Buy (Sell) Property in Spain
One of the easiest ways to invest in Spain to obtain a Spain residence is to buy real estate in Spain. Purchase of property provides the necessary conditions for a person to stay with his or her family in Spain.
Spain has a fledgling but thriving economy, seeking to attract more foreign investment as it develops its infrastructure. As a result, foreigners can obtain Spanish residency by investing around € 500,000. This residence is very valuable because Spain is one of the important EU countries and the Schengen Agreement. Those who are able to stay in the country can easily enjoy the benefits of free travel to other countries, investing and enjoying Spain’s economic and business conditions and social welfare.
Given the economic growth of Spain in recent years, and the increasing attention of investors to this country, we have seen the rise in house and property prices in Spain in recent years. To the extent that some invest in Spain in order to buy and sell the property and someone by buy older houses or real estate, they do home maintenance or real estate repairs and they sell the property again at a higher price.
Some also buy real estate, reforming, refurbishment or even remodeling the property and re-sell them at a higher price. The Principle of Real Estate Investment in Spain is the entry of a certain amount of capital into Spanish real estate. Buying townhouses or rural and seaside homes and using them as holiday rentals is no different to investing, and It is important that your working capital is flowing to one of the Spanish banks in Spain
The following is a general overview of the terms of buying and selling real estate or renting real estate in Spain.
Spanish Real Estate Guide
This article attempts to provide an overview of the levels of the real estate market that covers all the requirements for real estate investment including title, property title, name of owner, types of real estate in Spain, seller responsibility , How to Sell, Topics, Warnings, Real Estate Taxes, Property Guarantees, Tax Exemptions, Property Value Added Tax, Stamp Tax, Weather Conditions of the Property, External Ownership Terms, Finance and Payments , How to rent Property, and specific laws such as planning, repairs or maintenance and renovations, reforming real estate and refurbishment and remodeling of property, the best places to buy property in Spain, the cost of repairs and maintenance of property, etc. will be included.
Spanish Real Estate Partnership Market
In the last 12 months we have seen an upward trend in the Spanish economy, which has led to good investment in Spanish real estate. Prices in real estate no longer have a negative growth and this has attracted more and more Spanish and foreign investors to buy a home or buy a second home in Spain. The current Spanish economic flows have provided excellent conditions for real estate buy and sales in Spain.
Spain Real estate investment
Different structures can be used depending on the conditions and amount of investment in real estate. In general, real estate investing in Spain should be done directly by a real estate agency or a trading company.
There are a number of different ways to invest in Spain. For example:
- Using a special regime in real estate investment called Equity Regime in Spain or REIT, which provides the opportunity to contribute to taxable profits from dividend distribution.
- Using a special regime for people with citizenship opportunities
- Using a special regime for individual bank funds. These funds are essential for participation in Spain and are known as SAREBs. SAREB are companies that provide government funding to banks in critical condition. Foreign investors will not be required to pay taxes on these projects.
Access to government banking resources for buy real estate in Spain has been legal since 2007, but is limited to some. Only people who can make good financial investments in Spain can use these loans and government borrowings and take advantage of opportunities in the Spanish real estate market, unfortunately genuine investors are usually less likely to use these facilities.
The financial industry rules for renewable energy projects have changed fundamentally, meaning that access to these opportunities is only possible through financing. The repayment conditions the government previously had to invest in this sector and the funding it provided for these projects are no longer a reliable method. Therefore, investment in this field has been seen by companies and individuals as a viable alternative.
Restrictions on foreign ownership or employment in Spain
Concerns about investing in Spain are limitations on foreign ownership of the property they buy. And is there a guarantee of security and employment and even getting loans and buying real estate in this country for foreigners?
In response to these questions and concerns, there are generally no restrictions on foreign ownership of real estate by both real and legal persons. However, the following should be kept in mind:
- The investor must make a pledge in the foreign investment registration form that the capital coming to Spain from another country will include payment of tax in the country for 6 months.
- The military should have adequate oversight of investment in real estate that is strategically sensitive, such as schools and military installations, and approve the subject of investment. Failure to comply with these rules may result in penalties for the investor.
- The buyer must provide the details of his bank account for his sources of fundraising.
- The buyer must present an ID card of the party or company he / she is investing in if he / she is willing to invest as a representative of a company or party.
- Foreigners must carry their NIE’s foreigner’s identification card.
- Foreign legal entities must present their well-known CIF card.
Except for money laundering regulations, there are no specific restrictions on investment or guarantee of investment as well as loans and facilities for foreigners.
Real Estate Title
The next item is the real estate licenses and legal documents required in your area of residence. And can different real estate be bought in the name of other person, or should each property and building be bought in the name of one person and under a separate name?
The title filed for real estate in Spain includes a plan to be implemented on this land. Each plan is considered an asset. Each registered property is a legal object and has separate licenses and titles in Spanish Property Law and all the information on this piece of land is registered with the Spanish Registry for this land as land. This title in Spanish law indicates whether this land is an office building, residential, garden, farm or other. Each property must be listed in a separate document and be known as the title of the property.
But which institution in Spain is responsible for naming and titling real estate? And in which organization are these cases determined? Is there an electronic process for this or is there a need to name the property and name it and what is the solution?
Land and property records show evidence of land title. Spain’s land and property registration system is completely unique, formal and efficient. The system is accurate enough to give the parties involved in the land transaction legal certainty. All the necessary procedures for registering the land and naming the land and property are carried out by the Spanish Property and Property Registration Agency. Experts from the organization themselves individually monitor the ground conditions and obtain the necessary assurance.
The name registered with the Spanish Land and Property Registrar takes precedence over any other right or claim.
The organization also collects the necessary privileges for a property, such as building permits, or development and expansion for specific purposes. Anyone with the necessary documentation and legal requirements can apply for a property registration. The Spanish real estate registration fee must be applied by the applicant.
It is not possible to change the ownership of the land and provide the necessary documents to change and rename the land through electronic ports. Transfers of real estate in Spain must first take place in the official government offices in Spain, and then, by providing the necessary documents, be converted into ownership by the two parties to the transaction in the Notaries office.
