What will cost me to own a property in Spain?

UNDERSTAND THE COSTS OF BUYING

As a buyer of property in Spain there are a number of costs and taxes over the property price that you will have to pay. Depending upon whether you are buying a new property from a developer, or a resale.

 

  • NEW BUILD FROM DEVELOPER OR BANK.

VAT & Stamp-duty (IVA & Actos Jurídicos Documentados – AJD)

At present VAT (known as IVA in Spain) is 10% on the purchase price of residential properties and 21% for commercial properties and plots of land, with the exception of the Canaries. Both VAT and Stamp Duty 1.5% are paid by the buyer.

 

  • RESALE FROM A PRIVATE INDIVIDUAL.

Transfer Tax (Impuesto sobre Transmisiones Patrimoniales – ITP)

The Transfer Tax rate is ceded to the autonomous regions, who can choose to apply the general rate, or their own rate. The rate in Andalucía is as follows:

8% – if the final price of the property is under 400,000€

9% – if the final price of the property is between 400,000€ and 700,000€.

10% – if the final price of the property is over 700,000€.

 

  • OTHER COST AT THE TIME OF PURCHASING

Public notary and land registry 1%

Additional public notary and land registry fee in case of purchase with a Spanish mortgage 1%. Lawyer´s fee 1%+ VAT.

 

ANNUAL PROPERTY COST

 

  1. COMMUNITY FEES

Fees will vary depending on the size of gardens, facilities, number of lifts, if there is private security, etc. 

 

  1. UTILITY SERVICES

These include electricity, water and gas and vary depending on your personal consumption.

  • Electricity – Is normally paid each two months.
  • Water – Paid once a month and ranges between.

 

  1. INSURANCE

The building will be insured by the community. Your property insurance will be for contents and damage by fire and water etc. It is mandatory that in a communal building owner are insured.

 

  1. TOWN HALL TAX (IBI)

This is a local tax applied to the ownership of property in Spain, irrespective of whether the owner is a resident or not. Calculated on the basis of the cadastral value (an administrative value that is usually lower than the market value) set by the town hall the tax rate goes from 0.4% – 1.1% of the valor cadastral depending on the Spanish region. The payment is made once a year.

 

Why to invest in a property in France?

Why invest in France?

“Overseas investors can feel secure in their investments…”

France’s reputation remains remarkably unsullied. French estate agents and developers are strictly regulated, and buyers are well protected by the law. What’s more, with its carefully controlled lending climate, and lack of ‘boom and bust’ trends within the property market, France has been remained strong. 

Nowadays, France is so easily accessible. This makes a holiday home an extremely practical and logical investment.

Over the last few years, buying property in France has been a very popular investment alternative for many people, be it for a permanent move, a second home, or a long-term or holiday let. As a whole, the prospect of investing in the “French Way of Life” is an important deciding factor.

Consumer protection is a serious priority in France and property buyers immediately feel 

that they are buying in a safe and reliable legal system that is there to protect them. Particularly for those who have never bought property abroad, France is the perfect place to start, as the strict French legal process protects the buyer from any of the risks associated with buying property in the emerging markets and the horror stories heard in the press.

“Entering a mature and stable market…”

The French economy and its property market are mature which gives buyers security in comparison with new and emerging markets in less politically and economically stable countries. There is historical data on the housing market in France and, therefore, the proof that this country can provide a safe and sustainable return on investment. The French economy was not affected by the recession quite as dramatically as other counties. 

“A sustainable long-term return in investment…”

Those with savings, particularly in today’s economy, see French property as a good investment for this cash. Properties bought in the right key hotspots in France, Lake Geneva region, Paris or Cote d’Azur, are likely to see long-term capital growth as well as excellent rental returns in the meantime. 

France is the number one destination for holiday makers with approximately 75 million tourists visiting France every year. In addition, the French themselves tend to holiday within France putting further demand on holiday rentals. The French government is continuously offering incentives to investors to buy and rent out holiday style properties as they are in desperate need of sufficient accommodation to handle this demand from tourists. Those who holiday in France see this for themselves and want to enjoy the benefits of buying into this market.

“Offers an attractive retirement option…”

Those looking to the future see a good, safe investment in the French market as a way of generating a Euro income for their future retirement to Europe. Others will buy a property with a view to moving to that property once they retire. Either way, the French property market provides ample choice to those who want to plan for a better future. 

