According to polls, Spain is the most popular country for a holiday home. Due to the economic crisis of the past few years, the dreams of an apartment in Malaga or an apartment in Mallorca have become more and more realistic because the real estate prices have fallen considerably. Now they are moving again – a good time for real estate purchase. Read my tips here.
Up to 50 per cent, property prices in Spain have become more favorable as a result of the crisis, especially in popular holiday regions on the mainland, but less so in the Balearic Islands such as Mallorca or Ibiza. On the Costa del Sol, for example, the average price of 2,700 euros per square meter fell to 1,320 euros, according to the figures of the real estate appraiser Tinsa. The one or the other may have just seen one of the many offers “se Vende” (for sale) and would now like to strike. There is, therefore bargain property for sale in Spain.
Without N.I.E. Nothing goes with the purchase of real estate
NEVER apply without having an NIE. Without a Spanish tax number for foreigners N.I.E. (“Número de Identificación de Extranjero”) is nothing. When it comes to money, a N.I.E is required – even in the option contract for the finca, because the buyer makes a deposit.
The N.I.E. Can be applied for at local police stations as well as at Spanish consulates. On the spot, the N.I.E is usually given on the same day (early risers are in the advantage), in the request by a Spanish consulate with mail dispatch of the N.I.E, about two to three weeks of processing time are planned. The form EX-15 and a copy of the ID card are required. The cost: around 15 euros.
To set up a bank account: The purchase price for a property is usually paid by a Spanish bank at the emergency period in Majorca as in Spain. For this reason a Spanish account connection is necessary. But also the debiting of the running costs of the finca, such as electricity, water, house money (“Communidad”) the account is indispensable.
Real estate better elsewhere in Europe?
When selecting the institute, criteria such as the number of branches, ATMs and, of course, costs should be decisive. Also on Mallorca there are some differences. A SEPA transfer back home may not cost anything extra, but this has not yet spread among all Spanish bankers. The account statements should therefore be checked to see whether something has been deducted. First of all it should be clarified how high the fees for the Bankscheck fail – especially when buying a bargain apartment in Spain, timely negotiation can save a lot of money.
Financing through Spanish banks is considerably more expensive than through UK banks. For a holiday apartment with a 60 percent collateral (40 percent equity), about 3 percent of the interest rate is currently being planned. This is also a variable interest rate, which can still rise if the interest rate should increase. Who needs to finance is therefore well advised to find a UK bank, because the interest rates are significantly lower
However, many local banks are waving. The chances are higher for large banking houses that have branches or partners in Spain. As with a property in UK a large number of documents have to be submitted for this purpose. However, it is a good idea to find out who has previously clarified whether a financing of the holiday property is at all possible.
Find a lawyer:
A good real estate broker will already check documents and advise on the option and purchase contract. The real estate broker is paid in Majorca as in Spain, but only by the seller. A self-employed (British Speaking) lawyer alone has the interests of the mandate to represent and is liable for advisory errors. The costs are usually one percent of the notarial purchase price of the property, but are negotiable.