Buying a home in Spain is a very confusing and daunting task, even if you have experience in the field. Buying home abroad in a separate country is 10x more confusing and daunting, that is why us at Dream Spanish Homes will help you every step of the way. Some of the main difficulties when buying a home abroad are laws and language barriers. These reasons plus many more can make buying abroad very scary.
Hopefully, this guide will help you out and reassure you about any difficulties you may face. Information regarding Visa’s, mortgages and general moving will be in this article.
Spain is one of the most popular destinations in the world for many Europeans, North and South Americans and has become increasingly popular with people from Asia. It is also increasingly popular with people from all walks of life and from around the world looking to move abroad and to a warm country.
A Starting point
Everyone here at Dream Spanish Homes believes before moving abroad, that you should be fully committed to moving. Many people move abroad and then realise it is not for them and move back home, we do not want you to be one of them. With the developments in the internet and technology, you can always feel at home from almost anywhere in the world. We also suggest inviting friends and family over to your home as well as visiting them back home.
You should also have a small plan or overview of what you will/could do during your time in Spain. We suggest this as many people may move abroad and don’t have a small plan of why they wanted to move and get bored with their surroundings quickly.
When moving to Spain, there is, of course, the legal stuff. No matter what, there sadly must be legal stuff. With all the legalities, us at Dream Spanish Homes will help you, but we do suggest that you do get a lawyer. Ideally, one who specializes in property and Spanish Property.
Visa’s and Residency
In the near future, we can expect visas to get that little bit more awkward due to Britain’s upcoming exit from the EU. For the meantime though, all EU nationals including British can travel freely into Spain. Other people who are from countries who are apart of the Schengen countries can also travel freely into Spain.
When Britain finally leaves the EU through Brexit, UK nationals will more than likely need to apply to get into Europe through a program called ETIAS. This project is being set up by the EU, which allows people from countries around the world to travel into Europe if they make the EU aware. If you are travelling from other countries to Spain, you will need a Visa.
When an agreement between a homeowner and a potential buyer is met, a contract is drawn up for both parties to sign. This contract will involve deposits. So, what is a deposit?
A deposit guarantee’s property is yours. The usual amount for a deposit is either 10 or 20 per cent of the final price of the property. A deposit is used to assure the homeowner of the sale, as a sale has been agreed, so they do not offer the property as to let any more. This is also to stop other offers and bids being received by the homeowner as they have agreed upon a sale.
Mortgages are the fun part of buying a house in Spain. They are what we use to help us purchase a new home for ourselves if we do not have all the money for a property. A mortgage can either make or break your move to Spain as without one you may not be able to move.
There are different types of mortgages, so there is always the right one for you. But how do they work? A mortgage works by borrowing a large sum of money from either a lender or a bank and you will pay it back over several years with added interest on top of that. Until the whole mortgage is paid back, you are not the sole owner of that property as your lender also owns it.
Over the years you will start to pay more and more of the interest and the loan off, eventually paying it off after say 15, 20 years and the property is fully yours. In order to receive a mortgage, you need to have a good credit rating.
In Spain, there are a lot of added costs and taxes to take into consideration when buying a home. Probably very similar to when buying a home in your home country. This is on top of the price of your property.
The biggest tax when purchasing a home in Spain is the ITP tax, otherwise known as the transfer tax on resale properties. This tax is up to 8 percent of the resale value of the property. You also need to be aware of the IVA tax which is like the ITP, only on new build properties. This tax is 10 percent and goes to the National Government instead of the Regional Government.
You should also note that there is a mortgage tax and a land registry tax. All of which can increase your costs for a new home substantially.
Who can help?
It is good to note that us here at Dream Spanish Homes (DSH) can help. We can give you great advice on different situations as we have a lot of experience in dealing with clients.
We also advise you that lawyers are a great help and can assist you that little bit more than us through the whole purchasing process. (As we are not lawyers ourselves). They will not only keep you on the right side of the law, but they will advise you throughout the whole of the purchasing process.