Key factors for the success of the Spanish economy

Spain is one of the leading players in Europe. And Spain’s economy continues to show strong growth, confirmed by the latest gross domestic product data for the fourth quarter of 2023. An increase in GDP of 0.6% quarter-on-quarter and 2.0% year-on-year indicates positive growth in the Spanish economy.

A look at the key factors that determine the superiority of the Spanish economy over other countries on the continent will help to understand its unique features and future prospects.

Features of the Spanish economy

1. Diverse economic sector

Spain stands out for the diversity of its economic portfolio, which includes agriculture, tourism, construction, automotive, information technology and financial services. This wide range of activities provides stability and sustainability in changing market conditions.

2. Investments in infrastructure and innovation

Spain is actively investing in the development of its infrastructure and technological innovation. The construction of new roads, ports, airports and railways helps to improve the efficiency of the transport system and the development of logistics. Supporting innovative start-ups and research also plays an important role in economic development.

Investments in environmental and digital initiatives, as well as the use of New Generation Europe (NGEU) funds, are a priority for Spain. This direction helps to strengthen investments in development and innovation.

3. Geographical location and tourism

Spain’s favorable geographical position at the crossroads of Europe and Africa makes it a key point for international trade and transit. In addition, the rich cultural heritage, warm climate and beautiful beaches attract millions of tourists every year. This stimulates the development of the service sector and creates jobs.

4. Flexible workforce and labor market

Spain has a flexible labor market that promotes higher employment and labor mobility. This allows companies to quickly respond to changes in market supply and demand, which helps improve competitiveness.

5. Effective government management

The Spanish government actively promotes business development by providing tax breaks, subsidies and investment incentives. This creates a favorable business environment and attracts both local and foreign investment. Against this background, Spain is successfully strengthening its position on the world stage.

Overall, the Spanish economy continues to show positive dynamics. All this thanks to diversity and flexibility, investments in key sectors. As well as favorable conditions for business and consumption. These factors promise continued growth and prosperity for Spain in the future.

Every potential buyer of real estate in Spain needs to know what advantages and disadvantages such a purchase may have. In this article, we invite you to consider the main advantages of real estate in Spain, the pros and cons of living in this sunny country, and the pitfalls that you may encounter in the process of choosing and purchasing a home.

Buy property in Spain: pros and cons

First, let’s look at the reasons why you should buy an apartment in Spain. The pros and cons for each buyer may be different, but several facts undeniably testify in favor of purchasing Spanish real estate:

• Firstly, this is, of course, the opportunity to live in your own home on one of the most attractive coastlines in the world;

• Secondly, buying a home allows you to simplify the procedure for obtaining a residence permit;

• Thirdly, Spanish real estate is an excellent investment. By investing in it, you will not only save, but also increase it;

• Fourthly, housing by the sea can be rented out with great success to numerous tourists and receive a stable high income from this.

• Fifthly, in Spain it is quite easy to purchase housing. There are many more advantages for foreigners in this procedure than disadvantages.

These are not all the advantages that buying an apartment on the Spanish coast opens up for you. The pros and cons of such a purchase, of course, are determined individually.

For example, someone will think about the costs that new housing will require. Annual maintenance costs can be attributed to the disadvantages of buying property in Spain. This includes payment for utilities, condominium services, non-resident income tax and annual real estate tax, expenses for current repairs, home insurance, etc.

Having your own housing at a certain resort may become a limitation in mobility for someone, since traveling to other countries will seem impractical.

If you plan to rent out an apartment, you may encounter difficulties such as obtaining a tourist license, paying taxes, insurance against unscrupulous tenants, and the cost of renovating the apartment.

All these shortcomings of real estate in Spain can be considered related problems that can be easily and successfully solved with the help of Real Rise agency specialists. But for some, these factors can really become decisive.

Buying property in Spain for permanent residence: what to look for

Before you decide to buy a house or apartment, carefully consider all the advantages and disadvantages of such an acquisition for you personally. It is also worth considering a number of important factors:

• Regional differences. Spain is made up of 50 provinces and 17 autonomous communities. From region to region, climate, infrastructure, traditions and even local cuisine can have significant differences. Therefore, in order for your purchase to be successful, you need to accurately determine the region that suits you. The specialists of our agency Rusol Prime are always ready to help you with this.