The process of registering real estate in Spain
Notaries are responsible for registering, changing ownership or terminating any transfer and conflict for land, notary offices, under Spanish law. After the preparations have been made, the tax authorities will consider transferring and registering the land to pay for all land tax costs.
The issue of land transfer should be published in a public journal and included in the property ownership document. Once the property ownership assignment has been determined, the property can be divided and transferred to several individuals separately. Land distribution must also be registered with the public authorities and printed in public newspapers.
What are the main information and documents to be published in the journal, and can some confidential information be published in these newspapers?
The following occur during land registration:
- Registration of legal or administrative contracts or resolutions affecting property and other real estate rights
- Recording legal decisions that may affect a person’s ownership of the land
- Various types of land and property changes such as land use changes, land ownership and other owner-related rights.
Land registration includes the following for each property title:
- Landowner details
- Total land area
- Property description and related properties
- Soil type
Applicants can request access to land information from the Registry. The person requesting the land information must demonstrate his or her legal or real ownership of the property by submitting documents.
Is there a government guarantee for real estate? And that if you provide wrong information about the land, and deal with these mistakes you will be subject to compensation and so on? And is there an insurance policy for the property and a guarantee for these transfers?
The government makes no guarantees about the title declared for the land. But under Spanish law, land titles registrars are responsible for the information they provide, and land registrars themselves can guarantee the title of land when transferring land, although such disagreements are rare.
How to find out about other possible land ownership and other land rights?
The types of property categories in Spanish real estate include:
- Full ownership of a property such as ownership of one person over a property
- Partial ownership of the property such as the right to use the property. In this case, the owner of the property is still recognized as the primary owner, but the use of this property and the advantages of using it reaches to third parties or persons.
Spanish law makes a distinction Spanish law between ownership categories and the rights to the property guarantee, such as liabilities, loans, facilities, etc.
An unlimited amount of rights to own a property can occur, including:
- Use the property
- Living in the property
- Use of land for cultivation for a specified period
- Government use
Not all land and real estate rights are registered in the Land Registry. For example, rights to services that will be paid to the landowner by law, such as the right to water.
Real Estate Sale in Spain
What are the initial agreements for the sale of land and property in Spain? Do these agreements have legal effect?
Agreements as collateral and prepayment, usually existing in Spain, are known as preliminary agreements. Buyer declares his intention to finalize the purchase of the property in accordance with an agreement. This amount will be deducted from the original amount when depositing or pledging the contract. Initial agreements and payment of bail are legally allowed. Legal consequences and legal follow-up can happen if the agreement fails.
To this end, consider the following:
- The buyer may lose his or her deposit if it breaches the purchase agreement and this is a condition.
- The seller must refund the amount twice to the buyer in case of breach of the original agreement.
Different parties may also have initial agreements for the sale of the property provided that these properties are published in the major newspapers. It is legal for parties to use preliminary agreements, but there should be no third parties involved in the land registration.
Spanish land sales contract
A summary of real estate deals in Spain should be found in any property transfer contract with any real estate agency or property transfer company.
The main provisions of a property purchase agreement are:
- The main name and profile of the buyer and seller of the property
- A complete description of the property and the properties and assets of the property
- Government price
- Record any payment and payment terms and agreements and obligations of the parties to the land transaction.
The reason for doing the land transaction with all the details and utmost precision
Why is land transfer and land registration done so carefully in spain? And all the key issues are there? Which documents are routinely reviewed? Which specialties do consultants usually include in contracts? And what reports are usually made when moving property in?
There is no obligation for the buyer to provide all the details and essentials in the contract. Legal transfer of real estate only requires a simple examination of the property and legal matters relating to the land. The details and key points that are commonly found in a contract are:
- Any restrictions, obligations and rights of the citizen that may be associated with real estate.
- More rights to real estate
- Compliance with any regulations relating to the specific use of the property. For example, it could be an adaptation of land to environmental conditions.
Guarantees given by the Spanish real estate seller
What are the obligations and guarantees the seller usually has on the property being sold in Spain? What are the restrictions on the seller’s warranty and should they disclose it if there are certain conditions for the land?
The original documents filed with the Spanish Land and Property Registry reflect the buyer who should be aware. For example:
- Whether the land is in a mortgage or seizure
- How has the land tax paid in the past four years (the government cannot claim tax for periods prior to four years)
- Reports on town planning whether there are costs for development or other land use or whether there is another plan for the property.
Real estate agencies may receive a pledge from the seller that the use of the property is permitted for any type of request, or that there is no specific plan for the land. Sometimes the parties agree that the seller is responsible for any particular circumstances. However, this is by no means mandatory and the seller may not accept it.
Land Related Obligations
Does the seller have a legal obligation to the buyer if the land is in trouble?
Construction developers in Spain are responsible for anything that may happen to the building when the land is built. These companies have legal responsibility for the land for up to two years and for over ten years they will be responsible for the construction of the building itself.
The Spanish Civil Code contains a set of laws that protect the buyer against the seller. Buyers can usually sue sellers for any secrecy or defect in the transaction.
However, sellers will have no obligation to the buyer if the government has disclaimed the property after the transaction. Property information shows who owns the property, and whether the property is currently occupied. But buyers will not know if there is a change of plan for the future expropriation of this property.
Generally, the environmental laws and potential liability of the property for the buyer when buying property are explained. As of June 1, 2013, each seller is required to provide the buyer with a performance certificate. Energy Performance Certificate is a document set up by an expert, which certifies the energy performance of a building, home or town house or any other building for normal energy use. This certificate includes assessments of water energy consumption, heating, lighting, refrigeration or cooling systems, ventilation and more. This certificate from A to G grade the building usage.
The buyer before buy property in Spain must make all necessary checks to ensure that the property conditions are in compliance with environmental regulations. A buyer is also required to do all the necessary checks to see if the building he is looking for is suitable for any possible activity.
