Spain has become a popular destination for tourists, real estate investors, and relocation. Foreigners accounted for 11 percent of home sales in 2020. Its real estate market as a whole is expected to grow 10 percent by 2026.

Are you considering buying property in Spain but don’t know where to begin? Do you have questions about how it’s done, the costs, and the timing of a purchase?

That’s no problem because the following guide has you covered! Read on to learn about 4 important things to know when buying properties in Spain.

How to Buy Property in Spain

First, decide on a location and use. Perhaps you wish to live in or rent out property in the capital city of Madrid, or maybe you’d prefer to use choosemarbella.com for vacation homes in a coastal city like Marbella.

Next, pick an estate agent, lawyer, and currency specialist. Once you have formed your team you can accurately set a budget. Then you’ll need an NIE number which is how Spanish authorities calculate tax.

You’ll be able to make offers and book surveys at this point. If the offer is accepted you will sign a deposit contract. While your lawyer contracts the notary you will want to make sure all of your utilities will be connected.

Lastly, sign the final sales contract, make the final payment, and receive the keys to your new Spanish property.

Additional Cost to Prepare For

There are several costs involved in buying property in Spain other than the property’s price.

You can expect to pay between 8% and 11.5% for taxes on your property purchase. Know that if you sell your property in the future you’ll be paying between 19% and 24% for capital gains tax.

The notary will cost you somewhere between $695 and $1,000. The currency specialist will also charge a fee, but they often have much better rates than banks.

The cost of surveys can range between $400 and $2,500 depending on the type of property and its size. Also account for any personal trips you take to view properties. You should also consider the costs of moving belongings.

Buying With Cash or Mortgage

The biggest advantage of buying a property in Spain with cash is that it’s faster. It can also be a helpful tool when negotiating the sale price. It’s important to understand the exchange rate if buying with cash.

Cash will also help you avoid an unfamiliar mortgage system. Although, Spanish mortgages do have great rates. While you can use a mortgage from your home country, they may not have the expertise of a local lender.

It’s best to register as a resident for better Spanish mortgage rates if you plan to live in Spain more than 183 days of the year.

Timing Buying Properties in Spain

The price of homes in Spain doesn’t fluctuate depending on a particular time of the year. If you find the home you like it’s recommended to act because waiting won’t ensure any kind of savings or change in your favor.

However, it is recommended that you apply for your NIE number well before finalizing your purchase or even finding your property. Waiting too long can hold up the buying process and cause you to lose out on your dream home.

Are You Ready to Make the Move?

Now you know the process of buying properties in Spain, additional costs, benefits of cash purchases and mortgages, and that anytime is a good time to buy your new Spanish home!

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