Buying a property in Spain does not differ much from the Polish procedures for dealing with such cases. Of course, in some matters local conditions and the specificity of the market should be taken into account.
Documents needed to buy a property in Spain:
– Spanish tax identification number NIE * (numero de identificacion de estranjero). You do not need to apply for it immediately after starting cooperation with us. Only when you decide to buy and book a specific property, we will proceed to submitting the documents to obtain this number. A separate article provides information on this procedure.
⁃ Confirmation of opening an account in a Spanish bank
⁃ Passport or ID card
⁃ A copy of your passport or ID card
Purchase of real estate on the secondary market
1. It all starts with signing the preliminary contract (sales contract in Spanish). This contract guarantees the reservation of the property. Of course, before signing, you will also receive the Polish version of this contract from us.
2. The advance payment is made when signing the introductory speech, usually between 3000 and 6000 euros.
3. The pre-agreement specifies the date of the notarial deed and the account to which the deposit will be paid – 10% of the property value. The payment of the deposit is usually made only when the appointment with the notary is more than one month away from the date of booking.
4. The next step is signing the notarial deed. Then the remainder of the sale value is paid in. The notarial deed is signed in Spanish. For your needs
The interpreter is ordered by the client. Your lawyer may also be present. All the names of those present at the signing of the notarial deed are included in the contract.
Purchase of a new property on the market, from a construction company
1. And this time it all starts with signing a pre-contract (purchase and sale) between the client and the construction company.
2. Upon signing the contract, an advance payment of 3,000 to 6,000 euro is made. It guarantees the reservation of the object.
3. The pre-agreement specifies the date of payment of the own share (30-40%) to the account of the development company.
4. The date of the visit to the notary public in order to sign a notarial deed depends on the date of the given investment and the collection of the keys.
5. Any credit will be released upon receipt of the keys and signing the notarial deed. The money to buy property does not have to be transferred from a Polish bank, it can come from other world banks or it can be paid in cash.
Both in the case of buying an apartment on the secondary market and from a developer, if the transaction is not completed due to the buyer’s fault, the down payment will be kept by the seller. If the fault lies with the seller, he will have to return the double value of the deposit received (unless the contract provides otherwise). The contract for the purchase of property is drawn up in the form of a notarial deed, otherwise null and void
Purchase of property in Spain for a legal entity, company, cooperative, foundation.
If you want to purchase a property for a legal entity, additional documents will be required for this. Their list will depend on the form of running a business. Each time we will provide you with a list of documents tailored to a specific case.
Conditions for purchasing property on credit
A great convenience for investors from Poland is the favorable mortgage offer offered by Spanish banks.
Here is some important information related to it:
– A mortgage in Spain can be obtained up to 70% of the property value (depending on the bank’s decision)
⁃ The interest rate on mortgage loans in Spain varies from bank to bank and is also negotiable (we can help you with this). The interest rate ranges from 3.5% to 3.8% per annum.
⁃ The loan can be spread over a period of up to 30 years, up to a maximum of 75 years of age.
To obtain a loan to buy a property in Spain, you must meet the appropriate conditions. The documents necessary from Polish citizens working in Poland or running a business are:
– bank certificate confirming that the account is in place – bank opinion (translated into Spanish);
⁃ list of obtained income for the previous year or for the current year – balance sheet (translated into English)
Spanish – e.g. tax return with the Tax Office);
⁃ a recent salary certificate (if you are working) (translated into Spanish);
⁃ photocopy of passport;
⁃ extract from BiK;
⁃ number N.I.E.
For Polish citizens working or operating in GB, Ireland:
– account statement for the last 3 months;
⁃ Payslips from the last 3 payouts;
– Tax Return or P60;
⁃ number N.I.E .;
⁃ Credit Report – Equifax or Experian (GB) or ICB (Ireland).
Our agency will reliably and professionally guide you through the entire process of obtaining a mortgage for your dream home in Spain. Thanks to our long-term, good contacts with local banks, most of the mortgage loan applications that we negotiate and execute are successful.
