The Spanish government encourages foreigners to purchase property in Spain.There are no restrictions on foreign purchases of real estate in Spain.If you want to buy property in Spain, you need to do some research to find the right property.You need a residence visa to live in Spain.
Step 1: Do you have a reason to buy property in Spain?
Depending on whether you want the property as an investment, as a vacation home, or to live in permanently, where in Spain to buy property depends.If you're buying as an investment, look for vacation hot spots on the coasts or in large cities such as Barcelona and Madrid.These properties will provide good rental income when they go up in value.Villas and apartments can be used for a vacation home.Leaving a home vacant for months won't be a problem because the property management company will care for the exterior and landscaping.Quality of life is what you'll want to focus on for a more permanent home.Look at the facilities and infrastructure.If you want to be around other expats, focus on towns and cities that have thriving expat communities.
Step 2: You should calculate your budget.
You need to fully understand the costs of owning property in Spain so you can budget accordingly.Expenses are beyond the price of the house.You'll pay a stamp tax of around 1 percent of the purchase price of your new home, as well as other fees.If you factor in taxes and fees, you'll pay between 10 and 15 percent more than the list price of the house.Don't forget the costs of moving your furniture and belongings to Spain or buying new items for your Spanish home.If you buy a new home, you have to pay a 10 percent VAT tax on the property when you sell it.
Step 3: Evaluate different parts of Spain.
Different regions of Spain have different things to offer for a property owner.Climate, activities, and the size of the local expat community are some factors you'll want to consider.There are thriving expat communities, beautiful beaches, and a mild climate along the beaches of the east coast.You can find some lower priced options in Murcia and the south coast of Valencia, but prices are generally high in the regions of Catalonia, Valencia and Murcia.If you want to rent out your Spanish property when you're not using it, southern regions and islands might work for you because they have high tourist appeal.The northern interior of Spain has a hotter climate and is less humid than the northwest coast.The area has a lower cost of living and is more rural than the southeast.
Step 4: There are different types of Spanish property.
In Spain, you can buy properties in different states of readiness.It depends on your needs as well as your budget.Different types of property have different costs associated with them.The most expensive type of property to buy in Spain is new construction.The biggest advantage is that you know what you're getting and won't have to spend money on remodeling.Resale property is an existing house that has been sold at least once.If you know how much you'll have to spend on repairs or remodeling, these properties are generally safer investments.The off-plan property has been approved for construction, but not yet completed.You run the risk that the house will never be finished if you go for these properties instead of new construction.
Step 5: You should research your favorite areas.
If you want to buy property in Spain, you need to know more about the areas that caught your attention.If you want to buy property in Spain, you need the information.If you're buying a property as an investment, you want to check out the property values in the area.The area might not be a good investment if property values have fallen in recent years.If you want to rent out the property when you're not there, you should look for an area with lots of attractions and things to do.You may have a hard time keeping properties rented on a regular basis if they are too rural or isolated.If you want to move to Spain and live in the property permanently, you need to know what it's like to live there on a daily basis.Compare the cost of living and tax rates to surrounding areas to find out about any risks.
Step 6: You should visit the area where you plan to buy.
It's important to explore the area around the property you want to buy.Go there with an eye toward what it would be like to live there full-time.If you plan to live there permanently, these things shouldn't be your top priority.Renting a property in the area for a few months will give you a better idea of what it's like to live there.If you want to buy property in Spain for investment purposes, you need to know what daily life is like in the area.Prospective renters need to know what the property has to offer.
Step 7: A property broker is a good choice.
A property broker can help you find the right property for your needs once you start to get serious about buying a property.You can choose from a number of different types of brokers.Corredores are in rural Spain.The commission is usually around 1 percent from the buyer and seller.A corredor is the best place to look for a rural property if you're proficient in Spanish.A buyer's agent can charge an upfront fee, or foreign-based agents can also sell Spanish property.Make sure the foreign-based agent has a local office.In Spain, a broker's commission is usually paid by the seller, so if you want to hire one, you should interview several of them.
Step 8: Talk to a lawyer.
If you're not proficient in Spanish, a local attorney who knows your native language will be your best choice to guide you through the process of buying property and make sure you don't run afoul of any Spanish laws.If you want to be a vacation home, you can rent it out to other people when you aren't using it.Fines for violating local laws can be as high as 30,000 euros for areas in Spain that don't allow short-term rentals.Whether you hire a lawyer in Spain or in your home country, make sure they have experience in Spanish real property law.They will be able to tell you about the laws.Check the credentials of attorneys you interview.If you want to hire a Spanish lawyer, you should ask for their registration number and look at their local bar association.
Step 9: Get a foreign person's identity number.
You need a Nmero de Identificacin de Extranjero if you want to conduct any business or financial transaction in Spain.If you want to stay in the country for more than three months, you must first register and get a residence permit.You can apply for an NIE at the Spanish embassy in your home country.It can take several weeks to do it this way.
Step 10: Get your accounts set up.
