FAQ

·          What factors should I pay attention at when choosing a property?

First of all, this is your budget that you are planning to allocate for the purchase of real estate. Counting on a mortgage loan, you need first to estimate the maximum possible loan amount based on your creditworthiness.

When specifying the parameters of housing search, it is necessary to describe your preferences as accurately as possible, including the smallest details.

The main ones include:

o Type of housing - house or apartment; in case of a house – a detached house or a row/ paired house, apartments, penthouse, etc .;

o Geographical location of housing, proximity to the sea and other important objects, transport accessibility, distance to the neighbors;

o Availability of infrastructure (playground, gym, swimming pool, sauna, social club, etc.);

o Whether the territory is guarded and the type of security system (physical security, video surveillance, access control, presence of concierge);

o The age of housing (in Spain, a housing is considered to be new when traded in the primary market (without previous inhabitants) and aged up to 10 years);

o When buying a house with a land plot - the area and class of the plot (flat or terraced);

o Availability of parking spaces and their cost;

o Degree and level of finishing;

o Required number of bedrooms and sanitary facilities and their type;

o Storey and view from the window;

o Building management costs and additional services included in it or provided for a separate fee;

o Existing communications and estimated utility bills.

·         What range of services do you offer for the buyers? How much do your services cost?

We provide full support to the buyer during the entire process of search, selection and purchase of housing, as well as consulting on any questions that have not been previously discussed. These services are free of charge for the buyer.

In addition, we can provide services for meeting at the airport and accommodation, as well as an interpreter outside the housing search process. These services are paid separately by agreement.

·         Can you arrange a trip to Spain for me?

A full range of tourist services (booking tickets, hotel reservations, car rental, etc.) is provided by our partner company. You are welcome to contact us if you need such a service.

·         What languages do you speak?

Our representatives are fluent in Russian, Latvian, English, German and Spanish.

·         Can I make a reservation of the real estate object I like?

For sure, any object you like can be reserved under a special contract, moreover, it can be done even without a preview or visit. As a rule, the minimum security deposit to be paid is 3,000 EUR. All other conditions are agreed in each case individually. We will be happy to assist you with this.

·         Can third-country residents (who are not EU citizens) buy real estate in Spain?

Yes, they can.

·         Can I buy real estate in Spain as a legal person?

Yes, you can.

·         How can I check the ownership of the property I am going to buy, and whether there are any encumbrances? Is there an electronic register of property rights - the land book or its analog?

Before you begin the real estate purchase deal, the documents confirming the ownership of this property will be checked. Before signing any agreements related to the change of ownership in the main property registry, an official statement containing data on the owner and all possible official indebtedness and registered encumbrances shall be requested. When signing the agreement, statements confirming the absence of debts to municipalities (payment of utility bills, municipal tax and real estate tax) are attached.

·         What documents will I need to provide for the purchase of real estate in Spain?

NIE (identification number of an alien in Spain), and identification document (passport or ID-card).

·         What is NIE?

 NIE (Número de Identificación de Extranjero) is the identification number of a person in Spain who is not a citizen. NIE can be assigned to both EU citizens and third country citizens. NIE is not a confirmation of the tax residence; you can have a Spanish NIE, while being a tax resident of another country.

·         How to get a NIE?

You need to complete a special NIE application form (in Spanish, English or French) and to submit it to a NIE office, police station or foreigners’ agency (Oficina de Extranjeros) in case you are in Spain. Outside Spain, you can apply to Spanish consulate (not embassy).

The form can be obtained from NIE office; alternatively, you can receive it from us by e-mail in electronic form upon your request.

With the completed form you need to submit an accompanying document confirming the need to obtain the NIE, a copy of your passport (all pages) and passport photo, and to pay a fee of about 12 EUR.

Please keep in mind that in order to receive the NIE you will need to provide your address in Spain. Please contact us if you need assistance in obtaining your NIE.