“Ranked No1 for International Quality of life…” 

Whether a property in France is used for holidays, full-time habitation or retirement, it is a way to benefit from the French joie de vivre on a more regular basis.

France ranks No.1 in the International Living Quality of Life Index and the uSwitch European Quality of Life Index. When it comes to quality of life, there’s nowhere quite like France. 

Nowadays, France is so easily accessible, overseas buyers who can’t move to France permanently can benefit from this better quality of life for their summer holidays and short breaks.

France’s many charms cannot fail to work their magic on foreign buyers, particularly as this country can offer something to suit every lifestyle requirement; ski, sun, beaches, mountains, cities, culture, history, food, festivals, wine, architecture, alfresco dining…

Purchasing Property in France

Buying property in France without the help of a market expert has the potential to turn into something of a nightmare for the overseas buyer. The system is fundamentally different to that of your local market and should be respected accordingly – the legal process and tax system, for example, as well as the need to confront the inevitable language barrier. 

Using the extensive experience and knowledge of Vendome International Property, will help to bring you peace of mind throughout the buying process, allowing you to focus on making your dream a reality.

Introduction

Preliminary Contract

The preliminary contract is called a contrat de réservation.

The purchase usually takes place in two stages:

  1. The preliminary contract (“compromis de vente”) is the document you sign when you wish to purchase a re-sale, i.e. a property that you will buy from a private seller.  It is as binding as a sale contract for both contracting parties. Since the 1st June 2001 there is a new law that tends to protect the buyers. It gives you a cooling-off period of 7 days to think over your purchase and, if you decide not to go ahead, you can call off the deal.  No money will be asked for or cashed during these 7 days.  Only at the end of this delay will you have to make a deposit. On signing of the contract, you are generally asked to pay a deposit of 5% (new development) to 10% (second hand property) of the price. You pay direct to the notary on a client account.  However, the mortgage authorization from the bank is still a pending condition to the contract.
  2. The reservation contract is the document you sign when you make a purchase in a new program, off-plan, or up to 5 years old at the most.

 On the day you make the reservation, you will have to sign: 

  • the contract itself,
  • the specification sheet of the building,
  • the block plan as well as the floor plan,

The Final Deed of Sale

The final deed of sale is also called a acte de vente.

This “acte de vente” is to be carried out by a French notary, who represents, as a public officer, the Government and they are impartial.  It is common practice to instruct only one notary.  He is responsible for making the usual enquiries before completion (i.e. checking the origin of the property, the parties’ identities, as well as all legal and financial aspects related to the property), thus preparing the title deed for both vendor and purchaser.

Following this compulsory deed, the transaction is to be registered by the “Conservation de Hypotheques” (the Land Registry), which is a department of the Inland Revenue Service.

 In the case of a re-sale, you can choose the notary you wish.  If it is a new program, you deal with the notary in charge of the program.  You have to bear in mind that from day one (on the day you sign) you have to take a basic insurance policy (fire, water damage and third liability) to insure the property.

 

Process and costs of buying in Spain

SPANISH PURCHASE PROCESS

 

  • Review and sign the reservation contract along with a deposit, and start the diligence process.
  • After due diligence checks, if you are buying off plan you will sign the private purchase contract, do the payment (25% – 40%) of the purchase Price. Payments and terms depend on the agreement.
  • New properties are paid over the construction period, all payments being made before its completion must be guaranteed by a bank or insurance company. Bank guarantees are mandatory should have no expiration date as per Law 57/68.
  • Complete before a Notary Public and make payment of the balance remaining.

 

UNDERSTAND THE COSTS OF BUYING

As a buyer of property in Spain there are a number of costs and taxes over the property price that you will have to pay. Depending upon whether you are buying a new property from a developer or a resale.

  • NEW BUILD FROM DEVELOPER OR BANK.

VAT & Stamp-duty (IVA & Actos Jurídicos Documentados – AJD)

At present VAT (known as IVA in Spain) is 10% on the purchase price of residential properties and 21% for commercial properties and plots of land, with the exception of the Canaries. Both VAT and Stamp Duty 1.5% are paid by the buyer.

  • RESALE FROM A PRIVATE INDIVIDUAL.

Transfer Tax (Impuesto sobre Transmisiones Patrimoniales – ITP)

The Transfer Tax rate is ceded to the autonomous regions, who can choose to apply the general rate, or their own rate. The rate in Andalucía is as follows:

8% – if the final price of the property is under 400,000€

9% – if the final price of the property is between 400,000€ and 700,000€.

