In 2022, there were about 10,000 British people purchasing international real estate in Spain.
In 2023, this number is expected to grow. Spain is a great place to invest in international property right now, and it’s actually easier than you might think!
If you’re interested in buying Marbella real estate, make sure you read this article to learn the do’s and don’ts!
Visit Area First
Many real estate agents and sellers offer a virtual walkthrough of the property on their website and include all kinds of videos and pictures. This will make you feel like you’re actually there, but the pictures and videos can be deceiving.
The area surrounding the properties is also important to take note of, but that can be hard to see from just pictures and videos. You should always travel first to the location where the property is located.
Walk around the area and visit the neighbourhood. Get to know the area and understand the really small details that could impact the purchase of your home.
Find Financing
Once you find a home that you are interested in purchasing, you’ll also need to find financing to get the house. Some international investors are allowed to buy a home without a mortgage, but you can get financing.
Some international or Spanish banks offer international mortgages, and if you’re an ex-pat, then you may be offered a special deal.
You may even be able to get a lower loan-to-value rate than some Spanish residents. However, this does mean that you’ll need to put down a larger deposit as well.
You’re only allowed to borrow a smaller portion of the property’s value, so you will need a large deposit to put down.
You also need to be aware that in Spain, any debt that is tied to the property will be transferred to the new owner. You’ll need to ensure that the property is debt-free. If it does have debt attached to it, that needs to be addressed in the terms of a contract.
Get a Golden Visa
The golden visa is a residency permit. This allows an international investor to purchase the property in Spain.
You will need to have purchased a property that is valued at over €500.000. You’ll also need to have a residence permit that will allow you to work in the country and bring relatives or family members with you as well.
While it might sound like a hassle, this actually gives you all kinds of other advantages as well. It’s easy to get when you enter the country as a tourist. You’ll need to stay in the country for a little while to earn the visa.
Once you have your golden visa, you can keep it and renew it each year as long as you still have your international real estate.
Find a Property Agency
Once you’ve got your paperwork in order, having a property agency can help you when buying property.
When you work with an agency, you’ll avoid any real estate agents that are working for the seller, not you. Instead, a broker might be able to help you understand the local market and find the best deals.
There are fees associated with this service, but it can really help you save money when making such a large purchase. Working with an agency you trust will also help you buy the right property in a good neighbourhood.
Review Legal Requirements
There are also different legal requirements for purchasing homes in Spain. You’ll need to find a notary who can help prepare the contracts and ensure that they’re legal in Spain.
You’ll also need a property lawyer. The property lawyer will oversee the entire sale. They’ll make sure that the seller is actually legally owning the property and doesn’t have any debts against the property.
When you’re choosing a property lawyer in Spain, make sure they are actually associated and registered with the local bar.
Consider the Taxes
Lastly, you’ll also need to consider the taxes for making this purchase. Taxes and expenses will vary depending on whether you’re buying a house from a developer or buying a home from a reseller.
If you are buying a home from a developer, you’ll have to pay 10% on the price of VAT. If you’re buying a commercial property, that will be 21%. You’ll also have to pay the stamp duty tax, which will vary depending on the region.
If you purchase a second-hand home, you’ll need to pay the property transfer tax. This will be different depending on where the property is located.
However, generally, it’s between 8 – 10%. If the home costs more, then it’ll be a higher tax rate.
You’ll also need to consider other taxes and fees, like:
- Cost of change of utilities
- Legal fees
- Notary fees
- Land registration fees
- Interest on a mortgage
If you’re confused about any of these fees, then you may want to talk with your lawyer about it. You’ll need to factor these into your final budget as well to ensure you can afford the home.
Learn More About How to Invest in International Property
These are only a few things to know about how to invest in international property in Marbella, but having the right agency to help you purchase the home can be a great help.
If you’re looking for an agency like that, we’re here to help you out.
Contact us today to learn more about how we can streamline your real estate investment purchase.