Real estate can have different obligations and responsibilities. In this case, if the land or property has debts, the seller or landlord can promise to repay those debts. But if the seller and the previous owner fail to pay their debt, the creditor can claim the land for himself and this will not be relevant to the landlord at the time of the petition.
The seller and the buyer may agree to accept the debt themselves from the seller, but they must bear in mind that there is no third party to be present at the time the lawsuit is filed. In this case, the only person the buyer will face after the lawsuit is the seller himself.
In other cases real estate can only include liabilities related to property registration and transfer costs.
Hierarchy of completion of the real estate contract in Spain
What documentation is needed to enter into a real estate contract? How the property renamed and what is are the requirements to be found in the contract?
In Spain, special rules and regulations must be followed for the transfer of official and movable property. This transfer is done by trading companies, and their motto is to pay cash for the key to the property. Transfers of property do not affect third parties as long as there is a need to register the property. Document transfer should be done at the notary. The document must be filed with the notary.
The notary shall obtain the identity of the witnesses and attendees, and the ownership documents and certificates and documents relating to the land showing all financial and tax obligations of the land.
Real estate tax in Spain
Property Transfer Tax
The buyer must pay the land transfer tax when the property is not traded in the transaction. VAT is levied on certain transactions when the land has changed.
Transfers of state and corporate property are also subject to tax with the following conditions:
- Controlling the changes of the company during the transfer of the property
- The Company’s property or assets comprise 50% of the Company’s assets.
Property tax penalty
If it becomes clear at the time of the transfer of property in Spain that the previous owner of the property has a tax liability, no tax penalties or stamps will be charged. A tax penalty is considered when dealing with a VAT violation in a transaction. The rate of tax penalty spending varies by region.
In some cases tax exemptions or tax deductions may be applied when transferring property. However, the length of the tax period that must ultimately be paid for the property will not exceed 4 years.
But when is the property tax deducted?
If the seller sells property that is owned by a corporation or employer or has specialized expertise and is engaged in any commercial activity, the transaction will generally be subject to value added tax.
VAT in different circumstances may apply to land. For example, the first time land is sold for housing. But the second-to-the-post transfers are exempt from VAT. The buyer must pay tax at each stage so that he should not pay VAT if he is sold for a second time.
In some cases, the property transferor may be charged with paying VAT on the property, and in addition the contract requires the buyer to pay 10% to 21% of the value added tax depending on the amount of the tax.
All property owners must pay municipal taxes, whether or not the property is used for commercial purposes. Business tax is another type of municipal tax in Spain and may be levied in places where the property is used for commercial purposes.
Climate change issues in the transfer and buy of property
The Spanish government has set specific rules for its tax regime, in order to comply with national and EU requirements, to reduce greenhouse gas emissions. These include:
- Establishing environmental ownership to prevent the use of fossil fuels
- Create tax incentives to encourage the creation of environmentally beneficial projects.
- Requirement for obtaining energy efficient certificates in renovated buildings.
However, whether or not the rules on environmental compliance and energy consumption are met in the contracts, only the buyer or tenant of the property is required to obtain and review the building’s energy use certificates from the previous owner. But to deal with these issues is an unusual thing, and you do not need to.
Real Estate Finance Spain
Secure loans that real estate awards
Usually financial institutions and banks lend to them depending on the amount of capital and funding people have. Mortgages are also provided on the basis of bylaws and official documents of the property, and these documents must be registered with the notary in the name of the borrower. After registering the land in the notaries, the mortgage is given priority to the owner of the property, which is the title deed of the property, not the other third parties. People who want to buy a property in Spain on a loan can first name the property and then apply for a loan.
Banks and lending institutions create their own money security through specific legal processes that give them ownership if they do not repay the installments. The proceeds of the loan, if the property is sold, should be prioritized to transfer the property from the land price.
Lenders are increasingly adding items to their requested documents to guarantee their mortgage. Among the documents required by banks and financial institutions to lend in Spain are:
- Borrowers must provide civil liability insurance as collateral for the loan.
- Mortgages or other non-lending financial assets are provided as collateral by the bank (such as immovable property held in banks).
- Get personal guarantees from the borrower
- Liabilities greater than one’s assets in insurance or funds held by financial institutions.
Mortgages cannot meet other uses, such as environmental ones. If the borrower goes bankrupt, the alternative method of compensation is used. Each concessional mortgage will have a housing value assessment. Therefore, if the borrower goes bankrupt or is unable to pay the loan installments, the bank will, after a legal deadline, auction the property and documents in a public auction in the name of the bank.
The property sold at auction depends on the value of the property, which is defined at the time the loan is signed. This value is actually a guarantee for both parties. Properties lower than the fair value of the property cannot be sold at auction, and the law should not be auctioned. This will depend on location, conditions and more.
Some loan payments for construction projects are guaranteed with the right to receive income and interest on the proceeds from the project. This type of guarantee often occurs in renewable energy projects. For example for the construction of wind farms and solar gardens, biomass and so on.
Other Real Estate Financing Techniques in Spain
Can important papers, worthy documents, sales guarantees, and securities, and other credit documents also be used to finance real estate?
Selling and returning property is another way of financing your property. This is practiced by some Spanish banks and financial institutions, and is not common everywhere. These companies invest by selling their offices or property to their clients, and then return them again if they are not funded. In this way, institutions increase their budget and customers receive only the benefits of participating in bank projects. In fact, this is a kind of participatory approach provided that you are successful in paying the installments.
Renting Real Estate in Spain
Negotiation and leasing of real estate
The terms of the lease agreement can be freely regulated in general. However, Spanish real estate law does set out some requirements for a lease such as the term of the lease and the guarantees.
Property leases can be signed in notaries or privately owned, but it is better to formalize them. To this end, each party must make sure that the lease is registered in the official notaries. When you sign a rental contract in the official notaries, you may be subject to the contract, such as if you have a loss, the amount of damages will be deducted from the amount of the down payment.
