How foreigners can buy real estate in Spain: rights, obligations and procedures

Rights and obligations of foreign nationals in Spain

This article describes important aspects of the rights and obligations of foreigners seeking to buyreal estate in Spain. Citizens of other countries, regardless of their country of origin, can invest in local real estate without much difficulty. This does not require becoming a resident, obtaining a visa or special permits from the regional authorities. The purchase of real estate is possible for both individuals and legal entities.

The role of foreign investors in the real estate market

Foreign investors play an important role in the Spanish real estate market. First of all, it is worth emphasizing that among the buyers can be found many British, Germans and French. In addition to this, non-European Union nationals such as the Chinese and Russians are also actively involved in the buying process.

Information from the General Council of Notaries shows that the pandemic has resulted in a significant reduction in the volume of real estate transactions to foreigners in Spain: in the first half of 2020, the number of such transactions fell by 37.4% to only 32,395 transactions. Nevertheless, foreign investments still accounted for 17.3% of the total number of transactions in the period.

Types of real estate available to foreign buyers

If we talk about the varieties of real estate available to foreign buyers, in Spain, there are virtually no strict restrictions. Foreign investors can easily purchase:

• apartments on the primary and secondary markets;
• villas with homestead plots;
• land plots;
• different types of commercial real estate.

However, it is important to remember that in some regions, non-European Union citizens must request permission from the Spanish Ministry of Defense before purchasing real estate. These requirements are related to existing regulations such as Law 8/1975 and Royal Decree 689/1978, which impose restrictions on real estate transactions in strategic areas of national security. It is comforting to know that as of the end of July 2021, this rule no longer applies to urbanized areas.

Advantages of buying real estate in Spain

When foreigners finalize the purchase of real estate in Spain, they receive certain benefits. Each owner has the opportunity to apply for a multi-entry Schengen visa, which allows you to stay in Spain for up to 90 days within six months. If it is necessary to extend the period of stay, it will be necessary to obtain a residence permit.

In 2013, a law was passed on“golden visa”which has opened up new horizons for buyers. Those who are ready to invest at least 500,000 euros in real estate are given the opportunity to obtain a residence permit for themselves and their families.

Conclusion

Thus, the real estate market in Spain is an attractive opportunity for foreign nationals. Low barriers to entry, a wide range of available properties and the prospect of obtaining a residence permit make Spain an increasingly popular country for international investors.

Golden Visa in Spain: Popularity and Changes

The golden visa program in Spain has undergone many changes in recent years, making it one of the most sought-after programs in the European Union. In 2019, a record number of participants in this project was recorded.

At the time of the program, about 1,422 people had applied for the visa, compared to only 1,188 in 2018. Since its launch in 2014, this program has managed to attract approximately 5,515 investors. In this piece, we will take a closer look at the different ways to obtain a residence permit in Spain.

Responsibilities of property owners

When purchasing real estate in Spain, foreign nationals assume certain obligations. Their rights to purchase real estate are comparable to the rights of local residents, but with these rights come certain responsibilities.

• Regular payment of utility bills.
• Payment of taxesrelated to their property.
• If the property is rented to tourists, it is necessary to follow the rental regulations, which have become stricter in recent years.

Potential costs of maintaining the property

In the next section we will analyze all the potential costs that arise when maintaining real estate in Spain. Tax residents of Russia are also obliged to comply with the laws of their country.

For example, if you have a bank account in Spain or plan to open a legal entity (this may be necessary when buying real estate), you must notify the tax authorities in Russia.

For more information about the rules of buying real estate abroad for citizens of the Russian Federation, you can refer to specialized sources.

Preparing to find a place to live

Before you start looking for housing it is worthwhile to carefully study the features of the Spanish real estate market. It is recommended to familiarize yourself with current articles and news, as well as take into account the experience of people who have successful acquisitions in this country.

In 2018, a survey was conducted to create videos about popular resort areas in Spain. We recommend watching the special project “Spanish Dream” to get a deeper understanding of what exactly the real estate market offers.

Consultations with professionals

It is also a good idea to consult with real estate professionals in Spain and ask them any questions you may have. This will help you to have a clearer idea of the options that are right for you.

