PropertyOutlet

WHAT YOUR PROPERTY IN SPAIN WILL REALLY COST YOU

You might belong to the fortunate minority who does not have to worry about the budget, purchase price and additional costs, but oftentimes the majority is tempted to forget the calculator at home. Possible income from rentals and appreciation potential more or less derived from the past, simply sound better than additional costs.

But in addition to the purchase price of the property you have to count with one-off extra costs for the purchase of 10 to 14%. The great margin is a result of the differences in buying a property from a private person or from a promoter and if you finance the property or not. Should you purchase a property from a private person and not need finance, you can calculate one-off purchase costs amounting to 10% of the selling price.

Likewise you also have to consider the maintenance costs of the property as well as the annual running costs.

Many buyers are looking for a bargain buy and the publicity suggests permanently that many of them exist. Also regarding this matter it is well worth to question it critically. Whether a property is a bargain or not, does not have anything to do with the advert or with a reduction of the former asking price. If at some stage there is a property for sale at a price well under market value, it will be sold very quickly. The bargain price often results from the critical financial situation of the owner. The buyer accepts a low selling price and therefore demands a fast transaction.

Therefore it is recommended to verify the financial situation beforehand and eventually pre-qualify for a mortgage with a Spanish bank. Therewith you find out about your financial margin and you can react (buy) much faster if the adequate property is found.

For non-residents it is additionally recommended to apply for the Spanish tax identification number N.I.E. with sufficient advance. Basically you cannot register an acquisition of a property at the Property Registry without an N.I.E number. Likewise it makes sense to open a bank account in Spain. However, this can be carried out within one day, whereas several weeks can pass by from applying for an N.I.E. tax identification number until re-ceiving it.

We are glad to look after all these administrative necessities for you, so that you can concentrate untroubled on the selection of your property.