The most frequent questions of real estate buyers in Spain

The most frequent questions of real estate buyers in Spain

People who decide to buy real estate in Spain, as a rule, have questions about how to conclude a deal and own foreign real estate. Below are detailed answers to the most common questions.


What taxes do I have to pay when buying a property in Spain?

The type and amount of taxes paid during the transaction depend on the property being purchased. If it is a residential property, the buyer must pay the property transfer tax. The size will depend on whether it is primary (a new building purchased from a developer) or secondary (a unit that had one or more owners).

The following table shows the estimated taxes in Spain depending on the value of the property:

The estimated taxes in Spain depending on the value of the property
The cost of real estateFrom 0 to 400,000 eurosFrom 400,000 to 700,000 eurosFrom 700,000 euros and more
Property transfer tax 8% 9% 10%
Notary fees 0,50% 0,50% 0,50%
Land cadastre fee 0,30% 0,30% 0,30%
Legal expenses 1% 1% 1%
Mortgage Payment 1% 1% 1%
Total 10,80% 11,80% 12,80%

Regarding buying a new building in Spain, another 1.5% should be added to the property transfer tax. For buyers under the age of 32, this tax will be halved.

Buyers are also required to pay VAT — in Spain, it is IVA. This amounts to 10% of the price of residential real estate and 21% of the price of commercial real estate and land owned by companies.

Do I need a NIE to buy a property in Spain?

NIE is a special tax number for non-residents of the country. In Spain, this NIE is necessary for anyone participating in any official transaction or process on its territory, such as buying real estate, connecting the property to utilities, and paying taxes.

The most frequent questions of real estate buyers in Spain

How long does it take to buy a property in Spain?

After the buyer finds a suitable property, he then proceeds to conclude the transaction. The latter may take 1-2 weeks. The exact time depends on many factors.

The most difficult part is Due Diligence or a comprehensive property assessment. Approximately 80% of this process is devoted to checking the title deed, and the remaining 20% is to checking the condition of the property (breakdowns, problems with neighbors, unpaid bills, etc.). If all goes well, Due Diligence will take about 2-3 days.

How much can a buyer expect when applying for a mortgage in Spain?

Spanish banks usually lend from 60% to 70% of the property value. Previously, residents could receive 90%, but credit institutions have gradually become more conservative, especially for emigrants.

Regarding the value of the real estate, it is not about the market price but about the valuation of the property by the bank. There is a difference between the price that the buyer ultimately pays and the value of the property, which is determined by representatives of the credit institution.

Quite often, banks underestimate real estate, especially if it is located in an area with an unknown market future. If the property is located in such a promising city as Madrid or Barcelona, the difference between the market and the estimated value will be minimal.

The most frequent questions of real estate buyers in Spain

Is it possible to buy a property in Spain without a title deed?

A title deed confirms that the property meets the necessary sanitary and hygienic standards. This document is necessary for the owner to connect to utilities. Technically, it is possible to buy a property without a title deed, but it is not recommended to do this.

Do I need to have a Spanish bank account to buy a local property?

Funds to buy real estate in Spain do not have to come from a Spanish bank account. The source of funds must be clear, and the payment is documented. Future owners of Spanish housing are advised, however, to open an account with a local bank, as it is sometimes impossible to pay for utilities from a foreign account.

The most frequent questions of real estate buyers in Spain

How much does it cost to own a property in Spain?

In addition to the usual costs of owning real estate in Spain, such as paying for water and electricity, there are several additional costs that the buyer should know before concluding the transaction:

  1. Owners of apartments in Spain, as a rule, need to pay a fee to maintain common areas of the complex.
  2. All owners of Spanish real estate must pay IBI municipal tax. The amount depends on the location of the property. The tax rate varies from 0.5-2%.
  3. Non-resident landlords renting out real estate are required to pay income tax to a non-resident. The rate for EU citizens is 19%, and for all others – 24%.

How to find a suitable property in Spain?

The catalog of Spain-Real.Estate offers houses in Spain with an ideal price-quality ratio. The aggregator's extensive database is regularly updated with current options. It has suitable options for both end users and investors.

For advice in finding residential real estate, contact the company's representatives. Spain-Real.Estate customers can count on support during the transaction and high-quality after-sales service.

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