Also, participation in webinars on foreignreal estate can be a useful experience. The site offers a wide database of real estate in Spain in Russian. You can sort offers depending on your preferences, save interesting options and subscribe to updates.

Communication with sellers and selection of housing

If you need more information about the real estate market, feel free to contact the sellers directly. On the property pages there is an option to click on the “contact the seller” button.

Alternatively, you can leave a request to find a home that meets your requirements and professional realtors or developers will provide you with lists of suitable options, making the process of finding your ideal property much easier.

Tempting commercial offers in Spain

There are many tempting commercial offers currently available in Spain, including properties in Torredembarra where you can purchase a parking space for a11,000 euros. This parking lot has a modest footprint in10 square metersand is located in a building with an elevator that provides easy access to the parking level.

This location is ideal for a medium sized car. It is important to note that the building is located just a stone's throw from the coast, on the second line, which significantly increases its value during the summer period, when free parking spaces by the beach become a real rarity. The approach to the parking lot is equipped with automatic doors, which increases the comfort level of use. It is also possible to rent this parking space for a price starting from65 euros a month.

Investment project in Orihuela

Attention should also be paid to the investment project in Orihuela, which is valued at29,900 euros. This property has a square footage110 square metersand provides the possibility of online showings, which is especially convenient for remote transactions, with payment possible in Russian rubles.

This offer includes a ready-made business located on the coast of Playa Flamenca, in a prestigious residential complex surrounded by numerous restaurants and bars, making it attractive to tourists throughout the year.

• The business has high growth potential due to its front line location with storefronts.
• There is a license to operate in the beauty industry.
• A team of highly qualified professionals are working in this business.

Studio in Torrevieja

No less interesting is the offer of a studio in Torrevieja, costing59,000 euroswith an area22 square meters. This living space includes one main space and has no bathroom, being on the sixth floor, just in the350 metersfrom Del Cura Beach.

The annual tax on this property will be90 eurosand the utilities are20 euros. There are also many other options for apartments in Torrevieja. For example, for60,000 eurosthere is an opportunity to purchase a penthouse in the Punta Prima neighborhood, including:

• two bedrooms,
• the bathroom,
• a large living room,
• a kitchen with a terrace.

A private sunroom is also available to enjoy sunny days or convert it into a third bedroom.

Other offers in Torrevieja

In addition, there is an offer for an apartment for sale in Torrevieja for a64,590 euroswith an area27 square metersas well as a studio costing65,000 euroswhich has a number of attractive features, including a terrace measuring4 square metersand the proximity to the beach in150 meters.

Interestingly, the annual tax on this property is only97 eurosand utility costs are about20 euros.

Apartment in San Miguel de Salinas

Also, another tempting offer is the apartment in San Miguel de Salinas, which has an area of118 square meters, withthree bedroomsand cave house style decor. This unique property can be an excellent choice for both permanent residence and vacation.

Conclusion

Spanish real estate offers a wide range of options for buyers with different needs and budgets, providing wonderful opportunities for investment and coastal living.

General features of the updated real estate

Brand new real estate offers a multitude of options for use, allowing it to be adapted for various needs – from residential to commercial spaces or creative studios. This property is conveniently located near the center of San Miguel, just a few minutes' walk from essential services and shops.

Apartments in Torrevieja

The company Ole International Homes S.L. offers an apartment in Torrevieja, Spain, for the price of66,000 €with an area45 square metersThis is a one-bedroom apartment with a bathroom, located just a few minutes from the beach. The area has shops, banks, a Mercadona supermarket, educational institutions, restaurants, and nightclubs.

The company Sol Costa Blanca offers another apartment in Torrevieja for68,000 €These compact homes have an area29 m²They consist of one bedroom and a bathroom. For more information, you can contact a Habita representative.

Additional proposals from Habita

Habita International Estates Ltd also has an apartment for sale priced at68,000 €and an area of33 square metersThis apartment includes a room with two windows, a kitchen, and a modern bathroom. It is located on the fourth floor and provides easy access to the sea, which is just a short distance away.800 metersThe annual tax on the apartment is91 €and utility payments –20 € per month.