• Golden visa. This residence permit program is in high demand among wealthy non-residents in Spain. Its essence is that when purchasing an object from €500 thousand, the buyer receives the right to work in the country, and the opportunities for obtaining a residence permit for members of his family, including financially dependent parents and adult children, are expanded. The condition of compulsory residence in the country for a year is also canceled. Therefore, if you are planning a large purchase, it is worth considering the possibility of passing the €500 thousand threshold.

• Climate diversity. The Spanish coast has differences in weather conditions. The difference in air and water temperatures can be quite significant, and in some regions the hot summer season is not so long. Therefore, before purchasing, it is recommended to live in the selected region for some time to understand how suitable it is for you in terms of climate.

• Cost of objects. The situation with prices in Spain has not yet reached pre-crisis norms everywhere. In some regions it is still possible to purchase quality properties at prices that are 40% cheaper than in 2007. Such a deal will be beneficial for the buyer. But at the same time, there is a risk, tempted by a low price, to purchase an illiquid object. Therefore, all transactions on the Spanish market are best carried out in cooperation with an experienced local agency; professionals will be able to ensure the maximum benefit for your purchase.

• Elite real estate. If you have an impressive budget, then pay attention to the elite segment. In this country, purchasing premium class properties is very profitable.

• Mortgage. In Spain, foreign citizens can purchase real estate with a mortgage. This option is not available in all countries, so it can be safely called another advantage of buying a home in this country.

We can talk for a long time about the pros and cons of purchasing real estate in Spain, since the same fact can be assessed in different ways. But one thing is beyond doubt: you need to prepare for such a purchase so that its advantages definitely outweigh the possible disadvantages. Our agency Real Rise will help you with this.

A bank account in Spain can be opened by both residents and non-residents of the country. The purpose of opening can be completely different: receive a salary or pension into an account, link utility bills and a contract telephone to an account, pay taxes in Spain from an account (for example, the annual real estate tax IBI, transport tax or tax on non-resident income INRR, purchase real estate in Spain with a mortgage, etc. A bank account in Spain may also be required for businessmen and investors planning to engage in entrepreneurial activities.

It would seem that such a sought-after service should be provided by all commercial banks in Spain with speed and ease. In fact, the situation is that most banks are reluctant to accommodate foreign clients, especially citizens of countries outside the EU.

Over the years since the country emerged from the crisis, the requirements for third-country citizens have become incredibly stricter. There is an explanation for this:

• firstly, banks learned a lesson from the situation of an avalanche of non-repayment of mortgage loans by foreigners;

• secondly, banks diligently adhere to European anti-money laundering policies.

All this led to the fact that each client began to be looked at literally under a magnifying glass, and the number of refusals to open an account increased.

Documents for opening a bank account in Spain

To minimize the risk of refusal and open a bank account in Spain, you need to stock up on documents confirming the source of income. Residents of Spain use “nominas” (salary slips), employment contracts, tax returns, etc. for these purposes.

Spanish banks require non-residents to submit:

• certificates from work,

• declaration

• from entrepreneurs declaration

It is important to consult with the bank manager in advance and find out the requirements for paperwork. For some banks, a simple translation of documents into Spanish may be sufficient, others may require only sworn translation, and still others may require mandatory apostille of all documents. The bank may also ask for a statement from an account opened in the country of permanent residence, indicating the movement of funds over the last 6-12 months.

Therefore, if you are planning to purchase real estate in Spain, it is better to entrust the opening of a bank account in Spain to a realtor who will accompany you. Entrust this procedure to professionals in order to save time on finding a bank that will open an account for a non-resident.

The financial documents listed by us will be required when opening an account, and in the future – once a year or once every two years to confirm the legality of the income received. Late submission of documents may result in account blocking, and this is an unpleasant situation, because… will not allow you to replenish your balance until the issue with the documents is fully resolved.

In addition to submitting financial documents, non-residents of Spain are required to annually confirm their tax non-resident status. The application form can be obtained either from the bank itself or downloaded from its website.

In addition to financial documents, when opening a bank account in Spain you will need to submit:

• for residents – TIE plastic resident card;

• for non-residents – a valid passport and NIE (National Identification Number) certificate;

• for students – a plastic student card.

If you want to open a bank account in Spain for the purchase of real estate, you will definitely be asked for a reserve agreement or a deposit, and after the completion of the transaction, a notarized bill of sale.

A number of banks in Spain have the option of opening an account online (this is how BBVA bank works, for example). A bank account is opened independently through the website, and all necessary documents are sent to the bank by courier.

