Buy a property

PRIMARY TREATMENT

SELECTION OF REAL ESTATE

VISITING PROPERTY IN SPAIN

PRE-PAYMENT

MORTGAGE

PREPARATION OF DOCUMENTS

TRANSACTION

TRANSFER OF KEYS

PROCEDURE OF PURCHASE OF A REAL ESTATE IN SPAIN

Real estate in Spain has been and remains the most profitable object for investment. Real estate is always reflected in price, regardless of political and economic stability and any global crises. To date, investing in real estate abroad is an opportunity not only to save and increase savings, but also to get a property where you can spend your vacation.

Real estate in Spain is attractive for the foreigners due to the excellent climatic conditions of the country, the similarity of mentality and the huge number of beneficial offers. ICS offers residential and commercial properties, as well as land in the most sought-after parts of Spain: on the coast, in large cities and tourist centers.

We have done everything to make the purchase of real estate in Spain a pleasant procedure for you, not burdened by various difficulties and wasting time. Contact ICS, and all the work will be done by our specialists, you will only have to enjoy the acquisition.

Acquisition of real estate in this country can be performed by both residents and non-residents of Spain. Both a physical and a legal person have the right to make such purchases, foreigners will only need a valid foreign passport and sufficient financial means. No other documents or permits are required.

Selling ​​property under the laws of Spain is entitled only to the owner or a person who has a notarized power of attorney to represent the owner.

Any property in Spain must be registered in the Registro de Propiedad – Property Register. In the Property Register, you can get information about who owns the property, what is its cadastral value, the exact area, and whether there is a possible owner’s debt.

1. PRIMARY TREATMENT

If you want to buy a property in Spain – please contact us in one of the following ways:

  • Call us on +34 935 484 492 (Spain)
  • Order a call (option above the top menu) and we will contact you;
  • Send the contact request (the form is on each page of the site);
  • Write to us by email info.immigrationcenterspain@gmai.com

If you do not have any suitable property for you – do not worry! Contact us and we will pick up a house, apartment, villa for you according to your requirements!

2. SELECTION OF REAL ESTATE

You do not have to bother with searching: experienced ICS specialists will prepare for you a sufficient number of offers so that your choice is not limited and at the same time you are not engaged in viewing obviously not suitable properties.

In order to find the best options, you only agree with the manager on the following parameters:

  • Type of real estate
  • Property Location
  • Area, planning, need of additional services
  • Budget to buy.

After receiving the request, we will need no more than two days to submit the properties chosen in accordance with your wishes. After you have selected the most interesting ones among the proposals, ICS specialists will prepare everything necessary for organizing a visiting tour, during which you will see the objects you like.

3. VISITING PROPERTY IN SPAIN

Of course, no one will buy a “cat in a poke”, so you personally will be able to visit every potentially suitable property.

You need to determine the period of the visit, after which the ICS specialists will be engaged in its organization. Our Responsibilities:

  • Preparation of your application for a visa for Spain
  • If requested, preparation of documents to present at the Spanish consulate
  • The organization of transfer from the airport and residence in Spain
  • Viewing selected properties with the Stay in Spain Estate specialist.

If, after the end of the visiting, you will make the final choice, the employee of our company will prepare everything necessary to complete the transaction.

4. PRE-PAYMENT (RESERVATION, PLACEMENT OF THE CLAIM)

After, the property you have chosen will be reserved by signing a preliminary contract of sale, where all the parameters of the future transaction are fixed: real estate value, object parameters, payment terms, etc.

However, before this, after choosing the suitable real estate, you need, first of all, to check all the title documents of the real estate property.

All information about any type of real estate in Spain is in the property register – Registro de la Propiedad. Therefore, when buying a home in the secondary market from this register, you must receive a statement called Nota Simple, that will indicate the “clearance” of the object, confirming that this real estate in Spain does belong to the specified owner, that the property is not under any financial debts, it also indicates the area and the earlier owner (if any).

What documents should the owner of real estate provide?

Escritura, in Spanish Escritura publica de compraventa – this document confirms the right of ownership of real estate, it indicates the detailed characteristics of the object. This entitlement document must be with a note on the registration of real estate in the state. register.

IBI – this document includes the information on the payment of municipal property tax (it is paid annually), it also contains a cadastral number and a cadastral valuation of immovable property.

If you want to buy a property in Spain from the developer “in the primary market’’, you need to review the following document: Declaracion de obra nueva  – it indicates whether there is a developer for this building and whether the building is registered in the tax. Also, when you are going to buy an apartment or apartments in complexes, check also – register, the construction plan in the local municipality.

When buying real estate in Spain on credit, the transaction procedure will be safer and easier, because all necessary documents are checked by the security service of the financial institution, in which the mortgage is issued.

After the above documents are checked, you can proceed with the registration of the preliminary contract contrato de arras.

