How to buy property in Spain now

Owning property on the territory of a European state is a great way to invest money and become a citizen of an advanced country. We will tell you how to buy real estate in Spain now and what objects should be considered for purchase in the first place.

How to choose a property

If you decide on such a purchase, we advise you to decide in advance on the parameters and personal preferences. The following issues need to be addressed:

• Region of the country. In Spain, different regions have different laws, so it is important to know exactly where you want to buy a house or apartment.
• District. The cost of the property largely depends on the location: an apartment on the coast will cost more than a similar living space in an area remote from the center.
• Object parameters. Just like in any other country, the price for housing is assigned depending on the total area, the number of bedrooms or the presence of a large balcony. We advise you to decide in advance what kind of house you want to buy in order to simplify the search for the right property.      

One of the most important issues is the budget of the project, as the country has premium apartments with increased living space and inexpensive houses in the suburbs. Depending on how much you are going to spend, the type of object is selected and the region of future residence is determined.

One of the easiest ways to buy a house in Spain for a Russian is to contact a specialized agency. Such companies not only have a database of available real estate, but also competent specialists work to help collect all the documents and complete the transaction in accordance with the laws. If you speak Spanish, you can chat with sellers directly on sites that collect information about real estate from all over the country. For those who have never been to this European country before and do not know Spanish, we advise you to turn to professionals.

How much does housing cost?

In recent years, the cost of housing has increased significantly, as the country has become very popular with foreigners. The government has developed quite strict laws for future residents, and a citizen of any country needs to comply with all established rules. By the way, in different municipalities the legislative norms may differ. However, the general rule for all regions remains the obligation of the future owner to pay all utility bills and pay taxes.

Real estate transactions are carried out in the presence of a notary, the payment is made only by bank transfer. Since 2017, the country has a rule according to which any cash transactions in the amount of more than 1000 euros must be documented. To conclude a purchase agreement, you need to have a package of documents with you, open a bank account and get a special identification number for a foreigner.  

In which region is it better to buy a house

If the question is whether it is possible to buy a property in Spain is no longer difficult for you, we suggest choosing the region of future residence. The most popular regions are the Costa Blanca and Costa Dorada. Further, foreigners prefer to settle on the Costa Brava and Costa Cálida.

Such a purchase will not only allow you to spend your vacation in a pleasant environment, but also give you the opportunity to earn a significant amount for rent. These regions are considered tourist destinations, so an apartment in such a place will be a great way to increase your social status and invest money profitably.

Pros and cons of buying real estate

Own housing in Spain is not only a profitable investment, but also a guarantee of obtaining a residence permit. Even in the case when you are not going to change your country of residence, the property in the tourist city will become a stable source of additional income. You can rent an apartment, receive additional income and later deal with the registration of official status.

Spain is a great country to live in, and the European economy offers many opportunities for development and growth. Spanish higher education institutions are considered among the best in Europe, you will have access to modern medicine, and you will be able to travel to neighboring countries without applying for a visa.

The only disadvantages include the fact that it is not recommended to do business illegally. In other words, if you rent out a villa, you need to pay taxes. You will also have to learn the language, get acquainted with the culture and completely change the usual way of life.

What you need in order to buy a house in Spain for a Russian

First of all, you must have on hand all the required documents and the required amount of cash in the account. In order to do business or make deals, foreign nationals must apply for a NIE (Foreigner's Identification Number). It is easy to get such a certificate, so this step will not take much time. Next, choose a bank and open an account in your name, payment for housing is made from this account.

The next step is to search for real estate and prepare for registration. As an advance, 1 percent of the established value or a fixed reserve of 3-10 thousand euros is paid, after which the ad is removed from sale, and you begin to prepare the transaction.

After about a week, the buyer should have a preliminary contract and a sum of money equal to the agreed deposit. We advise you to check your home before buying, as there is always a danger of becoming a victim of fraudsters in the real estate market of any country. You can do this yourself, but it is important to understand where to go and know Spanish. If you don't have these skills, it's easier to hire a professional realtor and have them do all the work.

If you do not have the right amount on hand, you can apply for a mortgage in one of the local banks. On average, banks give a loan in the amount of no more than 50% of the cost of housing. Each banking institution has its own options, so you can find out everything in advance and choose the most interesting offer. A prerequisite for obtaining a mortgage by foreigners is the availability of confirmed income in Euros. 

List of required documents

Russian citizens must have the following documents in hand to conclude real estate transactions:

• passport;
• foreigner's NIE number;
• certificate of salary or certificate of employment;
• confirmed seniority;
• certificate of payment of taxes;
• certificate with registration;
• a list of available real estate and property documents;
• data on bank loans;
• information about the object being purchased;
• a sum of money in the amount of the deposit.

This package of documents will be required for those who apply for a mortgage loan. Also, banks may request additional certificates to make sure that the client is financially viable. For registration of property documents, only basic documents will be required: a passport, a tax return, a NIE and a reserve agreement.

Buying a mortgage

If you decide to buy an apartment with the help of a bank, the registration process will take quite a long time. First, you have to open an account with the selected institution, then provide real estate appraisal documents. This is done by special employees or bank employees, then you prepare documents for obtaining a mortgage loan. As noted above, the loan amount cannot exceed 60% of the price of housing, the rest of the amount must be available to you.