There are also a number of banks in Spain, 99% of which operate online. For rare operations that require the personal presence of clients, single offices in large cities are maintained. This is how, for example, OpenBank, part of the Santander bank group, works. One significant “but”: such banks work only with residents of Spain and do not accept non-resident foreigners for services.

Operating principles of Spanish banks

An interesting feature of the work of Spanish banks is that there is no uniform policy and uniform requirements regarding foreign clients and their documents. The same issue can be resolved differently not only in different banks, but even in two neighboring branches of the same bank.

Here, an important role is played by the position of the management of each specific department and the internal policy of working with foreigners. And because In the Spanish banking system, there is a constant rotation of employees; just yesterday, a branch that was loyal to foreigners today may no longer be so, and vice versa.

So what should you pay attention to when choosing a bank? Convenient location, service conditions, commission size, staff speaking English (and sometimes Russian), the ability to assign a client to a personal manager – these are the key points.

As practice shows, small regional banks are the most loyal to foreign clients, and the most absurd demands are usually put forward by foreign banks (for example, Barclays and Halifax). Of course, if you buy bank real estate with a mortgage, you have no choice – you will have to open a bank account in Spain with the selling bank. In all other cases, the client retains freedom of choice.

Be sure to visit the bank’s website and, if possible in demo mode, the client’s personal account. Spain has taken the path of reducing the physical offices of commercial banks. Most banks are cutting staff, closing or merging offices and diligently transferring as much work as possible online. Because Almost all operations can now be performed through your personal account; it is important that the interface is convenient and understandable to the user, and that the site works, at a minimum, in English.

Since September of this year, commercial banks in Spain have added the stage of verifying the user and his online transactions by sending SMS messages with a code to the user’s phone. All clients were strongly advised in advance to obtain Spanish phone numbers and link them to their account.

When opening a bank account in Spain, you need to be prepared for the fact that the bank will impose related services in the form of life, property, and car insurance. And if, when applying for a mortgage, banks are strictly prohibited from putting pressure on a potential borrower and imposing secondary financial products, then when simply opening an account they are free to make any demands.

The requirement to buy insurance may be mandatory: if you don’t buy it, you won’t be able to open an account with this particular bank. To be fair, we note that sometimes banks offer good insurance conditions that are worth considering.

How to open and fund a bank account in Spain in the future

There are several ways to top up your account in a Spanish bank:

• transfer money from a foreign bank,

• make a bank transfer from an account opened in another commercial bank in Spain,

• deposit money into your account through the cash register,

• receive a salary, pension or any benefit into the account,

• top up your balance through an ATM.

However, not all of these methods are available to every client.

Typically, non-residents are required to top up their account only by bank transfer. Moreover, this transfer must be made from the client’s personal account from the country of his fiscal residence. In exceptional cases, the bank may agree to accept money over the counter, but the amount will be limited to a few thousand euros per year.

An exception may also be cases of payment of compensation for insurance (for example, for car insurance – compensation for damage caused to health or a car), but even here you will need to notify the bank in advance about the amount of payments in order to avoid blocking the account or rejecting the payment.

If the account is opened by a student, you will need to negotiate the possibility of transferring money from your parents (probably with the presentation of relevant financial documents from them).

Like in Ucraine, in Spain there is the institution of registration. Everyone who lives in the territory of the Spanish kingdom must be registered at their place of residence. The only exceptions are foreign citizens who come to Spain on short-line visas for holidays, treatment and other matters that do not require permanent residence in Spain.

Registration in Spain is registration at the place of residence, a necessary formality that allows local authorities to keep records of the population.

Why do foreign citizens need registration in Spain?

Providing registration information is necessary when preparing many documents, including:

• when applying for a Spanish residence and work permit;

• when applying for citizenship

• to enroll children in schools

• for exchanging driver’s licenses and car registration;

• to receive some social subsidies (depending on the region), etc.

Previously, having a residence permit also gave the right to free medical care, but the economic crisis has made its own adjustments, and currently the right of foreigners to free services in public clinics is limited. Current legislation guarantees free medical care only in three cases:

• when calling an ambulance;

• children under 18 years of age;

• for pregnant women for management of pregnancy and childbirth

An exception may be made at the regional level, so this issue should be clarified in each specific city.

Where to register in Spain and what documents need to be provided

Registration is issued at the mayor’s office of the city where you live. In order to register, you must fill out an application and also provide documents confirming ownership of real estate in Spain or its lease agreement.

