Living in Spain is fantastic and we are happy to help you find your dream property here. Of course, we can also provide the financial and legal expertise that you may need. If you have fallen for any of our listings, feel free to contact us to arrange a viewing. This will also give you the opportunity to get a feel for the area.
One good piece of preparation is to have your financing in place before you travel.
The price we give is the price that the seller will accept. If you are willing to pay that price there is usually a deal to be made. Auctions are not common and occasionally the actual price can be even lower than that stated. But this price is always arrived at by negotiation together.
In addition to the purchase price, you should count on approx 10-14% in additional costs.
For new build properties, there is a value added tax of 10% of the purchase price, plus stamp duty of up to 2%. For used property, there is transfer tax of 8-10% depending on the region and the purchase price. There is no stamp duty.
In Spain, a notary is always involved when the seller and buyer exchange the purchase contract. The buyer is responsible for paying the notary's fees. The fee varies depending on the scope and is based on the purchase price.
The new owner must register with the Land registry. This usually costs around 0.5% of the purchase price.
On entry to the property there are connection fees and/or fees for changing subscriptions for water and drainage, electricity and, if necessary, gas.
You cannot take a loan in Sweden using a Spanish property as security, however you can mortgage property in Sweden to purchase the property in Spain. You can also borrow money for the purchase of a Spanish property from a Spanish bank.
The running costs are naturally dependent on what sort of property they apply to and how much you use it. A guide value for a two bedroom apartment would be approx. 1,500 - 2,000 SEK per month. Costs include community charges, electricity and water, home insurance premium and property taxes. Running costs are easiest paid via autogiro and we can help you open an account with a Spanish bank.
In Spain you pay a council property tax and a national property tax, both based on the taxable value. The council tax varies between different councils and is between 0.4-1.1% and the state tax is between 0.25-0.5%.
You do not pay any property tax in Sweden on Spanish property.
In Spain property is sold ”as is”. As a buyer, it is your responsibility to survey the property carefully before you sign the purchase contract. Deviations from this must be stated in the purchase contract. It is wise to make use of external expertise and we can recommend several experienced chartered surveyors. The purchase goes through once you have come to an agreement with the seller and the agent then draws up a purchase contract. Among other things, this states the price and the date of entry. At the same time, you pay a deposit or reservation fee as a guarantee that you will complete the deal.
If you are buying a new build, a reservation agreement is drawn up with the property developer. You then pay a reservation fee of approx. 3,000 - 6,000 €. The reservation fee can usually be paid using a credit card. For a used sale you instead pay a deposit, which is usually 10% of the purchase price. Final payment is then usually made on the date of entry.
The NIE number is a Spanish tax identification number that you need to open a bank account and to sign the deeds. The number is a condition of being able to own a property in Spain and an application can be made with the Spanish police, Spanish embassy or consulate in Sweden. A representative with power of attorney can make the application. We are happy to help and can also give an estimate of how long it will take to obtain the number.
Notarius publicus (notary public) is an officially appointed lawyer with responsibility for checking the identity of the seller and the buyer. The Notary informs of any debts associated with the property, ensures that the payment is correct in Spanish law and that the seller has received it before the contract is signed. The Notary also creates the purchase letter which is the basis for your application for the deeds.
The deeds are registered with the land registry, which takes approx. 2-3 months. Once registered and when all taxes and fees have been paid, you receive the deeds back with proof of registration.
Many properties have immediate entry, but it is our experience that most buyers require some time for preparations. It can take up to a month before the NIE number and other financial items are in place. On the date of entry, you get the keys and can move in.