COMPLETE GUIDE: HOW TO BUY FOR A FOREIGNER IN SPAIN

CONTENT:

• How to buy real estate in Spain for a citizen of Russia and other CIS countries?
• Property selection in Spain
• What kind of real estate can foreigners buy?
• Property mortgage in Spain
• More about obtaining a mortgage
• Mortgage property price range
• Off-plan property in Spain by installments
• Opening a Spanish bank account
• Property acquisition procedure by foreigners in Spain
• Rights of real estate foreign buyers
• Obligations of real estate foreign buyers in Spain
• Taxes, other mandatory payments and expenses
• We will help you buy property in Spain

HOW TO BUY REAL ESTATE IN SPAIN FOR A CITIZEN OF RUSSIA AND OTHER CIS COUNTRIES?

Buying real estate abroad is always a responsible process that requires complex preparation in every sense. If a buyer decides to buy a house on their own, they need to take care of everything: from forming a stable financial cushion for buying a house to concluding a deal and registering Spanish property in their name. If the buyer decides to buy an apartment in a new building in Spain, Spain-Real.Estate specialists will help to significantly speed up buying and selling process.

The article describes in details the procedure of real estate acquisition by foreigners in Spain is, if it is possible to buy real estate in Spain on mortgage, owner rights and much more.

PROPERTY SELECTION IN SPAIN

The range of real estate in Spain is extensive, therefore, in order to select the most relevant option, we recommend that you first get acquainted with the Spanish property market. Here is a complete list of objects:

• Apartments;
• Houses;
• Villas and townhouses;
• Commercial real estate;
• Land plots and others.

Spain-Real.Estate consultants will help speed up property selection process, they will conduct a detailed consultation on property range and answer all your questions related to rent and purchase.

WHAT KIND OF REAL ESTATE CAN FOREIGNERS BUY?

There are no restrictions on the purchase of this or that real estate for foreigners on the territory of Spain. The sale of apartments in Spain , as well as other objects, is open to everyone, including residents of Russia, the CIS and other countries.

PROPERTY MORTGAGE IN SPAIN

Conditions to obtain mortgage in Spain are transparent and quite simple upon detailed examination. The main thing is to familiarize yourself with the conditions in more detail and even a foreigner will not have problems with its registration.

Conditions to obtain mortgage may vary depending on the age of the borrower, package of documents. An important requirement in relation to the buyer is a good credit history, in relation to the owner and the object - legal cleanliness of the house plus it must necessarily be in the Registro de Propiedad - the local register of real estate.

Mortgage rate is 2.5% for non-residents of the country. The amount of payments on a monthly basis should not exceed 30% -35% of the borrower's monthly income. Under the condition of long-term payment, it will be 0.5% in the first 5 years, and the interest will be 0.25% after this period.

Mortgage rate is the same in all banks in Spain, which is very convenient, since you do not have to spend extra time looking for a suitable institution with a minimum interest.

MORE ABOUT OBTAINING MORTGAGE

A land plot without an object there is not subject to mortgage lending, therefore, before contacting a bank, it is important to find the best property option for yourself. There are no special requirements for what the property should be like.

Before making decision, the bank conducts an independent assessment of the object. The price set by the bank may be lower than the market price. Thus, the mortgage is issued only on the basis of an independent object assessment.

If the bank sees risks for itself, it has the right to reduce the percentage from the promised 60% to 40%. It is for this reason that banks necessarily consider property liquidity.

MORTGAGE PROPERTY PRICE RANGE

An inexpensive studio apartment in Spain will cost about € 40,000. The cost of luxury villas on Costa Blanca starts from € 250,000. Here prices range from € 120,000 to € 230,000. These are the objects that our compatriots most often prefer to choose.

Secondary property market is no less diverse. The range of prices for secondary property on Costa Blanca varies from € 120,000 to € 750,000. Mortgage lending covers both new property and secondary property.

OFF-PLAN PROPERTY IN SPAIN BY INSTALLMENTS

Client-oriented Spanish developers, tuned in to meet the needs of the client, often offer the most favorable conditions, including installments for property in residential complexes under construction for foreign citizens. There are several reasons why developers agree to provide installments to clients.

These include:

1. Sellers don't want to lose potential buyers. The price of real estate in the Spanish market is constantly growing, in this regard, it is quite natural that buyers do not always have enough money for a one-time purchase. Therefore, developers often make concessions;
2. Both the seller and the buyer are fully protected in such transactions, so their conclusion is completely safe, and the risks are equal to 0.

In Spain, the installment plan is absolutely transparent from legislation point of view and a regulated process. The nuances of the installment plan must be checked with the developers, since they differ and can vary from 3 to 6 months.

OPENING A SPANISH BANK ACCOUNT

Opening a bank account is a mandatory procedure when buying real estate. By law, payment for the purchase of real estate in Spain can only be made through a bank. The only exception is property under construction - in this case, transfers from Russia can be made directly.

In addition, owning a bank account in Spain gives the houseowner a lot of advantages: you can use it to make utility bills, pay taxes, this is especially convenient for those who do not live in the country, or are often on the move.