10% – if the final price of the property is over 700,000€.

 

  • OTHER COST AT THE TIME OF PURCHASING

 

Public notary and land registry  1%

Additional public notary and land registry fee in case of purchase with a Spanish mortgage 1%. Lawyer´s fee 1%+ VAT.

ANNUAL PROPERTY COST

  1. COMMUNITY FEES

Fees will vary depending on the size of gardens, facilities, number of lifts, if there is private security, etc. 

  1. UTILITY SERVICES

These include electricity, water and gas and vary depending on your personal consumption.

 

  • Electricity – Is normally paid each two months.
  • Water – Paid once a month and ranges between.

 

  1. INSURANCE

The building will be insured by the community. Your property insurance will be for contents and damage by fire and water etc. It is mandatory that in a communal building owner are insured.

  1. TOWN HALL TAX (IBI)

This is a local tax applied to the ownership of property in Spain, irrespective of whether the owner is a resident or not. Calculated on the basis of the cadastral value (an administrative value that is usually lower than the market value) set by the town hall the tax rate goes from 0.4% – 1.1% of the valor cadastral depending on the Spanish region. The payment is made once a year

FAQ – To buy a property in Spain

PURCHASE SPANISH PROPERTIES

  1. What are the requirements for buying a property in Spain?

There are not limitations in general, any physical person or society legally constituted of any country can buy a property in Spain. This however, depends on the country, can have limitations that depend of the authorities of the country of the investor, for example regarding exporting bottom or controls more *extensions regarding *anti-bleaching and origin of the bottoms (fiscal paradises, etc.). These complications can to practical effects hamper the operations. In these cases the solutions will look for to size, depending of the *particularities of each case.

  1. What is the NIE and how can obtain it?

The NIE is simply a number of identification of a foreigner in Spain, has nothing to see with the residence.
All the buyers that don’t have the Spanish nationality will have to obtain him, European or no-European; and physical people as companies. The physical people can obtain it of or three different manners:
• through the consulate of Spain to his country of origin.
• Personally to the municipality where was situated the object of purchase (eye: in some places, like Barcelona, it is necessary to ask previous appointment).
• For notarial power that the customer can give to his lawyers or to any third of his confidence.
The foreign companies can obtain the NIE/NIF to *Hacienda.

  1. Have buyer to be present in the different phases of the purchase?

No. The buyers can sign a notarial power in Spain (the easiest solution) or through a procedure of legalization to the country of origin in favor of his lawyers or any one other person of his confidence.

  1. I need a bank account in Spain?

Yes. The most comfortable shape to pay the final price of the *purchase is by means of a banking cheek issued by a Spanish bank. They do not serve cheek issued abroad and is not recommended to do a direct transfer to the seller before having obtained the titularity. On the other hand the seller will not want to sign the sale until it have earned. Besides, all the supplies, quotas of community, taxes, etc. They will be paid by domiciliation’s to the account of the customer and only cost national accounts.

 

  1. Which documentation has that contribute to open the account and matter bottom?
    If it treats of European physical people and of western countries “of confidence” how can be the USA, Canada, Switzerland, etc., the majority of the banks open the accounts simply with the passport. The NIE is not necessary. In other cases, to open the account and receive bottom it is necessary to present documentation translated and legalize on the origin of the bottoms (statements of taxes, extracts of accounts, agreements of work, etc.).

The procedure it is up of the country of origin of the customers and of the bank. Even the different offices of the same bank can have different criteria regarding the necessary requirements. It is important to take into account that all the banks have the obligation to know to his customers in person, and is the only moment in all the procedure of purchase that cannot do for power. The customer has to present to the bank in person once, and from then, all the rest can do by proxy.

 

  1. I can obtain funding in Spain?
    Yes. The requirements vary depending of the bank and of the origin of the customers, but generally the no-resident can have a funding of roughly 50% of the valuation (or price of purchase if it is lower that the valuation), with a maximum of 25 years, whenever the monthly quota do not surpass 30% of his free revenue that can show. 
  2. It is better to buy in proper name or constitute a company?
    *It depends of several factors:
    • Country of origin and pre-existing structure of the customer
    • Value of the investment
    • Age and other characteristics of the customer
    • Use of the property
    • Type of property (local / house – new / to renew)
    If it buys an only house for personal use or even for rent, usually does not be worthwhile to constitute a society, but buy directly to proper name. If the objective is to do true businesses with properties, or if the value of the investment is very high, can be advantageous constitute a society or use any other formula
    of investment.
  3. Which expenses have to pay in the moment of the purchase?
    The expenses in the moment of the purchase are the same so much for foreign buyers how for national buyers, and altogether are between 10%-15%.