TAXES AND COSTS WHEN PURCHASING PROPERTY
The cost of buying a property in Spain is around 13% – 15% of the property value. Below, we describe exactly what they consist of.
* When purchasing with cash, all purchase costs must be paid within 30 business days
from signing the notarial deed.
If we take out a mortgage, the bank requires that the funds to cover the purchase costs and the amount remaining up to the full price be found before signing the notarial deed on the client’s private account associated with the mortgage loan granted. One day before the act at the latest.
SPANISH TAX IDENTIFICATION NUMBER N.I.E.
In the case of your decision to purchase and book a specific property, it is necessary to proceed with the submission of documents in order to obtain a N.I.E. It is a simple and uncomplicated procedure. NO. is a personal identifier given to foreigners (including residents) carrying out financial transactions in Spain. You will be registered with the local tax authority under this number. It is also necessary to obtain ownership of the property, to pay taxes, to conclude electricity and water supply contracts, to purchase and register a car, to conclude an employment contract, etc. For the N.I.E number. you can apply at the foreigners’ unit of the police station (Policía Nacional).
To obtain a N.I.E. should be presented:
– valid passport or ID card (new) + 2 photocopies of this document;
⁃ two valid ID photos;
⁃ a completed application (available at the office);
– also specify the purpose of obtaining this document, e.g. buying a flat, employment contract, starting your own business etc.
The waiting period for issuing a document is from 1 to 30 days, depending on the number of applications submitted in a given city (usually 3 working days). For the assignment of the Foreigner’s Identification Number, an administrative fee of 10 EUR must be paid. Our agency will help you to complete all these formalities efficiently and stress-free.
HOUSE COSTS IN SPAIN
The costs of maintaining a property in Spain, regardless of whether it is a villa or an apartment, are much lower than in our country. Example: for an apartment with an area of about 60 m2, with two bedrooms and a living room, located on a housing estate with a swimming pool, the rent, the so-called
“Comunidad”, will vary between 30-60 euro per month, payable every 6 or 12 months.
In high-class properties with several swimming pools, large tropical gardens, spa complex in exclusive locations, rent can be up to 100-160 euro per month.
The amount of fees depends mainly on the size and quality of common areas for a given location, i.e. gardens and swimming pools, the number of elevators in buildings, the presence of security, the extent of the area, etc.
In the case of your own house with a plot of land, there are no rents, unless the property is located within the estate and has common areas.
In addition to the above-mentioned costs, there is also the annual real estate tax, the so-called “IBI”. Its amount is set by local municipal authorities individually for each property and it is payable once a year, in October. The amount depends on the size and location of the property, e.g. for an apartment of around 60 m2 in the vicinity of Alicante, Torrevieja and Orihuela Costa, it varies between € 200 and € 400 per year. For a house with an area 180 m2 on a plot of 400 m2, we will pay no more than 600 €.
Electricity in Spain is billed every 2 months, and for water every 3 months (this bill also includes garbage collection, street cleaning and street lighting and urbanization, the so-called Basura Tax). Energy costs about 0.1526 € / kWh. The average electricity bill in Spain is around € 25 / month (2 people) – if you use air conditioning, it’s around € 40. The water bill is on average 30 € / month (2 people), while watering the garden a bit more.
High air temperatures are an important factor behind low rents on the southern coasts of Spain. On the Costa Blanca and Costa del Sol, we do not need central heating, as it is almost always warm in these places. And in the winter months, air conditioning or small oil, gas or electric heaters are enough.
RENTAL PROPERTY IN SPAIN
When we decide to buy a house in Spain and we only want to spend there a few months a year, the perfect financial solution is to rent the property when we are not living there. This option brings regular profits, far exceeding the loan instalments for the property.
We have to think carefully about where we want our home to be. Whether it is to be a quiet village or the centre of an entertainment city
When buying a property, it is worth considering such additions as a swimming pool or a beautiful garden, thanks to which our offer will certainly become even more attractive. Additionally, when buying through our company, it is possible to add your house to our property rental database in Spain.