Stages of real Estate purchase
Select an Object
Pick an object by parameters on our site or leave a request. Our specialists will pick up the accommodation that meets your criteria.
Inspect the selected object
Real estate is a major acquisition that is not usually done blindly. We strongly recommend to take time and go to Spain to see all the selected objects and make a final decision. Even with a large number of photos you are not immune from the pitfalls.
We book accommodation
Once you have found your dream property, you can reserve it. The reservation agreement is concluded between the buyer and the owner of the dwelling, real estate agency or developer. The contract prescribes the price of the object and specifies the time for signing the bill of sale.
At the same time the buyer makes a deposit in the amount of 1-1.5 of the cost of housing, usually for the apartment enough 3000 euros. After conclusion of the contract the object is withdrawn from sale. If the buyer decides to refuse the purchase of the object, the seller will keep the deposit.
Preparation for the transaction
Once the object is selected, the first step is to obtain an alien identification number (Número de Identificación de Extranjero, NIE). Without this document in Spain it is impossible to make any legally significant action – neither to buy the real estate, nor to open the bank account.
NIE can be obtained directly in Spain or in the consulate of Spain in Russia. The Real estate Reservation agreement is the legal basis for its receipt. According to the legislation, the NIE number is assigned within 5 working days, but in practice delays occur.Required Documents: completed application, passport and its copy, two photos 3 by 4 cm, receipt of payment of the fee.
Opening an account in a Spanish bank
The account is necessary for calculation with the seller, and in the future-for payment of taxes and utility payments. Opening an account is better in the bank where you are going to take the mortgage. If the mortgage is not needed, the choice of the bank is caused only by the attractiveness of its tariffs for servicing the accounts of individuals. Opening an account usually takes about an hour.Necessary Documents: Russian and foreign passports and real estate reservation agreement, certificate of Income or tax declaration.
Check the status of the unseen
The procedure for buying property in Spain includes checking the legal status of the property: what is its exact footage, who its owner, whether there are unpaid bills and debts. All information is contained in the extract from the register of real estate, which can be ordered personally or via the Internet and receive within 1-2 days.
Housing Reservation Agreement
If there is no reservation agreement, the preliminary contract is signed. It specifies the data: price, form of payment, term of the transaction. In this case, the buyer makes 10 of the amount payable. In case he changes his mind to buy this property, the deposit will remain with the seller. And if the purchase is blocked by the seller, he will pay the buyer a double deposit.
Many Russians are interested in how to buy an apartment in Spain in a mortgage. Spanish banks provide 50-60 from the cost of housing for a period of 10 to 30 years under 3.2-4 Apr.
Thus, the first installment will be about half the amount or less.
According to the European rule, mortgage payments cannot exceed 30 income. In other words, it is necessary to earn 3 times more than the monthly payment.
The process of loan processing takes up to one month.
Transaction costs. The costs of the borrower are expressed in the Commission of the Bank in the amount of 1-2 and stamp duty in the amount of 0.1-2 of the loan amount. The valuation of real estate (200-500 euro) and its insurance (200-300 Euro per year) are paid separately.Necessary Documents: Certificate of work, tax Declaration, bank statements, documents on ownership of real estate or shares.
Conclusion of the deal
Signing the contract of sale
When all documents are ready, the stage of execution of the transaction comes: it is necessary to transfer the remaining amount to the seller’s account and sign the contract of sale in the presence of a notary. The buyer signs the documents with the property owner or the developer company. Any party or both parties may entrust the signing of the contract to third parties (e.g. real estate agency) by issuing a notarial power of attorney.
Payment of registration taxes and fees
Within 30 days after the transaction it is necessary to pay taxes and send the documents for registration of the right to real estate.
1) VAT and stamp duty when buying housing on the primary market (10 + 0.5-1.5), or tax on the transfer of ownership of the purchase of housing on the secondary market (6-10)
(2) Registration costs (0,02-0,175)
Obtaining a Certificate of ownership
To obtain a certificate of ownership, you must contact the registry with the original contract and tax documents. After 2-3 months the buyer gets the contract back, and with it the extract from the register.
- Value Added Tax (IVA)
- -Paid by the buyer when purchasing housing from the developer and is 10 of the cost of housing. This tax is payable at the time of signing the notarial deed of sale.
- Property Transfer Tax (ITP)
- -Paid by the buyer when buying a dwelling on the secondary market. The percentage of this tax varies from 6 to 10 depending on the autonomous region. In Valencia, the property transfer tax is 10 and is payable within a month from the date of signature of the notarial deed of sale.
- Notary Expenses
- -are paid by the buyer and are connected with notarial registration of the purchase-sale transaction. The amount of expenditure varies from the cost of housing and from established tariffs notary offices
- Registration costs
- -are paid by the buyer and are connected with registration of the acquired property in the property register. The amount of expenditure varies from the cost of housing and established tariffs.
- Realtor Services
- -The services of the Realtor make up 3 of the cost of housing and paid by the buyer
The total amount of taxes and expenses for the purchase of housing in Spain is 11 – 15
- Annual Municipal Property Tax (IBI)-annual property tax is set by the municipality, averaging 0.4-1.1 from the cadastral value of the property as of January 1 of the reporting year.
- Tax on income of non-residents (IRNR)-nonresident-the owner of the property is obliged to submit the declaration IRNR. If the property is not leased and used by the owner for its own residence the declaration is submitted once a year. If the property is leased, the Declaration is submitted quarterly. The amount of the tax is calculated depending on the cadastral value, the amount of rent and a number of conditions that need to be clarified in each case.
- The costs associated with ownership of the property include housing and communal services and maintenance of the house and the surrounding area.
Housing and communal services:
- Electricity: electricity is paid by counter plus minimum fixed subscription fee. A family of 4 in an average apartment consumes electricity approximately 45-50 euros per month.
- Water: payment for water is made by counter plus minimum fixed subscription fee. The approximate water bill is 15 euros per month.
- Gas: heating of water and heating is carried out by means of gas.
Payment is made by counter. The approximate cost of gas per month is 20-25 euro
The upkeep of the house and the home territory includes the cost of cleaning the entrance and the territory of the residential complex, lighting of the entrance, elevator maintenance, concierge services, maintenance and maintenance of the gym, sauna and social club. The greater the range of service of the residential complex, the more expensive its service.
The average cost varies from 50 to 200 euros per month.
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