Home Property in Spain
How to buy a house in Spain?
Here you will find the detailed information about real estate purchasing in Spain:
- the right way to choose the property and to effect the deal;
- property taxes and duties that should be paid;
- everything about home loans in Spain;
- home property management and renting;
- rental, commercial properties and related investment properties.
Real estate for sale
Most recent offers from house owners in Spain and from real estate agencies. Advertisements with the fixed price and auctions are listed here.
You can leave a comment and give advice to other visitors planning to buy a home in Spain.
Spanish economy is still recovering after the crisis. Unemployment rates remain on a historically high level. External state debt is still growing, and all these factors have a significant impact on affect Spanish real estate market. Prices for real property in Spain are falling, but it is likely that they will touch the bottom soon and then start growing again. The fall continued even after Spanish builders reduced the development plan by 40 %. However, low prices attract buyers and investors, who want to seize the moment and purchase cheap real estate in the European country.
According to Spanish notaries’ statistics, the average square meter price for an apartment in Spain was around €1300 in February 2014.
Cheap real estate in Spain
One may find a lot of affordable real estate in such regions of Central Spain as Estremadura, Castilla-La Mancha, Castile and Leon. Cheap real property can also be found in coastal Valencia – a single-room apartment costs €15 000–€30 000 here.
There’s also a lot of bank property on the Canary Islands. It is possible to find a relatively cheap first line apartment for around €30 000 here. If you want to buy an apartment in Madrid, there are lots of options starting at €1000 per sq. m. The average price for an apartment here was around €1650 per sq. m. in 2014.
Premium real property
Premium real property in Spain is mostly located in large cities, such as Madrid, in the Basque Country, and also in prestigious southern resorts, as well as on the Canary and Balearic Islands.
A 160 sq. m. luxury apartment in South-West Mallorca can be purchased for €400 000. A 108 sq. m. upscale Valencian flat facing the Mediterranean sea, with a swimming pool, garage and a small garden goes for €420 000. A 141 sq. m. three-room apartment next to Costa-Blanca beach in the city of Alicante costs about €450 000–500 000. Premium villas and other real property in the south of Spain are mostly located on the islands, or along the coastal line, especially in such cities, as Catalonia and Valencia.
Villas in the suburbs of Valencia are also very popular. For example, a 381 sq. m. villa with a swimming pool and a garden costs €430 000, while a 450 sq. m. villa in the suburbs of Alicante is worth €300 000.
Anyone regardless of citizenship may acquire Spanish real estate. It is better to control this process in person. A real estate agency can provide you with all necessary information, beautiful photos, etc., but your personal presence will minimize the risk of unsuccessful choice. This process consists of several steps.
Real property purchase in Spain starts with reserving a selected object. Sometimes the parties prefer signing a preliminary agreement, in which they agree upon a deposit. Usually it amounts to 10 % of the object value. After that, it is necessary to open an account in a Spanish bank. Then a buyer should get a foreign identification number (NIE) and open a bank account in order to pay all expenses related to the deal. This account may also be used in future for paying community charges and other costs for maintaining the object. Identification number is necessary for foreigners in order to carry out sell and purchase transactions.
Once this is done, the parties and a notary agree upon a date of signing the principal agreement (Estrictura publica). Meanwhile, it is necessary to open a mortgage loan account in a bank. Interestingly enough, it is common practice in Spain for sellers to pay notary and real estate agency fees, unless specified otherwise. The buyer may also hire a local lawyer, in order to ensure success of purchase transaction. Lawyer fee may is 1–2 % of the object value.
Sale and purchase agreement
Both parties sign sell and purchase agreement at the notary office on a specific date, carry out all necessary transactions and pay taxes. VAT for real estate in Spain amounts to 10 % for primary market, and 7 % for secondary market. In addition, it is necessary to pay stamp duty, which is 1 % of the object value. As soon as a notary certifies the agreement, it should be submitted to the state property register.
This process may take from several months up to half a year. Once registration is done, the original agreement is returned to a new object owner.
Spanish real estate acquisition requires several tax payments:
- VAT (IVA) – 8–10 %;
- transfer tax (ITP) – 6–11 %, depending on a region;
- stamp duty (ADJ) – 1 %;
- notary fee – 0.3–0.5 %, usually covered by seller;
- registration fee – 1 %;
- mortgage arrangement – 1–1.5 %.
The amount of property tax in Spain is equal both for its residents and foreigners from the countries, which signed a double tax agreement. There still may be some differences in taxes for primary and secondary market property. Spanish law regulates this in the following way.
Having purchased primary market property, buyer should pay the following taxes and duties:
1. VAT (IVA) – 10 % of property value;
2. stamp duty (ADJ) – 1 %;
3. transfer tax (ITP) – 7 %;
4. land VAT (Plus Valia) – regulated on municipal level, based on evaluation of real property price increase at the moment of sale. archived version