Payment of rental house and property
The parties must agree on the amount of the down payment and the rent. If there is no agreement, it is the landlord who determines the amount of rent for each year, and the percentage can also be defined as the annual percentage rent. VAT also depends on whether the property is rented, residential or commercial.
Duration of lease and payment security
Spanish property lease laws have been reduced for three years to improve the labor market and ease of use as well as greater security for property owners. There is also a minimum rental period of 5 years for businesses and companies. This period may be extended at any time for subsequent periods unless either party wishes to continue.
For buy apartments or town house, the homeowner has the right to deduct the cost of the down payment in the event of damage to his property or property.
Conditions for renting property in Spain
Firms and real estate companies are completely free to negotiate with the landlord and can inform the landlord about the outcome. The landlord must explicitly specify the responsibilities and powers of the tenant.
If the tenant wants to transfer his lease to another person, he must notify the landlord in advance. The provisions of the lease must be fully respected by the new tenant until the end of the lease. The new tenant must also prepare and deliver similar obligations and documents to the previous tenant.
The owner of the rented property, whether residential or commercial, is responsible for paying the property tax, and the tenant will have no responsibility whatsoever. The landlord also has to pay other social costs of the property. Of course these costs do not include electricity, gas and telephone costs. The landlord may also agree with the tenant to pay the tenant some social or tax amounts. The landlord is also responsible for third parties and must determine all the obligations and responsibilities of the property at the time of rent.
Maintenance of property and insurance
The tenant is responsible for maintaining and repairing the property when in use. The homeowner can, if he or she needs to repair the property, hand over the property to other people, but the cost of repairs and Maintenance of property must come from the tenant.
Tenants also have liability insurance to cover property damage at the time of the property contract, though this is not mandatory. The tenant can also allow the homeowner to improve the property at any time.
The property owner may need to renovate, remodeling, reforming or refurbishment the property. Some renovations and maintenance or repairing can be made at the tenant’s use, but are not permitted to renovate and restructure the property until the previous tenant has completed the contract.
In general, the tenant should not be charged for the costs of improving the property and is not responsible for it.
Compensation for the homeowner and termination of the lease
A law has recently been passed in Spain that allows the homeowner to terminate the lease if the tenant fails to pay the rent. The tenant must pay the rent at the end of each month or at any specified time, otherwise the landlord may file a non-payment claim.
In any case the tenant cannot refuse to pay the rent. The tenant can also sue the landlord for violating the lease term. The tenant also has to pay the exact amount for the rent and cannot deduct some of it for various reasons.
The landlord must give the tenant exactly the property that is set out in the contract after the contract is concluded and cannot move the tenant to another location.
Control of urban planning and development
In the case of government and local authorities, individuals can purchase private property. If the general conditions so require, government authorities may deprive a person of ownership of the property by paying the legal value specified in the market to the owner.
Expropriation of land in Spain is only permitted by the government and public bodies when national and public interests are at stake. In these cases too, the property owner should be given legal opportunities and specific timing.
Both government and independent societies can have development planning. Development planning is carried out by local authorities.
The urban planning process can be considered by both government officials and property owners. Urban planning has a great deal of flexibility.
Property owners usually have three months to deliver the property since the city plan was announced. Any claim or complaint in this regard can be submitted to the appeals court by the homeowner. Anyone who proves to belong to a government party can participate in urban planning. All city decisions may be appealed in court.
Preliminary agreement to use property in Spain
Decisions about land use are very different and can be very flexible. If no urban planning plan is submitted within three months, the decision can be rejected in court of appeal and the public activity license revoked.
Rights of third parties and their requests
The urban planning process is open to all those interested in such plans and programs and can easily get involved in urban planning. All appeals of city planning by those interested in these types of projects and activities will be reviewed and amended by the appeals court.
Urban infrastructure reform and change
If there are plans and ideas for reforming and revising some urban plans and land uses in Spain for a property or land, the legislator will attempt to respond appropriately to these ideas and opinions.
Recently, mortgage banking laws have been put on the banks’ agenda if debtors still have debt with the bank. The rules on renting the building are also constantly changing and trying to adapt to different conditions.
In the field of real estate in Spain, there have been no significant changes recently, or no plans for changes in this area. But one should expect changes in the real estate legal and legal forecasts to make any changes in this area.
Property types in Spain
Taking into account the above, it should be explained that all the above conditions apply to all types of real estate in Spain and in almost all autonomous regions of Spain.
In Spain, real estate is divided into different categories. These properties are either commercial or residential. In Spain, there are small holiday apartments ranging from large buildings to large acres in the country. There are all kinds of houses, flats, shops, town houses, country houses, beach houses, villas, etc.
Foreigners have bought, renovated or remodeling, refurbishment and build a variety of properties in recent years. Many foreigners are renovating townhouses or villas and rural house, and even building small hotels, bed and breakfast businesses and hostels are becoming more popular.
Here are some of the most important types of real estate in Spain:
The Spaniards themselves live mostly in small and large apartments, and the urban development of the town house has been greatly increased in the form of apartments, especially in places like Benidorm, Loret Lore del Mar, Magaluf and Torremolinos.
Although it is difficult to buy an apartment in these areas due to high demand and it is possible to get an apartment in these areas at a good price. In general, buying and selling apartments in Spain has a very good market.
Apartments in Spain are very diverse. From the 1970s, to the luxurious apartments in Spain you can find. Some are built in the center of the city and some are found on various coasts of Spain. From about € 80,000 for a small one bedroom apartment up to € 1.5 million to buy and sell an apartment in Spain. Most famous areas of Spain have high-priced apartments.
All apartment owners in Spain, regardless of the number and price of their apartments in Spain, are recognized by Spanish law as a member of the Spanish landlord community. For this reason, they must obey the special laws of this society.
The advantage of buying an apartment in Spain can be attributed to the low maintenance cost, high security, having access to public gardens and pools, public playgrounds and more. But keep in mind that buying an apartment in Spain also has its disadvantages, such as the noise of its neighbors, being busy, having less rent, and so on.