Another apartment from Planeta Spain is also being offered at a price of68,000 €This two-room apartment is located on the 5th floor and has an area of33 square metersThe apartment includes a bedroom, bathroom, kitchen, and a small terrace. It comes furnished, with appliances and an installed air conditioner, and is located in500 metersfrom the sea and within walking distance to the center and promenade of Torrevieja.

Studios and other apartments

There is also a studio for sale in Torrevieja at a price of69,700 €This property is sized24 square metersis located only in500 metersfrom the central beach of Playa del Cura. It includes a hallway, one room, a bathroom, a kitchen, and a terrace, and is offered with furniture and appliances.

Another item from Calipso at the same price69,700 €located on the 5th floor and has a similar layout. The area of this studio is24 square metersthe annual tax amounts to70 €and utilities –19 €.

Apartments with additional features

Habita International Estates Ltd also offers an apartment in Torrevieja for73,000 €, the area of which is34 square metersFor more detailed information, it is recommended to contact the company's representatives.

Another object is standing.73,900 €and has an area40 square metersA consultation with a Habita representative will help you get all the details.

An interesting option in La Mate.

A particularly attractive option is a two-bedroom apartment in La Mata, which is for sale for74,000 €It is located on the first floor and is just200 metersfrom the sandy beach. The area of the apartment is35 square metersand includes one bedroom, a bathroom, a cozy living room, a kitchen, and a courtyard area6 square metersThe apartment is offered with furniture, all necessary equipment, and an installed air conditioner. All key services are within close proximity, making this offer particularly attractive to buyers.

Real estate in La Torre Vieja

On the picturesque Costa Blanca coast in Alicante lies the city of La Torre Vieja, where a penthouse is currently up for sale with a price tag of75,000 eurosThe area of this object is50 square meterswhat determines the presencetwo rooms,one bedroomandseparate bathroomThe penthouse is located on the second floor of a building constructed inin 1995and a total of500 meters from ACEQUION beachwhich makes it very convenient for lovers of seaside recreation.

The annual tax on this property is143 eurosand the monthly utility bills are25 eurosThis property is an attractive offer for those looking to buy a home on the sunny coast of Spain.

Apartment in Torrevieja

In addition, there is an apartment in Torrevieja with an area of95 square meters, also at a cost of75,000 eurosThere is also the option to arrange a loan for the purchase. The apartment is located in the Orihuela Costa urbanization, in a complex.Almeda del MarIn total in200 meters from the seaIt is located in close proximity to all necessary amenities and infrastructure.

• The gated community offers residentsthree swimming poolsandparking spaces.
• The apartment includesspacious living roomwith an open kitchen,two bedroomsandtwo bathrooms.
• The view from the balcony is open.a breathtaking view of the sea.
• The apartment is being sold together withfurnitureandhousehold appliancesincluding a satellite antenna.

This promises to be a great opportunity for those considering investments or looking to relocate to the coast.

Current topics for discussion

One of the current topics being discussed isinvestments,immigration questionsandthe process of purchasing real estate abroadWhen choosing professional partners for conducting transactions, it is important to consider certain nuances.

• Although realtor services are not mandatory,notaryIt is essential to participate at the registration stage, as their presence ensures the legal security of the transaction.
• Many foreigners prefer the services of agents, which are often provided for free to clients.

The popularity of Spain among foreign buyers

Spain pays significant attention to foreign buyers, among whomRussiansThey hold a special place. In this regard, the local real estate market is actively adapting to foreigners. In coastal areas, you can find many agencies established by Russian-speaking specialists and representatives from the CIS.

Spanish companies often hire Russian-speaking real estate agents to simplify the purchasing process for their clients. Moreover, many of these companies are opening branches in major cities in Russia, which allows for convenient communication in the native language, especially in popular resort areas along the Mediterranean Sea.

Risks when buying real estate

However, in other parts of Spain, the situation can be more complicated. Employees of traditional Spanish agencies often do not even speak English. Additionally, it is worth noting that real estate activities in Spain are not regulated.mandatory license.

Opening such a business is usually not difficult, does not require significant financial investments, lengthy training, or obtaining special certifications. This creates certain risks, as one may encounterdishonest agenciesproviding low-quality services or charging excessive fees for their assistance.

That's why, before making a decision to purchase real estate, it's crucial to carefully analyze all the offers and choose wisely.a reliable partnerfor organizing the transaction process.

