Would You Like To Own A Property In Spain?

For decades British nationals have gravitated to Spain for both annual holidays and to re-locate in Spain.
UK Real Estate and Construction
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For decades British nationals have gravitated to Spain for both annual holidays and to re-locate in Spain. The friendly life-style, wonderful beaches and climate together with a far more affordable cost of living as well as the excellent year-round climate still see large numbers of British nationals choosing to buy holiday homes or relocate to Spain.

Foreign nationals can buy real estate in Spain without any restrictions. Giambrone & Partners real estate lawyers have many years of experience in assisting our clients to buy a property in Spain. Our lawyers will guide you through the procedure and be by your side throughout the entire process. Our real estate lawyers will be attending Place in the Sun in London from 3-5 May 2024 click here for tickets where you can speak directly to our Spanish Abogados (lawyers) who will be able to answer all your questions concerning property purchase in Spain and the considerations surrounding relocation to Spain.

Graziano Cecchetti a partner, suggests "that once a prospective purchaser has identified a potential property they may consider buying, that preliminary enquiries about the costs attached to the property such as the cadastral value of the property are made. The cadastral value is comparable to the rateable value in the UK. Before embarking on the buying process it is best to be fully informed on any associated costs." Graziano further commented "Buyers should also be aware that the self-governing regions in Spain may have variations in the financial and regulatory rules between different areas. Whilst the costs may not vary very much but it is always best to be informed and aware of the financial obligations, to avoid any unexpected financial responsibilities at a later stage."

The Buying Process

The process starts with the purchaser obtaining a Número de Identification de Extranjero ("NIE"). This is a number that identifies the buyer and it must be added to all documentation connected with the purchase. Our real estate lawyers can help you with the procedure involved in applying for and obtaining this number. Another requirement is the opening of a Spanish bank account which Giambrone & Partners can also assist you with.

Once you have found a property and are ready to buy a Contrato de Reserva, a Reservation Contract, can be drafted and you can sign by as the buyer. This contract secures the property and prevents any other purchasers from attempting to buy it. The concept of gazumping does not exist in Spain. Our Spanish real estate lawyers will diligently scrutinise all the information available related to the property and make sure that:

  • That the seller is legally registered as the owner
  • The seller is legally permitted to sell the property
  • Establish whether there are financial liabilities against the property. Debts that have accrued against a property may be payable by the new owner if they are not discharged
  • Ensure that there are no infringements of planning laws that are subject to legal proceedings
  • Ensure that the property was built in accordance with the building regulations
  • Should there have been any structural alterations carried out that they were subject to planning permission
  • Establish whether there are any unexpected or irregular restrictions against the property

Once all the enquiries have been made and it has been established that there are no breaches, debts or any other irregularities against the property, a Notary can be instructed to draw up the contract of sale and then issue the public deeds. The balance of the purchase price must be paid once the contract of sale is signed.

Visa considerations

If you plan to permanently relocate to Spain Giambrone & Partners' immigration lawyers can further assist you in obtaining a visa together with permanent residency to allow you to do this. For example, if you do not intend to work when you relocate to Spain, a non-lucrative residency visa is the most appropriate. This visa can be renewed and after five years of residency, you can apply for permanent residency.

Alternatively, for applicants that are financially able to make an investment a Golden Visa could be considered. In order to apply for a Golden Visa, it requires making one of a range of investments in Spain.

At the present time there is still the opportunity to apply through the purchase of a mortgage-free residential property with a value over €500,000. However, that option is being rescinded by the Spanish government but there is still time to apply but time is running out.

The alternative investments that can be made to fulfil the criteria for a Golden Visa in Spain are:

  • Two million euros in Spanish public debt securities
  • One million euros to be invested in company shares or stock of Spanish capital companies that are active and currently doing business
  • One million euros to be invested in closed-end investment funds or venture capital funds set up in Spain, that are included either within the scope the Act related to Collective Investment Institutions, or the Act 22/2014, of 12 November that regulates venture capital entities, other closed-end collective investment entities
  • One million euros in the bank deposit of a Spanish financial institution

As with all visas, adequate medical insurance, a residential address, adequate income and the absence of a criminal record are essential factors for a successful application.

Wills and Inheritance

Other factors to consider if you relocate to Spain such as making a will and ensuring that your beneficiaries will receive the inheritance you wish for them. There are strict laws of succession in Spain, should you die intestate all your estate will be subject to the Spanish laws of succession. In order to be able to dispose of your estate as you wish it is strongly advised that you draft a Spanish will and an English will. Both wills should reflect the same terms and your Spanish will should state that your estate is to be dealt with under the terms and jurisdiction (England & Wales) of your English will.

Graziano Cechetti brings unparalleled knowledge of the residential real estate market in Spain to his clients enabling him to guide them through the intricacies of the market. His comprehensive knowledge and meticulous attention to detail together with his capacity to resolve issues and find satisfactory solutions where necessary have earned him an impressive reputation in this field. Combined with his innovative investment and wealth management solutions his clients regard him as the first port of call as a trusted adviser for guidance with a wide range of issues.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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