Guide to buying a home on the Costa Blanca North
Buying a property in Spain, is one of the largest investments that are usually made, the fact of acquiring a home in a country other than your own can generate doubts and seem a complicated task, we always advise you on all administrative procedures to follow in every moment.
Buying a property for a habitual residence, second residence or investment for rent, with Holidaydream Homes Costa Blanca real estate, is not a concern for you, rather it should always be a satisfactory, exciting, pleasant and stress-free experience!
Spain is a member of the European Union and has a strong legal system in real estate law and notarial law. With our help and that of our lawyers, the acquisition / buy a property is legally safe in Spain.
The citizens of the Member States of the European Union (EU) are not subject to any restrictions to buy a property in Spain. For citizens outside the EU must take into account some peculiarities, but in principle, the acquisition of a property is not a problem.
In Holidaydream our goal is to make your purchase as easy as possible and without complications.
Steps to make for the purchase / sale
Foreign citizens in Spain the only requirement for the purchase of a home is to have the N.I.E. (identification number for foreigners), there is no other special requirement for the purchase of a home.
Spanish citizens only need the DNI (National Identity Document) in force
The current Spanish system, based on close collaboration between the Notary and the Property Registry, gives you maximum legal certainty.
Once you have chosen your property and agreed to the purchase price, you must reserve the property with a reservation deposit to withdraw the property from the market and secure the price for both the buyer and the seller.
The amount of reservation deposit depends on the type of property. The reservation deposit is normally € 3,000 to € 5,000. This money will not be delivered to the seller until all legal documentation is confirmed.
Purchase contract and reservation deposit
When all the documentation is correct, the private purchase contract is drawn up and delivered to both parties for them to sign, once it has been signed, the reservation deposit is made up of 10% of the agreed purchase price, less the Reservation deposit, which is deducted from the final payment when the Notary goes and a Public Deed of Sale is made and the property rights pass to the buyer. The Public Deed of Sale is drawn up by the Notary is a prerequisite to the registration of the Property.
In the private contract, all agreed terms, sale price, inventory, payment method, date of writing, etc. must be written.
Notary / Registry of Property
Before signing the Deed of Sale, notaries ask the property registration a simple note of the property they will buy, with this document, the property is reserved for five days. If other notaries requested a Simple Note, it would be rejected.
The buyer and seller must identify themselves to the Notary and can only be represented by a power of attorney. The notary reads the sales contract prepared a few days before the signing, with all the verified data, Cadastral reference, be paid local taxes IBI (property taxes) Pick-up of solid waste, Certificate Energetics, agreed the price with the deduction of deposit paid in advance.
Payment can only be done with a certified bank check. not cash.
After the signing of all parties and the notary, the property is the name of the buyer.
The same day the notice sent electronically to the Land Registry information to be registered in your name.
After the appointment with the notary, the property is registered in the office of the Land Registry on behalf of the new owner, which guarantees, under European law, absolute protection of their property rights.
Purchase and acquisition costs of a property in the north of the Costa Blanca Spain
Buyer pays the legal and registration expenses of the property. Disaggregated as follows:
In the purchase of a (already built) second-hand property, the buyer pays the Impuesto de Transmisiones Patrimoniales (ITP).
Law 11/2021 on measures to prevent and combat tax fraud, published on July 10, 2021, modifies the concept of the tax base of the Impuesto de Transmisiones Patrimoniales (ITP), creating a new concept that is the reference value.
From January 1, 2022, the Impuesto de Transmisiones Patrimoniales (ITP) of real estate will be calculated and settled at its reference value, which will be determined by the General Directorate of the Cadastre and will be informed by the Notary before the sale of the property. or for the declared value of the purchase, which will be +10%, for the settlement of this tax the highest amount will always be used.
In the purchase of new construction 10% VAT (Value Added Tax) plus 1.5%, from A.J.D. (Documented Legal Acts) of the value of the property.
In the purchase of a plot of 1st transmission, the buyer pays the 21% VAT (Value Added Tax) regardless of whether it is in the name of a company or individual.
In the purchase of a plot of 2nd transmission, the buyer pays the tax of 10% (Transmission Tax ITP) of the value of the plot, regardless of whether it is in the name of a company or individual
Plus, the expenses of Notary and registration, ± 1.500 - 2.000€
The cost of real estate agent commission is included in the sale price, unless otherwise agreed in the negotiations.
Future expenditures annually
IBI (property tax) This tax is 0.4 to 0.7% of the appraised value, depending on the municipality.
Solid waste collection (garbage)
These taxes are paid annually in the fall and is based on a percentage of the appraised value of the property, its estimate is subject to local regulations.
Sonya González and José Luis Nieto
CEO | Founding partners | Sales managers
"Holidaydream Homes Costa Blanca real estate"
Costa Blanca, Moraira, Benissa, Dénia, Jávea, Calpe, Altea, Benitachell, Polop, Finestrat y Benidorm