FAQ’S

When buying a property, it is not mandatory to hire the services of a lawyer or legal advisor. However, it is highly recommended, especially for non-residents in Spain, who may have very different laws in their home countries regarding property purchases.

Good legal and tax advice will help you make the best financial decisions and address other aspects such as property ownership, applicable taxes, future inheritances or donations, property taxes, etc.

In the case of non-resident citizens in Spain, the advisor will also help with the extra procedures involved in buying a property in Spain, such as obtaining a NIE number and handling non-resident tax obligations, among other things.

The notary is a public official of the state whose role is to provide citizens with the legal certainty guaranteed by the Spanish Constitution in Article 9, in the realm of extrajudicial legal transactions. At the same time, the notary is a legal professional who operates in a competitive market. This dual role guarantees their independence.

The notary has the authority to authenticate public acts conducted before them and to draft and guarantee documents such as wills, contracts, inheritances, purchase deeds, etc.

A highly trained professional, the notary is impartial and approachable, helping, advising, and ensuring that your contract adheres to the strictest legality. The notary is a guarantee of legitimacy and security for both individuals and the state.

The sale of a property can only be registered in the Property Registry through a Public Deed signed and certified before a notary.

The NIE (Foreigner Identity Number) is a national identification number for foreigners, issued by the Ministry of the Interior and managed by the immigration offices of the National Police. The NIE number is purely administrative in nature and does not imply that you have been authorized to reside in Spain. This number never changes; however, the police may request a recently issued copy when buying or selling a property.

To obtain a NIE, you must go to the National Police office that corresponds to the municipality where the property you wish to buy (or sell) is located, bringing your passport, copies of documents and recent passport photos, and the completed corresponding form.

This process is often complicated due to the high demand for NIEs in certain Spanish regions, as well as their varying requirements. That is why we recommend letting your lawyers in Spain handle the process of obtaining a NIE for you. It may cost you a bit more, but ultimately, it will save you hours of waiting and avoid dealing with bureaucracy.

You can also obtain your NIE outside Spain through the consulates of the Ministry of Foreign Affairs of Spain; however, in this case, the process may take longer.

If you buy a new property, the main tax levied is VAT, currently at a rate of 10% for new properties, also applicable to garages and storage rooms bought with the property. VAT is paid directly to the developer at each payment. There is also a second tax, Documented Legal Acts (AJD), which is due at the time of signing the public deed and amounts to 1.5% (in the Valencian Community) of the purchase price of the property.

If you buy a second-hand property, the main tax levied is the Transfer Tax (ITP), currently at a rate of 10% in the Valencian Community. This tax is due at the time of signing the public deed. Since you also have to pay the Notary, Registrar, and Lawyer fees, Maisons de Mer recommends calculating about 13% of the net price of the property to know the total cost of the purchase.

In general, maintaining a property on the coast does not involve significant additional costs. Besides the general maintenance expenses, such as water and electricity bills, the annual costs in the form of taxes and other fees depend on the size of the apartment and the type of property.

• Property Tax (IBI): This is a local tax levied on the apartment, regardless of who owns it. It is calculated based on the cadastral value (an administrative value that is usually lower than the market value, sometimes significantly so), to which percentages set by the corresponding City Council are applied. Generally, it costs between 150 and 400 euros per year.
• Personal Income Tax (IRPF): If your new home is your main residence, it will be exempt from IRPF. If, on the other hand, it is a second home, it will constitute what is called an imputed real estate income in the IRPF declaration. The taxable base of the imputed income will be 1.1% of the cadastral value if it has been revised, 2% if it has not, or 1.1% of 50% of the purchase price if the property has not yet been assigned a cadastral value.
• Community of Property Owners: If a property is part of a complex, urbanization, or building with common areas, each owner is legally required to be a member of the Community of Property Owners. The annual maintenance costs of the community are approved at the general meeting, and each owner pays a fee, usually between 45 and 120 euros per month.
• Insurance: The cost of home insurance varies depending on the characteristics of the property and its equipment, and generally ranges from 180 € to 380 € per year.

Spanish banks and some foreign entities are willing to finance the purchase of a property in Spain, and the requirements for obtaining a mortgage are well defined:

• The debt-to-income ratio must not exceed 30% of net income.
• The amount to be mortgaged must not exceed 70% of the lower of the appraised value of the property and its purchase price.
• The age of the youngest applicant, added to the maximum loan repayment term, must not exceed 75 years.

The most common mortgage will be indexed to the EURIBOR, with a margin currently ranging between 3% and 5%, depending on the entity, and will fluctuate according to the EURIBOR at the time of review.

More and more fixed-rate mortgages are being signed at around 4%, which allows you to secure the monthly payment amount without surprises due to interest rate changes.

Although the bank may grant up to 60% of the purchase price, it is advisable to have at least half of the net price of the property available as personal funds. This is due to the fact that the purchase involves legal fees and taxes that amount to about 13%, and you must also consider a budget for furnishing the property.

It is not strictly necessary but highly recommended to use a real estate agency to help you choose the ideal apartment. A good agency will know how to recommend the best developers and provide independent advice on each one.

Using an agency experienced in the type of property you want to buy will provide additional assurance that the entire process will go smoothly.

• Time and money savings: A good agency will make a preliminary selection based on your requirements and preferences.
• Greater security: An expert real estate agent is knowledgeable about legal regulations and familiar with the projects.
• Knowledge of the areas: They will advise you on the best area to buy according to your needs.
• Real estate agent's experience: They can offer ideas for improvements, decoration, and additional services.
• Economy: Working with an agency does not entail additional costs.
• No language barriers: You will avoid misunderstandings during the buying process.
• After-sales service: The agency will oversee the construction until the keys are handed over.

• Specialized in the type of property you want to buy.
• Proper presentation of the products with descriptive photos and videos.
• Quick response to your questions, listening to your needs.
• Established schedule of guided visits with expert staff.
• After-sales service to oversee the entire process until the property is delivered.
• Well-established in the location where you want to buy.

This is the most effective way to find the ideal property because it optimizes the time spent on visits and, thanks to the constant assistance of a specialized consultant, allows you to visit only the projects that meet your needs, without wasting time and with all questions answered instantly.

It is a planned visit of 2-3 days during which our agency takes care of organizing everything necessary for the property buying process in Spain to be easy and successful.

• Clients ready to buy.
• All decision-makers must be present on the trip.
• Finances confirmed before the trip.
• Commitment to visit only real estate projects with Maisons de Mer.
• Sufficient budget to visit several options.
• Preference for modern and newly built properties.