Spanish residence permit for the purchase of real estate can be obtained when it comes to investments in real estate of € 500,000 or more. This residence permit is also called the "Golden Visa" or the "Investor's Visa". To obtain a residence permit in Spain when purchasing real estate, you must meet the following conditions:
- The investment amount must be at least € 500,000. Additional purchase costs (taxes, notary and lawyer fees) usually amount to 11-12% of the value. The investment may be divided into several objects with a total value of at least € 500,000.
- If you own a foreign company, you have the opportunity to make investments through it. Mortgages may be issued in your home country or any other country outside of Spain.
- If you buy a property for a Golden Visa in Spain, the property can be sold at any time. In other words, you can sell one property and buy another in return. The main condition that you need to fulfill at the time of the extension of your residence is to present a certificate of ownership of a property worth more than €500,000.
You can learn more about Golden visa application here.
In some countries you can literally buy citizenship for investment, including in real estate. Unfortunately, Spain is not one of those, and Spanish citizenship by purchasing real estate, even very expensive, cannot be obtained, but owners of real estate in Spain can issue a residence permit and obtain Spanish citizenship on the basis of legal residence in the country after 10 years. Read more about this in our article.
Usually to choose and buy real estate in Spain our clients from Russia need to visit the country twice.
Initial familiarization with the city and the region. If the potential buyer has already decided on the location of the future housing, then proceed to the selection of houses or apartments.
Signing a contract with our company to reserve the selected property and paying 3-5 thousand euros as an advance payment.
Opening an account in a Spanish bank in the name of the buyer (if necessary, also in the name of the wife, etc., with the same rights for all).
There are advantages of real estate in Spain, and there are many of them. For example, having real estate in Spain and meeting certain requirements, it is possible to obtain a residence permit. I.e., moving to Spain for permanent residence will be much easier if you have your own home.
In addition, real estate in Spain has been and remains a good investment. By taking an inexpensive object for repair and renovation, you are likely to be able to sell it profitably. Real estate on the coast, near the sea and the beach is excellent for tourists almost all year round. So if you are not afraid of the disadvantages listed in the previous paragraph, feel free to rent.
One of the disadvantages of real estate in Spain is the fixed costs.
Even if you bought the house for cash without taking out a mortgage, you can not avoid the year-round costs. These include: payment of condominium fees (gastosdecomunidad), utilities (electricity, water, gas, etc.), as in Spain public utilities charge subscription fees, even when there is no real expense, annual property tax, non-resident income tax, real estate company fees (if you sign a contract with them after-sales service), minor maintenance, annual home insurance, alarm fees, etc.
Read more about the pros and cons of buying property in Spain, as well as possible pitfalls, read here.
Non-residents purchasing real estate must pay six types of taxes in Spain:
- The so-called income tax for non-EU residents. It is payable regardless of whether you receive rental income or not.
- IBI tax
- For garbage disposal.
- On luxuries. Applies selectively.
- Special tax (only affects offshore holdings).
- In detail each type of tax we discussed in this article.
Yes, in Spain it is possible to buy a house with a mortgage. According to many real estate market experts, the past year 2019 will go down in history as one of the most successful for the registration of mortgages in Spain. Increased consumer protection due to the new mortgage law, which came into force last June, as well as the continuous reduction in the cost of loans from banks due to the beginning of the so-called ""war of prices"" created the ideal conditions for the purchase of real estate on mortgage - conditions that are unlikely to repeat any time soon.
On how to buy property in Spain with a mortgage can be found here.
The coast of the Valencian Community - Costa Blanca and Costa de Valencia - is one of the best places to invest in real estate abroad. The growth of the economy, tourism and foreign investment contributes to the rapid development of the region, the growth of employment and business, increasing demand for short-term and long-term rental, as well as rising home prices.
Property purchase prices in Madrid, Catalonia and the Balearic Islands are very high (€ 2794, € 2251, € 3064 per sq m respectively). In turn, in the Valencian Community, the average cost of housing is € 1389 and in Murcia - € 1042 per sq.m. If we talk about the provinces, for example, in the popular resort area of the Costa Blanca - Alicante Coast - the average price of housing is € 1570 per sq.m., and in the province of Valencia - € 1225. As for Murcia, the average price per square meter in La Manga del Mar Menor - the most popular resort on the Costa Calida - € 1527 per sq.m.
The city of Torrevieja, which offers a very profitable option for investment, is very popular among those who buy real estate in Spain for rent. The essence of the trick is that you buy an apartment at a very low cost (such proposals in Torrevieja a lot), and then rent it out at a price almost equal to that at which more expensive apartments are leased. This leads to an extremely fast payback. If you have the opportunity to buy several of these apartments, you can make a very good profit.
To buy a property in Spain you will need:
- NIE (this is a foreigner identification number and taxpayer number in Spain).
- The original passport;
Passport requirements: a Schengen visa and a passport control stamp at the Spanish border.
- 2 color photos 3*4 (as for the passport);
- The other documents for purchase of the real estate in Spain you will fill already in place of reception of NIE.