Buying guide Spain HusmanHagberg

Spain Buying guide

Welcome to Spain Many people dream about living in sunny Spain, for various reasons. That is why we created a list for you, giving you a closer look at six reasons for why people are drawn to a life in Spain.

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SUNSHINE, SWIMMING AND SKIING Spain has many beautiful beaches along the coastline. If you ever get tired of swimming, there are several ski resorts that offer fantastic skiing, such as the Pyrenees in the north and the Sierra Nevada in the south.

FOOD AND BEVERAGE Paella, tapas, sangria, wine and olive oils. Spain’s exquisite gastronomy and wine culture is one of the top factors for the country’s popularity. Did you know that the wine yards in Spain take up more than 2 million hectares of the country’s land area?

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OUT IS THE NEW IN Many people choose to spend their time out in the sun, whether it’s on the golf or paddle court, on the beach or simply on a walk. Be ready to make your terrace into your new living room. FIESTA TO SIESTA There is always something going on in Spain, from small get-togethers to big holidays and festivals. To keep up with it all, the Spaniards are famous for their siesta culture. Siesta means nap, making it very common to enjoy a relaxing break in the afternoon.

COST OF LIVING The cost of living in Spain is relatively low, compared to many other countries in Europe. Hopefully, that will give you the opportunity to enjoy all of the good things that Spain has to offer. CLIMATE Spain’s coastline enjoys more than 300 days of sunshine each year and is one of the top reasons for why people decide to spend time here. The country has various climate zones, such as subtropical and micro climate zones.

We know Spain

The decision to buy a property abroad can be exciting and nervous at the same time. How do you start and what should you be aware of? At HusmanHagberg, we have many knowledgeable real estate agents and collaborating partners, always ready to assist you with the best advices. HusmanHagberg has operated in the Swedish market since 1997 with a passion to help people make the best deal when buying or selling a property. Our knowledgeable agents and collaborators in the Spanish market have vast experience of managing property transactions in Spain. As our customer, we want you to feel safe throughout the process. If you have any questions or concerns, you are more than welcome to contact us.

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Buying a property in Spain Living in Spain is fantastic, and we will gladly help you to find your dream property here. We will also support and guide you throughout the whole process – before, during and after. If you are interested in any of our properties, please contact us for a physical or digital showing.

THE PRICE The price in the ad is the price that the seller is ready to accept. Usually, the seller and the buyer negotiate a purchase price, instead of having bids containing several speculators. ADDITIONAL COSTS In addition to the purchase price, you should expect 10-14% in additional costs. These may vary between different regions. The additional costs are the following:

– TAXES For new developments, a VAT of 10% of the purchase price and a stamp duty of up to 2% will be added. For existing properties, a transfer tax of 8-10% will be added. This varies depending on the region and the size of the purchase price. No stamp duty is paid for existing properties. – NOTARY COSTS In Spain, a notary always participates when accessing the property and when the sale is completed.

The fee varies depending on the scope and purchase price. The buyer is responsible for this cost. – REGISTRATION FEES The new owner of the property is registered in the Property Register. This cost is normally about 0.5% of the purchase price. – CONNECTION FEES Upon access, there are connection fees and/or fees for changing subscriptions of water and sewage, electricity and in some cases gas.

Buying a property in Spain

PROPERTY TAX In Spain, you pay an annual municipal and a state property tax, both based on the assessed value of the propoerty. The municipal tax rate varies between different municipalities and is 0.4–1.1% of the assessed value, and the state tax rate is at approximately 0.25–0.5% of the assessed value. You do not pay any property tax in Sweden on the Spanish property. EXAMINING THE PROPERTY In Spain, second-hand properties are sold in ”existing condition”. As a buyer, you are responsible for carefully examining the property before you sign the purchase contract. Deviations from this must be stipulated in the contract. It is wise to take help of external experts such as a legal representative and technical architect.

CLOSING THE DEAL When you and the seller have found an agreement, a reservation contract and a purchase contract are written. These state the price and date of entry, among other details. At the same time, you pay a reservation fee or down payment as a guarantee that you will complete the deal. RESERVATION FEE AND DEPOSIT When buying a new development property, a reservation agreement with the developer is written and a reservation fee of approximately 3,000–6,000 EUR is paid. When buying an existing property, you often pay a reservation fee of about 5,000 EUR, followed by a down payment that is normally 10% of the purchase price. The final payment of the purchase price normally takes place on the day of entry.