The review period may be different and largely depends on the region in which the housing is bought. Also, the duration will be affected by the type of property itself. For example, a mortgage for the purchase of commercial properties differs from the terms of a loan for the purchase of a home. If the bank has made a positive decision, you will be notified and a payment schedule will be prepared. All that remains is to sign a loan agreement and register the new property in the state register. Here are some of the most important points that will be of interest to Russians when applying for a mortgage:

• The size of the loan. The bank itself determines how much it can entrust to the client and sets the ceiling after evaluating the selected housing. In some cases, the bank is ready to cover 70% of the cost, but when applying for a mortgage on illiquid objects, the loan amount may decrease to 50%. To issue mortgages to foreign citizens from 2023, the bank may require income in euros from the borrower.
• Loan term. A mortgage agreement involves a long repayment period, so you can get a loan for up to 30 years. However, most buyers prefer to apply for a loan for up to 15 years, so as not to overpay interest.
• Interest rate. Loans for the purchase of a house are issued at three types of rates - fixed, variable and mixed. Fixed means that you repay the loan in equal installments, and the amount of the installment does not change throughout the term. A variable rate is a contract with alternating interest rates, so you pay both small payments and increased ones. Mixed is a payment scheme that includes both equal payments and smaller or larger amounts.

To buy a plot or townhouse in the area you like the most, you can contact the bank and get financial support. This offer is suitable for many foreigners, and mortgages are popular in Spain.

Registration of a residence permit when buying an apartment

One of the reasons for buying a house in Spain is the opportunity to become an official resident and obtain a residence permit. The investor program applies not only to those who buy property, but also to family members. At the same time, to participate in the program, it is enough to purchase any object worth at least half a million euros. You can buy one house for such an amount or several objects, the area does not matter. At the same time, land owners can also count on state support in obtaining documents.

In order to apply for a residence permit, being the owner of the home, it is necessary to collect a package of documents and submit them for consideration. In the application, the owner has the right to indicate not only himself, but also his next of kin, so this option of legalization is considered the easiest and fastest.

Basic requirements for participation in the program:

• the age of the owner is more than 18 years;
• filled out according to the application form;
• two color photographs;
• foreign and civil passports with copies of all pages;
• no criminal record;
• no ban on entry to other countries;
• legal status in Spain;
• medical insurance;
• receipt of payment of the state fee;
• confirmation of financial solvency.

The purchase of real estate is equated to an investment, so that the applicant receives official status for 3 years. Then you can extend the residence permit for another 5 years and later apply for the next legal status.

How is the procedure for drawing up a contract

When buying a home in Spain, it is important to study all the legal nuances and carefully prepare for each step. After the conclusion of the initial contract and the inspection of the property, the seller and the buyer enter into a preliminary agreement. The contract must record the personal data of all parties and indicate the period during which the transaction must be executed by a notary. As a rule, at this stage, many go to the bank, so you should take this point into account and set the optimal period.

The final contract is signed by the parties at the notary, the payment is carried out by non-cash means. By the way, before the meeting, all documents must be sent to the selected notary so that he can familiarize himself with them and prepare the text of the contract. The procedure itself does not take much time, representatives of both parties are present at the meeting, the contract is read aloud. After signing, the new owner receives the keys and a copy of the bill of sale, the original is issued in a few months, since the document must be registered. As soon as the new data is displayed in the general register, you will receive the originals of all documents and an extract indicating the owner.     

Is it possible to buy real estate remotely?

The sale of real estate can be carried out remotely, when the mandatory presence of the future owner is not considered a prerequisite. In this case, all steps for registration are carried out through agency employees who represent the interests of a foreign citizen. The procedure for registration due to the absence of the future owner does not change, and this scheme is used by many businessmen who are not ready to deal with these issues on their own.

If you decide to take advantage of just such an offer, the company's employees will be engaged in the selection of housing according to your requirements. Professional specialists will prepare all the documents, acquaint you with the offers of banks and study the contract.

Costs when buying property in Spain

Buying real estate is a serious and rather expensive undertaking. In addition to paying the cost of the house itself, you will have a number of additional costs:

• Tax payments. The purchase of objects of the primary category tax rate ranges from 10 to 21 percent, depending on the category, location and purpose. If you purchase a secondary home, you will have to pay between 6.6 and 10 percent.
• Duty. This is a kind of duty, which ranges from 0.5 to 1.5 percent, depending on the region.
• Services of a realtor and a lawyer. When contacting a real estate agency, you need to pay 3 to 5 percent for the transaction. This amount is paid after the conclusion of the contract at the notary, and all stages of the transaction will be checked by a representative of the company.
• Notary fees. Notary services make up no more than 3 percent of the amount of the object and are paid by the buyer.
• Translator. If you do not know Spanish well, you will have to hire an interpreter. At the same time, the translation will be required not only during communication with the seller and representatives of municipal organizations. Some certificates and documents are accepted only in Spanish, so translation services will have to be paid separately.

Buying a home requires a thoughtful approach, regardless of the reason for such a decision. You can change your place of residence or just expect to receive legal status - in any case, we advise you to carefully study the entire procedure and choose a professional specialist as an assistant.