What is the process of buying a house in Spain?

The process of buying a property in Spain usually runs as follows. First, the buyer makes an offer. If this is accepted, then the buyer and seller sign a preliminary contract (contrato privado de compravento) and the buyer pays a deposit, typically 10% of the purchase price.

What is the procedure for buying a property in Spain?

How long does it take to purchase a house in Spain?

3 to 4 weeks: for straightforward purchases, i.e. properties with no debts, all paperwork in order and financing already in place. 4 to 8 weeks: for slightly more complex purchases where, for example, an architect's certificate is required or the buyer needs to obtain a mortgage.

How easy is it to buy a house in Spain?

How easy is buying property in Spain for foreigners? ³ There are no special requirements or paperwork for foreigners wishing to buy property in Spain, so you shouldn't have any issues. In fact, foreign investment in Spanish property was traditionally encouraged by the government.

What paperwork do I need to buy a house in Spain?

How To Buy A House In Spain (Step-by-Step Guide)

How much below asking price should I offer in Spain 2021?

Property owners who sold their homes on a Spanish website accepted 14 percent below the initial asking price, according to research specialist Beatriz Toribio. That translates into an average saving of €33,400 on the average price of the sales surveyed. More than four out of every five sellers lowered their price.

What are the pitfalls of buying property in Spain?

Some of the common pitfalls of buying a property in Spain include deposit, purchase tax, issues with off-plan properties and properties being built illegally. During your research into buying a property in Spain you will have come across many stories of purchases in Spain gone wrong.

How much tax do I pay on a Spanish property?

Expect to pay between 8% and 11.5% in taxes on a property purchase in Spain.

How much deposit do I need for a Spanish mortgage?

For a Spanish mortgage, you will generally need a minimum deposit of 30% of the property's purchase price.

Do you need a Spanish bank account to buy property?

Spanish laws require buyers to open a bank account in one of the Spanish banks, and transfer the funds there to pay to the vendor directly from the Spanish bank account.

How much is stamp duty in Spain?

The Stamp duty (known as AJD) is 1% of the price of the purchase, but might go up in some regions, so be sure to check on the latest rate.

How long does mortgage Approval take in Spain?

Generally speaking, the actual granting of a mortgage in Spain does not usually take more than 2 weeks if everything goes smoothly and you are well organised.

Do I need a NIE to buy a house in Spain?

NIE - foreigners identification number

A NIE (Numero de Identidad de Extranjero), is a personal identification number required in order to carry out any fiscal transaction in Spain such as opening a bank account or buying property.

Who pays the notary buyer or seller in Spain?

For example, the custom in the area of Denia, Pedreguer and Javea is that the notary fees are normally paid by the buyer. On the other hand, in places like Valencia, the normal practice is that they are paid by the seller, whilst in other places it is normal to pay on a 50/50 basis.

How long can you stay in Spain if you own a property?

At present you can only spend up to 90 days in Spain, then you must leave the country. You will then not be able to return to the Schengen Area until 180 days have passed since your date of entry into Spain (or elsewhere in the Schengen Area).

Can I buy a house in Spain and live there permanently?

Yes, you can get residency in Spain after buying a house, and that is thanks to the golden visa scheme. Since 2013, non-EU citizens who purchase a property in the Spanish territory can get a 2-year residence permit (that can be renewed) as long as the property investment is at least € 500.000.

Do Spanish banks do credit checks?

Do banks do credit checks? Yes. They will carry out a Spanish credit check (called a CIRBE) to see if the applicant(s) have any existing debts in Spain and they will also ask foreign buyers to provide an independent credit report for their home country.

How much can I borrow for a Spanish mortgage?

For residents of Spain, mortgages can go up to as much as 80% of the purchase price or valuation figure. However, for those purchasing a Spanish property from overseas, the maximum amount you can borrow is 70%.

What deposit do I need for a property in Spain?

The Spanish mortgage experts

Normally, the maximum you could borrow is up to 70% of the valuation of your chosen Spanish property. Therefore you must have at least 30% available as a cash deposit.

Do you pay council tax in Spain?

IBI is a local charge in Spain that is similar to council tax in the UK. The letters I.B.I. stand for Impuesto sobre Bienes Inmuebles, literally an immovable property tax. Depending upon where in Spain your property is located you can expect to pay this expense either once or twice per year.

Do you pay IBI on land in Spain?

Unbeknownst to most non-resident property owners, on buying property in Spain, you automatically become liable to pay IBI tax the following year. No one will give you the heads up on this tax, so it is up to you to find out how much you owe and comply with your local Tax Authorities.

Do expats pay tax in Spain?

Yes, expats in Spain need to pay taxes. The most basic tax that expats must pay in Spain is the income tax. The income tax is calculated upon the expat's worldwide income. However, if you are a Spanish non-resident, the income tax is calculated just upon the income generated in Spain.

Is it a good time to buy property in Spain 2020?

Spanish house prices rose 1.68% during Q3 2020 (2.2% inflation-adjusted). In the previous year, property prices in Spain in 2019 posted a 4.68% rise according to the Instituto Nacional de Estadistica. On a quarterly basis, house prices increased 1.15% in Q3 2020 (1.67% inflation-adjusted).

How many days can I stay in Spain as a non resident?

The 90-day rule

This rule simply states that you can live in Spain without residency for a maximum of 90 days. After those 3 months, you need to either obtain a residence permit, or leave the country. And that is because the shortest stay option is the tourist (or Schengen) visa, which lasts exactly for 90 days.

Who is entitled to healthcare in Spain?

If you've been a resident in Spain for 5 years or more, you can apply for permanent residency. This will give you access to state healthcare on the same basis as a Spanish citizen. Once you're a permanent resident, you need to register for healthcare at your local INSS office.