To buy a house in Spain

There is a great opportunity to invest in Spain now because Mortgage rates are low, currently about 3.0-3,5 %. Each business is unique and it also depends on how the buyer personally negotiates with the bank. The Euro is week against the British Pound.

The price for Spanish property has fallen to the lowest level in the last years until 2014. It is estimated that housing prices near coastal towns such as Costa Blanca, Costa del Sol and Mallorca have dropped about 30-40%. Despite the economic situation in Spain is it possible for European customers to borrow up to 70% of the home price or assessed value.

To apply for a mortgage and buy a property you will need:

  • Valid passport:
  • A copy of the decision from the most recent tax return.
  • Copies of the last three wage specifications.
  • Certificate from your job or employment.
  • A copy of bank withdrawals for the past 3 months.
  • Certificate of Credit.
  • Order NIE number *.  

* The first thing you must do when you buy a property in Spain is to apply for an NIE number (Número de Identidad de Extranjero) your Spanish numbers. It is required to apply for a loan and to write the purchase agreement. We help you with this matter.

COSTS INVOLVED: Property price. Spanish VAT (IVA)-current taxation for a new property are 10% of the purchase price.

From 1 January 2013 VAT increase to 10% for new homes. For Resale, units are currently 10% VAT. Legal expenses: Notaries and lawyers' fees, enrollment fee in the land register and taxes will be and it is about 4% of the home price. Processing and charges for water and electricity contracts. A conservative estimate is that the purchase cost is about 14% of the purchase price.

BANK GUARANTEE: Upon request, clients submit a bank guarantee. For your security, you may request that the Spanish company extradite a bank guarantee before you sign a reservation and purchase agreement in the case you buy a house that has not to build yet.