What do I need to know before buying
When you find your property there are of course a number of questions. Below are some of the most frequently asked questions.
How do I finance my property?
Generally you are not able to have a mortgage in your home country with the Spanish property as security. Of course you are able to arrange with a loan in your home country with your local property as security. An exception is the Danish bank Nykredit with local agents in Spain where you can have a mortgage with your Spanish property as security. Nykredit allows mortgages up to 70% of the property value and the interest is deductible in your home country. A Spanish bank is also an alternative and the mortgage can be up to 60% of the value for nonresidents (70% for residents).
We assist you to contact the banks and to find a suitable financing solution for you.
How high are the maintenance costs?
The maintenance costs for your property in Spain are of course depending on what kind of property you buy and how much you use it. Normally the total monthly cost is approx. 150-200 EUR for a 2 bedroom apartment. The cost include the fee to the urbanization, electricity, water, insurance and taxes. We can assist you in opening a Spanish bank account to be able to pay your bills.
Where do I pay tax?
You do not pay tax for your property in your home country. In Spain the tax is based on the taxation value and are different from a municipal to a another but is in the range of 0,4-1,1%. In addition there is also a tax of 0,5% to the central government.
What is NIE number ?
To be able to buy a property in Spain you have to be registered and have a personal taxation identification number, NIE number. We can help you with this and accompany you to the police station to get this. The cost for this is approximately 100 EUR.
When do I pay?
In connection with signing the contract you have to pay a reservation fee normally approx. 5000 EUR (if its not a new build). The final payment is normally done at the notary office when the deed is written. Costs in addition to the price of the property are approx. 11% in fees and taxes.