Purchasing a property in Spain

Spain is one of the main countries that people choose to retire or purchase a second home to come to enjoy eventually, among other things due to its great house prices, its wide variety of activities that can be practiced outdoors or its Mediterranean diet.

WHY SHOULD I PURCHASE A PROPERTY IN SPAIN?

Do you prefer beach or mountain? Would you like to come and enjoy or is it to invest? Do you prefer more cosmopolitan or “typical Spanish” areas?

The point is that whatever your intention is, Spain is considered one of the preferred destinations for various reasons, and among others, we wanted to show you 5 very interesting points that makes Spain as popular as it is.

  1. Sierra Nevada is the highest ski station in Europe as it reaches 3,300 meters above sea level at its highest point.
  2. Spain has 669 blue flags in Spain, between beaches, marinas and boats, leading the World Ranking.
  3. Spain is the country with the most UNESCO Biosphere Reserves in the world thanks to its 49 protected properties.
  4. Throughout 2018, the pilgrims office in Santiago de Compostela counted more than 320,000 penitents.
  5. In Rojales or San Fulgencio (Alicante), more than 50% of the population is foreign.

All these points make Spain different and wonderful. Would you miss out on it?

COST WHEN PURCHASING A RESALE PROPERTY IN SPAIN

  1. Property Transfer Tax, the ITP (Impuesto the Transmisiones Patrimoniales) in Spain is different in every county and it should be added on to the final price agreed between buyer and seller.
    Comunidad Valenciana – 10%
    Murcia –  8%
    Andalucía – 8%
    Cataluña – 10%
    Madrid – 6%
    Islas Baleares – 8%
    Canarias – 6,5%

    Pink Lake - Torrevieja (Alicante)
    Pink Lake – Torrevieja (Alicante)
  2. Land Registry and Notary Fees, when you purchase a property in Spain, it must be signed in front of a Notary so it can be registered in the Land Registry of your area. These 2 actions tend to cost around 1,500€.
  3. Legal Representative (including NIE), I always recommend to everyone to contract a reputable Lawyer or Solicitor to deal with the whole process of conveyancing. Normally, they charged around 1,200€ + IVA (VAT in Spain is 21%) and they will do the following for you:
    – Verify all the documentation of the property
    – Verify there is no debts on the property
    – Get the NIEs (Spanish Tax Identification Number)
    – Sign the deeds at the Notary
    – Pay taxes on your behalf
    – Change the ownership of the electric and water contracts
  4. Additional costs (Spanish mortgage), if you buying a property in Spain with a mortgage, there will be an additional cost.
    Valuation, between 250 and 600 euros (and it’s valid for 6 months)
    Opening mortgage commission,  can be up to 2%

EXAMPLE

To make all of this a bit more clear we are going to do an EXAMPLE:

Resale purchase property in TORREVIEJA, one of the favourite places for foreign people to buy their dream home in Spain. We need a 50,000 euros mortgage.

  1. Price agreed with the seller – 100,000 euros
  2. Cost of the Solicitor contracted – 1,400 euros (IVA included)
  3. Notary and Land Registry – 1,300 euros
  4. ITP (Tax) – 10,000 euros
  5. Mortgage – 400 euros valuation and 500 euros opening mortgage commission (1%)

The total cost of purchasing this property would be 113,600 euros (interest of the mortgage not included).

If you have any questions, do not hesitate to leave a comment below or send me an email.

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