Agency representing the individual seller, whose role is to market the property under an exclusive sales mandate (only an agency with an exclusive sales mandate can offer this service).
marketing the property) or non-exclusive (several agencies are authorised to market the property).
The role of the notary is different in Spain than in France or Belgium. It is therefore essential to have certain information checked by a lawyer or competent person:
- Guarantee that there are no outstanding mortgages or debts on the property, etc.
- Obtaining and checking the registration certificate at the town hall
- Check the land register and its conformitý
- Controlling urban development projects
- Check the purchase agreement
Lawyers' fees in Spain are approximately 1.5% of the purchase price of the property.
Acheter Malin Spain carries out all the necessary legal checks before you buy a property. Our services include the fees of a lawyer who will validate the purchase file and give you a legal opinion on the transaction to secure your purchase.
Opening a bank account in Spain is essential if you want to buy a property. This process is free, but cannot be carried out remotely, as the banks must carry out certain checks in person.
Account maintenance charges vary from bank to bank. They are sometimes free if transactions are made monthly.
Some banks offer a French-language account management interface.
Acheter Malin Spain helps its customers to open a bank account and works in collaboration with one of Spain's largest banking entities: Banco Sabadell.
The process of buying a flat or house in Spain involves 3 types of contract that regulate the transaction between buyer and seller.
The reservation contract is a private document. It is not binding. It generally lasts for a week or ten days. As its name suggests, by signing this contract, the buyer is ensuring that the owner will reserve the property for him/her during the "reservation" period, pending the penalty deposit contract (or compromis d'achat). This reservation contract sets out the terms of the purchase: the price and the timetable for the purchase: deadline for signing the compromis d'achat and deadline for signing the sale at the notary's office. The buyer generally pays the owner 1% of the purchase price. This sum will be returned if the seller withdraws before the penalty deposit contract (or compromis d'achat) is signed.
On the other hand, the buyer will lose his money if he changes his mind and does not buy the property.
Once the terms of the sale have been defined and agreed by both parties, the buyer and seller sign a preliminary purchase agreement or deposit contract.
This contract sets out all the terms of the transaction (deadline for signing the purchase contract, price of the property, payment terms, cadastral number, inventory, etc.).
At this point, the buyer must pay the seller 10 % of the purchase price. If the buyer
If the buyer withdraws, the deposit will not be reimbursed. If it is the seller who cancels the sale, the seller must pay double this amount to the buyer.
The deed of purchase is a public document. It is a formal, legal document that evidences the transfer of ownership to the buyer. A notary must be present. At this point, all costs will be paid by the buyer: the remaining value of the property, the notary's fees and any taxes relating to the purchase. The contract is signed by both parties and by the notaire. The originals will be given to the buyer within 3 months of the notarised deed.
copies of this document will be sent to the property registry and to the Spanish tax authorities for payment of the corresponding taxes. On the day of purchase, a provisional copy of the deed will be given to the parties as a "Copia Simple de la Escritura de Compraventa" in paper and/or pdf format.
The Land Registry is an official Spanish institution that classifies property using a cadastral reference.
The cadastral reference in Spain, also known as the cadastral certificate, is the official identifier for a property. It takes the form of a 20-character alphanumeric code. It provides a range of information about the property, including
- Its address
- Its reference
- Its surface
- Its use
- Its environment
- Its graphic and geographical representation
The land registry in Spain depends directly on the Ministry of Finance and the Civil Service, each propertý is classified in a register according to the type of dwelling: rural, urban, specific, administrative, associative, historical, etc. It is compulsory in order to combat fraud in the property sector and to guarantee the legal securitý of owners.
Cadastral value: This is the value of the property's land. It is a reference value that is not a real value, but an "administrative" value used by the Spanish administration as a basis for calculating taxes.
The main difference between a property hunter and an estate agent is the person who commissions them: the estate agent works for the owner who is selling his property, whereas the property hunter works solely in the interests of the future buyer who is looking to acquire a property.
The hunter has no property in his portfolio: he selects properties according to his client's criteria from the entire property market. They send their clients a report on each property to help them make their choice. They then organise visits to the selected properties. The property hunter accompanies his client throughout the buying process, right up to the signing of the deed of sale. The relationship between the property hunter and his customer is much closer than that established with the estate agency. It's a relationship based on trust and openness, a true partnership and a long-term relationship.
Acheter Malin Spain also helps new homeowners get settled in by, among other things, managing name changes for water, gas and electricitý contracts.
This document certifies that you are domiciled with and assigned to a local authority. It is issued by the town hall/commune and provides proof of your residential address. You will need it for many administrative procedures. The empadronamiento is necessary for anyone planning to reside in Spain for more than 6 months of the year, whatever their professional situation, age or nationalitý .