If you are going to live with friends, then the application for registration must be signed by the owner of the house or apartment, because without his consent you cannot be registered. Registration in Spain in no case gives the right to claim part of the real estate. Your friend or acquaintance can write you out at any time if they deem it necessary.

Registration of children in Spain

Minor children can only be registered in the presence of one of the parents or legal guardian. A mandatory condition is the presence of a birth certificate. If the birth certificate is issued in a foreign language, it must be translated into Spanish and the translation must be duly certified (consular certification or translation by a sworn translator).

If the child will live on school grounds, he is registered at the school address. In this case, the legal guardian is the director of the school or dormitory.

Is it possible to register in Spain without documents?

It’s not just possible, but necessary. For foreign citizens, registration serves as official confirmation of the period of residence in Spain, which is important for obtaining Spanish citizenship or regulating your situation if you are living in the country illegally.

When registering, local authorities do not require confirmation of the legality of your residence and do not report your data to the migration authorities. Therefore, if you find yourself in an illegal situation (unfortunately, the realities of life are such that quite often, after the expiration of a tourist visa, people remain in Spain in search of a “better life”), registration will in no way harm you and will even help you. In accordance with Spanish law, after 3 years of continuous (this is important!) residence in the country, you have the right to apply for a residence permit in Spain.

Extension of registration in Spain

Many cities in Spain, primarily large cities (for example, Barcelona and Valencia) require foreign citizens to renew their registration every 2 years. The city administration will send a notification to your address. To renew your registration, you must personally appear at the mayor’s office and present documents on the ownership of the apartment or house where you are registered, or a lease agreement.

If you do not show up on time, you may be discharged. Discharge does not occur automatically after the designated period has passed. As a rule, they are discharged only after a couple of months. Once you provide the documents, your registration will be restored, but you will lose your proof of continuous residence in Spain.

How to change your registration in Spain

If you have moved, you must register in your new place. To do this, you must submit an application for registration to the mayor’s office at your new address. There is no need to notify the mayor’s office at the old address; this issue is resolved by the authorities independently.

Certificate of registration

If you need to provide information about your registration, you must obtain a certificate of registration from the local administration. This certificate is called Certificado de empadronamiento. As a rule, it is provided free of charge, but sometimes a nominal fee is charged. This certificate is valid for 90 days. You can request a certificate indicating all registered persons or just you. The certificate is issued immediately after the request.

Features of registration in Barcelona

As of December 1, 2015, changes were made to the rules for registering citizens at their place of residence for the city of Barcelona and the province of Barcelona. Now all citizens who want to contact the Barcelona City Hall regarding registration issues will have to make an appointment in advance. Registration can be made by calling 010 or online at ajuntament.barcelona.cat/cita.

Required documents:

• passport or NIE or DAYS card;

• documents confirming the ownership of the apartment: purchase and sale agreement, extract from the property register (note simple) or a valid lease contract;

• confirmation of the last rent payment;

• authorization from all owners or tenants of the apartment specified in the contract, filled out separately for each applicant (the authorization form can be downloaded here);

• photocopies of an identity document of each owner or tenant of the apartment;

• for minor children: passport or NIE card, if you have a libro de familia and a Spanish birth certificate;

If a minor child is registered in the presence of only one of the parents, then written permission from the other parent is required. If a child is registered by a third party, written permission from both parents is required. Such permission is not required from the other parent only if the parents are divorced and full custody is given to one of the parents.

If it is necessary to register a person without his presence, the tenant or owner of the apartment must appear in person at the mayor’s office and bring the following documents:

• passport or NIE or DAYS card;

• documents confirming the ownership of the apartment: purchase and sale agreement, extract from the property register (note simple) or a valid lease contract;

• confirmation of the last rent payment;

• authorization from all owners or tenants of the apartment specified in the contract, filled out separately for each applicant (the authorization form can be downloaded here);

• photocopies of identification documents from all owners or tenants of the apartment;

• photocopy of the passport or NIE card of the person who needs to be registered;

• authorization completed and signed by the person who will need to be registered (the authorization form can be downloaded here).

HOW TO BUY REAL ESTATE IN SPAIN FOR A CITIZEN OF RUSSIA AND OTHER CIS COUNTRIES?