Generally, town houses are known as terraced houses, often built in ordinary areas and around public gardens and pools. These types of townhouses are mainly built around large cities. Even in Spain’s coastal resorts, the construction of Mediterranean towns has increased. The designs of these houses may be white or with colored shades.
Large, spacious townhouses are built, and eventually have three to four floors. Garages, storerooms, and solarium terraces are used in these urban homes. Spanish town houses are generally of good quality and have received much attention in recent years.
Town houses in Spain are recognized as community property and must comply with the laws of the community and pay the costs.
The biggest difference between townhouses and urban home is that they are usually built in resorts, on the outskirts of towns or in specific forested and coastal areas. These homes range from € 100,000 to € 800,000 depending on the size and location of the townhouse.
Advantages of townhouses include low maintenance costs, amenities for living, relaxation, gardens and pools and public places, and few neighborhoods. And the disadvantages of buying a townhouses are less safety, being busy on vacation, less access, and more.
Villas in Spain
It is difficult to find a large home in Spanish cities because Spaniards do not usually live in separate houses. But on the Spanish coast, there are many separate houses.
Many wealthy Spanish people have a second home off the coast of Spain. The houses, known as villas, are either completely independent or built in a villa complex off the coast of Spain. For this reason, each villa may have a private garden and pool or use public gardens and pools. There are usually no other buildings around the villa and are separate from other buildings.
The villa is very different in Spain. The 60s and 70s villas are abundant in Spain, mainly for the purchase and renovation, remodeling and reforming. These villas are generally purchased and refurbished for holiday homes and vacation rentals. Buying villas in less developed or older areas starts at around 200,000 euros. But there are no less than 1 million euros to buy villas in places like Costa del Sol, the northern part of Costa Blanca, and Ibiza and Majorca.
Urbanizations in Spain
Urbanizations in Spain are in the form of apartments, townhouses or villas. These types of buildings are found in all recreational areas of Spain. Some of these houses are very old and are mainly purchased for renovation and repair.
Some are very small and some are built in huge complexes, and there is a great deal of urbanization in Spain.
Urbanization in Spain comes with different possibilities. But facilities such as extensive shopping facilities, high-end transportation, high-quality sports and training complexes are everywhere. Urbanization in some areas is more difficult due to the large permanent population, but in some cities this population only grows during the holidays.
Urbanization in Spain is very popular due to its public peace, pleasant surroundings, high security and access to various facilities.
Due to rising prices for townhouses and villas, rural home or Country Properties shopping has grown in popularity and growth. Many foreigners prefer to buy country houses, given the real estate development in Spain. Rural and Country Properties estates in Spain are known as fincas.
fincas is a term that applies to almost every type of country house, from cottages to farmhouses.
The prices of rural houses in Spain are much lower. Of course, except for the rustic houses in the Spanish resorts. Many of the rural houses are cottage-like, but there are also large farmhouses. In these fields, fruit trees, orchards, etc. are usually grown. Many rural homes need renovation, refurbishment, land use change, improvement and modernization, and more.
Buying rural houses and Country Properties in Spain has many benefits. Cheap prices, peace, great weather, low local taxes, real life opportunities, and so on and so forth. Rural and Country Properties generally tend to be renovated and refurbishment and in recent years, between travelers and tourists have become more and more popular. For this reason, buying rural houses and real estate and rural villas and renting them out as a tourist and vacation home or holiday house can greatly benefit the home investor.
Where we can find Spanish real estate for buy?
Internet access today has made finding real estate all over the world, including Spain, a simple matter. There are many sites that offer different Spanish land information and properties for buy and sale in Spain. But whether they are valid or not? And whether the offered real estate is worth the cost is questionable.
Many public and private real estate in Spain, including all types of apartments, holiday homes, villas, country houses, townhouses, etc., are for buy and sale by many Spanish real estate companies. Some international real estate agencies and consultants also operate in Spain, or work with Spanish real estate consultants and companies.
Usually the best places to inquire and buy all kinds of real estate in Spain are using these Spanish domestic and international real estate consulting companies. Most of these companies have their own specialty sites that show you land and real estate information for you.
The best places to buy a home and property in Spain
As explained, there are several options for buying a home in Spain. But where you need to buy an apartment, house, townhouse, etc. is important.
Certainly buying any property depends on things like your budget and finances, your goals or even your motivations.
In general you can choose from the following options to buy any type of property in Spain
Buy houses and property in the big cities of Spain
One of the best choices for buying any type of property is without a doubt buying property in major Spanish cities. But if you are looking to buy a cheap property in Spain, you should not be looking for big cities. Spain’s largest and best cities to buy property such as townhouse, apartments and villas and so on are Madrid and Barcelona.
Madrid is the capital of Spain and Barcelona is the capital of Catalonia. Property values in these two cities are renowned as two of the best in the world with high living standards. Regardless of the cost of buying a property in Barcelona and Madrid, the cost of living in these cities is also significantly higher than elsewhere in Spain.
Buy a house on the Mediterranean coast
The houses of the Spanish Mediterranean coast are especially valuable to the Spanish people themselves and are very popular. The three main advantages of the sun, the sea and the sangria are that many Spanish tourists and investor prefer the coastal areas. Mediterranean coastal property price have also been increasing every year, especially in areas such as Mallorca and Costa del Sol. So despite the high price, it is still worth spending and buying property in these areas. Especially that Spanish Mediterranean coast property, such as beachfront homes and villas, is cheaper and more affordable than other Mediterranean countries.
Buy Spanish real estate in Inland Spain
Buying real estate in cities and municipalities that are in the interior of the country is definitely the best type of foreign property investor in Spain.
It is easy to buy a home in areas such as Castile La Mancha, Castile and Leon or La Rioja. Keep in mind that in these areas you can now buy a really cheap house or country house for a really cheap price. But it should not be compared with the cheap price of these areas. Because it will not be long before the value of the property will increase rapidly. Spain’s development plans are everywhere, including the construction of hospitals, beach resorts and airports. The cost of living in these areas is also low and they have good access to other urban amenities.
