26 April 2016
The process of buying a house in any country can be complicated and confusing. When you are purchasing a property abroad, it's even more so.
Seeing foreigners buying property in Spain have become something very popular. The country has a pleasant, healthy climate and in recent years the local authorities have made great efforts to increase the number foreign tourists and residents. Spain now derives more of its foreign income from tourists than any other country in Europe. Due to low European interest rates, now is a good time to buy property in Spain. In this step-by-step guide Brilliant Real Estate shows you how.
You're out in Spain, you see the perfect property, you want to put in an offer before you go home. Stop! This is where people make mistakes. Sometimes impulse buys can work well – especially when it comes to the odd item of clothing or a gift. When we are talking about an investment as significant as a house, it's really not a good idea.
You need to take your time, check out the area, consider what your needs will be, not only now but in five or ten years' time. Rushing into a property purchase is probably one of the main mistakes that people make.
When you have found the right property for you, you need to make sure you engage the right help to check it out. Your choice of solicitor is an important step in the process of buying a house in Spain and they must look after your interests.
Your solicitor should:
Make sure that the correct property checks are completed including:
The next in our series of steps to buying a house in Spain is when you sign the private contract. The private contract isn't logged on an official registry but it is considered to be legally binding and must be checked before you sign it.
When you sign the contract you will pay a deposit. If you, as purchaser, break the contract you will lose your deposit. If the vendor is the one who defaults then you are entitled to twice the amount of your deposit as compensation by law unless it is written differently in the contract.
During the process of buying a house in house in Spain you will need to obtain an NIE if you don't already have one. The Número de Identificación de Extranjeros means that you are registered with the Spanish Tax Authorities. It must be applied for personally at the Foreigner's Office or National Police Station.
If you can't be in Spain when you need to apply for the NIE one can be obtained on your behalf through a Power of Attorney (Poder Notarial). You can nominate a trusted individual to represent you in certain transactions and you can sign the power of attorney in the presence of a notary. This means that the purchasing process can still go ahead without you being there.
The Title Deed needs to be signed at the Notary's office. At this stage you will also make the final payment and receive the keys. When you sign the Title Deed you will not be given the original document immediately but an authorised version known as the Copia Simple. If you have a mortgage, the bank keeps the original until the loan is cleared.
Once the Title Deed has been signed then the property will be registered at the Land Registry and the utility companies should be informed of the change of name.
You will need to complete your payments by settling with your legal representative. You should ask for an itemised receipt rather than accepting just a total amount. You should be given original invoices for the notary fees, the Land Registry and the taxes you have paid. You should keep all the documents, invoices, receipts and guarantees – you never know when you might need them.
It is important that you make arrangements to pay your taxes once you have your property in Spain. What you have to pay will depend to some extent on whether you are a resident or not. Both residents and non-residents must pay IBI council tax. However, non-residents must also pay imputed income tax in Spain.
Very often, a buyer will view a property and decide to buy based on the currency rate of that day. As rates fluctuate by the minute, by the time they come to complete on the purchase and make the transfer, the rate could have dropped dramatically
That's the reason why we recommend speaking to a currency exchange specialist to help you assess the risk of currency fluctuations and guide you on the best ways to protect yourself and maximize your budget.
In Brilliant Real Estate you'll find enthusiastic estate agents who provide the expert advice you are looking for when buying the property of your dreams in Spain. As a Spanish-Dutch Real Estate we provide all the support and information that any foreigner needs to accomplish the process of living in Spain.
Brilliant Real Estate takes the time to understand you needs, no matter how diverse, before introducing you to the best properties to meet their requirements. Our catalogue includes all kinds of luxury Villas all along the Costa Blanca North and Top Locations in Spain. Our properties are based in towns such as Moraira, Jávea or Benissa, Altea, Calpe, Benidorm, and other privileged places as Ibiza and Marbella.
Calpe (Calpe · Alicante)
Sabatera (Moraira · Alicante)
El Bosque (Moraira · Alicante)
Fustera (Benissa · Alicante)
Cumbre Del Sol (Benitachell · Alicante)
Cumbre Del Sol (Benitachell · Alicante)
Moravit (Moraira · Alicante)
Buena Vista (Benissa · Alicante)
Tarbena (Tarbena · Alicante)
New Mortgage Law A significant number of buyers who purchase a new development villa on the Costa Blanca need financing to carry out the transaction. This is even true in the case of foreign buyers, a sector that tends to resort to Spanish banks to arrange their loans. The New... Read more +
What Are Energy Performance Certificates and Who Needs Them? In line with other European countries, Spain has introduced a law obliging property owners to get energy efficiency certificates (EPC) before they can sell or rent their homes. According to the Real Decreto 235-2013 this... Read more +