How To Buy An Apartment In Spain In 2023
Investments in real estate are becoming more and more popular. Spain remains one of the most popular countries. Compared to other European countries, real estate here has a more attractive cost, for example, apartments prices in Valencia, while being in high demand among tourists. Potential investors are interested in how to buy property in Spain safely.
Below we will consider the features of choice, the procedure for processing the transaction and other aspects when you buy an apartment in Spain.
What rights do foreign investors have?
Property owners have the same rights as residents of the country. Permission from the authorities is not required, housing can be chosen in any of the country’s regions and disposed of at your discretion. Registration is allowed for both an individual and a legal entity. Flats, apartments, and houses are available for purchase, and land plots for subsequent development.
How to choose accommodation
Realtors recommend not making a decision remotely but making your idea of the country. However, the remote format of the transaction is legal and not prohibited. You can visit Spain on a tourist visa to visually see the selected property and study the infrastructure of a particular area. When buying, it is essential to consider the prospective tasks for using real estate. If the apartment is bought as an investment, it is advisable to consider locations popular with tourists. If you are moving to become a permanent resident, you should take into account transport accessibility and the presence of social facilities.
How the deal is done
The registration process includes these stages:
- Obtaining an identification number of a foreigner (NIE). This can be applied for at your local Spanish consulate or in Spain.
- Opening a bank account. The procedure is free and does not require a large initial deposit.
- Paying a deposit to secure the property intended for purchase.
- Conclusion of a preliminary contract.
- Notarial certification of the transaction.
- Conclusion of the contract and final settlement with the seller.
- Registration of the purchase.
Additional purchase costs
In addition to paying the purchase price, the buyer pays tax on transfer of ownership. It is calculated at a rate of 6% to 10%. The tax on the purchase of land is higher and can be upto 21%. Housing in new buildings is subject to stamp duty, which ranges from 0.5% to 1.5%.
Property in Spain: cheaper than ever
If we compare the fall in prices for housing and commercial premises with the decrease in rental rates, the latter is still declining somewhat more slowly. This is especially true for upmarket areas in large cities in the country. This difference in the rate of decline allows the purchased property to be used as a source of income. And from the point of view of long-term investment, the benefit is even more obvious: it is expected that in about 3-5 years, real estate will begin to rise in price again, providing high profitability to its owners.
One of the significant advantages of buying an apartment in Spain is its legal framework. Almost equal conditions have been created in the country for all buyers: citizens of the EU countries and residents of non-EU countries.
The economic reforms carried out in the kingdom are also helping to attract foreign investment. The government is taking measures to restore the economy and stimulate its growth and building confidence in the country’s banking system.
The developed infrastructure in most of the state is the reason for the increased interest in this country, both from ordinary tourists who choose a place for a comfortable stay and buyers of real estate in Spain (cheap apartments or expensive villas) who are counting on a long-term stay in the country.
Spain has an advantageous geographical position standing at the crossroads of the largest commodity flows from Latin America and North Africa to Europe and back. The Mediterranean ports of Barcelona and Valencia play an essential role in strengthening trade relations.
Despite the crisis in Europe, the Spanish economy allows it to have a fairly high position in world rankings, such as the volume of attracted investments (7th line). As for the tourism sector, it is so highly developed that in this respect, the country has no real competitors in the European Union. It perfectly combines all the most important components necessary to achieve high results: excellent climatic conditions, national cuisine, ecologically clean beaches, and ancient culture.
Assistance with finding housing in Spain and making a deal
The website of the aggregator Spain-Real.Estate presents current offers from developers and local real estate agencies. In the catalog, you can find an apartment in any of the popular cities of the country: Madrid, Barcelona, Valencia, and Alicante. The company’s specialists are ready to advise on any issues related to the selection and purchase of housing stock in Spain. You can get acquainted with the pricing policy of the market in real-time.