While we trudge our way towards the new normal, many of us are questioning where and how we want to live. Staying at home for such long periods has opened our eyes and dreams to new possibilities. For many, securing a place in the sun is on top of the to-do list – and it’s no surprise. It’s time to get your house in order and move it to the eternal sunshine of Ibiza. The opportunities are knocking – here’s what you need to make it happen.
1. If you are a non-resident, the first thing you need to do is apply for your NIE (Numero de Identidad Extranjero or Foreigner Identity Number), or TIE if you’re British (Numero de Identidad Extranjero or Foreign Identity Card). This number is essential for any financial transactions. This can be done from a Spanish embassy or consulate in your home country or through the services of a gestor within Spain.
2. Once you have your NIE, it’s a good idea to open a bank account here. While it’s not legally necessary, it will save a lot of headaches when paying bills and fees later on.
3. Engage a real estate agent (like us, at Villacontact!). The safest way to purchase in Spain is to work with a qualified and trusted agent.
4. Get in touch with a lawyer specialising in the property market. Your agent will be able to recommend someone and while the process of buying is fairly straightforward, dealing with the local bureaucracy is not for the faint-hearted. A lawyer is an essential part of your dream team both during and after the sale.
5. Take a quick lesson in tax law. Your agent, lawyer or gestor will walk you through the various taxes and fees involved in purchasing your new home. Understanding the basics helps you budget better and fend off any nasty surprises. Essentially, if the home is newly built and has never been occupied you have to pay VAT (10% for dwellings and 21% for commercial properties and plots). The VAT is paid to the seller, who then passes it onto the tax department. If VAT is applied, it is normally accompanied by a Stamp Duty fee due 30 days after purchase. If the property is a used dwelling, the Property Conveyance tax is calculated on a scale between 8% and 11% of the purchase price and due to be paid by the buyer within 30 days of the purchase date. Unrelated to the sale but still something to keep in mind is the property tax due annually on the 1st of January. You can thank us later!
6. Once you have your head around the various taxes, there are the fees to take into account. The legal costs vary depending on the lawyer you choose but can generally be calculated at around 0.7% to 1%. The notary is where the contract is signed and sealed, and the fee is usually calculated at approximately 0.5%. Registering yourself as the new owner of the property at the land registry is around 300€ to 1.500€ and must be done within two months of the purchase. This is where having a property lawyer comes in handy as their office will submit and monitor the whole after-sale process, including changing names on the utility bills.
7. A great way to start looking for potential new homes is to sit down with your trusted agent. At Villacontact, we pride ourselves on our long-lasting relationships with our clients. Getting to know you is the first step to finding you a perfect home. We help determine your needs and boundaries and find the best locations for your future life. Matchmaking clients to properties is our speciality.
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