In 2017, Spain again broke records in the sale of second homes to foreigners, chaining eight consecutive years of increases. The country has become one of the favorite tourist destinations for both Europeans and non-EU citizens, thanks especially to the quality of life provided by its infrastructures, services, landscapes, healthy gastronomy and cultural contrasts. Recently we took notice of a revealing news: by the year 2040, Spain will be the country where the people will live the longest in the whole world, reaching a life expectancy of 85.8 years on average, thus advancing Japan, Switzerland and Singapore. Experts agree that this increase is precisely related to this quality of life.
Last year alone, more than 61,000 real estate purchase transactions were made by foreigners in Spain, representing 13% of the total operations. British citizens remain at the forefront of foreigners who buy more houses in Spain (15.01% of operations carried out), although this number has fallen due to the uncertainty generated by the Brexit. This nationality was followed in 2017 by French citizens (8.64%); German (7.77% of purchases); Belgian citizens (6.39%) and Swedes (6.38%).
There are many visitors who, after spending their holidays in Spain, are interested in buying a holiday home here. Thanks to the reduction of prices experienced by the aviation sector, distance is no longer a problem to have a second home on the Costa Blanca, ideally connected thanks to the airport in Alicante and Valencia, or any other region of Spain. At Villas Internacional we focus on facilitating this purchase decision and integrally managing all legal processes derived.
If you are thinking of buying a house in Spain, you may be wondering what basic legal aspects should be taken into account when buying. This is what you should know:
Obtain a NIE
The NIE number (Identification Number for Foreigners) is a personal identification number necessary to make any type of economic transaction in the country, such as the purchase of a home. It is also necessary in case of opening a business. We can obtain the NIE in any police headquarters authorized to do so.
Get a TIE
If we want to establish our residence in Spain and we are not citizens of any EU member country, we must request a different document called TIE (Foreigner Identification Card), and the requirements for obtaining it will vary depending on the legal and personal situation of the applicant as well as the nationality of origin.
Tax policy in Spain
The purchase of a home in Spain, as in any other country, is taxed by a series of taxes and fees that increase the cost of the operation. The most important are:
- VAT (Value Added Tax): in the case of new homes or first transmission is in 10%.
- ITP (Property Transfer Tax): applicable in cases of second-hand residences or second transfers. In this case the tax is between 6% and 10% depending on the Autonomous Community where it is located and the circumstances of purchase. It must be paid if the VAT from the previous point is not applied.
- AJD (Tax on Documented Legal Acts): Must be paid if the home is purchased and VAT is applicable, or if it is purchased through a mortgage.
Other expenses derived from the purchase of a property in Spain are:
- Public deed in the notary.
- Registration of the deed in the Land Registry.
- If we are going to request a mortgage, it will be necessary to include the appraisal and the notary, the mortgage taxes and the registration of the deed to the Land Registry.
- Other expenses applicable during the year once the home has been acquired, such as the Real Estate Tax (IBI), the Wealth Tax -in certain cases-, the Personal Income Tax (IRPF) for residents of Spain . If you do not live in Spanish territory permanently, you will have to pay the Non-Resident Income Tax.
At Villas Internacional we help you manage the purchase of your home on the Costa Blanca, one of the most attractive destinations in Spain, so you can do it without delays or surprises. For this, we accompany you personally to visit the property and know it first-hand, checking the status of the house, its location, environment, etc. In addition, we make sure that the urban and legal situation of the property is in order; the verification of its status in the Property Registry to verify that you have the rights to it, and review of contracts and legal framework of the operation. We will advise you on everything you need to know to buy your villa, luxury villa, apartment, home, plot, town house or house with sea views on the Costa Blanca of Spain. Villas Internacional helps you to enjoy the best quality of life in Alcalalí, Alicante, Benidorm, El Albir, FInestrat, Jávea, Moraira, Altea, Alfaz del Pi, La Nucia, Benissa, Teulada, Calpe, Villajoyosa or in the area that you choose. Contact us and discover all that Villas Internacional can do for you.