Are you planning to buy an apartment on the Costa Brava, to live there all year round, to spend your vacations or to rent it out? N°1 France Espagne Immobilier Here's what you need to know before taking the plunge.
Taxes on real estate transactions in Spain
If you buy a new home in Spain, you will have to pay a tax of 11.5% of the value of the home. This rate increases to 10% in the case of a second transfer. The notary's and property registry's fees are approximately 1% of the purchase price. Agency fees are paid by the seller of the property. Do not hesitate to contact our real estate consultants for more information.
The Spanish NIE
To buy an apartment or house in Spain, you'll need a NIE (foreign identification number). This number is required for a number of administrative procedures in Spain. It can easily be obtained from a management office or notary, for around 120 euros.
Note that there are two types of NIE: the non-resident NIE and the resident NIE. The latter is granted to foreigners who live at least 3 months per year in Spain. The non-resident NIE is only valid for a maximum of 3 months.
Documents to consult before buying in Spain
When signing the deed of sale before the notary, the seller of the apartment or house must present you with certain documents. Among them:
- The "crédule d'habilitation ": this is a document drawn up by an architect, certifying that the condition of the dwelling is suitable for habitation. This document is valid for 15 years. It also indicates the number of occupants the property can accommodate and certifies that it complies with current standards.
- The energy efficiency certificate: this specifies the building's energy rating and indicates possible improvement measures. Up until now, the energy performance of Spanish homes has left much to be desired, not least because of the mild climate, but it is beginning to improve.
- Proof of payment of property tax (IBI) to the municipality in which the property is located for the current year and the next 4 years.
- A certificate from the community, if there is a community of owners, attesting that the seller has paid his dues.
Note that if you cannot be present at the signing of the contract of sale, your lawyer can represent you.
Real estate taxation in Spain
To the delight of investors, the tax on capital gains realized on the resale of a property in Spain has recently been revised downwards. Non-residents, who until 2014 were subject to a tax of 24.75%, have been taxed at 19% since July 2016.
It's highly advisable to work with a real estate professional when you want to buy in Spain, especially if you're a foreigner. Not only will they help you find the house or apartment of your dreams, but they will also accompany you through all the administrative procedures and steps you need to take to successfully complete your purchase project in Spain.
Open a bank account in Spain
If you need to take out a mortgage to buy your apartment or house in Spain, you will need to open an account in a Spanish bank to transfer the funds. It will also allow you to pay your taxes, subscribe to electricity and gas, etc. Opening an account in Spain is as easy as it is in France. Sellers generally refuse bank checks issued by foreign banks because of the often very long delay between the issuance of the check and its cashing.