The preliminary contract prescribes an oral agreement between the seller and the buyer of Spanish real estate – the value of the object, the form of payment, the schedule, the timing of payment of money and the amount of the deposit. Typically, the deposit is of 10% of the total value of the property and is paid in cash or via a bank check, in the presence of a buyer’s attorney or a Spanish real estate agency. If suddenly the seller refuses the transaction itself, then he is obliged to return the deposit to the buyer in a double amount, in the opposite case, the deposit remains to the disposition of the seller. Of course, any terms of the preliminary contract can be made individually, based on the wishes of the buyer and seller. As a rule, preliminary contracts are drawn up for two or three months, after which period the transaction must reach its logical conclusion by formalizing the main contract of sale in a notary.

If you plan to buy real estate in Spain on the primary market even at the construction stage, then developers can offer you various payment schedules – for example, a down payment can be 10% of the cost of housing or 10 thousand euros (a fixed amount), and the rest is paid after the sale and purchase transaction will be certified by a notary (registration of the escort).

In general, the preparation of a preliminary contract for the purchase of real estate in Spain, is considered a common part of the transaction, as well as in our state. The seller and the buyer can immediately formalize the sale of real estate in a notary and without a preliminary contract, if they have all the necessary documents.

5. ORGANIZATION OF FINANCING OF THE TRANSACTION (MORTGAGE)

The mortgage registration system in Spain is currently the most attractive in Europe. Getting a mortgage in Spanish bank for a non-citizen of Spain is now not more difficult than for a Spanish citizen. The decisive factor in the issuance of a loan is the degree of your solvency.

Mortgage in Spain is issued for 5-25 years, in some cases up to 30 years. For Spanish and EU citizens, the size of the mortgage is up to 60-80%. For persons who are not citizens of Spain or the EU, the size of the mortgage is up to 50% of the value of the property. The size of the mortgage is calculated based on the estimated value or the price specified in the contract of sale (Escritura de compraventa) – the bank takes less value.

Interest rates for mortgages in Spain currently hold at 2.5-4% per annum and vary depending on the European rate EURIBOR.

The amount of mortgage payments for individuals who are not EU citizens can not exceed 30% of the monthly income of the recipients of the loan.

If the purchase is made by a married couple, you need to present the documents of both spouses. If one of the spouses does not work, then the second one will be able to continue the payment.

The buyer can sell mortgage housing. When selling  a property, a mortgage loan can be reissued to a new owner.

Any Spanish bank will accept a mortgage to a foreigner who does not have real estate in his homeland, does not have a bank account, there is no corresponding salary or has a lot of debts. You must have a bank account, regularly receive a salary or have a legal business with taxes.

MAIN DOCUMENTS FOR RECEIVING MORTGAGES IN SPAIN:

  • valid foreign passport;
  • photocopy of a foreign passport;
  • foreigner identification number NIE. Made in Spain;
  • Declaration of Income (for Russia – form 2 NDFL) for the last 2 years;
  • an extract from the Bureau of Credit Histories;
  • an extract from your bank account in your country’s bank for the last 12 months;
  • a certificate from the place of employment on the company’s letterhead about the salary for the last 3 months, indicating your position and work experience in the organization;
  • if you own a firm, then the certificate of registration of the company and the page where it is indicated that you are the owner or co-owner;
  • if any, a certificate from the bank on the availability of deposits (preferably, not mandatory);
  • if any, a certificate of ownership of shares or units of enterprises (preferably, not mandatory);
  • if any, a certificate of ownership of the property in your country or other countries (preferably not necessarily).

All documents must be translated into Spanish by an official Spanish translator and certified by Apostille. Persons who will appear in the contract of sale should submit the same documents

THE PROCESS OF GETTING A MORTGAGE

  • You need to open an account in a Spanish bank;
  • the bank makes an appraisal of real estate and prepares a conclusion with the help of an appraiser who works with this bank (7-10 days);
  • to translate all documents into Spanish with the help of an interpreter in Spain, which has the appropriate license (3-14 days) .;
  • The mortgage department of the bank reviews your documents and prepares an opinion on the issue of a loan to the central office;
  • making a final decision in the central office of the bank (7-10 days, but sometimes more).
  • Registration of a mortgage loan is of 2-4 weeks. Registration of the transaction at the notary – 1,5-2 hours.

CALCULATION OF COST OF MORTGAGE CLEARANCE IN SPAIN

  • a one-time tax from the purchase of real estate for individuals – 10% of the price stated in the contract,
  • the percentage of payments on the mortgage loan – a 12-month EURIBOR rate + a percentage of the bank;
  • real estate valuation (250-500 euros);
  • fee for registration in the State Register of Property (0.3-0.5%);
  • Notary service for registration of the credit agreement (0,5-1%);
  • tax for execution of a credit agreement (I.A.J.D.) (0.1-1%);
  • commission of the bank for opening and maintaining a settlement account for a mortgage (1.5-2%);
  • insurance of real estate and property in it (from 250 euros per year);
  • sometimes, life insurance of the lender (from 350 euros per year);
  • expenses related to the early repayment of the loan (about 1% for loans with variable interest rates and 4% for loans with a fixed interest rate);
  • interest for delayed payments on the loan.
  • Thus, the total cost of buying a property in Spain when registering a mortgage loan is 12% of the cost of housing, and if you buy real estate without a mortgage, the costs will be 10.5-12%.

