Buying flats for investment in Spain by the sea is a process that takes place in several stages. The first is selecting an object and concluding an agreement of intent and a deposit. Further, there is a preparation of all necessary documents and transaction registration.
The signing of the bill of sale and the entry of the new owner into the owner’s rights. It should be said that all real estate transactions in Spain take place with the obligatory participation of a notary, which checks the transaction’s validity and draws up a purchase agreement, after which it enters the data into the register.
Spanish legislation provides for some mandatory costs in real estate transactions. Both the seller and the buyer have their obligations. The calculation of costs depends on the form of the transaction:
- individuals;
- new or resale property;
- mortgage or direct sale;
- from the region and municipality.
Buying property in Spain is not easy to independently understand all the intricacies of the law. Acting without knowledge of the laws and documents necessary to purchase real estate abroad leads to a loss of money and time.
Do not become a hostage to a situation of this kind, but choose a reliable partner Spain-Real. Estate who will ensure the transparency of the transaction, full support, and the entire scope of responsibility for the sale and purchase procedure.
Deed of sale for real estate in Spain
The bill of sale is the main document evidencing the purchase of the real estate in Spain. As a result of signing this document, the buyer has the right to dispose of this property at his discretion. N.I.E. (identification number of a foreigner) is necessary for signing the transaction and is issued in advance by the police.
A notary is an integral part of the transaction, Escritura Publica (bill of sale) is signed in his presence, mutual settlements are carried out, keys are handed over, etc., if the purchase of home ownership is made with a Mortgage, then a representative from the bank is always present. After the bill of sale (Escritura) is transferred to the Property Register of Spain for registration, this process will take about 3-4 months.
When all the data is entered, upon request, the owner is issued an extract from the Register (Nota Simple), based on which multi visas to Spain are issued.
Deposit Agreement
How to buy a house in Spain and draw up a Deposit Agreement? Buying a cottage, apartment, or other real estate in Spain. The document is drawn up when the object has already been selected and indicates the buyer’s intention.
The conclusion of such an agreement is beneficial to everyone, and it considers insurance guarantees for each party. Be sure to record the data of the seller and the buyer, information about the object, its description, and its characteristics. Specifies the cost and terms of the contract. In particular, there should be a record of the amount of the deposit paid, the form, and the payment schedule.
How to buy property in Spain on credit
Banks in Spain are loyal to citizens of other countries. That allows you to get a mortgage financed up to 60% of the total cost of housing. The loan amount can be 100% of the cost when purchasing bank real estate.
The loan term is 25-30 years, and the average interest rate is 3.5%. When considering the acquisition of real estate in a mortgage, individuals and legal entities must consider the costs of its registration and the payment of tax on the transfer of property rights, which is about 10-15% of the cost.
The Mortgage Law, which came into force in November 2018, states that the IADJ (Stamp Duty) is obliged to pay the bank when signing the mortgage. The buyer saves a considerable amount (on average, 1% of the transaction).
In addition, if you want to buy property in Spain with a mortgage, we will find the best banking programs and market offers for you.
Mortgages in Spain for non-residents of the country
Mortgage for non-residents is not an easy task, but quite solvable. Many buyers are attracted by the opportunity to buy property in Spain on credit. Mortgages have the right to request both citizens of the country and foreigners. The loan amount is usually up to 60%, and in exceptional cases – up to 80%.
An individual approach and working with the largest banks, Sabadell, BBVA, and Santander, makes it possible to offer the most profitable mortgage program option for each of our clients.
For the bank to consider and approve the request for financing, the buyer must confirm his solvency by submitting documents confirming this to the mortgage department. It is important to remember that all persons appearing in the bill of sale also provide references and certificates. After that, the papers provided by you will be considered, and an appraisal check of the acquired object will be carried out. It will also act as a guarantee and collateral during the transaction.
Mortgage features in Spain
The peculiarities of mortgages in Spain are some advantages and additional opportunities provided to buyers of Spanish property:
- low-interest rate;
- favorable credit terms;
- low taxes and commissions for international transfers of funds;
- the right to receive a multi visa for the whole family;
- the right to obtain a residence permit for owners of objects from 500,000 euros.
Conclusion
When buying property in Spain, it is crucial to navigate the legal complexities correctly.
The bill of sale, notary involvement, and registration with the Property Register are key steps. Financing options, including mortgages, are accessible to both residents and non-residents, offering favorable terms and potential savings. Spanish mortgages present advantages such as low-interest rates and the opportunity to obtain a multi visa for the family.
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