If you want to buy property in Spain, you'll need insurance and a bank account.Most sellers will only accept checks from Spanish banks.If you're receiving a pension, make sure you pay it into a Spanish bank.You may be able to get a mortgage through a Spanish bank.It's usually easiest to open a bank account at the same bank.You can get property insurance if you use a Spanish mortgage lender.You have to arrange for this on your own.
Step 11: Hire a translator.
Legal documents can be difficult if you're not proficient in Spanish.You understand the deal if these documents are translated into your native language.The Spanish Ministry of Foreign Affairs has a list of accredited translators.You want a translator who has experience with real property documents.
Step 12: Get a survey done.
If the property has been surveyed recently, you still want to have a full survey done so you know what you're getting for your money.An inspection and a survey are separate things.There are defects in the house and other structures that can be fixed with an inspection.A survey tells you where the boundaries of your property are, as well as the locations of any underground cables or pipes.
Step 13: Negotiating a contract is important.
If you've hired an attorney, they will negotiate with the seller in an attempt to lower the price.Who pays taxes, what structures are included in the final price, and who pays for repairs are some of the factors up for negotiation.The deadlines for various steps of the process will be included in the contract.You and the seller will have deadlines.If you haven't secured financing yet, the contract may specify a date by which you must have a mortgage.Depending on the type of property you're buying, the contract may include some details.If you're buying an off-plan contract, you will be signing a payment construction contract.The contract requires the seller to complete the house on time.
Step 14: You have to apply for a mortgage.
Unless you're buying the property with cash, you will need to finance it.You can take out a home equity loan, set up a mortgage in your home country, or arrange for a loan with a Spanish lender.You can take out a second mortgage or home equity line of credit on your first home.This will allow you to buy your property in Spain with cash, and you will still be dealing with the same mortgage lender.A local bank in Spain might be able to give you a mortgage.If you plan on spending most of your time in your home country, this can be helpful.You don't have to worry about exchange rates or paying extra fees for international transactions if you take out a mortgage in Spain.
Step 15: The property is close to the road.
You'll conclude your purchase once you've negotiated a sales contract and have your financing in place.If you are able to do this in person, it will take place at a notary's office near the property.When you close on the property, you'll have to make an initial deposit of around 10 percent of the total purchase price.If you aren't able to appear in person, you can have someone represent you as a verbal representative.Next time you visit Spain, you can take the representation to the Spanish consulate in your home country.
Step 16: You have to register the property.
The buyer has to register the transfer of ownership with the local registry office.They can provide this service for a fee if you used a notary.Make sure you understand what the notary is going to do when you pay them to register the property.They can notify the office that a transfer was made, but not complete the full registration.The cost of registration and notarial services can range from a small amount to a large amount.
Step 17: Property taxes should be computed.
If you own property in Spain, you must pay taxes on it, as well as real and personal taxes.The amount of taxes depends on the cost of the property.You have to pay property ownership tax.The tax range is from 0.4 percent to 1.1 percent of the property's value.The amount is usually lower than the market value.Your taxes can be as little as 100 euros per year for a small country home.A waterfront villa in a tourist development could cost you as much as 3,000 euros a year in taxes.If you own more than half a million dollars in worldwide assets, you will have to pay the wealth tax on your property value.The rate depends on the value of your assets.You have to pay personal income tax on your property.25 percent of the gross income you earn from renters is what you'll pay if you rent out your property.
Step 18: You can find out if you need a visa.
Whether you need a visa depends on how long you plan to stay.If you want to stay in Spain for more than 90 days, you will need a visa.You don't need a visa to live or work in Spain if you are a citizen of the European Union, European Economic Area, or Switzerland.The EU is a part of the EEA.If you plan to work in Spain, you won't need a visa if you are a citizen of Croatia.
Step 19: You can choose the type of visa.
Depending on how long you plan to live in Spain, you will need a different type of visa.You'll need a different type of visa if you want to retire to Spain and live in the property you've bought.You can live in Spain without working if you have a resident visa.You need a valid passport, a medical certificate from your doctor, and adequate financial resources to be eligible for one.Depending on where you live, the fee is between $38 and $160.US citizens will pay a fee.If you want to work, you need to be hired by a Spanish company.To get a letter of approval, the company will have to contact the Spanish Immigration Office.You need a letter, passport, police records certificate, and a medical certificate to apply.Depending on where you live, you'll pay between $38 and $190.A fast-track visa is available for investors and self-employed people.If the property you bought in Spain is worth more than $500,000, you might be able to get a fast-track visa.If you don't know what visa you should get, talk to someone in the Spanish consulate or an attorney who specializes in Spanish immigration law.
Step 20: You need to apply for a visa.
You have to submit your visa application in person at an immigration office in Spain or one of the consular offices abroad.The application can be downloaded for free from the website of a Spanish consulate.You will need the original and one copy, along with any original documents and copies that are required with your application.You might be required to translate original documents into Spanish.You have to pay the application fee.If your application is denied, the entire fee will be returned.
Step 21: You have to apply for permanent residence.
You can apply for permanent residency in Spain after five years of living there.You can stay in Spain indefinitely if you have permanent residency.You can get assistance with applying for permanent residence at the Civil Registry.After living in Spain for 10 years, you can apply for Spanish citizenship if you want to be a full citizen.