Buying Property in Spain
While the team at IDILIQ Homes are there to ensure that the search for your perfect property is an enjoyable and exciting time, it is important to consider some of the administrative and legal processes that must be undertaken before you can complete your dream purchase, not to mention some of the costs involved. We consider it prudent to use recognised legal professionals when purchasing a property, but It’s also useful to learn some of the terms that you will come across during the buying process.
Any new arrivals in Spain or those intending on buying property in Spain will need a Numero de Identidad (NIE); essentially, a Foreigners identification number. Applications for this important number can be made at your local national police station or of course, your legal representative in Spain can apply for this on your behalf. Although the initial certificate given is only valid for three months, this number will stay with you for life and never change.
Some of the acquisition costs of a property in Spain include; notary fees, stamp duty, VAT (IVA), transfer taxes and mortgage costs.
There hasn’t been a better time to buy in Andalucia than right now. As recently as 2021, the property transfer tax in Spain has been reduced to a flat fee of 7% as opposed to a graded system of 8,9 & 10% on resale properties due, in the years before. Similarly, instead of a transfer tax, you will pay a stamp duty when buying directly from a developer - this has been cut from 1.5% to 1.2% under the same legislation, where you will also be liable for 10% IVA (VAT) on your purchase. To see a selection of brand-new developments on offer, click here.
Although many people choose to pay cash or use equity release from their property in their home country, many will choose to obtain a Spanish mortgage to help fund their purchase in the sun. While not indefinite, interest rates across Europe are incredibly low at the moment and providing you meet the criteria set out by your chosen lender, it is certainly a great time to take advantage. It is important that you can provide a transparent, up-to-date and comprehensive record of your finances.
IDILIQ Estates would recommend you seek expert and independent legal and mortgage advice from a recognised professional before moving forward with any purchase and our team is on hand to point you in the right direction - get in touch to find out more.
One of the most important documents to obtain when you intend to move forward with a purchase is the Nota Simple - essentially an officially recognised document containing the verified description of the property you intend on purchasing - your legal representative can help you obtain this document at the property title register office or often these days, online - it also contains:
- The registered owners
- Any legal charges against the property
- Any debts against the property that needs to be settled
- The defined boundaries or the land/property
- The total size in sq/m of the land and buildings on the property
- Defined use of the property (residential, commercial, agricultural, etc.)
- Any rights that may be granted to third parties (water, right of use, etc.)
- Any associated community costs if applicable
A suite of professionals at your fingertips:
To make your purchase, or sale, as smooth as possible we’ve done all the research for you. Through our established banking partnerships we can offer pre-approval for mortgages through several leading Spanish banks, including 100% financing in some cases. We also have independent lawyers and accountants to guide you through your entire journey waiting to help.