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Buying Investment Real Estate In Spain
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Spain
continues to be a widely popular location for property purchase and
this has made the housing market boom over the past decade. The warm
climate and pleasant quality of life make it a popular location with
the British.
Further,
the availability of low cost flights within Europe and Britain means
that it has never been easier to investigate potential property
purchases.
Hotspots
To Buy In Spain
There
are a huge number of potential locations to suit everyone in Spain.
Here are some of the more popular destinations with regards to
property purchase:
· Barcelona
· Madrid
· Costa
Blanca
· Costa
del Azahar
· Costa
Calida
· Costa
Brava
·
Costa
Dorada
· Canary
Islands
· Costa
del Sol
· Costa
de la Luz
· Costa
del Almeria
Important
Factors To Consider When Buying Real Estate In Spain
Unfortunately,
there are an element of unreliable people in the Spanish property
market so you do need to tread carefully. Some people have been
burned very badly when trying to make their Spanish property
purchase.
Having
said that there is a large availability of properties available for
purchase in Spain including purpose built apartments, villa
complexes and practically every other type of property you could
want. It can be a confusing choice however, with a huge number of
parties all claiming to have access to the best
properties.
Here
are some of the important factors you should consider when opting
for a Spanish property:
· Look
for “GIPE” and “API” accreditation while on the look out for a good
estate agent. This does not guarantee that you will not get ripped
off but it will reduce your chances significantly.
· As
always you should look to have any contract you sign thoroughly
checked by a lawyer who understands both English and Spanish very
well.
· You’ll
need to be familiar with the contrato privado which is a contract
that sets the price and lockss both parties into the transaction.
· If
you do become a Spanish property owner then you will need to obtain
a tax ID number, known as a numero de identificacion de extranjeros
– this is important because it is required in order to pay taxes as
well as for registering the property.
Beware
that if you intend to restore a property then a licence known as
licencia de obra will be needed.
Mortgage
Information In Spain
If
you plan to take out a mortgage in Spain, then generally Spanish
lenders will lend up to 80% of the property value, although this
depends on the individual lender. There may also be certain
restrictions based on the location of the property and the actual
purchase price.
The
typical mortgage tends to be a 15 year fixed rate although it’s
possible to acquire a 25 year old mortgage. As with most mortgages
your current income will be analysed to see if you’re likely to be
able to service the loan.
Real
Estate Taxes In Spain
The
“IBI” (Impuesto Sobre Bienes Immuebles) is a tax levied on
homeowners in Spain. The tax is calculated by the local council and
is based on the property’s rental value. This means that the tax
that is payable will depend on the actual value of the house as well
as the general area that it’s housed in.
It’s
also important to note that there is a new properties purchase tax
in place. For older properties a re-sale purchase tax is
applicable.
Another
tax is one levied on capital gains – this works out at 50% of the
actual gain made on the property for non-residents.
Other
taxes also exist such as the Basura (refuse tax) along with income
tax on rentals.
Here
are some useful places, contacts and sites for your property
research in Spain.
Agents
www.web-cei.com/gipe.htm
(GIPE)
www.consejocoapis.org
(API)
Other
Useful Sites
www.spanishpropertyguide.com
www.elite-spanish.co.uk
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