In this post we will explain how to buy a home in Spain, maximize your results and without any bad surprises.
Every year there is a very important percentage of non-residents in Spain who decide to invest in properties. The main reasons are the following:
- the price of homes is very attractive, compared to other countries
- possibility of obtaining the desired “Golden Visa”
- good weather
- possibility of making profitable incomes with short or long term rentals
This is why buying a home in Barcelona is always a very good investment. As everything you have to do well, and taking into account some very important points.
- Taxes when buying any type of property
- The price for which the sale of a home is announced or the one that is finally agreed with the seller is not the final price you will pay, but what is called the sale price, at this price you must add the taxes.
- If the house is of new construction to the sale price, you must add VAT (10%) while if the house is not of new construction you must add the ITP (property transfer tax). This tax depends on the autonomous community in which the house is located. For example, in Catalonia it is 10%.
- There are some exemptions that can lower the ITP in half. The best known are related to the buyer’s age. If the person who buys is under 33 years of age, they will have a percentage greater than 33% of disability or they are a large family.
- In addition to the ITP, the person who buys must pay the notarial expenses and the registration in the property registry. These expenses vary depending on the price of the house but although they must be taken into account, they represent a residual cost compared to the price of the house and taxes.
Taking these points into account will make your investment a great success.
Ask for a loan
If you do not have all the capital to buy a home in Spain you will need to use the services of a bank.
If you are a resident in Spain, you can check the conditions at any Spanish bank. Banks normally carry out mortgages at most over 80% of the house price. Taxes, notarial expenses and 20% must be provided by you with your own resources.
In the case you do not have all that capital, you should seek help from real estate professionals. There are ways you can get 10% or 15% more financing. But for this you will need to have the help of a
good real estate advisor who will advise and guide you.
If you are not a resident of Spain, it is best that you request financing from the
Banks in your country: In this way you will get financing more quickly and at a much more competitive interest and term.
Another important aspect to buy a home in Spain is the NIE. If you are not a resident of the Iberian peninsula, you will need to request one to be able to title the property. Whatever your nationality you will need it at the time of signing. Fortunately, you will get it quickly if the reason is to buy a property in Spain. But the most advisable thing is that you entrust these procedures to a professional. You will also need to open a bank account in Spain to direct the payments of the supplies and the IBI as well as to appoint a representative in Spain before the tax agency. If you are not going to be yourself of course you must communicate it.
Once you have the title deed in your hands, you will have to take care of paying the IBI.
The IBI (property and real estate tax) is paid annually. It is an annual payment that is paid to the town hall where the house is located. At the time of the sale, each party will pay the proportional part of this tax for the year of the sale, depending on the day of the signing of the deed.
You must also inform the property manager that you are the new owner. From now on you will take care of community expenses. These can be monthly or quarterly (each community agrees on the periodicity of the fees).
Check that the home is free of loads
It is very important to change the ownership of the supplies (water, gas and electricity). Even more important, make sure there is no outstanding debt. Neither community of neighbors, nor supplies and of course cargo, embargo or affectation of any kind.
For all this it is very important that you look for a good real estate advisor.
The advantages of Hausik
We believe that this part is the most important to avoid problems during or after the purchase.
We recommend that you seek the collaboration and services of the Hausik. We are sure of their services and professionalism.
Buying a home in Spain has never been easier. They will take care of absolutely everything! From looking for the property you want, to carrying out each and every one of the necessary procedures. You will not have to worry about anything.
Leaving the purchase of your home in the hands of Hausik is a sure success, because they will do all the work for you. They will supervise every detail and facilitate all the steps that we have mentioned.
You will be accompanied at all times and with a personal advisor at your disposal. Most importantly, the treatment you will receive will be totally personalized and professional.
In our next post we will talk about the different ways to make a home profitable and how to get the most benefit in each of the options that exist, so that the investment begins to pay off from the first moment.