Buying A Spanish Property with FLY Property
Buying a Spanish property has previously gained a negative and risky impression so it is important to work with a trusted and reliable agent who knows the area and legal requirements. FLY Property work with the best agents in each area and we can make sure you are with a top agent to help you find the property of your dreams!
Buying a Spanish property may require the purchaser to arrange a mortgage. In Spain, mortgage loan providers will not complete on a mortgage contract till you own a residential or commercial property. For this reason, it’s crucial to include a provision in the agreement permitting you to exit the arrangement if you can not get a mortgage. A lot of expenses are the duty of the purchaser in Spain and there will be significant variations in expenses from region to region.
The estate representative’s charges are normally paid by the seller, however it is great to confirm this at the start with your agent. For your details, estate agent’s generally charge the seller about 3% of the last list price. In Spain the capital gains tax varies from 21% -27%. Sellers wanting to reduce their taxes will in some cases suggest to settle on a lower list price, getting the rest in the notorious brown envelope under the table. Firstly, this can trigger legal problems. Second of all, by concurring a lower price now, you will have an increased tax bill yourself if and when you decide to sell the residential or commercial property on. It may not be perfect to choose them up on this offer as you will wish to be 100% confident your legal representative is first and primary thinking of your interests rather than having the dispute of acting for both you and the seller, the estate representative or both.
How to pay for your home in Spain.
There are several banks who provide a checking account particularly targeted at expats, where you can open an account with simply your passport and your N.I.E. Examples are Banco Santander and Banco Sabadell.
A foreign exchange business like World First can help resolve this issue by offering competitive FX rates whilst at the very same time providing you with a fast and trouble complimentary transfer. Contact us and we can discuss this with you in more information.
Buying a home in a company name is possible in Spain. There are two methods this can be managed one is through a resident SL company and the other is as a non resident business. Previously, businesses have been used to purchase residential or commercial property as advised by lawyers in Spain as a method to avoid capital gains and other taxes.
To purchase residential or commercial property in Spain you will likely need to open an account with a bank in Spain, and might need to move cash from abroad. There maybe worldwide transfer costs with both banks and if you need to exchange currency to purchase Euros ensure you use a currency broker to get a great rate of exchange.