Here are some of the key things to keep in mind when buying a property in Spain.
After buying a property, you do not have to worry about being left alone with the various issues that may arise. Follow-up and assistance with anything is easy to obtain from us and the Novus Habitat team is ready to help.
Our goal is to make the process convenient and easy for you.
The prospective buyer must apply for a so-called NIE number, which is a Spanish ID number and must open a bank account. To get an NIE number, you have to go through a certain application process with the police and it can take a few days, we can take care of it for you, usually in one day. NIE number: € 150 per person for the creation of an NIE number (ID number).
Interest rates on financing housing purchases are very favorable for Spanish banks, interest rates are non-indexed and generally very low. Interest rates are either fixed or variable. With variable interest rates, the interest rates are structured in such a way that they are based on the EURIBOR interest rate at any given time, together with the interest rate spread of the bank in question. However, the variable interest rates are usually fixed for the first 12 – 24 months and then they are always revised every 12 months and raised or lowered depending on the level of the EURIBOR interest rate at that time. The bank’s interest rate spread never changes. The loan terms also usually contain a provision to the effect that the interest rate never exceeds a certain percentage and never falls below a certain percentage. With a fixed interest rate, the interest rate is determined right from the start and is fixed throughout the loan period.
There is a cost of buying real estate in Spain. The buyer of a property must pay VAT on the declared purchase price to the Spanish state upon signing the title deeds. In general, the cost of the purchase can run into around 13% – 14% of the total cost calculated from the purchase price of the property and paid on sale. VAT: Is 10% of the stated price.
Notary costs: Is a fixed document and administration cost and varies according to the price of the property but can be around 0.5% of the stated price.
Registration fee for purchase agreement: 1.5% of the stated purchase price.
Registration fee for a loan: 1.5% of the loan amount if a loan is taken out.
About 0,5 to 1.0% of the loan amount if a loan is taken.
Bank valuation: € 150-400 depending on the size of the property – if a loan is taken.
Energy contracts: 300 – 500 € for the establishment of water and electricity contracts for the purchase of a new building.
Operating costs vary depending on the size and type of property. Most properties have access to a pool garden and the arrangement in Spain is such that each owner pays a community fee "Community fee" to cover all common costs, e.g. swimming pool cleaning, gardening, lighting of common areas, etc. The amount of water, electricity and gas bills varies and depends on the use at any given time. Real estate insurance is advantageous.
Examples of operating costs and taxes on an annual basis based on real estate valued at € 200,000.
1000 – 1500 € per year. invoice comes every 3 months.
€ 300-450 once a year (can be distributed in monthly installments)
100-200 € once a year.
500-800 € per year. monthly payments.