It's a quick process. You will need to present the following documents to the census office at your local town hall:
- Identity document́ + photocopy
- Original NIE + photocopy
- If you are renting a property: rental contract signed by both parties
- If you have bought a property: copy of the deed of purchase + photocopy
Registration fees: These are the costs of registering the property, approximately 1% of the purchase price.
Notary fees: In Spain, notary fees are set by law. They are the same for all notaries, although they may vary depending on the number of pages of documents signed between buyer and seller and the price of the property. On average, these fees amount to 1.5% - 2% of the sale price of the property, with a minimum of €1,500 to be paid by the buyer, unless otherwise agreed in advance in the preliminary purchase agreement. ITP:
Impuesto sobre Transmisiones Patrimoniales (Property Transfer Tax): This tax will be levied on you if the property purchased́ is not new and represents between 6 and 10% of the property's sale price.
If you are buying a new property, you will have to pay VAT (IVA in Spanish), which amounts to 10% of the sale price of the property.
If you are the owner of a property belonging to a condominiuḿ, you will have to pay the corresponding part of the maintenance and cleaning of common areas, lift charges if there is one, ... . For similar services, co-ownership charges are generally much more reasonable in Spain than in France or Belgium. For example, for a 2-bedroom, 50m2 flat in a residence built in the 2000s, with a swimming pool, garden and car park, co-ownership chargeś average between 80 and 150 euros per month.
If you are moving to Spain for more than 6 months, your vehicle will need a Spanish number plate. To make the change, here are the steps you need to take:
- Passing the roadworthiness test in Spain: ITV (make an appointment online beforehand) at an approved centre.
- Once you have passed this check, you will be issued with a compliance form and a certificate setting out the specifications.
- The sticker and ITV card will be sent to your home address by post. The sticker should be affixed to your windscreen where it can be seen.
- Make an appointment at the DGT (Direction Générale de Traffic; http://www.dgt.es) with the "Solicitud de Matriculacion - 9.03" form, duly completed and signed.
- Once this process is complete, you will be issued with the vehicle registration document, which you can use to register the vehicle in Spain.
ITP: If you buy a second-hand property in Spain, you will have to pay ITP (wealth transfer tax), a tax equivalent to registration duty in France.) This corresponds to 10% of the sale price of the property. If you are buying a new house or flat, you will not have to pay this tax. However, you will have to pay IVA (the equivalent of VAT in France), amounting to 10 % of the sale price of the property. Property tax in Spain is between 30 % and 60 % lower than in France or Belgium.
IRNR: Income tax for non-residents (IRNR) differs if the property is let by
third parties or not.
- If the property is rented out, the tax is 19% on the net income, which corresponds to the rental income minus the expenses incurred on the property. In Spain, these expenses can be deducted from rental income: the cost of cleaning communal areas, stairs, entrance, lift maintenance, rubbish collection and electricity.
- If the property is not rented out, IRNR tax will be calculated on the basis of the cadastral value multiplied by 1.1%. In practical terms, for a property built in the 1980s, with a surface area of 50 m2 and 2 bedrooms, the cadastral value could be 50,000 euros. This tax is applied to this €50,000, which corresponds to an IRNR tax of €500 a year, which is still very affordable and will be quickly repaid by the annuities obtained. There is no council tax in Spain, but this tax on the income of homeowners abroad could come close to the same concept.
IBI: The owner will also have to pay IBI (Impôt sur les Biens et Immeubles) in Spain, which is the same as property tax in France and is derisory compared with the French system. A 50m2, 2-bedroom flat by the sea dating from the 1980s could have an IBI of between €200 and €600 a year.
In general, Spanish taxation is lower than in French-speaking countries, which is increasingly attracting foreign buyers to set up home in Spain.
Many owners of a flat or house in Spain have decided to rent out their property to ensure an annual income or simply to offset their costs. Rental management of the property may be carried out by the individual owner or by a property management company. The average rental management fee charged by an agency is 25% of the income obtained. These can rise to 40% depending on the area and the services included in the contract.
You can rent a flat or house in Spain, on the Mediterranean coast, on a year-round basis or by the week (during holiday periods). The return on a purely rental property (rented on a year-round basis) is between 5 and 6 % gross. If the property is used for mixed purposes (weekly rental during the season and use of the property by the owner), the return could be as low as 3 or 4 % gross.
For a Spanish tax resident: Tax on rental income is approximately 20 to 22%, depending on the total income declared (property income and all the income of the person declaring the income).
For non-Spanish tax residents: Income tax for non-residents (IRNR) is 19% on net income (rental income minus co-ownership costs). In Spain, these costs can be deducted from rental income.