NIE NUMBER The NIE number is a Spanish tax identification number that you need for opening a bank account and signing the title deed. The number is a prerequisite for you to be able to own a home in Spain and the application can be made at the Spanish embassy, the Spanish police or the consulate in your country. It is possible to give your legal representative a power of attorney to make this application for you. ACCESSING THE PROPERTY Many properties have immediate access, but our experience is that most buyers need some time to prepare. For example, it can take a month before the NIE number and other financial pieces are ready. On the day of access, documents are signed with the Notary Public and the keys to the home are handed over.

NOTARY PUBLIC A Notary Public is an officially appointed lawyer with responsibility for verifying the identity of the seller and the buyer. The Notary Public informs about any debts connected to the home, ensures that the payment is correct according to Spanish law and that it has reached the seller before the agreement is signed. The Notary Public also prepares the deed of purchase which forms the basis when applying for the legal registration and the registration in the land register. TITLE DEED The title deed is registered in the land register, which takes about 2-3 months. When it is registered and all taxes and fees have been paid, it is returned together with the registration certificate. Welcome!

New developments When we choose which developers to work with, we do a careful investigation for you to feel safe. In addition to high construction quality, it is important that approved documentation is available, both for the project and the financing.

WE ARE PRESENT DURING THE PROCESS New developments can take time, but we are by your side throughout the buying process – before, during and after. We will help you in the communication with the developer and keep an eye on the project in your absence. We are also present and involved during the construction process, and continuously keep you updated. If wanted, we can be involved to make a check before you access the property. When it is finally time to move in, we are still here to guide you.

FIXED PRICE WITH FREEDOM OF CHOICE The benefits of new developments are many — you buy at a fixed price and do not have to spend time or money renovating. If you buy a new development property, there is usually an original design, but often with the possibility to make adjustments to your taste. This usually applies to the choice of cabinet doors, interior doors and tiles but in some projects you can also adjust parts of the floor plan. If you want to make any adjustments, it is important to notify us far in advance.

For those interested in interior design and want to furnish by themselves, we have collaborations with several companies that offer affordable packages. Sometimes, you even get the opportunity to choose freely. TERMS OF PAYMENT Usually you pay in various stages during the construction process. These are specified in the reservation contract. In our collaboration with the developers, we carefully check that they have the correct documentation, for example regarding bank guaranteeS.

The buying process Step by step 1. 2.

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Needs analysis • Walkthrough of your wants and needs • Criteria • Area analysis

Preparations • Walkthrough of financing and additional costs • Choice of legal representative • Spanish tax identification number (NIE number) • Property alert • Get to know the area(s)

Showings • We prepare your visit with current showings • The showings take place when you are available

Bids • Negotiation between the buyer and the seller • Counseling

• We are knowledgeable, prepared, engaged and responsive

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Reservation • Walkthrough of legal and property documents • Establishment of a reservation contract • Conditions • Deposit of reservation fee 3 000-6 000 €

Contract • Signing of purchase contract, so called Arras or Opción de Compra • Down payment 10% including the already paid reservation fee

Entry • Preparation of cash settlement • Redemption of any loans • Assisting in meeting with the notary • Submission of property documents

After the deal is closed • Quality follow-up • Support and counseling

Property alert

Are you considering living in Spain and want help to find your dream property? Let us help you. At HusmanHagberg we have a free service where you get tips on properties that match your wishes, directly to your email. Contact us for more information.

Buyer’s Agent

If you are pressed for time or live in another city or even country, you will be pleased to know that we have developed a special service called – Buyer’s Agent (Köparmäklare®) – to make it easier for you to find a property in Spain. To put it simply, our experts will give you all the help you need in selecting a property that matches your preferences, and support you with all the expertise that is required until your move has been successfully completed.

Digital showings

Here at HusmanHagberg, you as a customer are always in focus. Our goal is to offer a high-quality real estate service and we therefore work to be cutting edge digitally as well. With that said, we are happy to meet you in the way you prefer, whether it is physically, digitally or both. A digital showing makes it possible to easily meet the real estate agent and get a view of the property through FaceTime, WhatsApp or another platform. This way, you can continue to plan for your property purchase in Spain even if you are not physically present.

If you want to play more golf and are about to invest in a property, you probably have both dreams and requirements. With our knowledge of the area and a great interest in golf, we can give you the help you need. Tell us what you are looking for, and we will get to work. Do you want to play more golf?

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