6. PREPARATION OF DOCUMENTS

Before proceeding with the transaction, ICS specialists will carefully check all the documentation of the property, including debts and other restrictions that may impede the purchase. After that we prepare documents for the purchase of the property, if necessary, we assist in obtaining a mortgage loan (See Section 5).

To make money transactions you need to open an account with a local bank, so you need to have the following documents with you:

  • Foreign passport of a citizen of the Russian Federation
  • Passport
  • Certificate from the place of work where it is necessary to indicate the date of receipt, position and average monthly income, tax returns for the last three years
  • Preliminary agreement for the acquisition of real estate
  • Cash in the amount of 100 euros
  • In the future, you can use this account to pay for utilities.

Registration of real estate in Spain to a foreign citizen is impossible without obtaining an identification number of the foreigner (NIE).

NIE “Numero de Identificacion de Extranjero” – registration of the foreigner’s identification number. Thanks to the NIE number, the Spanish tax authorities control foreign citizens for paying all the necessary taxes related to real estate. To obtain the identification number of the foreigner, you must apply to the Spanish Extranjeria, a unit of the national police. After that, the notary checks the tax number of the NIE and enters it in the Escrow. Without an identification number, an alien can not be sent to the state real estate register. In general, this will not be a big problem for you, because our company will assist in obtaining the tax number.

For its registration it is necessary to provide a package of documents for everyone who will be listed in the contract of sale as owners:

  • Application for NIE
  • Foreign passport with valid visa
  • Photo size 3×4 cm
  • Extract from the account, where there should be an amount exceeding 1/3 of the total value of the property
  • Return ticket from Spain
  • Special documents (prepared by ICS specialists).
  • Registration of the identification number takes at least a week.

7. TRANSACTION (SIGNING THE AGREEMENT OF PURCHASE-SALES)

8. TRANSFER OF KEYS

The transaction for the purchase of real estate must be made in the presence of a notary. At this stage there is a signing of the purchase, final settlement with the seller, as well as the transfer of all documents and keys of the property.

This is the most important stage in the procedure for real estate registration in Spain, because it is a contract of sale certified by a notary that gives the right to transfer ownership of the property from the seller to the buyer. A notarized sales contract in Spanish is called Escritura “Escritura publica de compraventa”. Once again, we would like to remind you that the preliminary agreement prescribes the intentions of both parties, and it does not give the right to transfer of property (escritura can be issued without a preliminary contract, if there are all documents). Therefore, the main part of the procedure for registration of the contract of sale of real estate, must be performed with the participation of the Spanish notary for the specific region of the country.

When the agreement is already notarized, the buyer is obligated to pay the seller in full – to deposit the principal amount of money. After this procedure, the buyer is given Copia Simple – a notarized act confirming the ownership of Spanish real estate. Further, all information about the transaction is transferred in an official order from a notary office to the state. the property register, in the Spanish “Registro de la Propiedad”.

All the main documents for registration of the transaction, the buyer must personally sign with the owner of the property – if the property is purchased in the secondary market, then with an individual or with a developer. Spanish real estate agencies do not deal with the sale of housing, but only with the search for real estate, transaction support and various accompanying formalities. An exception can be, registration of the transaction of purchase and sale with real estate agency, if it has the corresponding power of attorney signed by a notary. (but it is better to avoid such maneuvers, for your own safety). Also, Spanish agencies can draw up a preliminary contract (deposit) on behalf of the seller for this enough simple power of attorney from the seller. Likewise, real estate agencies in Spain can represent the interests of the buyer in the execution of a sale transaction if they have a relevant power of attorney notarized. But we recommend avoid concluding transactions for the purchase of Spanish property using a power of attorney, for 100% security, seek the physical presence of the owner or buyer of real estate.

After this, the original contract must be sent to the Registration Chamber (Registro de la Propiedad). Registration takes 2-3 months, after which period the buyer receives a copy of the Eskritura with a note on registration – this finally gives the right of ownership.

In the process of registration of the transaction of sale and purchase of housing, it is necessary to pay taxes and fees!

Maintenance of the property

Of course, every buyer is concerned about the further disposal of the acquisition, especially in case when the owner will be absent for most of the time.

ICS renders the whole range of services for further servicing of your real estate, like:

  • Registration of you residence in Spain
  • Assistance in registration with tax authorities
  • Conclusion, extension or renewal of contracts with public utilities
  • Registration of insurance for real estate
  • Development of a design project and its implementation: creation of interiors and exteriors of a real estate object of any complexity
  • Registration of wills, gift certificates and other documents in accordance with the laws of Spain
  • Translation services
  • Preparation and forwarding of documents for real estate at the request of the client
  • Other services.