 

Some formalities when you are buying properties in Spain

SOME FORMALITIES WHEN YOU ARE BUYING IN SPAIN.

 

 POWER OF ATTORNEY

You can give Power of Attorney in the Favor of your Lawyer for him to be able to act on your behalf. The power of attorney can be signed, at your convenience, either in Spain or in the country of your preference.

 N.I.E. (Spanish ID Number for Foreigners)

The N.I.E. is the ID number that foreigners use in Spain, and is issued by police authorities.

Without this ID number, it is impossible to buy properties in Spain or obtain service contracts for

utilities. Applications to obtain a N.I.E. number tend to take certain time to process, so it is very

Important to present your application for the number, at the beginning of the buying process.

SPANISH BANK ACCOUNT

It is essential to have an account in a Spanish bank in order to contract utility services and to pay

Them by direct debit.  Your Lawyer will able to open a bank account in Spain on your behalf.

MORTGAGES

In Spain, foreigners and non-residents can apply for a mortgage with Spanish banks. Vendôme International Property works with different banks and will advise you the best mortgage option for your property purchase.

REQUIREMENTS

In order to obtain a mortgage in Spain, you must meet a series of requirements related to your ability to meet payments and the value of the property being purchased.

The mortgage repayment will never exceed 30% or 35% of the net monthly income of the applicant and the maximum re-payment period is 20 years. 

AMOUNT REQUESTED

As part of your mortgage application process, the bank will commission an official, certified and independent valuation company, to carry out a valuation of the property. This company will provide an official report on the value of the property, which becomes the main direct guarantee. Usually the amount it will be 50%-60% of the price.

 

Is 2020, the best year to buy French Property?

Is 2020, the best year to buy French Property?

It is difficult to predict future but when we follow certain driving elements of the market, we can somehow sketch what future is holding for us. Though, in real estate, the main driving factor remains ‘supply and demand’ but then there are lots of other supporting elements that makes it happen. Macron government’s recent tax changes and labour reforms suggest pro-investment stance when it comes to the investors. 

If we talk overall picture, we are witnessing that the French property market has grown strongly over the last 2 years, though, the growth has been uneven depending on the area. The sales numbers have reached a new record as prices continue to climb.  According to French notaries, between July and October, prices increased by 3.2% compared to last year.  By the end of October, the number of transactions reached 1.059 million, a new national record.  The previous one, set just last year, was one million. In addition, the Notaires body is predicting that these level of sales volumes will continue into 2020.

A recently published report by Standard & Poor into the European housing market, predicts that the current rise in house prices in France during 2019 will stabilise at around 2.5% during 2020. 

Here are some of the factors that we feel would drive the growth in years to come: 

HERE ARE SOME OF THE FACTORS THAT WE FEEL WOULD DRIVE 

THE GROWTH IN YEARS TO COME

France’s solid economic growth and attractiveness to tourists make it an appealing prospect. More than 89 million tourists visited during 2018 and the numbers are only growing upwards. In addition, good transport links, excellent international schools and a transparent legal system make it something of an investor’s dream.

The mortgage rate in 2019 remained at historically low levels. The trend is likely to continue in 2020. The EURIBOR (European Central Bank base rate) is still negative at -0.39% and it is unlikely to rise. The Banque de France has indicated that interest rates will remain stable during 2020. They forecast some slight increases to around 1.55% by the end of 2020, due to pressure from increased rates from the US Federal bank and the drop off in Quantitative Easing by the ECB. They comment that “In view of this, lending rates are likely to rise over the coming quarters, although only moderately, as banks will not pass on the increase in market rates entirely because of strong competition among credit institutions

France has the second biggest economy in the Eurozone after Germany and unemployment is currently at a 10-year low. France’s wealth population is growing, with it now being home to more than 610,000 millionaires.

The BREXIT is expected to impact the housing market positively in France. UK, being out of EU, many larger enterprises and individuals, are expected to move to other European countries. France and Germany are an attractive location to move to. In addition to the local French buyers, you can witness growing demand from other Europeans as well as Middle Eastern countries. Over the past years, Middle Eastern and Chinese investors had made great purchases at the prime locations in the country. 

