Below you can read about the different steps for buying a property in Spain.
Once you have decided to find a property in Spain, it is good if you have made a cost / housing calculation. What costs per month can you afford? Is renting the property out an alternative to partially financing your purchase? Is renting an option to enable a slightly more expensive home? These are some of the questions you should think about before you start looking for your dream home on the Costa del Sol.
How have you planned to finance the home? In order to be able to act quickly, it is wise to have a clear picture of how the financing is to take place. It is possible to borrow up to 75% of the market value in a Spanish bank. Handelsbanken is a Swedish bank that has offices in Marbella, they can be helpful with loans, but if you have the opportunity to mortgage your existing home in Sweden in a Swedish bank, this is probably the best option. Regardless of which financing model you think is best for you, we have the contacts needed to help you if you wish.
In addition to the cost of any loans, there are certain costs such as a fee to the community, insurance, electricity and water.
2. NIE number
In order to buy a property in Spain, a so-called NIE number is required. A NIE number is a personal Spanish tax identification number. The NIE number is also needed in other contexts, for example, to sign agreements with electricity and water companies, telephone etc.
3. Choice of a legal representative
Since the broker’s responsibility looks completely different compared to Sweden and other countries, we really recommend that you have a legal representative. The lawyer/representative helps you to make a so-called legal check of the home you want to buy so that you do not come across any boring surprises afterwards. In addition, you get help with the administration required around the purchase, so the cost is marginal in terms of the risk of buying a home without a legal representative. You can choose your legal representative first, so you get help with obtaining NIE numbers. We are happy to help with the choice of lawyer and collaborate with both Spanish lawyers who speak fluent English and Swedish.
4. Your dream home
Before the process begins with finding your dream home, it is good if you know a little more about what it is you are looking for. Do you know the places on the Costa del Sol and know where you want to live or is the Costa del Sol as a whole more or less unknown? If it is the latter, it may be a good idea to first make a short trip down to visit the different areas.
What are you looking for in terms of accommodation? Apartment or villa? What is important to you?
- Number of bedrooms
- Floor plan
- New production
- Weather lines
- Walking distance to facilities
- Proximity to the sea
- Proximity to golf
- Terrace size
- Gated Community
- Possibilities for rent
Think through and feel free to prioritize. Together we will put decide on a specification of what we are looking for.
5. Trip for viewings
Before you come here to look at items that match your search criteria and that we think you like, we have sent you the information in the form of presentation material. We are very careful that the objects shown are exactly the ones that match what you are looking for and also the ones we find interesting to take a closer look at. Unfortunately, there are brokers who both plan for too many views per day and select properties that are nothing like the one you are looking for. We think that a suitable number of screenings per day is around six, then you get an opportunity to look in peace and quiet and form a proper opinion. It is not only the home you are going to live in but also the area. If you want to see more or fewer, we will, of course, adapt accordingly.
When we have found the property that you know is the right one, we enter a bidding phase and present a bid to the seller’s agent. Here, the process is relatively similar to that in Sweden, but for you as a buyer, it is very important to have a broker with very good negotiation skills so that you get the item for the best possible price. We have that negotiation habit from many years of experience of negotiation in other industries as well. Is the seller not willing to go down in price? Then maybe it’s something else you want to be included in the purchase price. In the case of new developments, the prices are set and no bidding occurs.
You can always be completely confident that we do everything to
make the best deal possible for you.
As a buyer, you always have the possibility to think through the purchase properly by reserving it for ten days. The listing is then removed from the market with the information Reserved, and you as the buyer make a deposit, usually of 6,000 Euros, which is deposited in the legal representative’s client funds account. The deposit is refunded in full if you choose not to complete the transaction.
8. The purchase
På tillträdesdagen träffas köpare och säljare med respektive ombud samt mäklare hos notarien. Du behöver inte personligen närvara utan kan lämna fullmakt till ditt juridiska ombud att företräda dig. Här upprättas då “Escritura Publica de Compravento” – köpebrevet. Eventuella lån registreras av notarien.
Den resterande delen av köpeskillingen erläggs direkt till notarien som i sin tur tillser betalning till säljaren, skatter och lagfartsavgifter.
Säljaren får 97% av köpeskillingen, resterande 3% betalar du som köpare till spanska skatteverket (detta är ingenting du behöver göra själv utan det hanteras av notarien/ditt juridiska ombud). De 3% är en garanti för att säljaren ska fullgöra sina skattemässiga plikter i Spanien, när det är gjort återbetalas pengarna till säljaren.
The normal cost of buying a home in Spain is 10-12% and is usually a little higher for new developments than existing homes. Below you can see which costs / taxes are included in the 10-12 per cent.
When selling existing homes (not new developments), a transfer tax is levied by the Spanish state. The tax is 8-10% and is based on the purchase price. It is usually a higher percentage the higher the purchase price is.
VAT and stamp duty
The VAT of 10% is levied on homes sold for the first time, eg new construction. In addition to VAT, stamp duty is levied for the issuance of legal documents.
All these taxes are paid by the buyer.
Fee for notary and registration
The cost of the notary is regulated by the Spanish state. It may vary slightly depending on the number of pages in the agreement and the purchase price, but normally the cost is between € 500 – € 800.
The costs of legal services vary. It is therefore important to have agreed with your representative in advance (we will, of course, help you in this).
Normally, if it is not a complex housing transaction, the legal representative charges 1% + VAT of the purchase price. Many agents have a minimum fee, while the commission can be negotiable if it is a purchase of a more expensive home.
10. Property tax
All homes in Spain are subject to property tax, regardless of whether you are a permanent resident or not. The tax is 0.5-1.2% of the assessed value. To give an approximate picture, you can calculate a property tax of € 250 – € 1,000 per year provided you have not bought a very expensive home. Every year, as a property owner, you must file a Spanish tax return. This is something we, through our partner, can help you with.
11. Cost of renting your property
The regulation and control when renting out homes have been tightened in recent years. For property owners who are not permanent residents, a tax of 24.75% is paid on rental income. Some deductions can be made for costs that are directly related to the rental.
For those who are permanent residents, the rental income is added to other income and is covered by the Spanish income tax.
12. Income tax
Even those who are not permanent residents and do not rent out their home must pay income tax. The tax is calculated on a theoretical advantage of owning the property and is calculated on a percentage of the assessed value. The cost is usually very low, a couple of hundred Euros per year.
13. Gaining access
As a buyer, you get access to the home immediately after the meeting with the notary.
Your legal representative will help you with arranging agreements for electricity and water.
Insurance – depending on what you want your insurance to cover, we have options we can recommend.
The choice of bank and opening of account must have taken place before water / electricity as this is deducted via direct debit and only Spanish banks are accepted.
In Spain, “move cleaning” is not included, but we can not imagine anything worse than coming to a new home without it being cleaned. We make sure it will be cleaned and emptied.
14. Moving in
If you don’t want to spend your first days in your new home, receiving furniture deliveries, we will gladly help you to the extent you desire. We can be on-site to receive deliveries, put it in place, make sure your refrigerator is stocked with the most important things and many other practicalities. All at cost price as a service to you.