Buying a property in Spain
If you have chosen Spain as a second home or as an habitual residence and you want to buy a property, it is normal that you have doubts. In today’s post we will review the steps you should take to purchase a home at AMA Residences Andalucia as a foreign buyer and the different ways in which we could accompany you during the process.
The NIE: an essential requirement
The NIE or Foreigners Identification Number is a number assigned individually to each person, unique and non-transferable. It is necessary to carry out any transaction in Spain and, of course, to buy a house.
To apply for it you have several options, depending on whether you are in Spain or if you apply from your country of origin.
- From Spain, you can request it by going to a police station.
- In any other country, you can apply at the Spanish Embassy or Consulate or through a power of attorney that we can help prepare for you.
Once you have been assigned this identification number, you will be ready to take the next step.
Spanish taxes on the purchase of a property
When you buy an apartment or a villa at AMA Residences Andalucía you have to pay the Transfer Tax or ITP. In the case of our properties, as they are in Andalusia, the tax is in principle 8% of the value of the property.
After deciding on a property, it is best to point it out with what is called a “deposit contract”, in order not to lose the opportunity to buy your dream home. The rest will be paid at the signing of the public deed before a notary.
In addition to these taxes, there is another series of expenses that you must take into account, as stipulated by law:
- Notary expenses for the public deed. The final price will depend on the value of the property and can range from 800 to 1000 euros.
- Registration in the Land Registry. The fees are fixed by regulations and depend directly on the price of the property, although they are usually between 400 and 650 euros.
- Handling costs. Around 300 euros.
- In the case of a mortgage, the appraisal required by the bank and some opening fee if the financial institution has one.
- Property Tax: annual tax ranging from 500 to 700 euros for the largest units within the resort such as villas and penthouses. It is not an expense that is paid at the time of purchase but it must be contemplated since it is paid annually in September on the current year.
Applying for a mortgage in Spain
Spain is one of the most advantageous places to finance a property for a foreign resident. Compared to other European countries, tax rates are very low, which makes it quite easy to get financing. Any person between the ages of 18 and 70 can apply for a mortgage from a bank, although whether it is granted will depend on the applicant’s income and employment situation. Normally the mortgage is granted for up to 60-70% of the value of the property for non-residents. For residents in Spain the percentage may be higher.
To know exactly the conditions of the mortgage, we have an in-house mortgage advisor that will seek the best option in each situation. In any case, you will be able to establish payment terms between 5 and 30 years, depending on your circumstances.
Your home in AMA Residences Andalucía, with all the facilities
At AMA Residences Andalucia we do our best to make our residents live as comfortably as possible, putting at their disposal all the facilities. This philosophy also applies to the sale of our homes, where you can count on:
- Trilingual staff (Spanish-English-Dutch) to solve any doubt regarding the villas and apartments or the process you should follow to buy them.
- A financial and legal advisor, who will be able to guide you on how to obtain your NIE or do a study on the different mortgages you have at your disposal.
- Clarity and transparency about everything that is included in the final price.
- Decoration service and possibility to buy your property fully furnished, so you can enjoy it from the first moment.
- Visit our show houses, so you can know the privileged location of the resort, the distribution of the houses, the quality of the finishes, etc.
- Possibility to enjoy the services and comforts of the AMA resort, located next to the houses.
- Living in one of the best areas in Spain for those who are looking for peace and relaxation. We have already spoken on numerous occasions about the advantages of living on the coast of Huelva, in the south of Spain, where the hours of light and the climate are enviable.
If you are weighing up your options for buying a new home, give us a call and come visit us. We will gladly show you all the advantages of living permanently in this magical corner of Spain which is AMA Residences Andalucía.
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