determined by the size and type of the property you buy. Obviously a large villa with a garden and pool will require much more effort and cost to maintain than a small apartment.

For cleaning a figure of 10 Euros an hour is fairly typical throughout Spain. Apart from the general maintenance costs referred to above, there are a number of costs in the form of taxes and fees that property owners in Spain face.

A local tax on the ownership of property in Spain, irrespective of whether the owner is a resident or not. Calculated on the basis of the valor catastral an administrative value that is usually lower than the market value, sometimes considerably so set by the town hall the tax rate goes from 0.

This tax has been changed several times in recent years. For the latest situation see Spanish Wealth Tax Patrimonio. Not rented out Non-resident property owners who do not rent out their property and who do not have any other source of income in Spain pay income tax based on the value of their property. Rented out If non-residents rent out their property and receive an income in exchange, they are obliged by law to declare this income and pay taxes on it. The tax rate depends on the level of income.

Owners of property that is part of any development, building, or complex in which common zones are shared with other owners are by law obliged to be members of the community of owners, known as the Comunidad de Propietarios. This will entail paying community fees for the upkeep of the common areas, and any other services that the community vote for. The fees will vary according to the magnitude of the common areas, the costs of maintaining them, and the services that the community vote for.

A budget for annual community expenses is approved by majority vote of all owners or representatives who are present at the annual general meeting of the Comunidad de Propietarios. Household insurance will vary according to the circumstances of the owner and the type of property. In Spain, any mortgage or debt tied to a property is transferred to the new owner when the property is sold. Debts may include:. The process of buying a property in Spain usually runs as follows. The buyer then arranges any mortgage they require, although they should have already discussed their needs with the mortgage provider.

The contract of sale escritura de compravento is usually signed in front of a notary, at which point the full sale price, taxes and other costs become due. The services of a notary are not legally necessary to complete the sale. But it is advisable and required by many mortgages. The seller is responsible for hidden defects in the property, even if they are not aware of them.

However, in practice gaining restitution for such defects can be difficult and costly. Paying the costs and taxes associated with buying a home can be completed by the buyer or their agent. The buyer is also responsible for registering the property.

Following the crash, Spanish banks were reformed with significant IMF involvement. This reduced the number of lenders in operation, and significantly increased the regulation and oversight of the industry. As a result, many banks began to lend less and mortgage rates and terms became less favourable.

Mortgage lenders will not complete on a mortgage agreement until you own a property. The buyer usually pays the fees. They vary from region to region.

Many are negotiable — there are no fixed fees for lawyers or estate agents. Costs paid by the buyer include:. This is typically their only cost. Capital gains tax is paid on the profit of selling your home, i. You may be able to claim a reduction on the capital gains tax to account for inflation; or if you are purchasing another property in Spain; or if you are over 65 and have lived in the property as your main residence for more than three years.

Your residential status does not affect the application of capital gains tax either, as capital gains tax should be paid in Spain for property owned in Spain even if you are no longer a resident. Any lawyer practising in Spain should be registered with the local bar association Colegio de Abogados. They will have a registration number that you can ask for and then verify with the bar association. Naturally, registration does not guarantee honesty or competence, but it is a good minimum standard to insist on.

Many governments provide lists of lawyers and translators who speak both Spanish and another language. The Spanish government also provides a list of accredited translators page in Spanish, follow first link in article text for up-to-date PDF. You may change your settings at any time. Your choices will not impact your visit. NOTE: These settings will only apply to the browser and device you are currently using.

Search for:. Buying property in Spain. Last update on May 21, The Spanish property market Spain suffered during the global financial crisis and ensuing property market crash. Should you rent or buy in Spain? Can foreigners buy property in Spain? Buy a property, get a visa Spain currently offers a golden visa program for property owners.

