Brokers mediate in the sale, purchase or rental of homes, offices, business premises and other real estate. If you want to buy or sell a property, a broker acts as a sales broker or purchase broker. Spanish brokers perform fewer tasks than Dutch or Belgian brokers. They basically only deal with real estate. They can mediate and arrange a down payment during the buying and selling process. But they usually do not give advice on mortgages, insurance or construction aspects, for which you can hire a lawyer or gestor.
Buying a house or other real estate in Spain is very different from buying in the Netherlands. The (legal) process is much more complicated and the role of the notary is less important than in the Netherlands. This means that as a buyer bear a greater responsibility. There is also less legal protection as in the Netherlands. In addition, there is of course also the challenge that many foreigners do not speak Spanish and do not know the customs.
For this reason, a lawyer or gestor in Spain plays a leading role in the purchase process of a house or other real estate.
A lawyer or gestor will guide you through your purchase from start to finish. Negotiate the purchase price, verify the deed (purchase), apply for your NIE number. They assist you until you receive the key, and even after that, they can still help you, for example by opening a bank account and making sure your energy contract is active.
You can borrow a maximum of 70% of the purchase price or the assessed value as a non-resident in Spain. The lower of the two counts. If it is your first home in Spain and you are a resident, you can usually borrow up to 80%. In addition, you have to finance the buyer’s costs yourself. In Spain, these are on average between 12% and 14% if you need a mortgage.
Transfer tax (ITP / IVA): ~ 10%
Notary & Registration fees: ~ 1%
Valuation fees: Varies between Є 500,- and € 800,-.
Lawyer fees: ~ 1.5% (this varies by law firm)
New build tax (AJD): ~ 1.5% with new builds there is an additional levy & registration fee on top of the transfer tax
Bank charges: bank cheques are used during transfer, for which money is charged by the bank.
Mortgage fees: ~ 1.5% of the mortgage (if a mortgage is taken out)
Mortgages in Spain have a maximum term of 25 years for non-residents, but the mortgage must be paid off at the age of 75. The minimum term is 10 years. The oldest applicant determines the deadline.
A NIE number is an identification number for foreigners in Spain. It is necessary to be able to arrange things in Spain, such as buying a property, obtaining a mortgage and registering at the Land Registry. You also need this personal number to open a bank account and, for example, to arrange an internet connection or to buy a car.
• Annual property tax: IBI (Impuesto Sobre Bienes Inmuebles), this municipal
tax is a percentage of the cadastral value, which varies from municipality to municipality.
Count on approximately 0.4 to 1.1% of the cadastral value (usually 50 to 70% of the actual
• Utilities: electricity, water and possibly natural gas
• Municipal fees, eg collection of household waste (basura)
• Home insurance and home contents insurance
• Phone and internet usage
• Wealth and Income Taxes – Owners of Spanish homes must file tax returns by December 31 each year.
Yes, regardless of the mortgage amount, the valuation is always carried out by an independent expert authorized by the bank. This specialist fee is approximately between €500 and €800 euros, depending on the value of the property.
The average lead time of a mortgage application in Spain is approximately 6 weeks.
From January 1, 2007, a reduced tax will be levied on the proceeds of the sale of houses in Spain owned by non-residents. Previously, this capital gains tax amounted to 35% on the difference between the purchase and sale price, as stated in the deed of sale. As of 2007, this tax is 18% for residents and non-residents. There are exceptions for residents, please consult your lawyer.