REAL ESTATE – MARBELLA WOHNEN – Requirements to buy a house on the Costa del Sol as a foreigner

REAL ESTATE – MARBELLA WOHNEN – Requirements to buy a house on the Costa del Sol as a foreigner

Requirements to buy a house on the Costa del Sol as a foreigner

In Spain, the price of housing in the capitals is much lower than in the rest of Europe, it can even be several times lower. That is why many foreign buyers decide to invest in real estate in southern Spain on the Costa del Sol. The economic effort for them is much less than for Spanish buyers.

Furthermore, the profitability of housing in Spain is currently around 6.5% according to data from the Bank of Spain, making it a very attractive investment. Needless to say, the location, the climate of the peninsula, its large area of beaches and impressive nature and its excellent quality of life make Spain one of the favorite destinations to establish residence, acquire a vacation home or for real estate investment.

However, for foreigners who are unaware of the home buying process in Spain, it may seem like a slow and tedious process. Taxes, expenses, paperwork… There are many aspects that you must take into account in a home purchasing process. That is why today we bring you all the steps and requirements that you should know if you are thinking of investing in housing in Spain.

Can a foreign buy a house on the Costa del Sol?

The data says it: In Spain, the Costa del Sol is one of the most chosen European destinations to invest in housing, not only for Spaniards, but especially for international buyers. So, although at first it may seem like a complex procedure, yes, a foreigner can buy a house on the Costa del Sol without any type of impediment. Now, it is necessary to know step by step well and study the real estate market in depth before launching into the investment.

The first thing you should know as a foreigner is to open a bank account in Spain, which is essential to buy a home. The reason is very simple: all taxes and expenses associated with the sale must be paid through an account opened in Spain. This will greatly simplify the payment process and other extra costs. The purchase must be made before a notary and registered in the Property Registry. The price of this registration will depend on the value of the home and its location, although it usually ranges between 600 and 1,000 euros.

In which registry should I register my property? Spain is divided into constituencies, or what is the same, mortgage districts. There is a Property Registry for each district.

One of the heaviest but important parts when buying a home in Spain as a foreigner is paying taxes. Real estate investment in Spain is taxed by the following taxes:

  • VAT (Value Added Tax): for new homes or first-time transfers, 10% is paid throughout Spanish territory, except in the Canary Islands, where 6.5% of the General Indirect Canary Tax is paid.
  • The ITP (Property Transfer Tax): is the tax paid for second-hand or second-transfer homes. It is taxed between 6 and 10% depending on the Autonomous Community where the residence is located. In Andalusia the tax rate currently amounts to 7% of the value of the property.
  • Throughout the year you must also pay other taxes such as the IBI (Real Estate Tax), the Wealth Tax (in some cases), and if you do not reside in Spain on a regular basis, you must pay the Property Tax. Non-Resident Income.

Apart from taxes, there are other expenses that must be taken into account when purchasing a home:

  • Public deed and other notary fees.
  • Registration of the property in the Property Registry.
  • If you apply for a mortgage, you must take into account the associated expenses, such as the notary appraisal or the interest on the loan.

Requirements to buy a house as a foreign

We already know the steps we must follow to acquire a home in Spain, but what requirements must be met? We explain it to you below.

Whether you are a buyer from a country in the European Union or outside, in Spain you will find no restrictions for real estate investment. Of course, the essential requirement to be able, as a foreigner, to buy a house in Spain, is to have a Foreigner Identity Number (NIE), which will be the way to identify yourself as a buyer in the home purchase contract and to pay. appropriate taxes and expenses. To request the NIE, you only have to go to a Police station in Spain or the Spanish embassy in your country and present the EX-15 form duly completed and signed.

Tips for buying a new home

Finally, we bring you a few tips for buying a new home if you are a foreigner that we recommend you follow in this situation:

  • View (either in person or by video conference) the home before making any payments. It is important to check that everything corresponds to what we are buying.
  • Go in person or through a representative (a lawyer) to the Property Registry to check all the documents and the legal status of the home to avoid scams.
  • Use the services of a real estate agency like Marbella WOHNEN Immobilien. Especially if you buy from outside Spain, having an agent who knows the market perfectly, all the procedures and requirements necessary to buy a house will give you peace of mind and security.

Do you want an expert to advise you on what interests you most without any commitment? Let yourself be advised here

Along with considering all these factors, professional advice from a trusted expert is essential as they can advise when buying a home according to the particular economic situation and answer any questions that may arise throughout the process.

Marbella WOHNEN Immobilien


Leave a Comment

Your email address will not be published.