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If you are a foreign buyer interested in houses for sale in Costa Blanca, there are specific legal steps you must follow to ensure a smooth purchase process.
These steps are essential whether you are investing in villas Costa Blanca or any other type of luxury property.
Secure a NIE (Foreigner Identity Number) from the National Police offices in Spain. This document is mandatory for any property transaction.
Open a Spanish bank account, ideally at a branch where staff can assist you in a language you understand. This will facilitate financial transactions, including mortgage payments and tax obligations.
Hire a lawyer specializing in Spanish urban planning law. Unlike other EU countries, Spain’s legal system for property transfers requires expert guidance to navigate complex regulations.
When purchasing through a luxury real estate agency, the buyer must make a deposit to reserve the property. This guarantees their intent to proceed with the purchase, and the seller commits to keep the offer valid for a specific period. The agreement may be terminated under certain conditions, as outlined in the contract.
Once the private purchase contract is signed, the payment method is established based on the buyer’s financial situation. This step is essential to ensure the security of transaction when acquiring real estate in Costa Blanca.
The deed of purchase is signed in front of a notary and includes a detailed legal description of the property. The notary electronically notifies the Land Registry, where the buyer must register the property in their name.
Since the document is drafted in Spanish, from our real estate agency in costa blanca we advise having legal assistance to ensure accurate translations.
Typically, the keys are handed over at this stage, granting full ownership and allowing the buyer to enjoy their new home in Costa Blanca’s exclusive real estate market.
New Construction Properties
VAT: 10%.
IAJD (Tax on Documented Legal Acts): Approximately 2%, covering notary fees and registration at the Land Registry.
Second-hand Properties
ITP (Property Transfer Tax): 6-10%, varies by property location.
IAJD: Approximately 2%, as above.
Owning villas in Costa Blanca or any other luxury property involves annual tax obligations and maintenance costs, including:
> IBI (Real Estate Tax): A municipal tax based on the property value.
> Tax for Non-Residents: Applicable to foreigners who own property in Spain but are tax residents in another country.
>Rubbish Collection Rate: A municipal fee for garbage collection.
> Community Expenses. For properties in communal residential complexes, there are likely annual maintenance fees for amenities such as swimming pools and gardens.
If you require financing to invest in real estate Costa Blanca, Spanish banks have specific mortgage conditions for foreign buyers:
> Your net income must be at least three times the total of all loan payments.
> The loan should not exceed 50-60% of the property’s total value.
> You must provide a credit report from your home country.
> The youngest borrower must be under 75 years old.
>We collaborate with leading financial institutions to help you secure the best mortgage options tailored to your needs.
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