Buying property is, for most people, the most important and costly investment of their lives.

It is, therefore, normal for you to have many doubts and concerns, especially if it’s the first time you’re buying property in Spain. That’s why it’s important to know as much as you can about the processes, the things that you have to do, the taxes you will have to pay and all the aspects you need to make sure you don’t forget about.

We’ll tell you all about it below.

The steps to take to buy property in Spain

• Property: The reservation is made with a payment of between 3,000 € and 6,000 €. That will ensure that the property is reserved for you.
• Property check: This stage consists of revision of all the details regarding the property. Check the registration, the current owner or owners, location, size, and make sure it is free of debts. In Spain, unlike other countries, you are not obliged to employ the services of a lawyer. A qualified agency with a good reputation can do the same job and save you thousands of euros.At Jetvillas we can take care of the entire process including checking the paperwork, payment methods, financing… and we also provide an excellent post-sales service. Moreover, all of our properties carry the Safe Purchase Guarantee Stamp, which offers full coverage in the case of any legal problems for 20 years. No more worrying about nasty surprises!
  Safe Purchase Guarantee. Check all benefits
• Prior agreement: the buyer and the seller state their explicit intention to go ahead with the sale with a private contract which your real estate agency or a legal advisor can draw up. At this point, the buyer makes a second payment.
• Mortgage: If you need to apply for a mortgage, this is the perfect time to do so. We recommend that you contact local banks to get an idea of the conditions they offer.
• Transfer of the property: The change of ownership is witnessed and certified by a notary.
• Registration at the Property Registry: The buyer now becomes the absolute owner of the property.

Taxes on a property purchase

There are 4 taxes to be paid when a property is purchased in Spain:

• Property Transfer Tax (ITP): This is related to the transfer of second-hand property. The percentage varies depending on the region the property is located in. In Costa Blanca it is 10%. The deadline for payment is 30 days after the purchase date.
• Value Added Tax (IVA): This is paid when the property is newly built. In Costa Blanca it is usually 10%.
• Stamp Duty: This tax only applies to new properties and it is usually paid together with the VAT (IVA). In Costa Blanca it is generally 1,5%.
• Property Tax (IBI): This is an annual tax issued by the local council of the municipality the property is located in. For most single-family homes, it amounts to between 1,000 € and 2,000 € per year.

What do you need to keep in mind if you are not a Spanish resident?

If you’re going to buy property in Spain and you live abroad, you’re going to have to obtain a Foreigners’ Identification Number (NIE) before you can sign the deeds.

In Spain, you can get your NIE from the Foreigners’ Office or at the Foreigners’ Department of certain National Police Stations. Your real estate agent or lawyer can help you with this procedure. If you prefer to apply from abroad, you can do so at the Spanish consular offices in your home country.

If you’re going to buy property in Spain, we recommend that you open a current account in Spain. This account will be used to accredit means of payment for the price of the transaction as well as the taxes deriving from it.

Moreover, bear in mind that those who are not resident in the EC who invest more than 500,000 € in property in Spain can obtain the Golden Visa, which will enable them to travel in the EC without any restrictions:

If you’re thinking of buying a property in Spain, get in touch with us! We’d be delighted to help you, advise you and accompany you throughout the process.