We all love those TV programmes where clients are searching for holiday or permanent homes around the World and quite often it is in areas of Spain as Spain is the number 1 destination.
The trouble is these programs sometimes give viewers false hopes of living the dream if you don’t do your research.
The market value of properties in different areas of Spain can change dramatically, i.e. the same style of property for sale in Costa Blanca will be considerable cheaper than it is in the Costa Del Sol and likewise in different areas of the Costa Del Sol you will get more for your money slightly inland than beachside.
So make sure you know what your budget is, and the type of property you would like.
Speak to a trustworthy real estate agent and find out if your budget is realistic for the type of property and area you want. In Spain it is also different to some other parts of the World in the way that Real Estate agents work, In Spain you only need to contact one agent, they then find properties that match your criteria and budget as they have available to them through various real estate platforms all the properties that are for sale.
So make sure you choose a good trustworthy agent that will listen to your requirements and help you to find that perfect property in the Sun.
It is always better to have your finances in place before you start searching. Remember when buying property in Spain there are other costs to take into account on top of the agreed buying price
Property transfer tax (ITP) on re-sale properties this used to be between 8% and 10% but in late 2021 this was changed to 7% across the board. So whatever the agreed buying price is add 7%
New build/developments IVA (VAT) will be charged at 10%. Also on new build/developments there is also a 1.2% stamp duty (AJD)
Notary costs, title dead tax and land registration fee. Allow between 1% & 2.5%
Lawyer/legal fees between 1% & 2% (including IVA)
These extra costs and taxes are not shown in the advertised property price but must be allowed for. Therefore as a rule of thumb for re-sale property allow between 10-11% on the top of the asking price and for a new property allow between 12% & 14% additional on top the advertised asking price.
Also when buying property in Spain you will need an NIE number, this is your personal Numero de Identificacion de Extranjero. The Nie number is unique to one person and it is neither transferable nor does it expire.
You will also require a Spanish bank account and we can recommend a couple of very good lawyers here in Spain that are able to help you and advise you with all of the legal requirements.
Please, please, please do ensure that you use a lawyer when buying a property in Spain – especially one who can also speak your language – so you understand what’s going on at all times. If you need help finding a lawyer – we can help!
If you have any further questions on any of the above – please do contact us.
Foreigners can also apply for a golden visa when buying a property in Spain, if they buy property for more than €500,000, your lawyer will be able to explain the Golden Visa Residency Programme.