The best places to buy a holiday house in Spain
But if you’re just looking to buy a vacation home or holiday house in Spain, and want to invest in vacation rentals or renovate and refurbishment holiday homes, it’s best to go to areas like Costa del Sol, inland Malaga West and Axarquia area and so on.
Buy a holiday home in Costa del Sol
Costa del Sol is one of the best and most attractive areas to invest in buying a vacation property or holiday home in Spain. The area extends from Nerja in the east to Sotogrande in the west. In winter, the temperature in this region does not fall below 12 ° C and in summer it will not exceed 17 ° C.
The worth and value of Costa del Sol is not hidden for anyone, and it is one of the most popular areas of family tourism in the world.
The infrastructure of the Costa del Sol area is very advanced. Almost all of the shopping, sports, recreation, transportation, healthcare, etc. are at their peak.
Not only for the holiday home, but also for life, it is recommended to buy a house in Costa del Sol. Costa del Sol has become an international community and has invested in almost all parts of the world. Houses in Costa del Sol are built with the finest materials and the latest in architectural style. There are some of the best restaurants, campsites, adventure parks, golf courses and more in the area.
It should be kept in mind, however, that the prices of holiday homes in Costa del Sol are high because of their high popularity and demand. Every year more than 12 Millions of tourists arrive in the area. The demand for short-term rentals is high and the cost of staying every night in this house is very high and valuable.
For this reason, the holiday home price is mostly offset very soon. In general, buying, selling, and renting vacation property in places like Costa del Sol in Spain is very profitable. There are other parts like Costa del Sol, such as Malaga, Fuengirola and Manilva,
Buy Holiday Homes in Inland Malaga West
The Inland Malaga West, and especially the regions between Ronda and Casabermeja, is well known among Spanish tourists for its beauty. White villages and great weather, along with quiet life and spectacular waterfalls, attract millions of tourists every year. Tourists who are willing to pay a great deal for a few nights stay in the area’s homes easily.
Inland Malaga West is about an hour’s drive from most towns to the coast and is equipped with many amenities. There are all kinds of beaches, airports, shopping malls and entertainment, and so on.
The infrastructure in this area is more than you might expect. Almost all cities have access to train stations that extend to all villages in the area and elsewhere in the country. Roads have also been built in good condition. Other benefits of the area are simple farming and transportation and good weather.
the villages and townhouse in Inland Malaga West are built to create a good family style. Most homes in Malaga are townhouse style or villas. Most of the old villas and houses have been renovated and remodeling. In all the townhouses you can see people of different races and cultures from other parts of the world living together peacefully. Most of the towns and villages in the area are quiet and secluded, with high security and highly integrated communities.
Buy Holiday Homes in Axarquia
Another area of Malaga where holiday home shopping is recommended is the eastern part of Malaga, Axarquia.
This area is one of the most beautiful areas of Malaga where there are many beautiful mountains and hills. The area is well protected in winter due to the high mountains surrounding it and has a mild and exceptionally good climate.
There are fewer living areas and villages in Axarquia. Most of the houses are villas and are rural. Reconstruction, renovate and refurbishment and maintenance of rural houses in these areas and rent holidaying to tourists can be of great benefit due to the low cost of buying rural houses in these areas. Axarquia is in progress and roads and infrastructure in other areas have not yet been implemented in the area, but development plans have been put in place.
Low tax rates, increasing tourist arrivals in the area, lower prices for homes and villas, larger dimensions, good access to a variety of stations and spectacular beaches are the main reasons for investing and buying a vacation home in the area.
Buy Holiday Homes in Cadiz and Costa de la Luz
Cadiz and Costa de la Luz is an incredibly warm and spectacular area that, along with Costa del Sol, should be considered two of Spain’s best beach destinations. Cadiz and Costa de la Luz are a region off the Atlantic coast that has received much attention due to the sweeping white sandy beaches, clear waters and the colorful sand, lovely and beautiful bays, pristine and untouched areas of many years. Although the area is not yet well-known to tourists, we are seeing an increase in the number of tourists annually.
Less is known about the area, which has prompted clever investors to invest in the area because they know well how much the value of their land and property will improve in the not too distant future.
Infrastructure such as bus and train stations are still poor in the area, and most of the area’s transportation depends on its excellent roads. Good facilities are being built and under construction in the area. The region of Cadiz and Costa de la Luz is more windward than the Costa del Sol because of its location on the Atlantic coast. The air in the area is not too cold or warm and almost every year is prone to tourist arrivals and this has made buying and renting a home a holiday home.
Property prices in Cadiz and Costa de la Luz have grown significantly in recent years. Real estate prices in the area have been higher than in other areas, such as Andalusia. Buying beachfront cottages and villas that are affordable and can only be rented as popular venues with only one renovation, repair and remodel is very affordable.
In the warmer months of the year, rental prices rental in these areas increase. You can even consider starting a business in Cadiz by buying a property in Cadiz. Short term rentals and extra income from these rentals can make you a lot of money in the shortest time.
Buy Holiday Homes in Costa Tropical
Costa Tropical, or Costa Granada, is another popular destination for holiday or beach homes. Moderate and appropriate climate and protection of the area by the spectacular Sierra Nevada Mountains and excellent infrastructure for Tourism has caused millions to travel to the area annually.
The joy of living in these areas has led many to consider buying villas and townhouses in addition to buying holiday homes and rentals in the area. Most wealthy Spaniards have also bought a second home in the area. Beach and ski enthusiasts in the Sierra Nevada Mountains visit the area every year.
Costa Tropical has in recent years become one of the most popular destinations for winter travel and winter tourism for travelers from all over the world. Property prices in Costa Granada or Costa Tropical vary widely. Offer a Demand By buying villas or older beachfront homes and renovating them, you can get both a cheaper home and a good income.
Renovation, remodeling, restoration, maintenance and refurbishment of buildings in Spain
Inspections, permits and construction in Spain
Many foreigners are looking to renovate, refurbishment, remodeling, repair or rebuild this property by purchasing old Spanish real estate. This will not only pay less for the buy of the property, but also prepare the building to suit your needs and tastes. But other options should be considered when buying old homes and rebuilding or repairing them.
