Buying a property Spain

SPANISH MARKET

When it comes to buying a property Spain, you will not be dissapointed with what is on offer. Spain is a country located in the South West of Europe, from which we can give many reasons to be chosen, as a first or second residence. The weather is perfect all year round, where you will find 320 days of sunshine! Apart from this incredible peculiarity, the Spanish territory consists of a great diversity of landscapes, with beaches catalogued with the blue flag year after year, and wooded and mountain areas, absolutely beautiful and incomparable.

Visit the region which you visit, you will fall in love, you will experience the history of Spain and you will be immersed in it. Spain has been built by different groups of people and cultures, throughout the history, as a result; a diverse and different culture.

Spain is one of the countries with the major longevity in the world and that is due to multiple essential factors, but specifically; gastronomy and the health system. Each community or region offers a typical menu, where a most popular dish stands out; paella, stew, gazpacho, and a host of inimitable dishes. In the field of health, we find a public health system, rated as one of the best in the world, with professionals in all specialties.

Spain is no longer just a place for people to come on holiday. the quality of life that Spain offers means that expats have been starting a new life in Spain consistantly now for over 20 years.

The process of buying a property Spain usually runs as follows. First, the buyer makes an offer, usually through the seller’s estate agent. If this is accepted, then the buyer and seller sign a preliminary contract (contrato privado de compravento) and the buyer pays a deposit, typically 10% of the purchase price.

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.

We aim to take you from the start of the process and right up until the finish. Our services in the management of the purchase of real estate are listed below, please click the plus button to read more on each topic

TAXES FOR BUYING A PROPERTY SPAIN

The payment for taxes that are necessary when buying a property Spain can be completed by the buyer or their agent but the responsibility of ensuring that these taxes are paid always lands with the buyer. The taxes that you will be expected to pay are listed below:

Newly built housing.

• Value Added Tax- the tax rate is 10%.
• Tax On Documented Legal Acts- the tax rate varies depending on the region of Spain in which it is purchased, ranges between 0.5% and 1.5%.

Used housing.

• Transfer Tax- the tax rate varies depending on the region of Spain in which it is purchased, ranges between 6% and 10%.

Common taxes on new and used properties.

• Real Estate Tax.
• Urban Solid Waste Rate.
• Income Tax Of Non-Residents.

The buyer is also responsible for registering the property. The notary may provide this service for a fee, and/or may notify the registry office that the sale has taken place, without completing full registration.

WHAT OTHER EXPENSES ARE THERE?

Notary & Hidden Defects

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.

Property Registry 

In most cases this fee can vary depending on municapilty that you live in but an amount somewhere around 400-600 euros seems fair. It is normally a standard fee also based on the selling price in the deeds.

Property Valuation 

If you require a mortgage for your purchase then the banking providing the loan will make their own valuation of the property that you are buying. The cost of this will vary depending on which bank that you are using but the avergae cost is normally around 800 euros.

ARE YOU A FOREIGNER INTERESTED IN BUYING A PROPERTY SPAIN?

As it stands, there are no resctrictions for buying a property Spain if you are a non Spanish resident and living overseas. This remains the case whether you are buying a property to live in, commercial or land to build on. You will need to obtain your financial number, in order to get this you will need to go to a police station with your passport. the timescale for this is normally a day if you are an EU citizen but can take up to a few weeks if you are not.

In fact, Spain are now encouriging investments from all over the world both if you plan to be a resident or non-resident. They even offer investment visas that are called ‘Golden Visas’. You can secure Golden Visas if you invest more than €500,000 in Spanish property, buying one or more properties, you will normally then be automatically eligible for a residency visa. This is not a work permit, but it will allow you to live in the country. For more information on Golden Visas, continue reading our dedicated Golden Visas section below.

FAQ’S FOR BUYING A PROPERTY IN SPAIN

WHAT ARE GOLDEN VISAS?

With the entry into force of the law 14/2013 of September supporting entrepreneurs and their internationalization, Spain presented to the world a very attractive legislative project for investors, foreigners, non-citizens of a Member State of the European Union.

