1. Understanding Spanish Property Tax (ITP)
When buying resale property in Spain, you'll pay the Impuesto de Transmisiones Patrimoniales (ITP), typically 8-10% of the purchase price depending on the region. For new-build properties, you'll pay VAT (IVA) at 10% plus stamp duty (AJD) at 1-1.5%.
2. Energy Performance Certificates
All properties for sale or rent in Spain must have an Energy Performance Certificate (Certificado de Eficiencia Energetica). This rates the property from A (most efficient) to G (least efficient) for both energy consumption and CO2 emissions.
3. Getting Your NIE Number
Foreign buyers need a Numero de Identidad de Extranjero (NIE) to purchase property in Spain. You can apply at a Spanish police station or consulate. The process typically takes 2-4 weeks.
4. Mortgages in Spain
Spanish banks typically offer mortgages of up to 70-80% of the property value for non-residents. Interest rates are around 3-4%, with terms of up to 25-30 years. You'll need proof of income and a good credit history.
5. The Buying Process
The typical property purchase in Spain involves: 1) Finding a property, 2) Making an offer, 3) Signing a reservation contract with deposit, 4) Due diligence and legal checks, 5) Signing the private purchase contract (contrato de arras), 6) Completing at the notary with escritura publica.