Are you considering buying a property in Spain?
Buying a home is one of the most exciting things you’ll ever do – it’s also one of the biggest financial commitments you’ll make. Find expert advice to help you all the way through the purchasing process.
Below we inform you about the steps to follow to complete the purchase of a property in Spain.
The first step is obtaining the NIE (Foreigner Identification Number). Essential to carry out procedures such as buying and selling a property, opening a business, working in Spain and obtaining residence.
You must open a bank account of non-residents to carry out the transaction and where later you must domicile the utilities of your home or business.
Prior to the signing reservation contract, an investigation of the property must be realized.
Some points to take into account in the inspection:
- Who owns the property, and therefore who has the right to sell it.
- If there are debts against it. For example, a mortgage or court judgement.
- If there are sitting tenants in the property.
- If it is subject to any special rules such as subsidised housing (VPO).
- In case of an urbanisation, whether the seller is up-to-date with the community fees.
- If the annual real estate tax has been paid. If it has not been paid within the last five years, the new owner will be responsible for payment.
The sales are made before a Notary and later they are registered in the Property Registry, which guarantees the full protection of their rights.
From Legal Abogados we advise you throughout the process of buying and selling, reservation contract conducting an inspection of the property you wish to purcahse, we intervene in the reservation contract and together with the Notary we prepare the deed of sale.
We also help you find the mortgage loan that best suits your needs, treating the matter in a personalized way. We will make the acquisition process an easy process, and safe for you.
Do not forget that after the acquisition of a property you have to pay taxes. The taxes payable will be different depending on whether the purchase of a first home, made directly to the developer, or the purchase of second-hand homes.
PURCHASE OF NEW HOUSES:
The buyer must pay the seller the amount of Value Added Tax (VAT), In addition, the buyer must pay the Tax on Stamp Duty that will be 0.5% (theComunidad Autonoma competent may have established a tax rate different), on the value declared in the public deed.
PURCHASE OF USED HOUSES:
In those cases in which we buy used homes, the tax to be paid will be the Patrimonial Transfer Tax, which is paid to the Autonomous Community in which the amount is fixed by application of the 8-10% tax rate (the Community Autonomous competent may have established a tax rate different) on the value declared in the public deed of sale.
Taxes of non-residents
If you have the status of non-resident in Spain and you own an urban property located in this country, you will be subject to the Non-Resident Income Tax and to a local tax, the Real Estate Tax. (Impuestos sobre Bienes Inmuebles)
We recommend that you choose an independent lawyer who works only in your name, from Legal Abogados we will advise and accompany you in this important process for you from the beginning to the delivery of the keys. Do not hesitate to contact our firm for any questions about it.