Steps to invest in real estate in Spain🏠🇪🇸
If you are a foreigner and want to invest in real estate in Spain, you may have many doubts: how to search for the best location, how to gather information about the property, what documents do you need to buy? Here are all the details.
Spain is highly attractive to foreign investors, as shown in the CBRE Capital Flows into the European Residential Sector 2022 report, which highlights that Madrid has attracted €1.4 billion of cross-border capital and has become the second European city that has attracted the most international capital in 2022. Barcelona ranks seventh.
Steps to follow to invest in real estate in Spain if you are a foreigner 👇
The first thing we recommend is to have the help of expert lawyers in real estate investment in Spain to analyze your needs and carry out all the procedures so that you can buy a property in Spain safely. The steps you should follow are:
Determine the purpose of your investment 🤔
It is important to think about the objective of your investment since you may want to use the property for your own use or for rent, which can be long-term or vacation, for example. If it is a vacation rental, you will need to look for tourist areas in large cities or on the coast.
Choose the appropriate location 📍
One of the factors that most influences the price of a property in Spain is the location. There are significant differences in the price per square meter from one region to another. Therefore, it is important to seek advice from experts and analyze in which area you want to invest based on the objective of your investment.
According to TINSA data published at the end of 2022, all Spanish regions have recorded year-on-year price increases for the fifth consecutive quarter. For example, Madrid rose 9.2% in the fourth quarter and Barcelona 4.7%.
In addition, you should consider aspects such as the proximity of services such as schools, public transportation, highways, supermarkets, pharmacies, and hospitals, among others.
Visit the apartment and the area to see the environment.
Collect the necessary documentation as a foreign buyer 📑
To buy a property in Spain as a foreigner, you will need:
- The Foreigner Identity Number or NIE.
- Register with the Spanish Tax Agency as a non-resident or resident. This is necessary to pay the purchase taxes.
#LuxtonTip Although it is not mandatory, it is highly recommended that you have a bank account in Spain.
Request information about the property 🔍
If you are interested in a particular property, you will need to collect a series of important documents:
- Simple note from the property registry to know the ownership and charges of the property (mortgages, liens, or easements, for example). The simple note can be requested in person or online on the Property Registrars’ website.
- Community statutes. They can also be requested at the Property Registry that corresponds to the property, and with them, you can find out if there are any limitations in the building that affect your apartment.
- Energy efficiency certificate. It is mandatory for the purchase of any home.
- Cadastre information. The real estate cadastre can provide you with more information about the property such as the following: location, cadastral reference, surface area, use, quality of construction, graphical representation, cadastral value, and cadastral title, among others.
Sign the “arras” agreement ✍️
It is quite common for a contract of earnest money to be formalized between buyer and seller before the sale is finalized. This contract is an agreement between the buyer and the seller to carry out the sale, and the buyer gives a sum of money as earnest money. There are various types of earnest money, so it is important to analyze the scope of the contract you sign with your real estate lawyers.
Sign the public deed of sale, pay taxes and register the property
Next, the public deed of sale will be signed before a Notary. Then, the expenses and taxes of the sale (notary fees, registration fees, management fees and taxes such as VAT or ITP) will have to be paid and the deed will be registered in the Property Registry.
As you have seen, various procedures will need to be carried out, and having the help of local real estate lawyers will enable you to invest in property in Spain quickly and securely.
Do you have any doubts about your real estate investment in Spain?
Our team of experts will help you. Contact us. 📩