Buying property in Spain by the sea

In today's unstable world, real estate is one of the most successful investment objects. And one of the best countries for such a deal is Spain. Indeed, today it is difficult to find another state where the most beautiful nature and rich cultural heritage would be so harmoniously combined with a developed infrastructure and economy. The ideal option is to buy property in Spain by the sea. Consider what the buyer needs to know and the main features typical of the sale and purchase transaction in this Pyrenean country.

Some information about the residential real estate market in Spain

The crisis that took place in 2008–2021 in this segment of the Spanish market has already been forgotten. Today, its indigenous people have returned to the flow of investors. The growth in the total number of transactions began already in 2021. Then it was 4%.

In the next year - 2021 - the value of this indicator stopped at the mark of plus 11%. After 12 months, it reached a value of 14%.

Then the growth rate slowed down. In 2021, it was 14.6%. The statistics for 2021 will be more modest. Most investors have taken a break due to the Catalan referendum on secession from Spain. But there are no doubts about the plus for the year.

According to information published by the National Institute of Statistics of Spain, in the first quarter of 2021, 134,705 properties were sold, 16.7% of which were acquired by foreigners.

To buy housing in Spain, most often the British seek. But lately, the French, Belgians and Scandinavians have come to seriously compete with them. As for our compatriot investors in overseas real estate, this year most of them purchased real estate in Spain.

Main coasts of the Spanish kingdom

Real estate located on one of the following coasts is in greatest demand among buyers:

• Costa Dorada (golden coast - Russian) is the coastline of the Balearic Sea, stretching 200 km from north to south from the city of Vilanova i la Geltrú to Alcanar. It is dominated by gentle and long sandy beaches. The most in demand in this region is real estate for recreation and tourism.
• Costa Brava (rugged, rocky, wild coast - Russian) - the northern coast of the province of Catalonia, which stretches from the city of Blanes to the border with France. Housing prices in this region are rather big, as its economy is one of the most developed in Spain.
• Costa del Sol (coast of the sun - Russian) - the southern part of the Mediterranean coast, which stretches from the Strait of Gibraltar to the city of Malaga. The local town of Marbella is home to the most prestigious real estate in Spain.
• Costa Blanca - in Russian "white coast". This is the Mediterranean strip of the province of Alicante. It is here that the most affordable real estate offers on the entire Mediterranean coast meet.

Where and how best to look for offers

To find the best option for buying real estate on the Spanish coast, Russians can use the possibilities of the Internet. Moreover, the necessary information is posted not only on the Internet resources of real estate agencies, but also on web portals with ads from individuals and professional agents.

Let us list them briefly.

• Milanuncios and Vibbo (formerly segundamano) are analogs of the domestic hand-to-hand. Advertisements for the sale of a wide variety of objects, including real estate, are published here.
• Habitaclia is a popular site especially in Catalonia, but displays information for all regions. Currently, its base exceeds 300,000 objects.
• Fotocasa - today through this Internet resource more than 1.2 million real estate objects are put up for sale throughout Spain. Every day, its database is supplemented with about 8 thousand new ads.
• Idealista - about 10 thousand new ads are published here every day. In general, the database of this web portal contains more than 1.3 million objects all over the country.

What is the procedure for buying real estate in Spain?

The duration of the purchase of a private house or apartment in a new building is approximately 3 months. This procedure includes the following steps:

• opening a Spanish bank account;
• obtaining a NIE identification number. It is analogous to the domestic TIN;
• selection of an object;
• signing of a preliminary sales contract. Information about who sells the selected housing is placed in the ad. Using this information, you need to get in touch with the owner of the real estate being sold and sign such an agreement with him. After that, the buyer pays a deposit to the seller's account - about 10% of the cost of the object;
• applying for a mortgage loan (if necessary);
• signing the final agreement in the presence of a notary;
• the buyer transfers the remaining amount to the seller;
• registration of real estate in the registro de propriedad - the property register.

This topic is covered in more detail in the article "Buying Property in Spain".

List of documents

In order to open an account in a Spanish bank, a Russian will need:

• international passport;
• personal income statement (maximum for 2 calendar years). In the Russian Federation, this is 2-personal income tax;
• certificate from the current place of employment indicating the name, position and salary.

A citizen who does not officially work anywhere must confirm the legality of the origin of funds in any way: provide a contract for the sale of a garage, car, real estate, etc.

To get a NIE, you need the following papers:

• international passport;
• a completed questionnaire, which indicates personal data;
• 2 color photos 3 × 4 cm;
• reservation or copy of tickets for the return flight from Spain;
• preliminary agreement on the reservation of a real estate object in this country;
• bank statement confirming the fact that the buyer has funds in the amount necessary for the transaction (at least 30% of the contractual value of the acquired property);

By the way, buying a living space allows you to get a residence permit in Spain. But that is the topic of another article.

