Buying a Property in Spain: Everything You Need to Know
Buying a property in Spain is a dream for many people. It’s the perfect place to live, with its endless sunshine, warm weather and friendly locals. Buying a house in Spain is one of the easiest ways to relocate internationally. However, when buying property in Spain, there are some essential things you need to consider. So, before you jump on a plane and start looking at homes, there are some essential things you need to know about buying Real state property in Spain.
Taxes to be considered when buying in Spain
When you buy Real State properties in Spain you will have to pay a tax for the acquisition, which will be IVA (VAT) or TPO. IVA will be 10 % of the price and this is the amount for houses of new construction, whereas TPO depends on the location of the Real state property and it is around 7 to 12 per cent of the price. You will pay or IVA or TPO but not both.
If you buy a property in Spain and plan to rent it out, the Spanish government will adjust the tax rate annually based on how much rental income you make. It would help if you spoke with your accountant about how this might impact your taxes.
If you consider to sell the property in the future, you should consider that transactions involving the sale of real estate located in Spain are subject to a tax of 3 percent for foreign buyers. The seller must pay the tax if he does not have a Spanish address.
Considering that, it is highly recommended that the parties involved consult a Notary or Notario before any transaction, having the best assessment from both a good real state agency and a good Notary.
Finding a property to buy in Spain
There are many ways to buy a house in Spain, but you should be aware that each way has its advantages and disadvantages. The following is a summary of the most common ways to buying a house in Spain:
- Buying directly from the owner: This is the simplest buying method in Spain, but it also requires more work. You will need to hire a lawyer and usually an estate agent, and also a Notary or Notario at least at the end of the process. Estate agents will help with the paperwork, but they may try to sell you something that won’t suit your needs or budget.
- Buying through an estate agency: If you’re looking for something specific and want someone else to do all of the work for you, then buying in Spain through an estate agent might be the best option for you. However, remember that not all agencies are created equal; some are better than others at finding properties that meet your requirements and budget.
- Renting before buying: When considering real estate investments, rent before buying gives you time to get used to living in Spain before making any big decisions about buying properties in prime areas such as Barcelona.
How to get the best deal
- Buy off-plan if possible: This means buying before construction has begun so that your contract while buying in Spain will not be affected by any changes made during construction.
- Make sure that all your paperwork is correct and up-to-date before starting the process of buying a house in Spain; this means making sure that all your documents are translated into Spanish, as well as having them stamped by an official translator or lawyer working with real estate transactions in Spain. Ensure that you have included Taxation of non-residents in Spain documents.
- Be wary of scams when dealing with agents or brokers; always check that they have been registered with an official body.
The importance of choosing a good Notario when buying a property
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Property buying in Spain can be tricky for foreigners. Don’t be afraid to seek the services of a reputable Notario. JLA Notarios has years of expansive knowledge and will happily guide you. We will help you when you have decided the property that you will be buy, to know the taxes you will have to pay and to prepare the purchase and all the processes that you need to do, with the Tax Administration and with the different registers. Also, if you need a mortgage the contract will have always to be signed in a Notary.
A Notario will also ensure that all documents are signed properly, including those required by banks or mortgage companies. You can trust your Notario to advise you on any issues that may arise throughout your purchase process to make informed decisions about what steps to take next.
If you are interested in buying in Spain and need more information about Real estate and contracts or are looking for notaries in Barcelona, feel free to contact us! Our office is located in the center of the city and our team speak English!
