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Buying a home in Spain
Buying a home in Spain is different from buying a home in for example Sweden. We at Grand Homes can offer you all the experience needed to make you feel comfortable and safe in this process.
In Spain, it is unusual for the seller to sign an exclusivity agreement with an individual broker. This means that several different brokers can advertise one and the same home.
NIE number
To be able to own a home in Spain, you need a Spanish tax identification number, or NIE number. Only then can you open a bank account and sign the title deed. The easiest way to get an NIE number is to get help from our legal representative. It can be good to start this process well in advance as it can take several weeks or even a month. Contact us and we will help you get started with the process.
Prices
The price is normally fixed and bidding is unusual.
Other expenses
When you buy a home, additional costs are added. This will certainly not come as a surprise to you if you have bought a home in another country before. In most cases, you can count on adding about 13-14% to the price of the home.
The extra costs you can expect can be divided into four groups:
- External costs - During the purchase process, you must sign the registration before the Notary. The fee for this is determined by law and the amount you pay depends on how legally extensive the litigation is. The basic fee is 800 euros.
Once you have signed the registration before the Notary, it must be entered in the Spanish Real Estate Register (Registro de la Propiedad). It is an official register that protects the rights of Spanish homeowners. The fee depends on the value of the home but normally starts at 400 euros.
- Taxes - During the buying process there are various taxes that you also have to pay. You pay different types of taxes depending on whether the home you buy is newly built or a resale. For new purchases, you pay 10% IVA (VAT) and about 1.5% AJD (stamp duty). When you buy a resale property, you instead pay about 10% ITP (transfer tax).
Both new and used homes must pay Plusvalía. It is a tax on the increase in value of the land and the amount is determined by the municipality of Ayuntamiento. The amount is determined by where the home is located, how big the land is and how long since it last changed owners. Legally, the seller is responsible for paying Plusvalía.
- Legal fees - The lawyer who represents you will of course charge a fee as well. An independent lawyer ensures that your interests are safeguarded and controls all contracts and the entire legal process for you. It is important that you have this type of representation. You are already paying a large sum of money for your home and you therefore want to make sure that everything is in order. At present this service costs 1850 euros. This price also includes the application for NIE numbers, establishment of bank accounts, transfer of electricity and water agreements. Contact us and we will help you get in touch with our legal representative.
- Banking and currency exchange costs - Transferring money from one country to another can be an expensive affair. When you buy a home, it is likely that you will have to transfer a significant amount of money and you will have to be aware of the fees that the banks charge to do this. When you buy a home and transfer money to another country, around 4% of the total purchase price can be lost in bank fees. If you make a SWIFT transfer, the fee is around 0.6% of the amount you transfer.
If you want to keep the transfer costs down, you can use a currency exchange company. These companies have bank accounts in both countries and can thus avoid transfer costs. Money is deposited in an account in a country and the corresponding amount is withdrawn from the account in Spain. Contact us and we will help you get in touch with our currency exchange company.
If you need a bank loan to buy your home, you can expect the bank to charge an administration fee. It can be quite large and amount to around 2% of the loan itself.
You can borrow up to 70% of the price of the home in a spanish bank. The loan is usually to be paid off in 20 years, depending on what age you are at when you take the loan. The interest rate is between 2-4%. The interest is deductible in many countries including Sweden.
If you are a swedish citizen you can also make ROT and RUT deductions here in Spain.
What is the process?
When you and the seller have agreed, a purchase contract is written, stating, among other things, the price and the date of transfer. In connection with this, you also pay a down payment, usually between 3000-6000 euros, as proof that you will complete the deal.
The purchase contract also regulates the remaining payments. The final payment is normally made on the day of access together with the handover of the keys.
Title Deed
The title deed is registered in the contry register, this takes about 2-3 months. When it is registered after all taxes and fees have been paid, you will receive it back with the registration certificate.
Notary
Notary public is an officially appointed lawyer who in this case has the task of checking the identity of the parties. Note, the notary NEVER checks the condition of the home, you as the buyer are responsible for checking the home before signing, in Spain
General information about the Costa Blanca
Costa Blanca is a white coastal strip that is 220 km long with beautiful beaches, from which the coast got its name. This Valencia region is usually called the home of Paella, but this is also the origin of citrus fruits, wine and olive oil being exported around the world.
Costa Blanca also offers a lot of history, culture, culinary encounters, sights and breathtaking landscapes. The Costa Blanca region has about 1,300,000 inhabitants and 30% of these are foreign residents. About 5 million tourists visit the Costa Blanca every year. Costa Blanca stretches from Denia in the north to Cartagena in the south.
Alicante is the capital of Costa Blanca and this is where the main airport is loacted.
Alicante is a wonderful "mini-Barcelona" that we encourage everyone to visit for a couple of days if you have the time.
Just south of Alicante is the Torrevieja area, which is classified by the WHO as one of the worlds healthiest places to live. There are two natural salt lakes, of which Laguna Rosa (the pink salt lake) has a salinity of as much as 15-18%, which provides a healthy microclimate that fills the air with vitamins, minerals, iodine and salt. The mountains are a bit in from the coast which makes us have close to 300 sunny days per year, wonderful!
Shopping is plentiful! El Corte Inglés, Habaneras, Zenia Boulevard are a few examples.
There are also lots of smaller centras with grocery stores, restaurants, bars etc. There are markets pretty much every day of the week that have EVERYTHING you did not know you needed, and a little more.
If you like to exercise, this is the place for you! There are lots of paddle courts, and it costs about 4-16 € / hour, so it is much better prices to rent paddle courts here than at home in Sweden. There are also countless nice trails for those who want to go hiking or biking. The proximity to the sea makes it perfect for water sports such as windsurfing and kitesurfing.
If you like horses, there are several riding schools that have both riding lessons and tour riding. Several larger marinas with active day and night, with restaurants, sailing school etc.
If you have children or grandchildren, there are several nice water parks and safari parks.
If you play golf, the Costa Blanca is a golf mecca with tons of fantastic courses!
In short, there is something for everyone, big and small.
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