Are you planning to buy a property in Spain? This is a deposit chosen by many Poles. No wonder. It is a country that offers sun and warmth most of the year, and beautiful beaches and monuments attract tourists from all over the world. A property abroad in a tourist paradise is perfect inwestycja na wynajem. You will probably also be happy to use it and, as the owner of the property, you will spend time there under the blue sky of the Iberian Peninsula. What is worth remembering when planning to buy real estate in Spain?
Where to start looking for a property in Spain? Determine your budget, purchase purpose and location
Before you start looking for your dream house in Spain, think about what you intend to buy it for. Are you planning to live in Spain permanently? The priority will be the proximity to a shop, pharmacy, park, maybe a school. Mieszkanie na wynajem it should have access to a swimming pool, be close to the water and have some tourist attractions nearby. Or maybe you want to spend part of the year in Spain and rent a house during your absence? This solution is chosen by many buyers.
Where to buy property in Spain?
Catalonia, Andalusia, Costa Brava, Costa del Sol. They sound great. The eastern and southern coasts are a common choice of real estate location among Poles who want to live in Spain. It has a Mediterranean climate, and the hot Spanish summers are tempered by the waters of the Mediterranean Sea.
Budget
Another important issue is the budget you can allocate for the purchase and your creditworthiness. Property prices in different parts of Spain, but even in the same town, are extremely different. Here you will find ordinary offers, but also million-dollar mansions. Also remember that the price of a house/apartment is not the only cost associated with its purchase. You can read about additional costs later in the article. Property prices in Spain have been gradually increasing for several years. Finding a property in good condition and at a favorable price is becoming more and more difficult. Perhaps this is the last call for such an investment.
Also consider what will be a better solution for you: real estate from the primary or secondary market? New apartments are subject to higher VAT (10%), but they are turnkey, fully furnished and ready to move in. Properties from the secondary market are subject to a lower tax on the transfer of ownership ITP (Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentales). However, it is important to remember that this tax depends on the autonomous region of Spain. The lowest rate of 6% applies in Madrid, Cetua and Navarre. In Valencia or Catalonia it is already 10-11%, in the Balearic Islands it is even 13% of the property value. They usually require renovation, which means additional costs for materials and time to find specialists and carry it out.
Real estate purchase process – is it worth using the help of an agency and a lawyer?
Do you intend to carry out the entire purchasing procedure yourself, or do you prefer to rely on the help of specialists? You can entrust us with the search and handling of all formalities real estate agency. The company will search for tailored offers, organize a trip that will allow you to see them, offer the services of a Polish-speaking lawyer, and help with notarial activities. Worth considering lawyer services, which will help you go through the real estate purchase process even more efficiently. For example, the lawyer will check whether the property is not encumbered with a loan (document Nota Simple), translate the content of the notarial deed, transfer the fee agreements to the new owner.
What documents will you need to buy an apartment in Spain?
When flying to Spain, you need a passport or ID card to see the condition of the properties you have chosen. On their basis, you will also obtain the necessary information for all financial activities in Spain identification number for foreigners NIE (Número de Identificación de Extranjero). You can do this with the help of a real estate agent.
Bank account in Spain strongs not necessary , strongut it will definitely facilitate payments related to the purchase of real estate and subsequent fees. If you intend to get a mortgage loan from a Spanish bank, then it will be necessary.
How to get a mortgage to buy a property in Spain?
Poles can buy an apartment in Spain on credit. The mortgage market in Spain is quite stable and many investors from Poland use this solution when purchasing real estate. If you live permanently in Spain, you can get a loan on slightly better terms (up to 80% financing). If you are not a resident, you can still count on financing of 50 – 70% of the property value.
It is worth remembering about additional loan costs such as commissions, interest, and loan insurance.
Anyone who meets the conditions can apply for a loan from a Spanish bank. To determine your creditworthiness you will need:
- Opening an account in a Spanish bank.
- Identity document and NIE number.
- Documents confirming income (bank statements confirming receipts).
- Tax declaration (PIT) for the last 2 years. Here it will be necessary to submit translated annual settlements to the Polish Tax Office. You can select the appropriate form in naszym sklepie, which will save you time and the cost of an additional translation order for this specific document.
- BIK statement confirming other credit obligations or their absence – because banks in Spain do not have access to it. This document also often requires translation. Przygotujemy go dla Ciebie na zlecenie.
- Documents regarding real estate (preliminary agreement, Simple Note, construction plans).
You will have to wait up to 3 months for a decision to grant a loan. It is worth mentioning in the preliminary agreement that the purchase and the date of signing the purchase/sale agreement depend on this decision.
Additional costs of purchasing property in Spain
Additional costs must be added to the price of the property. This is usually about 10-15% of its value and, importantly, they cannot be financed with a mortgage loan. What fees can you expect?
- The cost of concluding a preliminary contract (Contrato de Arras), which reserves the property for you. Requires an advance payment (usually 10% of the property value).
- Notary fees of EUR 1,000 (for preparing the sales contract documents, certifying the notarial deed, transferring ownership of the property, performing the necessary actions and stamp duties). Granting power of attorney to a notary will allow him to act on your behalf even in your absence.
- AJD stamp duty 0.5%-1.5% for new properties depending on the region.
- Legal services around EUR 2,000 – if you decide to do so.
- Costs of translating individual documents. Certified translation of multi-page documents is an expensive and not always necessary service. In many cases, a regular translation is enough, which you can do yourself based on TaxFormLab forms.
Signing a notarial deed (Escritura Pública) in the presence of a notary confirms the purchase of the apartment and makes you its owner.
You already have the notarial deed of purchase of the property – it’s time to pay fees and taxes
Signing a notarial deed is not the end. You need to complete the remaining formalities:
- Entry in the land and mortgage register – EUR 500.
- Property transfer tax (ITP) – applies to properties from the secondary market, the rate depends on the region (usually 6-10% of the value of the purchased property).
- VAT (IVA) – 10% for new properties.
- Property Tax (IBI) – annual local tax, depends on the value of the property.
- Non-Resident Income Tax (IRNR).
- Settlement proper PIT w Polsce. If the property will generate rental income, it must be included in the Polish PIT form as foreign income. You can read more about tax residence tu.
As you can see, the Spanish real estate market is not that different from a similar investment in Poland. The biggest difficulties may be legal aspects and the language barrier (including the need to translate individual documents). With the help of an agency, a notary and a lawyer, you can mostly complete the entire process of buying a flat in Spain remotely.