The level of property prices in Spain on the coast

Housing by the sea in Spain is different - bungalows, townhouses, villas, houses, studios and apartments. The cost is influenced by the following factors: proximity to the beach, type of property, year of construction and province. Let's take a closer look at the situation by region.

• You can buy inexpensive property by the sea in Spain on the Costa Blanca. Historically, housing in this region, regardless of type, costs slightly less than the national average for this characteristic. Prices for apartments and studios with a sea view here are about 40-50 thousand euros.
• Objects on the Costa Brava will be more expensive. Here the price of real estate is not less than 150,000 euros. To obtain the right to apply for a resident investor visa (this is much more important than a residence permit), you need to conduct a sale and purchase transaction for an object worth at least 500,000 euros.
• In the Costa Dorada region, the price of 1 residential square meter reaches almost 1,500 euros. However, if you compare with Costa Brava, you can buy real estate here at a more affordable price. So, for 130,000 euros in the city of Salou, you can find a very good option for an apartment. They also offer apartments for purchase. For example, this type of housing with 2 bedrooms and access to a terrace of 70 sq. m in the middle of the IV quarter of 2021 can be purchased for 89,000 euros.
• Now a few words about real estate on the Costa del Sol. In fact, it is divided into two categories: with a high price for housing and its conditionally average cost. By default, the first type includes objects located on the so-called Golden Mile.Here, chic 3-room apartments cost no less than 780,000 euros. The offers of housing in the middle price category are very few. Sellers in the resort town of Estelona demonstrate relative loyalty to customers. In a residential complex located a short distance from the sea with a communal pool, you can buy a small apartment for “only” 98,000 euros.

The value of the Spanish regional housing market is determined not only by the cost characteristics of new or secondary real estate. If we objectively consider all the prestigious resorts of the country, no other region is able to compete with Costa del Sol in terms of living standards and quality of service.

Purchase expenses and property taxes

The cost of this procedure ranges from 6-11% of the cost of the object. The list of expenses looks like this:

• if housing is bought on the primary market, taxes are payable:
• stamp duty (IAJD, AJD) - from 0.5 to 1.5%;
• IVT (Spanish version of Russian VAT) - 10%;
• when the object of purchase is a secondary housing, ITP is paid - a fiscal levy on the transfer of real estate in the amount of 6-10%;
• request for Nota Simple (object status) - € 9 plus translation. This document contains information about the current owner of real estate, about existing debts and encumbrances, as well as a brief description of the premises (number of rooms, footage, etc.);
• notary services - from 0.03 to 0.45%;
• registration costs - from 0.02 to 0.175%.

For those who are interested in this topic, we recommend that you familiarize yourself with the article "Property tax in Spain".

A few tips for buyers

To minimize the risk of loss of money when buying real estate in Spain, you should heed the advice of experts in the housing market:

• you need to draw up a sales contract by contacting a professional realtor for services; for reliability, it is also advisable to involve a lawyer;
• ask the person accompanying the transaction - a lawyer or realtor - to calculate the likely additional tax charges. It is possible that the amount in rubles or in foreign currency will not suit you, and the transaction will have to be abandoned;
• in order to exclude possible unforeseen situations, ask how much it will cost to submit to your municipality an annual declaration for owned real estate;
• to identify all possible shortcomings of the purchased object when inspecting it, resort to the services of a construction inspector. But first, make sure he is not affiliated with an agency or seller;
• it may be superfluous to check the neighbors for adequacy. If possible, you should find out who lives in the nearby houses or in your entrance.

How to sell a property in Spain

For Russians to sell their Spanish real estate, it is best to sign a cooperation agreement with a specialized agency. In this case, the sales scheme will look like this:

1. Sending an application to a real estate company.
2. Agency specialists inspect the object and determine its market value.
3. A power of attorney is drawn up in the name of the representative of the counterparty company.
4. The client sends a package of necessary documentation to the company.
5. Measures are being taken to advertise the object and to find a buyer.
6. A preliminary contract is signed with the person who has expressed the intention to purchase housing, after which a reservation deposit is charged from him.
7. The date of contacting the notary office for registration of the transaction is agreed upon.
8. On the appointed day, the owner of the object arrives in Spain or his representative concludes the transaction
9. Transfer of money by the buyer.
10. The received amount, minus the agency's fee and taxes, is transferred by the representative to the bank account of the client-seller.

This topic is covered in more detail in the article "How to sell real estate in Spain".

Conclusion

Most often, Russian buyers of Spanish real estate prefer properties located in coastal regions. This approach is due to the stability of the economy of these regions and, in general, the development of infrastructure characteristic of resort areas.

You can find an object that suits all the parameters in both types of markets - primary and secondary. To minimize the risk of losing money, it is worth using the services of a real estate company and a construction inspector. The buyer should also be aware that in addition to the direct cash costs associated with the settlement with the seller of real estate, he will have to pay a number of taxes. And he will become the full owner of the acquired housing only after the transaction is registered in the relevant state register of Spain. This will take about 3 months.