With the Golden Visa, and the subsequent Investment Residency, the investor and his family are allowed the possibility of traveling to Spain and to the member countries of the Schengen Agreement, without the need to continuously apply for visas every certain period of time, in the consulate of the country of origin.

The reason for the Spanish government introducing Golden Visas was a way to help the economy bounce back from a hit back in 2013. The Golden Visa programme meant that the residecny of non-EU and other benefits that it brings could be fast tracked in return of a minium investment of 500,000 euros in the Spanish property market.

The aim was to attract foreign investors to Spain and purchase property and/or open businesses here. This would not only inject cash back into the economy but also provide Spanish citizens with more chance in finding employment. This investment visa strategy was implemented in other countries like Greece and Italy and is now widley known as the Golden Visa, with Spain being crowned as the ‘Golden Visa powerhouse’.

The majority of residency options in Spain require you to live in Spain for at least 6 months of the year if you wish to maintain your residency. Whereas, with Golden Visas, the programme completely eliminates in-country requirements to reside. Golden Visas also provide you with free visa travel across all of the EU Schengen region countires. So, in short, by buying a property in Spain and investing in their economy, you can travel in and out of the counry and move freely around other EU counries whilst keeping your residency permit.

Benefits In Brief:

The initial duration of the residence through Golden Visas is 2 years. The visa lasts for 1 year and is renewable each year. The residence can be requested by a legal representative; therefore, the applicant should not necessarily be here. For the fingerprint appointment, the applicant must be in Spain. Below are more benfits of the Golden Visa:

• It allows you to reside and work in Spain.
• It is not required to reside 183 days in Spain for its renewal.
• Freedom of movement within the countries that sign the Schengen Agreement.
• Ease to group members of the family nucleus in Spain.
• The residence can be requested by a legal representative; therefore, the applicant should not necessarily be here. For the fingerprint appointment, the applicant must be in Spain.

WHO CAN APPLY FOR A GOLDEN VISA?

Once you have made your investment and have received your Golden Visa, as long as you maintain your investment and visit Spain at least once a year, then you should have no problem in renwing your Golden Visa. But, what are the legal requirements so you can apply? In order to successfully apply for the golden residency, the applicant must meet the following requirements:

• You should not already be a citizen of a country member of the European Union. This residence permit is designed for citizens from countries outside this area, who find it more difficult to get a visa.
• Passport
• Be of legal age (+18 in Spain).
• Lack of criminal records, both in Spain and in any other country. Spain will take the last 5 years into consideration.
• Have full-coverage healthcare in Spain.This can be either a private or public Health Insurance policy.
• Travel Insurance.
• Accreditation of economic means.
• Realise the investment in Spanish real estate (either € 500.000,00 € 1M or € 2M depending on the route chosen), and provide the corresponding document that proves it. 1m or 2m is for investments not related to real estate.

When you are obtaining Golden Visas through property purchase you will be liable for some taxes. Which taxes and how much you will be expected to pay will depend on much time of the year you will be spending in Spain. If you are living in Spain for more that 6 months of the year, you are then considered a Spanish resident and your assets and income from around the world will be taxed in Spain. If you are in Spain for less thatn 6 months of the year, then you will only be taxed on the initial purchase of your property and after that the value of your assets in spain only.

GOLDEN VISAS WITH 1CLICKLAWYERS

Investing in Spain is synonymous of success in economic terms or, simply, in terms of quality of life, as we have detailed at the beginning of these lines. Do not hesitate to contact our 1 Click Lawyers team, for information on any legal aspect or on the Golden Visa itself. Our fees for the processing of the purchase and the application of the investment residence, Golden Visa, range is between 1% and 2%, of the price of the property.

As a complement to our legal services, we have a series of top-quality homes, which we offer below, and, many more possibilities, through our network of agents throughout the national territory. Whether it be buying a property Spain or assistance with golden visas, 1 Click Lawyers has you covered.

