+ What are the basic steps to buying a home in Spain?

• Negotiate the price with the seller

• Check that the property belongs to the seller and that it is free of administrative charges or mortgages. You can do this by requesting a report at the Property Registry called “Nota Simple”

• In some cases, you can sign a deposit contract and pay a percentage of the final price as a down payment. This document is an agreement by which both parties agree to finalize the sale in the near future. The usual price of this agreement or deposit is usually 10% of the house.

• Sign the purchase-sale contract before a Public Notary and pay the remain balance of the property

• Register the property in your name before the Mercantile Registry and pay the corresponding administrative expenses.

+ What are the costs involved when buying a property in Valencia?

When purchasing your property in Valencia, we advise that you calculate the additional costs generously to avoid any nasty surprises.

When buying property in Valencia, you should account for approximately 15% of additional costs however if your property is under €100.000, this will increase slightly for both lawyer and real estate agency fees.

The cost of transfer or buyer tax in Spain makes up 10% of the purchase price. Lawyer fees account for between 1-2%, often with a minimum of €2000 excluding VAT and notary fees are approximately 1%, as well as the real estate agency commission which is between 3-5% excluding VAT and with a minimum of €3000 excluding VAT.

If your property is a new construction, you should also expect to pay a 1.5% registration fee.

+ What other expenses should be taken into account when buying a property in Spain?

• The Public deed at the notary's office

• The Registration of the deed in the Property Registry

• In case it is necessary to request a mortgage, it is necessary to include the appraisal and the notary, the mortgage taxes and the registration of the deed to the Property Registry

• During the year you will also have to face other taxes, such Real Estate Tax (IBI), Wealth Tax -if applicable, Personal Income Tax (IRPF) or, if you do not live permanently on Spanish territory, the Non-Resident Income Tax will have to be paid.

+ What taxes are associated with buying a house in Spain?

Buying a property is subject to various taxes, which on average raises the price of the house substantially.

Among them are:

• The Value Added Tax (VAT), in the case of new homes or first transfer which is a tax rate of 10%.

• The Property Transfer Tax (ITP), in the case of second-hand residences or second transmission. The tax rate is between 6 and 10% depending on the Autonomous Community where the property is located and must be paid if VAT is not applied on the transmission.

• Tax on Documented Legal Acts (AJD). It must be paid if the house is bought and VAT applied and if it is bought by mortgage at a rate of between 0.5 and 1.5%.

+ How easy is it to get a mortgage in Spain?

Mortgages with Spanish banks are possible however this will depend on your situation, age, your income as well as your financial situation and whether you have any debts. Overall, Spanish banks are stricter than say in the UK.

It should also be noted that each Bank has its own risk criteria, in which the country of residence can be included, and that properties abroad are not usually accepted as collateral, since it is difficult to reach them.

In general, non-resident buyers in Spain can enjoy the same mortgage conditions as Spaniards, that is, up to 80% coverage in the case of a first home, and between 60 and 70% in the case of a second home. This means that you must have a minimum of 20% of the price of the house in funds.

Additionally, none of the extra costs such as lawyer and real estate agent fees can be included in the mortgage and so you will need a considerable amount of equity capital in order to finance through a Spanish bank.

It is also important to take into account that typically, in Spain, mortgages are contracted for a minimum of five years and a maximum of thirty, with 75 years as the maximum age to finalize the mortgage.