Checking the reliability of a realtor

Before starting to work with a realtor, it is essential to thoroughly check their reliability and professional qualities. First and foremost, confirm that the company has been operating for at least six months and has a registered status. Having offices in different regions as well as in other countries will also serve as a good indicator of its success.

Pay attention to the relevance of the website, as well as the possibility of obtaining contacts of previous clients to review their feedback. Participation in professional associations, such asIntermediary Manager in Building Promotions (GIPE)orReal Estate Agents (API)...can additionally confirm the company's level of expertise.

Commission payments

It is important to note that there is no strict regulatory policy regarding real estate agent commissions in Spain. Typically, the amount of the fee is3-5%from the final selling price. However, keep in mind that in some cases, when multiple agents are involved, the property price may be intentionally inflated to increase the realtor's income.

To avoid such situations, it is recommended:

• Check the price of the item on other platforms.
• Compare it with similar offers on the market.
• Order an independent property appraisal.

Many financial institutions offer their services in this area at prices ranging from 10 to 30 euros. However, the most reliable option remains finding an agent you can fully trust.

The variety of real estate services

It should be understood that the range of services offered by realtors in Spain can vary significantly. Some specialists focus solely on finding properties and organizing viewings, while others can assist with:

• Choosing furniture;
• Conclusion of service contracts;
• Rental of residential real estate.

It would be best to discuss these questions before starting our collaboration.

The role of a lawyer in a transaction

It is equally important that the primary responsibility for a successful transaction lies with the lawyers, whether they are attorneys or notaries. An experienced lawyer checks the legality of the transaction, prepares the necessary documents, handles the registration, and oversees the process of transferring funds.

A qualified specialist will help you save time and money, as well as reduce risks during the contract signing process.

Assistance in obtaining a foreigner's number

Real estate specialists usually assist their clients in the process of obtaining a foreigner identification number (NIE). The time frame for processing the NIE can vary from a few days to several weeks, depending on the workload of the relevant authorities. Alternatively, the documents can be collected by an authorized representative of the foreigner, which eliminates the need for their physical presence.

Opening a bank account

To successfully complete real estate transactions in Spain, it is necessary to open a bank account in one of the local banks in advance. Fortunately, many financial institutions are willing to work with foreigners, including notable ones such as:

• Sabadell
• Bankia
• Caixabank

When contacting the bank, you will need certain documents, such as a foreign passport, a foreigner's identification number (NIE), and possibly proof of income, for example:

• a certificate from work about job responsibilities and salary;
• tax returns (2-NDFL or 3-NDFL);
• documents related to the sale of real estate in Russia.

Many banks strongly recommend that all provided documents be translated into Spanish and legalized with an apostille.

The process of opening an account

The procedure for opening an account in euros usually does not involve any mandatory fees; however, if there is a positive balance in the account, a commission may be charged, which is paid quarterly or annually. In some cases, the initial deposit can even be zero. This account can also be used for automatic payment of utility bills. Nowadays, almost all banks offer online banking, which makes managing the account remotely easier.

Booking and verification of the property

The next step is the booking and verification of the property of interest. Once a suitable option has been chosen, the buyer can temporarily take the property off the market by leaving a deposit with the seller. In Spain, it is customary to leave an amount ranging from three to five thousand euros as a deposit, which demonstrates the buyer's serious intentions. In this case, the seller signs a receipt acknowledging the deposit, which will be taken into account in the final calculation of the property's cost.

Certificate from the registry

When a property is reserved, the realtor requests a certificate from the registry that contains information about all owners and any possible encumbrances. Encumbrances may include:

• debts to banking institutions;
• obligations to municipal services related to the repair or improvement of infrastructure.

If serious issues arise during the inspection that could hinder the deal, the buyer has the right to a full refund of the deposit.

Preliminary contract

The third stage involves a preliminary agreement. After a thorough inspection of the property and making a final decision, both parties sign the preliminary agreement without the need for a notary. This document contains detailed information about the property as well as the obligations of both parties. For example, the seller may commit to carrying out certain repairs or leaving furniture. At the same time, the buyers must specify the deadlines for signing the main contract and making the final payment.

