Things to Consider When Buying Property in Spain
Buying a property in Spain is an exciting investment, but there are some important things to consider before taking the step. Here are some key points for those thinking about purchasing a home in Costa Blanca.
- Budget and Financing
Before you start looking for a property, it’s essential to have a clear understanding of your budget. Keep in mind that additional costs come on top of the purchase price, such as taxes, notary and registration fees, as well as legal expenses. If you plan to finance the purchase with a mortgage, explore your options early, whether in Spain or through your bank in your home country.
- Choosing the Right Area
Costa Blanca offers a wide variety of locations, from lively coastal towns to quiet villages. Consider what is most important to you—do you want to live close to the beach, in an area with restaurants and shops, or in a more secluded location? It’s a good idea to visit different areas at various times of the day to get a feel for the surroundings.
- Legal Security
The Spanish property system differs from what you might be used to, so having legal assistance throughout the process is crucial. A local lawyer with experience in real estate transactions can review all documents and ensure that the property has no debts or legal complications that could affect your purchase.
- Additional Costs and Taxes
Apart from the purchase price, taxes and fees can add up to approximately 10–15% of the property’s value. These include:
- Transfer tax (ITP) for resale properties or VAT (IVA) and stamp duty (AJD) for new builds
- Notary and registration fees
Legal and administrative costs
- Property Inspection
Whether you’re buying a new or resale property, a thorough inspection is essential. Ensure that the property is in good condition and that all building permits and licenses are in order.
- Spanish NIE Number and Bank Account
To purchase a property in Spain, you’ll need a Spanish tax identification number (NIE). This is required for all legal transactions in the country. It’s also advisable to open a Spanish bank account to facilitate payments for utilities and fees.
- Running Costs and Maintenance
Besides the purchase, consider ongoing costs such as property tax (IBI), community fees, electricity, water, and general maintenance. These costs vary depending on the size and location of the property.
- Residency and Tax Rules
If you plan to live in Spain for most of the year, your tax obligations may change. Consulting a tax expert will help you understand the regulations that apply to your situation.
- Rental Potential
Many buyers consider renting out their property when they’re not using it. If this is part of your plan, make sure you are familiar with local rental regulations and any necessary licenses.
- Work with a Trusted Real Estate Agent
Having a knowledgeable and reliable real estate agent by your side makes the entire process smoother and safer. At Sergels Fastighetsbyrå, we are here to guide you through every step—from the first viewing to handing over the keys.
Buying a property in Spain can be a fantastic investment and a step toward a new lifestyle in the sun. With the right preparation and guidance, you can make a safe and successful purchase!
Do you have more questions or want to learn more?
Contact us—we’re happy to help!