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PROPERTY ACQUISITION IN SPAIN AS A FOREIGNER🏠🇪🇸
Buy a property in Spain
👉 All you need to know about buying a property in Spain after Brexit (or as a foreigner)
WHAT DO I NEED TO START THE PROCESS?
CONVEYANCING AND SALE OF REAL ESTATE FOR FOREIGNERS
Real Estate Conveyancing
– Should I hire a lawyer to buy a property in Spain?
In Spain it is advisable that the purchase-sale is formalized in a public deed before a Notary Public. However, the notary does not intervene in the preliminary stages of the sale.
In addition, some formalities and procedures may be unfamiliar to foreigners. Therefore, we recommend you to have a legal advisor to assist you during the purchase process.
– How long does the procedure of buying a property in Spain after Brexit take? 📅
There is no legal deadline for formalising the purchase. It all depends the agreement with the seller.
– Where should I invest?🌍
– Should I invest as an individual or through a company?🤷♂️
It depends on many factors and should be analyzed on a case-by-case basis. Moreover, the different tax implications, expenses, etc. need to be analyzed and planned in advance.
– Do I need to be physically present in Span to buy a property?
No, your presence is not necessary to buy a property in Spain.
The purchase can be made through a representative by means of a power of attorney.
What can we do for you?
– Support throughout the process
– Mediation between the seller/buyer or agent
– Analysis & documents review
– Negotiation of the terms of the contracts
– Advise on the investment
– Clarifying doubts & questions during the process
– Acting through POA on your behalf
Property acquisition process.-
Taxes when buying a property in Spain after Brexit (or foreigners)
Buying and selling real estate
Taxes on the acquisition of a new-built property
The tax applicable when buying a newly built house in Spain is VAT. It is currently 10% of the purchase price throughout Spain.
A newly built home is one that is purchased from the developer after the construction of the property. However, a completely refurbished home can also be considered “new construction” if it meets certain requirements.
In addition, when buying a newly built home in Spain, the buyer must pay VAT directly to the seller. The latter in turn will declare it to the Tax Agency.
This tax is applied to the signing and registration of the deed of sale in the Land Registry.
The tax rate (amount to be paid when buying a house in Spain) is determined regionally, so it will depend on the location of the property. Therefore, buying a house in Madrid is not the same as buying a house in Barcelona (for example).
Buying a property in Spain after Brexit - Second hand homes
This tax is applied when real estate transactions of “second hand” properties are carried out. It is the responsibility of the Autonomous Communities so the applicable tax rate (amount to be paid) varies depending on the region where the property is located.
To determine whether a property is subject to VAT or ITP, you can check it on the website of the Tax Agency.
FAQ's - Buying a property in Spain after Brexit (or as a foreigner)
– How can I verify who is the owner of the property I want to buy?
Something to take into account when buying a property in Spain after Brexit is the ownership of the property prior to the purchase.
The Spanish Land Registry certifies the ownership of a property in Spain.
You can easily access this information by requesting a “Nota Simple” at the corresponding registry.
– I am not a resident in Spain, can I apply for a mortgage to buy a house in Spain?
Yes, you can apply for a mortgage to buy a property in Spain even if you are not a resident.
First of all, it is important to determine in any case what proportion of the purchase amount you need to finance, the term and the currency in which you obtain your income.
Also, there are credit institutions that will only finance if the currency in which you generate your income is in euros, so you should know in advance which banks can finance you.
– What expenses do I have to take into account?
To calculate expenses when buying a property in Spain after Brexit (or as a Foreigner), you have to take into account that there are one-time expenses and recurring expenses. We explain some of them.
One-time payments/expenses at the time of purchase:
1) ITP: 6-%10% of the purchase value. (Depends on the Autonomous Community).
2) Notary: Around 1.500 euros
3) Land registry: Around 1,000 euros
4) Bank commission for the issuance of checks: Around 300 euros
5) Architect: 450 euros, approximately. If you want a technical review of the property by an architect.
6) Lawyer’s fees.
1) Home insurance (if you take out insurance).
2) Supplies (water/electricity/gas)
3) IBI (Property Tax)
4) Community of owners (if any)
5) Non Residents Tax. If you lease the property, you will have to present quarterly liquidations in the Tax Agency.
Foreigner's ID Number (NIE)
Foreigners with economic, professional or social interests in Spain are required to obtain a foreigner’s identification number (NIE).
The current appointment booking system is overloaded. Therefore, we advise you to plan your investment in advance and as far as possible to start the process before you arrive in Spain.
In Luxton we will help you with this essential procedure to buy a property in Spain after Brexit (or as a foreigner).
Having a local bank account is not necessary to buy a property in Spain after Brexit (or as a foreigner). However, having one will make it much easier for you to pay for taxes such as community fees, utilities, etc.
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