You can obtain a residence permit for Spain when buying real estate if you are investing in real estate from € 500 000. This residence permit is also called the "Golden visa" or "visa of the investor. To obtain a residence permit for Spain when buying real estate, you must fulfill 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 real estate. Spanish citizenship when buying real estate, even very expensive, can not be obtained, but property owners in Spain can apply for a residence permit and obtain Spanish citizenship on the basis of legal residence in the country after 10 years.
Click here to read about the procedure for buying property in Spain.
There are pros of real estate in Spain, and many. For example, having real estate in Spain and meeting a number of certain requirements, you can get a residence permit. That is, moving to Spain will be much easier if you have your own home.
In addition, real estate in Spain was and is a good object for investment. By taking an inexpensive object for repair and repairing it, you are very likely to be able to sell it profitably. Property in the coastal zone, near the sea and the beach perfectly rents to tourists almost all year round. So if you are not afraid of the disadvantages listed in the previous paragraph, feel free to rent your real estate.
The disadvantages of real estate in Spain can be attributed to fixed costs.
Even if you bought a home in cash without obtaining a mortgage, you will not avoid year-round expenses. These include: payment for condominium services (gastosdecomunidad), utility bills (electricity, water, gas, etc.), because in Spain, utilities charge a subscription fee even when there is no real expense, annual property tax, income tax for non-residents, and payments for the services of a real estate company (if you enter into a post-sale maintenance contract with them), minor repairs, annual home insurance, payment for alarm systems, etc.
A non-resident acquiring real estate must pay six types of taxes in Spain:
- It is so-called EU income tax for non-residents. It is payable regardless of whether you receive rental income or not.
- IBI tax
- For waste disposal.
- On luxury. Distributed selectively.
- Special tax (affects only offshore holdings).
Yes, in Spain it is possible to buy a house with mortgage. According to many experts of the real estate market, the past year 2019 will go down in history as one of the most successful for registration of mortgages in Spain. Increasing the level of consumer protection through a new mortgage law, which came into force in June last year, as well as a continuous reduction in the cost of borrowing from banks in connection with the beginning of the so-called "war of prices" have created ideal conditions for the purchase of real estate with a mortgage - conditions that are unlikely to happen again soon.
The coast of the Valencian Community - Costa Blanca and Costa de Valencia - is one of the best places to invest in real estate abroad. Growth in the economy, tourism and foreign investment contributes to the rapid development of the region, employment and business growth, increasing demand for short and long term rentals, as well as rising housing prices.
Prices for buying real estate in Madrid, Catalonia and the Balearic Islands are very high (€ 2794, € 2251, € 3064 per square meter respectively). In turn, in the Valencian Community, the average price of housing is €1389, and in Murcia - €1042 per square meter. If we talk about provinces, for example, in the popular resort area of Costa Blanca - the coast of Alicante - 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 of Costa Calida - € 1527 per sq.m.
Torrevieja is very popular among those who buy property in Spain for rent, offering a very profitable option for investment. The essence of the trick is that you buy apartments at a very low cost (there are many such offers in Torrevieja), and then rent them out at a price almost equal to that of more expensive apartments. This leads to extremely fast payback. If you have a possibility to buy several apartments of such, you may earn a lot.
To buy property in Spain you will need:
- NIE (it is a foreigner's identification number and tax number in Spain).
- original foreign passport;
Passport requirements: Schengen visa and passport control stamp at the Spanish border.
- two 3*4 color photographs (as on the passport);
The rest of the documents for buying real estate in Spain, you will fill in at the place of receipt of the NIE.