The established conditions at this stage play a key role in protecting the interests of all parties involved in the deal in the future.

Agreement on the terms of the deal

At the moment when the buyer and seller agree on the terms of the deal, a portion of the property's value is transferred to the seller, usually amounting to 10% or more — the exact amount depends on the conditions agreed upon by the parties. In most cases, the contract includes penalties in case any of the participants decides to withdraw from the deal.

For example, if the buyer decides to back out of the purchase, they forfeit the amount of the deposit. However, if the deal falls through due to the seller's actions, they will have to return that amount in double.

Obtaining a mortgage loan

In the event that the buyer intends to apply for a mortgage in Spain, it is important to obtain preliminary approval from the bank before signing the contract with the notary. The process of obtaining approval includes:

• Preparation of the necessary documents;
• Filing an application with a realtor or financial consultant;
• Submitting an application to one or more banks.

The waiting time for approval can vary from a few weeks to several months, depending on the bank and the complexity of the documents.

Mortgage lending conditions

Mortgage loans offered in Spain can have a term of up to thirty years, and interest rates start from2.5%Annual rates can be higher. The borrower must provide certain documents to obtain a loan, including:

• Passport;
• Tax number (NIE);
• Preliminary sales contract;
• Tax declaration;
• Bank statements from your country.

More detailed information about the mortgage application process in Spain can be found in specialized literature.

Signing a notarized contract

The fourth stage involves signing a notarial contract. The process of purchasing real estate in Spain always requires the presence of a notary, which ensures a high level of protection and security for transactions. All documents related to the property are handed over to the notary, who conducts a thorough check for any encumbrances and debts.

For each transaction, a separate file is created, which contains all documents, including receipts for utility payments. This file is kept in the notary's archive for a long time.

Appointment of the signing date

Before signing the deed at the notary, the parties schedule a date in advance. Each party can bring their representative, such as a realtor. If the transaction is being carried out with the use of a loan, the presence of bank representatives is also mandatory.

Moreover, if one of the parties is a foreigner and does not speak Spanish, the involvement of a sworn translator is required.

Discussion of contract terms

Before signing the contract, both parties carefully review the document and discuss its key terms. Usually, at the meeting, the notary reads the text of the contract, explains the rights and obligations of each party, and makes any necessary adjustments.

If the participants have no claims, the notary requests data from the real estate registry and temporarily blocks the property, which excludes the possibility of other transactions with it until the current transaction is completed.

Completion of the purchase process

After that, the parties sign the contract and all documents related to the purchase of the property directly with the seller. Thus, acquiring real estate in Spain involves several significant stages that must be completed to ensure the legality and security of the entire transaction.

Buying real estate on the secondary market

When purchasing property on the secondary market, the main player in the transaction is an individual, unlike buying a new build where the main participant is the construction company. It is worth noting that all necessary documents can be signed with the involvement of an agency, provided it has a notarized power of attorney from the seller, granting the right to act on their behalf.

During the transaction, the buyer hands over bank checks to the seller that cover the remaining amount for the property. A check for the pre-calculated amount of taxes and fees is given to the notary to avoid misunderstandings. In response, the seller is obliged to provide:

• keys to the residential premises;
• documents for the property;
• receipts confirming the payment of taxes and utility expenses.

The buyer also receives a copy of the sales contract, while the original is only available after the property registration is completed in the real estate registry.

Re-registration of utility services

After signing the purchase agreement, it is necessary to transfer all utility services—water, electricity, and gas—into the name of the new owner. Usually, real estate agents assist buyers in this process, as they are familiar with the details and can significantly simplify the procedure.

Stage 5. Settling Financial Matters

The most common method of payment for real estate in Spain is considered to be bank checks. A foreign buyer first opens an account in one of the Spanish banks, then transfers funds from their account in their home country. For this transfer, it is necessary to provide a document confirming the source of income. Before signing the purchase agreement, the Spanish bank issues a check to the buyer, which is then handed over to the seller.

Stage 6. Closing the deal

However, the transfer of keys does not mark the completion of the entire transaction. The notary is responsible for sending the original contract to the registry, where the document undergoes a secondary verification. This process can take up to three months. After successful registration, the new owner receives:

• an extract from the register;
• registered original of the sales contract.