French real estate now come with added appeal, assuming buyers adhere to certain conditions. TVA (VAT) of 20% is refundable on newly-built or off-plan properties, while transfer tax is limited to 2% instead of the usual 7% for resale properties.

These are just some of the factors of why you should consider buying in France during 2020. Let us help you in finding the most suitable investment for you, whether you are considering to buy a holiday home around the lake or an investment to grow your wealth or probably a source of regular income for your retirement. We will be happy to assist you in finding the most suitable option. Apart from the economic factors, it’s all about location! Location! Location! 

With our 40 years’ experience, we are in a position to guide you. 

Golden Visa in 10 questions

*The Spanish Golden Visa is now available to non-EU nationals who fulfil the Spanish government’s requirements. The objective of the law is to stimulate foreign investment in Spanish real estate.

 

 

  • Who can qualify for a Golden residence Visa in Spain?

 

Any non-EU national who invests in Spain in accordance with the new law recently passed by the Spanish government.

  1. What are the requirements?

Purchasing one or more properties, with minimum value of 500,000 Euros.

 

  • Can I buy more than one property?

 

Yes, you can purchase more than one property as long as the minimum threshold is above 500,000 Euros. (For example, you can buy 5 apartments of 100,000€ or just one property of 500,000€ price)

 

  • Can I obtain finance to purchase a property?

 

Yes, but any finance required, must be over and above the initial 500,000 Euros, which you must possess

 

  • Can I sell or rent my property?

 

Yes you can sell your property, but if you sell your property at any time during the first five years, you will lose your Visa. However, you can sell your property and buy another one as long as you maintain the 500,000 Euros threshold. Alternatively, you can sell it after 5 years.

Regarding the rent, there are no restrictions on property use. Investors can use the property in any way that is legal according to planning permission, zoning laws, and so on.

 

  • How long can I stay in Spain?

 

As long as you wish. There is no obligation to spend a minimum amount of time in Spain, so investors can remain tax resident outside of Spain, whilst benefiting from Spanish residency and the freedom of unlimited travel and stays in the EU. 

 

  • Can my family come with me?

 

Yes, the spouse and children under 18, (or older disabled children) may also apply for permits at the same time or after the principal applicant.

 

  • How long does the Visa last?

 

The first step for investors will be, to apply for an investment Visa. This Visa will be authorized by Diplomatic Missions and Consular Spanish Offices, and can be issued for one, two or multiple entries into Spain.

Once an investment has been made, and after the first year, investors can apply for authorization to live in Spain for two years, renewable for another two years after that (and so on), as long as the investment threshold of €500,000 is maintained.

After five years of continuous residence, investors can apply for permanent residence in Spain.

 

  • Can I use my Spanish Visa to travel through Europe?

 

Yes. Applicants who qualify and obtain the Visa will be able to travel freely throughout the Schengen zone. They can transit and enjoy free movement in the Schengen area for a maximum period of three months (90 days) per half-year from the date of first entry.

The Schengen area is made of 26 European countries. Some countries are part of the European Union, but do not belong to the Schengen area, such as the United Kingdom and Ireland. Other countries, like Norway and Iceland, are not part of the European Union, but are part of the Schengen area following a cooperation agreement signed with the Schengen States.

 

 

  • How do I proceed?

 

The first step is to apply for a 90-day tourist Visa in your own country. This will enable you to visit Spain and look for possible investments.

 

Once having decided on your investment, an application for a one-year Visa can be presented to the Spanish Consular Offices throughout Spain. Proof of ownership of a property, bonds, stocks or shares will have to be presented with your application. Applications will be responded to within 20 working days from the submission of the application. If there is no answer in this period, the application shall be considered as accepted.

 

The applicant must fulfill the following conditions:

 

    Not to have entered or stayed illegally in Spain, or been refused entry into any Schengen countries.

    18 years or older.

    No criminal record.

    Not listed as undesirable in Spain.

    Public or private health insurance valid in Spain.

    Economic resources to support the applicant and dependents.

    Authorization or Visa processing fee.

To be considered before buying a property

1. Is the Plot of Land Registered under the Developer’s Name?

2. Has the Developer Attained Planning Permission?

The basic recommendation would be not to sign a Reservation Contract or a Private Purchase Contract
(PPC) unless the town hall where the property is located has issued a Building License (‘Licencia de
Obras’ in Spanish) for the development.