Buying real estate abroad is always a responsible process that requires comprehensive preparation in every sense. If the buyer decides to purchase a home on his own, he needs to take care of everything: from creating a stable financial cushion for buying a house to concluding a deal and registering Spanish property in his name. If the buyer decides to buy an apartment in a new building, Real Rise specialists will help to significantly speed up the purchase and sale process.

Read more in the article about what the procedure for purchasing real estate by foreigners in Spain is, whether it is possible to buy real estate in Spain with a mortgage, about the rights of the owner and much more.

SEARCH FOR PROPERTIES IN SPAIN

The range of real estate in Spain is extensive, so to select the most relevant option, we recommend that you first get acquainted with the Spanish housing market. Here is a complete list of objects:

Apartments;

At home;

Villas and townhouses;

Commercial real estate;

Land plots and much more.

Real Rise consultants will help speed up the process of finding housing, who will provide detailed advice on the range of housing and answer all your questions related to

WHAT REAL ESTATE CAN FOREIGNERS BUY?

There are no restrictions regarding the purchase of this or that real estate for foreigners in Spain.The sale of apartments in Spain, as well as other properties, is open to everyone, including residents of Russia, the CIS and other countries.

HOME MORTGAGES IN SPAIN

The conditions for obtaining a mortgage in Spain are transparent and, upon closer examination, quite simple. The main thing is to familiarize yourself with the conditions in more detail and even a foreigner will not have problems with its registration.

The conditions for obtaining a mortgage may vary depending on the age of the borrower and the package of documents. An important requirement for the buyer is a good credit history, for the owner and the property – the legal cleanliness of the house + it must be included in the Registro de Propiedad – the local real estate register.

For non-residents of the country, the mortgage rate is 2.5%. The monthly payment amount should not exceed 30% -35% of the borrower’s monthly income. Subject to long-term repayment, the amount in the first 5 years will be 0.5%, after this period the interest will be 0.25%.

The mortgage rate is the same in all banks in Spain, which is very convenient because you don’t have to waste extra time searching for a suitable institution with a minimum interest rate.

MORE ABOUT OBTAINING A MORTGAGE

A plot of land without an object on it is not subject to mortgage lending, so before contacting a bank it is important to find the best housing option for yourself. There are no special requirements regarding what the property should be like.

Before making a decision, the bank conducts an independent assessment of the property. The price set by the bank may be lower than the market price. Thus, a mortgage is issued only on the basis of an independent assessment of the property.

If the bank sees risks for itself, it has the right to reduce the percentage from the promised 60% to 40%. It is for this reason that banks must take into account the liquidity of the object.

PRICE RANGE FOR MORTGAGE REAL ESTATE

An inexpensive studio apartment in Spain will cost about €40 thousand. The cost of luxury villas on the Costa Blanca starts from €250 thousand. Many optimal options for purchasing with a mortgage are offered by residential complexes under construction and ready-made on the coast. Here prices range from €120 thousand to €230 thousand. These are the properties that our compatriots most often prefer to choose.

The secondary housing market is no less diverse. The range of prices for secondary housing on the Costa Blanca varies from €120 thousand to €750 thousand. Mortgage lending applies to both new properties and secondary housing.

HOUSING UNDER CONSTRUCTION IN SPAIN IN INSTALLMENTS

Customer-oriented Spanish developers, tuned to satisfying client needs, often offer the most favorable conditions, including installment plans for housing in residential complexes under construction for foreign citizens. There are several reasons explaining why developers offer installment plans to clients.

These include:

Sellers don’t want to lose potential buyers. The cost of real estate on the Spanish market is constantly growing, and therefore it is quite natural that buyers do not always have enough money for a one-time purchase. Therefore, developers often make concessions;

Both the seller and the buyer are fully protected in such transactions, so their conclusion is completely safe and the risks are 0.

In Spain, installment payment is an absolutely transparent and regulated process from the point of view of legislation. The nuances of installment plans must be clarified with developers, since they differ and can range from 3 to 6 months.

OPENING AN ACCOUNT IN A SPANISH BANK

Opening a bank account is a mandatory procedure when purchasing real estate. By law, payment for the purchase of real estate in Spain can only be made through a bank. The only exception is housing under construction – in this case, transfers from Russia can be made directly.

In addition, having your own bank account in Spain gives the homeowner a lot of advantages: you can use it to make utility payments, pay taxes, this is especially convenient for those who do not live in the country or are often on the move.

To open a bank account, non-residents will need:

• International passport;

• Employment history;

• Help 2NDFL;

• Certificate of residence in your country;

• Extract from work;

• Foreigner Identification Number (NIE).