What should we consider when renovating old houses in Spain?
Today we see many old houses and villas being sold off the coast of Spain.Sometimes even some of these homes are for sale at a reduced price. In some areas like Costa del Sol there are many options to buy but the situation is not the same in all areas. Many foreigners have recently become interested in buying affordable but cheap price old homes in Spain. Many of these foreigners are buying in, especially for renovating and changing their homes.
But keep in mind that buying old houses in Spain is much more difficult than new ones, given the area where the house is located.
To buy these homes, you first need to make sure that the seller is the real owner of the land. Not all brokers and real estate agents in Spain provide accurate information to buyers. Keep in mind that many of the old houses have been registered for a specific purpose at the time of registration with the Spanish Documentation Agency and should be renovated at the same time. Unless the property is changed first.
Is Buying and Rebuilding and remodeling Old Spanish Homes Reasonable?
Keep in mind that the cost of rebuilding and renovate old Spanish homes is usually high. Most old houses are from the 60’s and 70’s and have no facilities like water, electricity, telephone or even water plumbing.
In fact, these were the main reasons for leaving the house by previous homeowners. However, rebuilding these homes can result in the sale of a high-priced home and is largely worth it. But the condition of the property must be checked. Some of these old houses are so remote that they cannot connect to water or electricity.
We recommend that you do not have much experience in refurbishing old homes, so be sure to consult with experts. Because you may be deceived both financially and spiritually.
After buying an old house or an old villa in Spain you will be the first to start. You must first find a contractor and architect. Then you need to obtain the necessary permissions. Share your plan with the architect. Generally, based on experience, the cost of rebuilding or renovating many old Spanish homes is about 30 to 35 percent of the value of a home purchase. But it is recommended that you always consider spending 15% on unforeseen topics.
What precautions should you consider when buying an old home in Spain?
Before rebuilding any old home, first consult with your architect about whether the renovation is worth it. In many cases it is best to demolish the house in general and rebuild it because the house is so damaged that it is not worth repairing. If you are applying for a change of land user, you should first go to the municipality for reconstruction.
When providing information to the municipality about property reconstruction, be careful not to give more or less information about your property.
Buying a home in the suburbs is a bigger risk. Keep in mind that some of these homes have never been properly registered or their taxes and municipal fees have not been paid.
Sometimes proof of ownership or prior use of these types of houses in court may take up to two years.
However, for some properties you can use a 205 procedure. Article 205 can make you the official owner of the home provided that no one has claimed ownership of the property for up to one year.
Sometimes it may happen that the dimensions shown on the map do not match the terrain dimensions. In these cases you have to specify the task before you buy the house, because if the house is purchased, the problem will be the problem for you. This often leads to a dispute between neighbors.
Find out whether or not you can harvest fruit from the garden and whether or not the land holdings have the right to water. Is the way right? All of these must be specified before you buy. Also make sure there is a plan to build roads, railways, etc. in the area and it may interfere with your land? Be sure to check out the construction of tanks, mines, factories, water channels, etc.
Another thing to consider is whether the home or property has debt. In Spain repayments of mortgages or local taxes are considered as debt on the property. New landlords should always be able to pay off property debts if they are not settled.
It is also advisable to contact the municipality for information on building regulations for the area.
Especially if you want to change the building, you need to make sure that you have the permission to do so. If you are buying an old house or villa and want to change the size of your home, you must first make sure that it is possible. Limitations such as size, height, breakdown and replacement of property, renovation, etc. should always be considered. The laws on renovating and rebuilding property in the suburbs are always more difficult.
Keep in mind that you will need one of the following town hall permits to renovate old houses in Spain:
- For complete reconstructiona Licencia de Obras permit
- For partial renovationa Permiso the Obra Menor permit
- For subjects like development you need Permiso the Obra Nueva permit
In many cases, spending a few euros more and buying a new home or villa or even renovating homes and villas and townhouses is more than worth the cost of demolishing and rebuilding the property and costs cheaper. Unless you do most of the work yourself and be an expert.
It is best to get accurate estimates from several local real estate developers before buying a property that needs repairs or buying a home you are considering renovating.
But one of the reasons most foreigners buy old houses in Spain is, in general, that the Spaniards themselves are largely ignorant of their old homes. Many Spaniards prefer to buy modern apartments and villas readily. Most Spaniards are not interested in rebuilding their old real estate.
So selling the old houses remodeled in Spain is difficult for the Spaniards themselves. But you can count on these types of homes to renovate and refurbished old beachfront homes in Spain for holiday home or rent to tourists.
Check out a property before buying in Spain
Remember to check out some things before buying any property. Checking the property and the home before buying can alert you to any obvious errors and any property issues. Houses in Spain must have a sound wall and without them the price of a house should be cheaper. If you are planning on staying in the house and do not intend to renovate and repair, check the roof of the house well.
The roof of the house should be acoustic without leakage. Neither walls nor ceilings should leak and should be completely waterproof. Usually real estate consultants will tell you that spots and leaks can be repaired, but you should also consult a local manufacturer before buying. In addition, if you are not planning to renovate your home, the ceilings should also be silent, as they are expensive to replace.
If you are buying an old house and are looking for a simple renovation, keep in mind that renovating your old home usually requires things like a damp-proof course, needing a new doors and windows, timber treatment, replacing the roof, or doing They have overhauls on the roof, replacement of the kitchen structure, new wiring, water plumbing, central heating system creation and so on. In any case, it is better to make sure you have water and electricity at home because the price of plumbing or cabling is more expensive for outlying areas.
Drinking water in Spain is generally of good quality. But many homes and rural properties provide their own water from a spring or well. In most cases spring and well water are also of high quality but water reliability must be checked. Keep in mind, however, that water may dry out at certain times.
If you are planning to buy a villa or beachfront home, be sure of the flood status and the number of floods per year. The building must be flood resistant and use facilities such as stronger electronics, flood gates and tile solid flooring.