3. Do You Have a Bank Guarantee Securing your Stage Payments?

The instalments paid while the property is being built can be guaranteed by means of what is known
generically as a ‘bank guarantee’.
A bank guarantee’s purpose is to secure the full amount of deposits paid by off-plan purchasers.
Bank Guarantees should have no expiration date as per Law 57/68. Bank Guarantees should expire only
upon the developer attaining a License of First Occupation.

4. Has the Dwelling Obtained a License of First Occupation (LFO)?

A License of First Occupation (or
‘Licencia de Primera Ocupación’ in Spanish) is a certificate issued by a town hall that confirms that a
newly-built property fully complies with all planning and building regulations, and is ready to be used as
a dwelling. A LFO allows off-plan purchasers to dwell in a property legally.

5. Ghost Developments:

Some new communities remain largely unsold post credit crunch and you may find additionally that
many common holders are not contributing to the communities´ expenses. This nasty surprise may
create practical problems such as green swimming pools, lack of security, derelict gardens and even
break-ins. It may be recommendable before buying into a community that you ask around first. This will
no doubt change in the future when the market picks up again and moves to a new cycle.

6. Coastal Laws:

On buying off plan, make sure it is not within the protected area of Public Domain or else you may risk
your house being pulled down, at your expense, by the local Authorities. Spain’s Coastal Law was passed
in 1988 but it hasn’t been until recently that the Government has decided to enforce it harshly. There
have been significant amendments to the point there has been a de facto coastal law amnesty.

7. Buy-to-Let

If you are buying to rent the property out, either as short or long-term, make sure the region of Spain in
which you are buying allows for this. Some regions, i.e. Balearic Islands, have stringent regulations
whereby a special license is required to rent. Failure to comply will result in the town hall fining you.
Other regions in Spain, such as Andalusia, do not require letting licenses but do have their own
regulation in place on letting out property i.e. Decree 218/2005.

8. You do have a NIE number, right?

A NIE number is a Fiscal Identification Number for foreigners and is required, among other things, to buy

9. Snagging List

Before you complete on a newly-built property you should always do a snagging list of the property. You
can either draw up a snagging list yourself or else appoint one of the many experienced companies that
may carry it out on your behalf. It goes without saying that lawyers do not usually carry out snagging
lists.
On inspecting the property they will draw a list of all the flaws the property has i.e. mismatched tiles,
damp patches, leaking faucets, flaked painting, damaged appliances, unsuitable drainage etc.
I highly advise not to complete on an off plan until you have fully carried out a snagging list and also
followed it up ensuring the developer has indeed repaired each and all of the problems highlighted by
your inspection. Once you complete it will be very difficult to have these fixed as your bargaining
position will be considerably weakened on handing over the money. So play your card rights and demand
they are repaired always pre-completion, not post-completion. Once you are satisfied with the repairs
you may then complete.

10. Post-Completion: Make sure the Property is Now Registered under Your Name

Register your title deeds at the property register. You would do well to request what is known as nota
simple. It is highly advisable to check the title is clean and there are no charges, liens or encumbrances
against the property (other than the mortgage you may have applied for given the case).

11. Post-Completion: Dealing with Property Taxes, Utilities and Community Fees

You should open a Spanish bank account if you haven’t done so already. Utility companies do not accept
overseas payments and like setting invoices as standing orders against your Spanish account. You should
set at least as standing orders all the following:
IBI tax. Paid once a year
Rubbish collection tax. Paid twice or once a year depending on the town hall.
Utility bills (invoiced quarterly in the case of water and monthly with electricity).
Community fees (only if you’ve purchased in a Compound). Usually quarterly but can vary.

How to buy a property in Spain

1 .Which are the requirements for can buy a property in Spain?

There are not limitations, any physical person or society legally constituted of any country can buy a property in Spain. 


The only indispensable requirement to buy a home in Spain is to obtain the NIE (Foreigners Identification Number). 

2.What is the NIE and how can obtain it?

The NIE is simply a number of identification of a foreigner in Spain .It is a personal and unique number, essential to carry out any transaction in the country.

Lawyer will carry the process to obtain the NIE.

3. Have buyer to be present in the different phases of the purchase?

There is no obligation to be present, His lawyer will be in charge if the buyer choose to sign the power of attorney.

4.I need a bank account in Spain?