Buying a home in Spain: where to find real estate As it is easy for foreigners to buy property in Spain, there are websites and estate agents catering to almost every language and nationality. Illegal properties For a long time, Spain has been popular with overseas buyers looking for holiday homes. They recommend, at minimum checking: The credentials of any lawyers or estate agents used; the land registry Registro de la Propriedad ; that appropriate planning permission has been obtained; that there are no outstanding debts attached to the property, such as a mortgage; that the property is as described and structurally sound either a surveyor or an architect can do this.

Buying off plan or a new-build home The worst property scams in Spain, as elsewhere, involve unfinished or unbuilt properties. At minimum you should: Check the company exists; check online at www. Ensure that the project is registered with the land registry. Check that planning permission has been granted by enquiring at the local city hall. Enlist an independent party for any translations. Demand proof that any sums paid e. Debts transfer with property In Spain, any mortgage or debt tied to a property is transferred to the new owner when the property is sold.

Buying a Spanish property The process of buying a property in Spain usually runs as follows. Legal requirements The services of a notary are not legally necessary to complete the sale.

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It's not hard to understand why Brits are top of the list of foreign buyers of Spanish property. As well as a flourishing expat community and a. Introduction. This guide sets out essential information for British nationals wanting to buy property in Spain, including advice on legal advice, buying in certain. 6 Reasons You Should Reconsider Buying Property In Spain. In June , I bought a home in Valencia, Spain. You are probably asking.

In this scenario there is no transfer tax to pay. These are the costs you will face when buying a Spanish property that has been sold before. Generally speaking, that means when buying a home from a private individual.

This tax applies if the property is deemed to be a second or posterior transfer i. If any deposit is paid before completion of the sale it is not subject to ITP pro rata. However the full amount of ITP still has to be paid upon completion. In this scenario there is no VAT to pay, and stamp duty is already included in this tax. The Transfer Tax rate is ceded to the autonomous regions, who can choose to apply the general rate, or their own rate. The rate you pay depends upon the autonomous region where you buy for more information see Transfer tax on resale homes — Impuesto de Transmisiones Patrimoniales ITP.

If this is not done the property will be considered by the tax authorities as the asset backing the capital gains tax liability of the seller. This condition is very unlikely to apply when purchasing from a developer. These are the additional expenses you are likely to face when buying any property in Spain, regardless of whether the property is new or not. Estate agency fees or commissions are paid by the seller, unless otherwise agreed.

If the buyer uses a search agency then search fees are paid by the buyer. Despite the ability of the internet to bring together buyers and sellers without the need for an agent most people still use agents to find property in Spain.

You are strongly advised to hire a lawyer to help you during the buying process. Your lawyer drafts and reviews contracts on your behalf and can explain all the legal and administrative issues you face. Your lawyer should also carry out any necessary due diligence checking ownership claim of the seller, charges on the property, permits, etc.

This will vary according to the complexity of the purchase. Be warned that some lawyers charge 1. Your best option is to try and find a good lawyer who is prepared to charge on an hourly basis. Legal fees for a purchase without any complications and charged on an hourly basis should be in the region of 1.

If you choose to buy with a mortgage then this will incur several additional costs. First there will be the property valuation that the mortgage provider will require before granting the mortgage. This is paid for the by the buyer and can cost around Euros. Then there will be the costs of the mortgage itself.

This varies according to the provider, and even according to the particular branch. Finally a mortgage will increase the Notary expenses. Notary expenses are nearly always paid by the buyer and are calculated in relation to the purchase price declared in the deeds of sale.

In many cases however Notary fees are more like 0. Expenses related to inscribing the sale with the land registry are also nearly always paid by the buyer, and are calculated in relation to the purchase price declared in the deeds of sale.

Though not strictly transaction costs like fees and taxes, there are other costs to bear in mind when buying a home in Spain. After all, they all come out of the same pocket — namely yours. Once you have got the funds in place, you will need to pay the vendor on the day you complete the purchase. It all depends on the deal you have with your bank. Make sure you clarify this with your bank before you ask for the cheque. Once you own a property you will need to furnish it.

