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
- 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
- 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%.