Yes. The most comfortable shape to pay the final price of the *purchase is by means of a banking cheek issued by a Spanish bank. They do not serve cheek issued abroad and is not recommended to do a direct transfer to the seller before having obtained the titularity. On the other hand the seller will not want to sign the sale until it have earned. Besides, all the supplies, quotas of community, taxes, etc. They will be paid by domiciliation’s to the account of the customer and only cost national accounts.

 

5.Is posible to obtain mortgage in Spain for non resident?

Yes, it is posible.The amount granted is usually 60 percent of the total amount of the price and the maximum term of 20 years. The requirements to opt for this type of financing would be to provide all the necessary documentation (employment contract, information on assets and working life).

The applicant will have to justify the origin of the capital that he contributes in equity to the operation. It is a very simple process, in which it is simply confirmed that the origin of the money is legal.

 

 

6.It is better to buy in proper name or constitute a company.

Depends on each case.

  • Country of origin and pre-existing structure of the customer
  • Value of the investment
  • Age and other characteristics of the customer
  • Use of the property
  • Type of property (local / house – new / to renew)


If it buys an only house for personal use or even for rent, usually does not be worthwhile to constitute a society, but buy directly to proper name. If the objective is to do true businesses with properties, or if the value of the investment is very high, can be advantageous constitute a society or use any other formula
of investment.

7.Which expenses have to pay in the moment of the purchase?


The expenses in the moment of the purchase are the same so much for foreign buyers how for national buyers, and altogether are between 10%-15%.

 

5 reasons why you should buy a property in France

“Overseas investors can feel secure in their investments…”

France’s reputation remains remarkably unsullied. French estate agents and developers are strictly regulated, and buyers are well protected by the law. What’s more, with its carefully controlled lending climate, and lack of ‘boom and bust’ trends within the property market, France has been less affected by the global recession than many of its neighbors.

Nowadays, France is so easily accessible. This makes a holiday home an extremely practical and logical investment.

Over the last few years, buying property in France has been a very popular investment alternative for many people, be it for a permanent move, a second home, or a long-term or holiday let. As a whole, the prospect of investing in the “French Way of Life” is an important deciding factor.

Consumer protection is a serious priority in France and property buyers immediately feel  that they are buying in a safe and reliable legal system that is there to protect them. Particularly for those who have never bought property abroad, France is the perfect place to start, as the strict French legal process protects the buyer from any of the risks associated with buying property in the emerging markets and the horror stories heard in the press.

“Entering a mature and stable market…”

The French economy and its property market are mature which gives buyers security in  comparison with new and emerging markets in less politically and economically stable countries. There is historical data on the housing market in France and, therefore, the proof that this country can provide a safe and sustainable return on investment. The French economy has not been affected by the recession quite as dramatically as other counties. 

 

“A sustainable long-term return in investment…”

Those with savings, particularly in today’s economy, see French property as a good investment for this cash. Properties bought in the right key hotspots in France, Geneva Lake, Paris or Cote d’Azur, are likely to see long-term capital growth as well as excellent rental returns in the meantime. And this is on top of the property providing the buyer with free holiday accommodation!

France is the number one destination for holiday makers with approximately 75 million tourists visiting France every year. In addition, the French themselves tend to holiday within France putting further demand on holiday rentals. The French government is continuously offering incentives to investors to buy and rent out holiday style properties as they are in desperate need of sufficient accommodation to handle this demand from tourists. Those who holiday in France see this for themselves and want to enjoy the benefits of buying into this market.

“Offers an attractive retirement option…”

Those looking to the future see a good, safe investment in the French market as a way of generating a Euro income for their future retirement to Europe. Others will buy a property with a view to moving to that property once they retire. Either way, the French property market provides ample choice to those who want to plan for a better future. 

“Ranked No1 for International Quality of life…” 

Whether a property in France is used for holidays, full-time habitation or retirement, it is a way to benefit from the French joie de vivre on a more regular basis.

France ranks No.1 in the International Living Quality of Life Index and the uSwitch European Quality of Life Index. When it comes to quality of life, there’s nowhere quite like France. 

Nowadays, France is so easily accessible, overseas buyers who can’t move to France permanently can benefit from this better quality of life for their summer holidays and short breaks.

France’s many charms cannot fail to work their magic on foreign buyers, particularly as this country can offer something to suit every lifestyle requirement; ski, sun, beaches, mountains, cities, culture, history, food, festivals, wine, architecture, alfresco dining…