Planning permits and building permits
If the house is the same as before, you do not need a special permit, but if the renovation involves external changes such as building an extension or installing larger windows or installing a new door, you will need to obtain planning and building permits. This permission must be obtained from the local town hall of residence.
There are generally two types of building permits in Spain. The first is for general and large-scale projects and repairs, and the second is for minor repairs and alterations. So you must first identify and approve the plan and activity you intend to do.
If you intend to renovate and refurbish the building in Spain, you must state in your contract with the seller that the final purchase of the property is to obtain planning and building permits and will terminate if the permit is not issued.
In some places you may not be licensed for repairs or alterations to the building, so you may be able to terminate the contract if you are not given permission within three months. Keep in mind that properties that are within the urban or regional boundaries and may even be previously licensed may be in the municipality’s plan for some reason and may not be licensed. However, you should be careful that you cannot build in Spain without a permit.
Another important point when building or repairing a building in Spain is that you have to be careful not to take even a centimeter of your neighbor’s land. Boundaries and border protection are being pursued very seriously by Spanish property owners. You want to live in this place and it is better to be at the border peacefully. Proper bordering from the beginning helps a lot in your friendly relationship.
If you intend to develop a large property or building, you must declaration of new work. You also have to pay taxes on this land development. This is because of the extra capital you have earned. So you need to get general permissions.
DIY or Builders?
If you are planning to renovate, repair or refurbished a property in Spain, one of the most important decisions you have to make is whether you want to do it yourself or leave it to the professional builders or local artisans. There is no need for architects to do construction work and renovations in Spain, and if you have the expertise you can do it yourself, get a permit, build work, refurbished or renovate your property. Remember that there will be strict oversight of your construction process.
When you buy a villa or a house in some of the Spanish coastal villages and towns and plan to rebuild or repair it, it is important to do so according to local patterns. For this reason, you should use local building materials such as wood, stone and tile and do this in line with other buildings in the area.
No matter how modern your building is in a modern and sophisticated interior, it should not ruin the charm or local conditions of a village or region.
Of course, even if you are a professional, you will have to hire a variety of craftsmen to do many of the construction work. Finding a good craftsmen is difficult, especially in some areas. Handicrafts and hand related industries are significantly more expensive and even if the property is in another area you have to pay for their travel.
Spanish or Foreign Builders?
Another option for you to build or repair is to hire Spanish builders or foreign builders? Many experts recommend that you use the local workforce for many reasons. Native Spanish artisans are familiar with the traditional materials and styles of buildings, are familiar with the planning and construction regulations of each area and are usually skilled in their work.
For this reason, it is said that using Spanish makers guarantees that your work will be great. You also have to pay less. Of course, foreign forces that have been living in the area for many years have also been known as indigenous builders.
But finding a Spanish architect and builders is difficult. Most Spanish builders do not have enough time and often work on large projects. In these circumstances, it is best to go to foreign builders and architects who have gained a good reputation and are trustworthy. These types of makers also work with competitive prices and good quality of work.
Also, when hiring a builder or craftsman you need to make sure that he has the necessary permits to do so. People who are not licensed are not only trustworthy but may be subject to penalties for not paying taxes and social security.
Finding a Builder in Spain
To find the best builder or craftsman in Spain, it’s best to ask the locals of each area. Keep in mind that real estate consultants or traders are not the right people to consult.
Consortiums or local building contractors, local businessmen and many others who have done construction and repair work in this area are a good option to consult.
You must have a supervisor to build, repair or renovate. You can do this yourself if you have the necessary expertise. But if you don’t have the expertise and knowledge you need to hire an architect to oversee your projects. Of course there is no need for a supervisor for minor repairs. The cost of hiring a civil engineer is not high, but it is very helpful to ensure that you work and avoid any possible fines or potential sabotage.
Keep in mind that the construction instructions must be followed carefully.
Always consider having a contract with a builder or craftsman should all of your arrangements be well executed. That’s why having a written contract is so important. It has been found that some builders or craftsmen have been billed for work they have not done. If you do not speak Spanish, you may want to hire a person who is fluent in Spanish or hire a supervisor in Spanish.
Recommendations for construction in Spain
If you are planning to buy property in Spain and are planning to buy or renovate, maintain, or refurbished an old Spanish property, it is best to first give a detailed estimate of the required works and costs before doing so. Also, ask two other people before hiring someone for everything. All you need to do is get an expert job. For example, you need to calculate exactly the number of lights, switches and sockets needed, and the quality of light needed to power the building.
If you do not know well what you are going to do, you will always be faced with vague quotes and quotation and you cannot keep track of costs and tasks. So you need to be very good at what you want to do.
Also always mention a start date and an end date in the contract for everything you do, and always consider penalties for delays. You usually have to make a down payment after the contract, depending on your agreement.
Construction and repair costs in Spain
Generally, all kinds of construction work such as masonry, plumbing, electricity, etc. are done on a metric basis. It also costs money on other things like quality of materials, type of repair, hard work, and so on. It is generally said that the cost of a complete home renovation in Spain will be the same as the cost you paid to buy it, and perhaps even a little more. But the good of buying these types of homes is the ease of buying and moving a property deed.
Because buying property and vacant land is usually more difficult and more complicated. Based on experience and other costs in different areas, between € 450,000 and € 1.5 million are usually needed to rebuild and renovate Spanish property.
How much you spend on buying or renovating a property depends entirely on your goals and motivation. Keep in mind that buying and renovating and repairing many of Spain’s beachfront villas and estates is especially valuable for use as a holiday home or as a rental income.
You can easily look for a great investment by buying old real estate in Spain and renovating them. But never hurry to buy these types of homes because these types of properties are abundant in Spain.
Considering the recent tourism growth index in Spain, investing in property buying and renovating and refurbished and using it as a vacation home or for renting is a smart investment in Spain. In accordance with the laws and regulations in Spain, all those who spend more than 350,000 Euros to buy and renovate their old property can obtain permanent Spanish residence and enjoy the same conditions as Spanish citizens.