There is no council tax in Spain, but the income tax for non-residents (IRNR) could go some way back to the same concept.
The owner will also have to pay IBI, the Spanish Property and Buildings Tax.
Buying and renting a flat or house in Spain with a view to letting it out is much more profitable than in France, for example, because the income is less taxed and the annual costs of ownership are much lower.
Document issued by the Property Registry. This informative note describes the property and identifies the current owner. It also certifies whether there are any outstanding charges.
In Spain, the notary has a limited role in the property purchase process. Unlike in other countries, he only intervenes at the time of the deed of sale. He will then certify the identity and legal capacity of the parties involved. He will ensure that the title to the property is correctly registered. He will also check the property's mortgage and charges register, land tax and land registry.
Acheter Malin Espagne will take care of compiling all the documents required for notarisation before signing (the notary requires them, but does not take care of compiling them).
It is compulsory to obtain an NIE in order to reside in Spain and to carry out any property transaction. It must appear on all public documents sent or forwarded to you, as well as on all your requests to the authorities.
The NIE, the identification number for foreign nationals, is personal, unique and exclusive. It is issued by the Spanish Police Headquarters.
The NIE is not an identity document. It is therefore only valid if accompanied́ by a national identity document or passport.
The NIE must be applied for personally by the person concerned at a Spanish National Police Station or at the Spanish Consulate in their country of residence.
You will need to present the following documents:
- Your valid passport or identity document
- Printed and correctly completed Ex15 form
- Form 790
- Proof of the reason for the request
The cost of obtaining an NIE is approximately €20. Acheter Malin Spain can also arrange for you to obtain this NIE via the service of an approved administrator, in which case the NIE is obtained remotely (approximate cost of the service: €150 per NIE).
You have two options: borrow in your own country or in Spain.
If you decide to apply for a loan in France, for example, for a property purchase in Spain, you will need to own a property that is exempt from all charges and bank loans. Under this condition, your bank will ask you to mortgage your flat or house in France as collateral. The mortgage guarantee for the new property will therefore relate to the property acquired.
If you decide to take out a loan in Spain, you should be aware that there are very few French-speaking banks in the country that can manage a loan for property purchase. Targobank, part of the Crédit Mutuel group, and CIC Interbanco are the best known and have branches directly in Spain. Online, Selfbank, part of the Boursorama group, also offers financing services.
In terms of procedure, the amount of the loan will be paid into the French bank account, which will then be transferred to the Spanish bank account for the purchase transaction. For future buyers who are not tax residents of Spain, the mortgage loan can only cover a maximum of 60 to 70 % of the appraised value of the property. If you can prove that you have family ties in Spain, have a guarantor or are a joint account holder with a resident, the percentage of the purchase value may be increased, or even equal to that offered to residents. The loan is repayable over a maximum of 25 years and can be taken out before the age of 65.
It is a reference institution in legal terms, concerning real estate in Spain. Thanks to the cadastral number, we can obtain information about the owner and the property for sale. We can find out whether the owner is actually the person who intends to sell the property. If it is a married person, we need to find out what their matrimonial regime is, depending on their nationality, to see whether they can sell alone or need the consent of their spouse. In addition, we can find out about all the charges associated with the property in the land register (mortgages, easements, seizures, preventive annotations, etc.) to avoid any nasty surprises.
Return on rental property
The Spanish public health system is free. It works by bringing together general practitioners and paediatricians in public clinics known as "centros de salud", or CAP "centro d'atencio primària" in Catalonia.
There is only one possible route to free care, which starts systematically with the GP at the health centre and must continue with the public health service. At the pharmacy, part of the cost of medicines will be covered. The extent to which this is covered depends on the chronic nature of the illness, whether or not the patient is active, and the patient's income.
The private health mutual in Spain is a parallel entity to the public system, with its own GPs, specialists and even hospitals. The insurance companies draw up a private contract, the amount of which determines the level of services that can be provided at no extra cost. They provide their customers with a list of affiliated GPs, which the patient can call on. There are several types of contract, depending on the services and family members you wish to cover.
Once you have obtained your NIE, you can apply to register with the Spanish social security system.
Applications must first be made to the Social Security Treasury (Trésorerie Générale de la Sécurité Sociale) in your place of residence.
You will need to provide the following documents:
- Your ID + a photocopy
- Your NIE + a photocopy
- Your Empadronamiento certificate
- Form TA-1 if you are working: download here: http://www.seg-social.es
- For pensioners: form S1, duly completed and signed.
You will be issued with a social security registration document, with your corresponding number.
Next, you will need to go to the Health Centre to which you belong to apply for the "tarjeta sanitaria", or Spanish health insurance card. At the same time, you will be assigned your GP. The health card will give you access to care throughout the Spanish public system.
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