Remote transaction processing

If the buyer cannot visit Spain to sign the deal, a remote procedure can be arranged using a notarized power of attorney. The power of attorney for signing the contract and preparing the accompanying documents can be notarized in the buyer's country of residence. This document is then sent to a trusted person, such as a real estate agent, who translates it into Spanish and certifies its validity with an apostille.

This method allows people living outside of Spain to effectively participate in real estate transactions without disrupting their plans or traveling abroad.

Buying real estate in Spain: Opinion and experience

In this article, we will explore opinions on the process of acquiring property in Spain and share the story of how buying a villa in the Canary Islands transformed the life of a resident of St. Petersburg. For this person, trips to this country became so frequent that he decided that investing in his own property would be more profitable than constantly renting a hotel. His experience of moving to Madrid is particularly fascinating, as he faced various challenges related to obtaining a residence permit, finding a job and housing, as well as many other obstacles.

Taxes and financial obligations when purchasing

One of the key points when buying real estate in Spain istaxesandfinancial obligationsThe property acquisition tax in this country is uniform for all buyers, regardless of their citizenship. However, the amount of tax may vary depending on the category of the property—whether it is residential or commercial, new construction or a secondary market.

Taxes on the secondary market

In the secondary market, buyers should take into account the property transfer tax, which includes the impuesto sobre transmisiones patrimoniales (ITP). On average, this tax is 8% across the country, while in regions like Catalonia, the rate can reach 10%, and in the Canary Islands, it is 6.6%.

Taxes on the primary market

As for the primary market, the value-added tax (VAT or IVA – impuesto sobre valor añadido) is set at 10% for all types of properties, regardless of their location. However, for land plots or commercial properties, this tax will be higher at 21%.

Additional fees and expenses

It is important to note that even at the stage of signing the contract, payment of a stamp duty may be required, which is only charged on new constructions. This tax, known as impuesto sobre los actos jurídicos documentados (IAJD), can range from 0.5% to 1.5% depending on the region where the transaction takes place.

Realtor and lawyer services

When searching for real estate servicesrealtorsThey often become a necessity, and in Spain, they charge a commission of 3% to 5% of the property's price. Usually, these costs fall on the seller, which makes the services of realtors free for the buyer. However, there are cases when the buyer may be offered additional services with a commission of up to 3% of the property's value, which includes the entire process from searching for properties to legal support.

• The standard commission for realtors is 3% - 5% of the price.
• Additional services can cost up to 3%.

If the realtor does not provide legal support services, you have the option to consult a lawyer on your own. The cost of legal services can vary significantly:

• Hourly rate: from €50 to €300.
• The fixed cost for transaction review and support is between €1500 and €2000.
• Percentage of the deal amount: from 1% to 1.5%.

Notary fees and registration

An equally significant aspect is the costs associated with notary services and property registration. All expenses for notary services and registration are also borne by the buyer, which is important to consider when calculating the overall budget. Thus, purchasing property in Spain is not just an interesting adventure, but a serious financial decision that requires careful preparation and attention. Nevertheless, for many people, this step marks the beginning of a new life, full of fresh opportunities and changes.

Conclusion

In conclusion to this article, I want to emphasize that buying real estate in Spain for foreign citizens is a process that opens up many opportunities, but also requires a careful approach. Spain not only attracts investors with its variety of real estate options—from cozy apartments to luxurious villas—but also grants significant rights to those who decide to become property owners.

It is important to remember that, although Spanish legislation does not impose restrictions on the purchase of real estate by foreigners, there are certain obligations that must be fulfilled. This includes:

• Regular payment of taxes and utilities;
• Compliance with local legislation, especially if the property is intended for rental.

If you plan to invest in this country, it is advisable to familiarize yourself in advance with the specifics of the local market and legal nuances.

I hope the information provided has been helpful and will assist you in making the right choice when purchasing real estate in Spain. The personal experiences of other owners and the advice of professional realtors can be invaluable aids on this journey. Spain, with its rich culture and favorable climate, can be not only a profitable investment but also an ideal place to live or vacation.

So if you're still wondering whether to explore this wonderful market, my advice is—Follow your dreams and take action.considering all possible risks and benefits.