The cost of furnishing a property depends entirely upon what you want. However as a very general rule of thumb a 2 bedroom apartment will cost around 10, to 15, Euros to furnish nicely if you buy everything new. Of course there is no limit to how much you can spend, though you can also get away with less than 10, if you are on a tight budget all from IKEA, for example.

This is normally paid by the vendor, but it can become a problem for the buyer if the vendor fails to pay it. Buyers have to be particularly careful with this tax when the vendor does not live in Spain.

See the section below on costs to bear in mind when selling property in Spain for more information. Find out more about building surveys in Spain. There will of course be costs associated with owning a property in Spain.

Some of these will be maintenance costs, such as cleaning, repairing, reforming, utility bills, rubbish collection, and so on. These will be determined by the size and type of the property you buy. Obviously a large villa with a garden and pool will require much more effort and cost to maintain than a small apartment.

Spain offers a Golden Visa with a purchase of , euros or more. This minimum requirement limits the number of applicants to a small universe of wealthy investors. Many countries have a significantly lower tax rate for foreign investors. Portugal, under the Non-Habitual Resident program, grants significant reductions during the first 10 years after an individual declares Portugal to be his or her tax residency.

Spain offers no such abatement program. The good news? As of January , the foreign currency exchange rate of the U. This does not include the modest property appreciation I have realized. Apartment purchases in Valencia today, converting from U. These management costs can be reduced with property rentals longer than 30 days, but long-term rentals are not as lucrative as short-term rentals.

Now a writer, Mike currently aspires to find a rural cottage in a country yet to be determined that complements his Spanish apartment in the central historic district of Valencia. The Overseas Property Alert features a weekly dispatch from our far-flung network of editors, experts, and friends detailing the best opportunities today for purchasing, owning, and managing global real estate.

Wednesday, May 27, January 23, Share on Facebook Share on Twitter. Let me explain… Recently I was looking at properties with an American couple of retirement age, who were in Valencia for the first time. First Things First I share this story because when buying a property overseas , you must be clear about your objectives. Initial Considerations 1. Urban Or Rural? Ask yourself: Is owning and driving a car in a foreign country too daunting?

Does an isolated location concern me because of potential security issues? Large Or Small? Ask yourself: Do I prefer a rural location; and if so, how important is my proximity to a city versus the privacy I gain from a more remote area? Apartment Or House? Ask yourself: Is a beach important?

Or do I prefer mountains? Is learning a foreign language too scary? Is the lack of certain American cultural attractions a deal breaker? Part-Time Or Full-Time? Ask yourself: Will I view this property as a primary residence or as a vacation or part-time home?

This decision can determine the level and cost of decoration and personalization of the space. Health Care Spain is ranked in the top eight best health care systems in the world.

Ask yourself: Is health care a priority? Even for a healthy 50 year old… it should be. The cost of private health insurance in Spain for a year-old North American will be one-half to two-thirds the cost of insurance for a 65 year old.

A year-old American has access to Medicare in the States, whereas a self-employed 50 year old is looking at 15 more years of out-of-pocket health insurance expense that is rapidly increasing in cost. Do you want to make money or make a life? Do your homework about the cities and countries that hold a special interest for you, and keep an open mind. Rent before you buy for a minimum of two months. Hire a good tax advisor to steer you through the sometimes choppy waters of investing overseas.

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Statistics and prices of properties with pool in Spain

Prices are going up in this area.

Average price in this area: 1,253 €/m2

The cheapest property in this area: Rent to own detached house in Alcobendas, 0

The most expensive property in this area: Hotel for sale in Nueva Andalucía, Marbella, 65,000,000 €

Cheapest areas: Aragon, Castile and Leon, Estremadura

Most expensive areas: Melilla, Balearic Islands, Andalusia

Prices are going down in the areas: Madrid, Andalusia, Canary Islands.

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