To open a bank account, non-residents will need:

• International passport;
• Work record book;
• PIT Certificate;
• Local municipal statement of residence from your country;
• Сertificate of employment;
• Foreign Identification Number (NIE).

This is the main list of documents that you will definitely need when opening an account.

The specialists of Spain-Real.Estate can help with organizing the purchase of real estate in Spain and open an account in a local bank.

PROPERTY ACQUISITION PROCEDURE BY FOREIGNERS IN SPAIN

The purchase of real estate in Spain by a foreign citizen takes place in several stages.

1. Preparatory stage

Obtaining a Foreign Identification Number (NIE) is necessary for anyone who wants to find a job or buy real estate in the country. To obtain a document, you must contact your country consulate of Spain or police or immigration department upon arrival in the Spanish state.

Opening a bank account in Spain - it is important to do this in advance. Many Spanish banks work with foreigners, so there will be no problems with this issue.

2. Property inspection and checkout

You can find a suitable property option online. You can do this yourself on the website or use the help of a specialist. After the option is found, the seller pays a deposit (about 3-5 thousand euros), and then the ad is removed from sale. After a successful booking, the agent shows the buyer an extract from the register with information about previous owners and debts (if any). Then a check and inspection of the property is carried out, during which the buyer has the right to refuse a specific object and demand their deposit back.

3. Signing preliminary agreement

Signing of preliminary agreement, reservation contract or contrato de arras takes place without notary participation. The document contains all information about the real estate object and the seller's obligations plus the terms and amount of the main contract.

At this stage, the buyer transfers 10% of the property value to the seller, penalties for termination of the contract are prescribed. Thus, if the buyer abandons the transaction at this stage, they lose their collateral, if the seller - they pay the collateral in double amount.

If the purchase of a house in Spain is carried out with a mortgage, the issue with the bank must be settled even before contract certification with a notary.

4. Signing a notary agreement

Certification of sales and purchase transactions in Spain is never complete without notary participation. Their presence and notarization are necessary to ensure the safety of both parties.

The notary conducts their own verification of documents, they verify literally everything up to the last receipt. All collected and verified documents are put in a single file and stored by a notary in the archive.

Transaction takes place in the presence (or not) of representatives. If transaction takes place with a loan, the obligatory presence of a bank representative is required. Foreigners who do not speak Spanish will need an interpreter.

,p>Then the parties carefully study the contract and, if there are no objections, sign the contract. The buyer then hands over the remaining amount for the property and receipts, and the notary receives a receipt for taxes and fees. Only then does the buyer / new owner receive the keys to the purchased property.Contracts with utility providers are being reissued for the new owner.

5. How the transaction is paid

The most popular way to pay when buying a property in Spain is by using bank checks. It is much easier, more convenient, and most importantly, safer than cash. A foreigner must first open an account with a Spanish bank and transfer funds there. Before the transaction, the bank will give the check to the buyer, who, in their turn, will hand it over to the seller.

6. Transaction registration

After signing the contract, the task of the notary is to send the document to the register for additional verification with the subsequent registration of the new owner there. In total, the procedure can take up to 3 months. After successful registration, the new owner receives the original of the contract and an extract entered into the Register.

RIGHTS OF REAL ESTATE FOREIGN BUYERS

1. Ability to apply for a multiple-entry Schengen visa or obtain a residence permit;
2. When buying real estate in the amount of € 500 thousand, the buyer can expect to receive a “Golden Visa” and apply for a residence permit for themselves and all family members;
3. The right to fully dispose property.

OBLIGATIONS OF REAL ESTATE FOREIGN BUYERS IN SPAIN

1. Timely payment of utility bills and taxes;
2. Compliance with rental legislation in the event that the purchased property is rented out;
3. Residents of Russia must adhere to the laws of their country and notify the tax authorities about opening an account in a foreign bank, etc.

TAXES, OTHER MANDATORY PAYMENTS AND EXPENSES

• Real estate acquisition tax is paid regardless which country the owner is a resident of.
• Secondary property tax (impuesto sobre transmisiones patrimoniales) - the amount of this tax depends on the region. The national average is 0.8%, but in Catalonia and the Canary Islands the rate is 10% and 6.6%, respectively.
• Primary Property Tax (impuesto sobre valor añadido) - Value Added Tax (VAT) for all regions and properties - 10%.
• The tax is 21% on the purchase of commercial real estate or land.
• Stamp duty (impuesto sobre los actos jurídicos documentados) - the legal fixation tax applies only to properties in new buildings. The collection rates vary depending on the region and can range from 0.5% to 1.5%.
• Realtor services are calculated depending on the value of the object. Usually it is from 3% to 5%.

WE WILL HELP YOU BUY PROPERTY IN SPAIN

The agents of Spain-Real.Estate will help you select an object according to individual parameters, considering preferences, tastes and possibilities. If necessary, experts will advise on any issues of buying and selling real estate in Spain and provide comprehensive transactions support.