If you are thinking about buying property in Spain, Breezom can give you some useful tips and information about the process. There are many reasons for choosing to purchase a home in this Mediterranean country, famed for its warm weather, incredible beaches and vibrant culture. Whether you wish to buy a holiday home, make this your primary place of residence or take the opportunity to make a sound investment, we can give you expert guidance and help you achieve your goal!
If you decide to acquire one of the new-build developments featured on our website, with us you are assured a pleasant and transparent experience. Our bespoke service offers added value by providing professional advice to help you steer your way through the Spanish property market. Working with us you will pay the same price as you would pay dealing directly with the developer but we will accompany you through the whole process, from the beginning of your search until the final signature of the deed. Our team of agents will offer you one-to-one meetings in which they will assess your requirements and needs, and based on these, give you specifically tailored recommendations in any of our 12 working languages.
Can a foreigner buy property in Spain?
The short answer is “yes”, even if you are not a Spanish national you can acquire property in Spain. In fact, the national government encourages residents and non-residents to do so because foreign investment is deemed to have a positive impact on the country. To give you an estimate, in 2022 over 100,000 foreigners acquired property in Spain. The southern coastal regions have become very popular among expats or anyone wanting to get a holiday home, whether they are EU citizens, British or hold any other nationality.
The first step to being able to buy a house, apartment or villa in Spain is to get your Foreign National Identification Number or NIE (Número de Identificación de Extranjero) which will accredit your residential status type in Spain. Getting your NIE is a fairly easy process and will allow you to buy a property and pay taxes.
If you are a non-resident, to get your Foreign National Identification Number you will need:
- A valid ID document, usually a passport will be enough
- A certificate of non-residency. If you are in Spain, you can request it by going to a local police station with a valid ID. There, you will have to fill out the required forms and pay a fee. If you are not in the country, you can still request the certificate by contacting your nearest Spanish consulate.
Spain also has excellent investment visa schemes. To qualify for this type of visa, individuals must invest at least €500,000 in Spanish real estate. With the initial investment, the national government grants you a legal residency visa which, in time, can qualify you to apply for citizenship, if you so desire.
Where is the best place to buy a property in Spain?
Spain is a very popular destination for people from all around the world due to its excellent climate, welcoming culture and laid-back lifestyle. There are so many towns, cities and small villages all over Spain that offer something unique to those looking to invest in the international real estate market.
However, the “best” place will vary from person to person. As a potential buyer, we each value different experiences, but Spain has something to offer everyone. Are you looking for a traditional small-town setting to wind down and connect with nature? Or maybe you wish to immerse yourself in a buzzing city environment with high-end amenities, entertainment and nightlife. Do you want a seafront home or would you prefer to look out from your window over leafy green mountains?
Your ideal place will probably be determined by how you envision your time and way of life in Spain. The great news is that there is a vast property range for you to choose from. At Breezom we operate in different coastal areas to help you find the property that is right for you.
The cost of buying property in Spain
Apart from the price of the property itself, which will vary according to location, type and size, there are other costs that come with the bureaucratic process of buying a home in Spain.
Some of the additional costs to take into consideration are the taxes applicable to the transaction. In Spain, you will have to pay VAT or IVA (its initials in Spanish) on any new-build property acquisition; this tax is set by the national government and is currently levied at 10% of the purchase price if you are buying for residential usage. Another additional tax is Stamp Duty, or AJD, which is set individually by each regional government and, at present, it ranges from 0.5% and 1.5% of the value of your new property, depending on the autonomous community in which it is located.
Aside from taxes, other additional costs you will have to cover are notary fees which can vary depending on the type of development you are looking to buy and are based on a percentage of the final price. Furthermore, to get the property registered under your name you will have to pay Land Registry fees. The amount will also depend on the property itself. All in all, you might expect these expenses to come to an additional 20% although they usually are around 10% on top of the property price.
However, investing in property in Spain can bring interesting returns of around 6.5% a year, as you can generate income from renting out your new home. This is a very popular practice among foreign investors and homeowners, as in recent years more and more visitors are looking to rent private property to spend their holidays during the warm months, as opposed to hotel stays.