This is the main list of documents that you will definitely need when opening

PROCEDURE FOR PURCHASE OF REAL ESTATE IN SPAIN BY FOREIGNERS

The purchase of real estate in Spain by a foreign citizen occurs in several stages.

1. Подготовительный этап

Obtaining a Foreigner Identification Number (NIE) is necessary for anyone who wants to find a job or purchase property in the country. To obtain a document, you must contact the Russian consulate of Spain or, upon arrival in the Spanish state, contact the police or immigration department.

Opening a bank account in Spain – it is important to do this in advance. Many Spanish banks work with foreigners, so there will be no problems with this point.

2. Inspection and verification of the property

You can choose a suitable housing option online. You can do this yourself on the website or use the help of a specialist. After an option is found, the seller is paid a deposit (about 3-5 thousand euros), and after that the ad is removed from sale. After a successful booking, the agent shows the buyer an extract from the register  with information about previous owners and debts (if any). Then the home is inspected and inspected, during which the buyer has the right to refuse a particular property and demand his deposit back.

3. Signing a preliminary agreement

The signing of a preliminary agreement, reservation contract or contrato de arras occurs without the participation of a notary. The document contains all information about the property and the obligations of the seller + the terms and amount of the main contract.

At this stage, the buyer transfers 10% of the value of the property to the seller, and penalties for terminating the contract are prescribed. Thus, if the buyer refuses the transaction at this stage, he loses his deposit; if the seller, he pays double the deposit.

If the purchase of a home in Spain is carried out with a mortgage, the issue with the bank must be resolved before the contract is certified by a notary.

4. Signing a notarial agreement

Certification of purchase and sale transactions in Spain is never complete without the participation of a notary. His presence and notarization is necessary to ensure security for both parties.

The notary conducts his own verification of documents; he checks literally everything down to the last receipt. All collected and verified documents are collected into a single file and stored in the archives of the notary.

The transaction takes place in the presence (or without) of representatives. If the transaction involves a loan, the mandatory presence of a bank representative is required. Foreigners who do not speak Spanish will need a translator.

Next, the parties carefully study the agreement and, if there are no objections, sign the contract. Afterwards, the buyer transfers the remaining amount for the property and checks, and the notary – a check for taxes and fees. Only after this the buyer/new owner receives the keys to the purchased property.

Contracts with utility providers are being re-registered for the new owner.

5. How the transaction is paid

The most popular payment method when purchasing property in Spain is using bank checks. It is much simpler, more convenient, and most importantly safer than cash. A foreigner must first open an account in a Spanish bank and transfer funds to it. Before the transaction, the bank will give the check to the buyer, who, in turn, will give it to the seller.

6. Registration of the transaction

After signing the agreement, the notary’s task is to send the document to the registry for additional verification with subsequent registration of the new owner. In total, the procedure can take up to 3 months. After successful registration, the new owner receives the original contract and an extract registered in the registry.

RIGHTS OF FOREIGN REAL ESTATE BUYERS

1. Possibility to apply for a multiple-entry Schengen visa or obtain a residence permit;

2. When purchasing real estate for an amount of €500 thousand or more, the buyer can count on receiving a “Golden Visa” and obtain a residence permit for himself and all family members;

3. The right to fully dispose of property.

OBLIGATIONS OF FOREIGN BUYERS OF REAL ESTATE IN SPAIN

1. Timely payment of utility bills and taxes;

2. Compliance with rental legislation in the event that the purchased housing is rented out;

3. Residents of Russia must adhere to the laws of their country and notify the tax authorities about opening an account in a foreign bank, etc.

TAXES, OTHER MANDATORY PAYMENTS AND EXPENSES

Tax on the acquisition of real estate is paid regardless of which country the owner is a resident of.

Tax on secondary real estate (impuesto sobre transmisiones patrimoniales) – the amount of this tax depends on the region. The national average is 0.8%, but in Catalonia and the Canary Islands the rate is 10% and 6.6% respectively.

Primary property tax (impuesto sobre valor añadido) – value added tax (VAT) for all regions and objects – 10%.

For the purchase of commercial real estate or land, the tax is 21%.

Stamp duty (impuesto sobre los actos jurídicos documentados) – a tax on legal registration applies only to properties in new buildings. Fees vary by region and can range from 0.5% to 1.5%.

Realtor services are calculated depending on the value of the property. Usually from 3 to 5%.