Spain is a breathtaking country with so many beautiful attractions and destinations you can visit. All of them make Spain a very popular place for living. You can enjoy the warm climate, beautiful beaches, crystal blue water, and the culture and tradition that Spain keeps for a long time. If you are considering buying a property in Spain for your individual needs, or for a passive income of renting it, you need to keep in mind that there are lots of things you need to know before you start with the procedure. The first thing you should do is to start searching on credible and reliable sites such as javea.properties and see whether you like something. There are various choices in different locations, so you can see which one will work for you the most. After that, you need to consider the legal and financial procedures that we will discuss in the further text.
1. Consider hiring a lawyer
The best and wisest decision you can make before you buy some property in Spain is to hire a lawyer who will be your support through the whole procedure. In that way, you will ensure that you are buying a property that is absolutely legal and that there are no scams. Despite that, a lawyer will prepare for you all the necessary documents and contracts you need for conducting the procedure. Keep in mind that you need to contact a lawyer even before you place a deposit. Buying a property requires a lot of preparation and there are many things you need to consider while you are finding the right one for you. You need to consider your particular situation and your wishes. For instance, you need to make a proper plan with your requirements regarding the potential property. These include the following: your budget, location you want, size of the property, etc. For that reason, you need to have the right expert by your side from the beginning who will guide you and inform you properly about everything. In that way, you will spare yourself from the stress about potential unpleasant scenarios and you can search for the property with peace in your mind.
2. Things you should know about the legal process and the requirements
Whether or not you are hiring a lawyer, you should be familiar with the financial and legal procedure that waits for you in the process of buying a property in Spain. For that reason, we prepared a short guide for you.
So, when it comes to purchasing a property in Spain, there are actually several steps you need to be aware of so you can follow them to achieve your goal. If you gather all the necessary information on time and know everything in advance, you will be prepared for all possible outcomes and unpredictable scenarios.
The first thing you need to know that if you are a foreigner, you need to get your special NIE number. This number actually represents a basic identification number for foreigners in Spain. For conduction any other legal and economic procedure, you need to obtain this number first.
When you find the right property for you, the next thing you need to do is to sign a special reservation contract. Despite that, you need to pay a certain fee. Generally, when you do that, the property is not at the market anymore for a certain period of time which is usually less than 30 days. Moreover, in that period you need to finish all legal checks about the property.
One more contract called a contract of the sale will be drawn up which means you will need to pay lots of payments. The first one will be 10% of the total price of the property. One thing you need to keep in mind is that money you pay is not refundable. After that, you need to pay various taxes and fees you will find below. When you do this, the property you want will be registered at the land property in Spain.
3. Rent vs Buy a property: What Should I Do?
Many people are asking this question, so we will cover this topic as well. The decision is up to you and your personal needs. However, if you are doubting whether you should buy a property in a big city such as Barcelona or Madrid, you should know that prices are highly increased during the last years because of the Spanish market conditions. On the other hand, it is very difficult to rent a property in big cities for a decent price. So, we will suggest you consider some things before you decide whether you want to rent or buy a property. If you are planning to stay in Spain for a long time, you should buy a property. Because in that way, you will actually save time on a long turn.
4. Let’s discuss the costs of property in Spain
Logically, the main thing that worries people when it comes to property buying in Spain is the costs. Additionally, taking aside the agreed price, you will need to pay an extra 10 to 15% on top of the price for the fees we will talk about now. If you want to buy a completely new property, you will need to pay 10%, plus 1,5% for stamp duty and the fees for notary and registration which can go to 1% of the total price. On the other hand, if you are buying a resold property, you will need to pay 8 to 10% of transfer taxes, plus 1% of the total price for registration and notary.
5. If you are wondering whether you have the rights to claim against defects
This is a very important question you need to consider before purchasing. In the case the property you bought has some defects you did not notice before you paid for it, you need to know what can you do about that issue. This will depend actually on some things. For instance, if you are buying a resold, you do not have the right to claim. On the other hand, if you bought a new property, damages will be covered legally. There would be legal guarantees, so everything will be fixed. For minor defects, the guarantee is one year, for the installations are three years and the building guarantee is for 10 years.