Maybe you have just started your quest and are in the very curiosity. Or, perhaps you have already decided to invest in real estate and Spain is a logical choice. Maybe you even already have a concrete house on the eye.
With your own considerations for finding the right home, the following criteria can play a role:
- Which region? Secluded, in nature or just a hip city district? The mountains or right on/near the beach?
- Price range, Huisspecifieke wishes like size, number of rooms?
- Permanent or temporary residence?
- (also) investment with rental possibilities or only own use
- (local) Funding opportunities? Mortgage needed? In Spain or still in the Netherlands/Belgium?
Wherever you are in the buying process, it is important to inform you well about how real estate transactions are established in Spain and Mallorca in particular. Consider in this connection:
- A: Administrative and legal aspects
- B: Tax Matters
As a future homeowner (and banker) in Spain you need to request an NIE number (say a BSN number). This can be requested in Spain (on the Politieburo) and takes about 2 weeks. Droomcasas can help you with this if desired.
A disturbance (similar to the Legal Administration office) can also take care of this.
During the sales process, the title deed of the Land Registry (Escritura) must be checked with details of the property and parcel. A stor or a local lawyer can check this.
It is also important to request and verify a Copia/note simple (Owner and mortgage information).
The preliminary purchase agreement is concluded with the local sales broker. This is a similar process as in the Netherlands, however, with the big difference that the buyer usually does a down payment of about 10 to the selling party.
Payment terms are usually dependent on the type of property. Thus, it is common for part payments to take place during the construction process. For new construction where the building phase has been completed, the project developer determined the percentage when signing the preliminary purchase agreement.
On or about the transfer date, the appointment is held at the notary. As usual, this includes the person (buyer/seller) who charges for his/her account. As a rule, this is the same as in the Netherlands, however, Spain has a profit tax on real estate (Plusvalía) that the seller (resident in Spain) has to pay.
You may want to finance the property entirely from your own resources. In the event that you wish to have the financing carried out in whole or in part, a mortgage can be settled in the Netherlands or Spain.
In the Netherlands that could be an extra loan on your first home.
In Spain a mortgage, as a rule, is offered as Annuiteitenhypotheek with the final redemption date 75e year of life. By sharing a mortgage (and ownership) with your children (with your own income) this gives the advantage that the redemption can then be spread over the longer term. Droomcasas has contacts with local (Dutch) Mortgage lenders who can tell you more about this.
B: Tax Matters
Around the purchase and sale of real estate, there are of course some one-off and annual costs that must be taken into account
- This is the transfer tax (ITP) for buyers
- This is the profit tax (Plusvalía) for sellers
- This is the OZB (called IBI in Spain)
- The capital tax (from a registered value of 700K Euro)
- Income tax (IRPF) in the case of rental income for example.
In addition there are also municipality taxes (TASAS) For example for retrieving garbage (impuesto de Basura)