FAQ’S FOR GOLDEN VISAS

Obtaining a Golden Visa is a very thorough process with a lot of moving parts. At 1click lawyers, we aim to help you every step of the way and that includes answering any questions that you may have. So, feel free to contact us anytime or maybe our frequently asked questions section below will have your question covered. 

A GOOD TIME FOR INVESTMENTS IN SPAIN

Since recovering from the financial crisis in 2008, Spain has become one of the most popular countries in the EU for overseas investors, a lot of this is down to the opportunities of buying property, buildings and land being extremely competitive. Take buying a property in Spain for example, since recovering from the average property price falling 30% during 2008 and 2014, Spain has been fighting back ever since and in 2019, the average property price raised by 6%. Investors are spotting the trend and acting fast which is a huge boost for the economy .

Spain has some of Europe’s most sought after cities like Madrid and Barcelona along with the most desirable coastal areas too with the Costa Blanca and Costa Del Sol. The property prices in Barcelona were slightly quiet for a while during the political unrest with Catalan but now as that seems to have quietened down, property investment there has woken up which has seen prices increase there now too.

WHY CHOOSE SPAIN FOR YOUR INVESTMENT?

A recent poll was taken that took 33 countries into account when buying abroad for the first time. Spain came second in this poll for popularity and ease of the process. The main reasons for investments in Spain being so popular was down to 3 main factors, having reasonable and competitive property prices, the average salary increasing year on year and the cost of living being on the more friendly side. To help investors determine what their cost of living would be when moving here, we can use this cost of living calculator to get a rough idea. 

Spain has always been a hugely popular tourist destination but now, Spain is a country on the come up for businesses and with many financial advisors predicting a surge in investments in Spain after political issues such as Brexit become clearer. With London and other areas of the United Kingdom not expecting to be as attractive for investors, Spanish cities and coastal towns are set to boom. Spain is no longer a place to come for an annual 2 week holiday or to retire, it’s now a place to live, thrive and make some money!

Spain has worked extremely hard to ensure that their infostructure is equipped and capable to handle the future growth predicited in their economy. This has lead to investment oppurtunites in Spain being extremely popular especially in the property market, ICT, renewable energy, and motor sectors to name a few.

THE STRENGTH OF THE SPANISH ECONOMY

The popularity of people and businesses making investments in Spain is shown clearly by the fact that 70 out of the top 100 organisations have all opened at least one branch in Spain, and that Spain is 9th on the global jurisdiction for openness to foreign investments. This is down to property prices being seen as great investments and the average wage being competitive, what may be seen as a high wage in other countries will go a lot further to the cost of living in Spain.

FAQ’S FOR INVESTMENTS IN SPAIN

INVESTMENTS WITH 1CLICKLAWYERS

INVESTMENT 1: MAGNOLIAS

There are several designs, all of them with three bedrooms and two bathrooms on the main floor. Some of the designs provide the opportunity to extend to four bedrooms if you would like to, as they have a lower floor with an open-plan area and a private porch, which would allow you to do so. All of the apartments include a garden and a covered parking space. A modern project, built with qualities that meet the expectations of its design, which provides us a unique opportunity to live on the Residential Resort Cumbre del Sol.

Details Of Property:

• Development: Magnolias Design
• Model: PURE DESIGN
• Bedrooms: 3
• Bathrooms: 2M² 
• vivienda: 328 m²
• M² parcela: 830 m²
• Price: PILOTO
• Quality: Plus
• Style: Modern

INVESTMENT 2: BLUE INFINITY

This, together with equipment, both in materials and in technology aimed at achieving highly energy efficient homes, make them ideal both for living throughout the year, and for enjoying holiday periods. Each apartment also has a covered car parking space with pre-installation for charging point for electric cars and a storage. These luxury apartments on the Blue Infinity development are currently under development and proving popular so we would advise getting in touch as these are an ideal option for investments in spain.

Details Of Property:

• Development: Blue Infinity
• Model: Modelo B, Planta +1 Izq
• Bedrooms: 3
• Bathrooms: 2
• Total sqm: 246 m²
• Price: 555,000 €
• Quality: LuxuryStyle
• ModernRef: RFC02