If you are a foreigner interested in purchasing property in Spain, you will need to:
The buyer makes a deposit to guarantee their intention to purchase the property within a specified period, and the seller agrees to keep the offer valid for that same period. Both parties may terminate the agreement based on the conditions stipulated.
Upon signing the private purchase contract, a suitable payment method will be determined, which may vary from one buyer to another.
The deed of purchase and sale is executed in front of a notary and includes a precise description of the property. The notary will electronically notify the Land Registry. The buyer must then register the property in their name at this registry. The document will be drafted entirely in Spanish as it is an official document. Hence, it is advisable to have a lawyer who can provide accurate translations and guidance. Generally, the property keys are handed over when the sale deed is signed, at which point the buyer legally and financially owns the property, subject to any arising rights and obligations. The buyer can then begin enjoying their new home.
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.
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 are a foreign client looking to secure a mortgage in Spain, you must meet the following criteria:
If you require a mortgage to purchase your property, we are here to assist you. We collaborate with numerous banks to offer you the most favorable options based on your financial profile.