Tips for buying property in Spain

The bursting of the real estate bubble has contributed to a considerable decrease in the final cost of a house, compared to the prices that were shuffled a couple of years ago.

According to the latest studies, there is an increase in the purchase of homes mainly by English people, who take advantage of the low prices to buy a second home and even an investment. The steps that must be followed when acquiring a home are not easy and intuitive, requiring a correct guide not to leave aside any necessary step in the purchase. For all these reasons it is necessary to take into account the risks to avoid common pitfalls of buying a property in Spain, before carrying out any procedure.

Indispensable requirements to buy a house in Spain

The only indispensable requirement to make the purchase is to have the NIE. This is a unique and personal number, which allows you to make different transactions nationwide. This document is necessary both to buy a house and even to open a business in our country. Once the person obtains this non-transferable document, he will be able to carry out the different procedures of acquisition as for his new house.

The bank account

It is not necessary or mandatory to have a bank account, however many specialists in economics recommend the opening at least one, to obtain greater control of the different taxes and receipts that will generate this new property.

Registration of the property

Before making the purchase it is frequent to make a deposit contract, which allows the reservation of the property until the day of signing before a notary. Once the signature in the notary, it will be necessary the inscription of the house with its new owner in the registry of the property.

Taxes generated by the purchase of a house

The purchase of a house is determined by some taxes, which can cause a considerable increase in the final price of the house or apartment.

VAT and ITP

The VAT is a tax which must be paid in those cases of new housing construction or first transfer, increasing the final price of housing by 10%.

The ITP will be paid in those cases of second hand or second transaction houses. The tax rate varies between 6-10%, depending on the autonomous community where the purchase is made.

The AJD tax must be applied in those cases of new housing or that is bought by means of mortgage.

Other important expenses

There is another series of important expenses in the purchase of a Spanish house, finding those that refer to the deed, registration of the property and the mortgage expenses in case this is the method of payment.

Advice when getting to know the property

The first thing that should be done is a complete visit of the house and not make the purchase through photographs or other digital support. It is also important to know to whom the house belongs and if it has any charge of seizure. Once the property has been acquired, it is advisable to go to the property register, demonstrating the rights of the new property acquisition.

It is advisable to verify the contract of deposit in front of a lawyer, thus avoiding possible scams to future buyers.