Spain is one of the best countries to buy property in Europe. The property prices are very affordable, and Spain is rich in culture, amazing nature and food. Many ex-pats enjoy the freedom of great weather and a more relaxed lifestyle.
Now, this all sounds great, but how do you buy a property in Spain? It may seem overwhelming to buy in a country where you don’t know the language or the system.
Luckily, this article is here to give you a guide on how to buy property in Spain. It covers the basics of choosing an area and why you should use to work with a local agency. We also discuss the legal and financial aspects of becoming a property owner in Spain.
Choose Your Area
In Spain, there are 17 different autonomous communities. There are also two autonomous cities. Autonomous communities are similar to different states or counties in the U.K. or U.S.
Each with its own laws and regulations, as well as different cultural practices. Although they govern themselves, they still follow national laws set by the Spanish government.
In some cases, the communities even have their own local language. For example, Catalonia has Catalan and Basque Country speak Basque.
They also have very different natural landscapes and climates. So think about what you want out of your area, and whether you’re prepared to learn any local languages.
The cost of land in each of the zones can vary a lot, depending on their proximity to major cities or coastlines. Madrid tends to be the most expensive as well as Catalonia, which is where Barcelona’s located.
Areas like Malaga, Valencia, and Alicante tend to be much cheaper. Malaga is a popular area to move to, as there is a great infrastructure for ex-pats. The Costa Del Sol is famous for its gorgeous beaches, natural parks and culture.
Marbella is one of the main towns in Malaga. It is a stunning town which offers great facilities, like doctors, schools and parks. There are also many beautiful luxury villas in the area, so you can find your perfect home.
Find A Quality Agency
If you are considering buying in Spain, it is wise to get a local agent to help with the process. This is helpful if you live overseas, as they can handle any problems that might crop up when you’re away.
Using a local agency allows for a personalised experience when buying property. They will also have an intimate knowledge of the local areas and in which places are good to buy. So they can give you advice on the area and houses based on your needs.
They will also have local contacts, which can help throughout the buying process. They will also have access to a greater number of properties through their network.
There are a lot of properties in Spain which get built illegally. So make sure that your agent checks that the house has all the correct deeds before buying it. Having support from Spanish speakers helps the whole process run much smoother.
Spanish sellers can also sometimes increase prices for foreign buyers. Working with an agency means they can negotiate for you to get the best price possible. They also have connections with local financial institutions, in case you need to take out a loan.
Having a quality agency also means that they can short-list potential properties. This means you won’t waste time if you come on a viewing trip. This leaves space for you to explore the area more and see if it has all the things you are looking for.
A good agency will also offer a good after-sales service. There can be teething problems when you buy a new property, especially if you are buying abroad. So they are there to answer any questions you might have throughout the process.
Legal and Financial Considerations
Before buying in Spain, you need to understand the legal and financial considerations. Many people will lean on their property agency or lawyers to help them through this process.
When you buy in Spain, you will need to get an NIE number. This is your Foreign Identity Number, allowing access to the social security system. You will need it to pay the necessary taxes associated with buying a house.
You should also consider opening a bank account with a Spanish bank. This can help reduce costs surrounding currency exchange to Euros. This can also be beneficial if you need a mortgage, as you may get better rates than using a bank in your home country.
Make sure you have funds set aside for fees and taxes on your property. Usually, the Property Transfer Tax is between 6-10 per cent of the value of an existing property. If it is a new property, then VAT or IVA will be around 10 per cent of the property value.
There are also costs associated with the notary, land registration and title deed tax. These tend to be around 1-2.5 per cent of the price. Don’t forget about any agency or legal fees as well.
When considering the price of your property, think about other costs incurred. There may be taxes associated with water, electricity, rubbish collection and sewage.
Buy Property in Spain
When you want to buy property in Spain, it is important to make sure you understand the process. This way, you can find the best home for your budget and avoid any unwanted pitfalls. Spain is amazing, and having a luxury home there will allow you to enjoy your best life on the sunny side!
If you are looking to find your dream home in Spain, then Choose Marbella is here to help. We have many years of experience helping ex-pats find their perfect villa in the Marbella area. We pride ourselves on our service and knowledge of the local property market.
Get in touch with us today to find out more about buying luxury property in the Marbella area.