Luxury properties in Spain are increasingly drawing attention from individuals looking to purchase a vacation home. However, when investing in real estate abroad, it’s crucial to rely on the expertise and experience of professionals. This approach ensures a smooth buying process and helps avoid potential pitfalls arising from unfamiliarity with the local market or legal system.
Why Spain?
The stable real estate market, beautiful weather, Mediterranean cuisine, and safety are just some of the factors attracting Polish investors to the Iberian Peninsula. A standout destination is the picturesque Costa del Sol, offering almost 320 sunny days a year, sandy beaches, tourist attractions, and a wide range of properties.
While searching for the perfect apartment or villa, you may come across deals that seem too good to be true. To make sound decisions, it’s wise to exercise caution and common sense. The best course of action is to work with a reputable agency. Professionals will help you select the best property, guide you through the purchasing process, and even assist with optimal property management if needed.
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Legal Considerations
EU citizens can purchase property in Spain, but obtaining an NIE (Foreigner Identification Number) is required for the transaction. Poles can secure this number through the Spanish Embassy in Warsaw or at a local police station in Spain. It is also possible to delegate this task to a lawyer or trusted individual, provided they have notarial authorization and a verified copy of the client's ID or passport. Additionally, a Spanish bank account is necessary. Foreign investors may also finance the purchase through a local bank mortgage.
Spain's unique legal system can be challenging to navigate, especially if you don’t speak the language. Local experts can guide you through the buying process, advising on what to watch for and which contractual clauses to avoid. Hiring legal assistance ensures a professional supervises the entire transaction, provides tax advice, and explains Spanish inheritance laws. Together with the real estate agent, they will represent you and clearly explain each stage so you fully understand the documents you sign.
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Taxes and Additional Costs
Apart from the purchase price, additional costs such as taxes, registration fees, and notary fees should be factored into your budget.
For secondary market properties, transfer tax rates range from 6% to 10% across Spain, except on the Costa Blanca (outside Murcia), where the tax is a flat 10%. In Andalusia, the rate is 7% regardless of the property value. For new properties, buyers face a VAT rate of 10% and a legal acts tax of 1.2% of the purchase price. Additionally, notary fees depend on the property’s value, while land registry fees amount to about 60% of the notary fees. If a mortgage is involved, valuation fees, legal acts taxes, and bank commissions also apply.
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Currency Exchange Fluctuations
Foreign investors need to convert their currency into euros, and exchange rates can fluctuate significantly. Even minor changes in the rate can have a considerable impact when purchasing a villa or apartment. Professionals guiding you through the process can advise on the optimal time to exchange currency.
Financial Security
Properties listed by reputable real estate agencies are thoroughly vetted for financial and legal security. Choosing a verified home is especially important given the issue of ocupas—illegal occupants. When purchasing a property with professional assistance, you can rest assured that even a bargain price isn’t hiding a trap.
Interested in owning a piece of Spain’s paradise? Explore properties in Marbella, the Costa del Sol, or those with breathtaking sea views to turn your dream into reality.
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