The 6 most frequently asked questions when buying a property in Spain

Are you going to buy a property in Spain and you have some doubts? It's totally normal. At ProCare Estates we clarify the 6 most frequently asked questions of the clients about buying property in Spain:

   1. Which are the taxes you need to pay when buying a property in Spain?

It will depend on whether you are buying a second-hand home or a new home. Here we explain the most important taxes you need to take into account:

Transfer Tax

This is the tax that is attributed to second-hand properties. You should know that there is no fixed value that is valid for the whole of Spain, but that it depends on each community. For example, in the Community of Valencia the ITP is 10% in general and 8% for public housing, large families, people with reduced mobility or for the first home of young people under 35 years of age.

The payment of this tax must be made within a maximum period of 30 working days from the day of the signing of the deed of sale.

Value Added Tax (VAT)

New-build homes will be subject to Value Added Tax (VAT). The general VAT rate is 10% throughout the peninsula and 4% for subsidised housing. It will be paid to the developer of the property at the time of signing the deed of sale, applying the corresponding percentage increase on the total sale price.

Tax on Documented Legal Acts

The stamp duty, also known as mortgage tax, is a tax levied on notarial, administrative or mercantile documents. It affects both new and second-hand homes.

The buyer must pay a fixed fee (for the stamped paper of the notarial documents) and a variable fee that varies between 0.5% and 2%, depending on each community. This tax will be settled at the office where the Land Registry where the movable property is registered is located.

The latest modification obliges banks to bear the full cost of this tax. In other words, the mortgage tax will only be paid once for the purchase of the property and not twice as previously. Very good news for buyers !!

   2. How long does it take to buy a house?

It can take anywhere from a couple of months to a year, depending on the urgency of each client and the efficiency in resolving the formalities. Having an experienced real estate agent speeds up the process and shortens the time taken.

   3. Can I add something to the house? Can I build something extra on my plot? E.g. garage, shed, room, swimming pool…

First of all, you will have to find out if your land is developable or not, and if it meets the necessary requirements. It is recommended that you go to the Town Planning department of the Town Hall where your plot is located to find out its urban development status. However, this task can be facilitated by an expert real estate advisor.

   4. Do I need a lawyer to buy a home?

Once you have found the right house, we recommend hiring the services of an independent lawyer to guide you through the legal issues and check that all the documentation is in order. There are estate agents such as ProCare who can put you in touch with reliable lawyers who have extensive experience in the area and are fluent in languages.

   5. How can I open a bank account?

Opening a bank account is one of the most important steps if you are planning to buy a property in Spain. The process is relatively simple, you just need to present the following documents to the bank of your choice:

• National Identity Card / Resident Card if you are a foreigner
• Proof of address where you are going to live
• Contact details: telephone, email

Some banks may ask you for a report of your employment history, a copy of your last paycheck or your tax return. Present the necessary documentation and read the bank's conditions carefully. However, it is always recommended to consult the expert opinion of profesional real estate agents to ensure the best decision.

   6. How can I get the NIE?

The Foreigner Identification Number is issued in Spain at the General Police Department. It usually takes about 30 calendar days from the delivery of the documents. A real estate agent can help you prepare the documentation and process it successfully.

Do you have any other questions about buying property in Spain? Speak to our real estate agents without obligation

We hope we have answered many of the questions you had about buying property in Spain. Many people have also gone through this time of uncertainty and we at ProCare want to help you to make the process simpler. We offer assistance to buyers and sellers with their real estate problems and needs.

Tell us what your concerns are. We will listen to you and try to give you the best solution. Contact us here:

+34 865 661 012 | +31 (0) 65050 3340 | contact@procareestates.com