·         Is it possible to buy a property by proxy, without my personal presence?

Yes, it is possible in case you do not need to open a bank account. A power of attorney can be issued to your representative in Spain - an attorney or any other person - with the authorization to perform any actions. Your personal presence is mandatory only when you open a bank account.

·         How is ownership registered and how long does this process usually take?

This is done by a notary. Ownership registration process for the new owner can take 2 to 6 months. However, the deal is deemed to be concluded from the moment of signing at the notary and is followed with issuance of which temporary documents, certified by the notary.

·         Do you provide rent with a purchase option in Spain?

Yes, we do, however, this deal is not applicable not to all objects, but only to those whose owners have agreed to such conditions. Since not all real estate objects from our database can be publishes on our web-site, kindly contact us if you are interested in such a deal, indicating your preferences regarding the object.

·         Do Spanish banks offer loans to the buyers who are not residents of Spain, and if so, what are the requirements to the borrower?

Yes, they do, but please keep in mind that the requirements may differ depending on the specific bank and the borrower.

The main requirements to the borrower include a stable confirmed income for at least 2 years (salary or income from business), sufficient for making loan repayments (taking into account the other existing credit obligations), as well as a positive credit history.

The availability of other income and additional non-pledged property (also outside of Spain) shall be considered as an advantage.

The answer to the next question contains an approximate list of documents that you will need to provide.

·        Do you provide assistance in getting a mortgage loan? What documents should the borrower provide?

Yes, we do provide such an assistance. Below is a list of the main documents requested by the bank, but please keep in mind that the requirements may differ depending on the particular bank and borrower.

If the borrower is an individual who works based on labor contract:

o Identity card - passport or ID card.

o Income statement for the last 2 years.

o Letter from the company (statement, specifying the position held, the salary and duration of employment).

o The last tax statement.

o Bank account statement for the last 3 months.

If the borrower is a self-employed person:

o Tax payer registration data.

o Declaration or income statement for the last 2 years.

o Income statement for the last 3 months.

If the borrower is a legal entity:

o Registration certificate or a statement from the register.

o A letter from the accountant containing company name, registration number, sector, confirmation of revenues and profit for 2 years.

o In case the owner of the company is its director or manager, an income statement for 2 years, specifying the salary, dividends received and bonuses.

o Accounting statements (annual report) for the last 2 years.

o Tax statement of the company for the last 2 years.

o Statement from the tax service on the absence of tax liabilities.

o Bank account statement for the last 6 months.

o A recommendation letter from the bank, specifying the accounts open for the borrower.  

For all borrowers (if the borrower is a legal entity, the issues listed below are related to the main beneficiaries):

o Credit registry statement on the credit history of the borrower.

o Confirmation of additional income, if any (income statement or confirmation of income from business, confirmation of dividends received). 

o If the borrower owns property - confirmation of ownership.

o Mortgage statement/ rental agreement for the main place of residence.

o Identification number of an alien in Spain (NIE), tax payer number in Spain (if applicable).

All documents should be accompanied with an official translation (except for documents in English).

·         What are the possible conditions of mortgage loan in Spain?

The main conditions are listed below, but please keep in mind that the terms of the loan may differ, depending on the particular bank and borrower.

o Maximum loan amount: up to 60% of the estimated value.

o Maximum loan period: 20 - 35 years (depending on the borrower’s age).

o Interest rates: in average, 1.8% - 2.5% per annum.

o One-time commission of the bank: 1% of the mortgage amount is charged upon signing the loan agreement.

·         Do I have to prove the origin of the funds when buying a property? What documents do I need to provide?

To credit funds to the account in a Spanish bank and/or to get a loan, you will be required to submit to the bank your income documents and/or other documents confirming the legitimacy of the source of funds used for the first payment or full payment for real estate.

If the funds for the purchase are transferred to the account of real estate seller directly from the bank outside of Spain, then confirmation of the source of funds will not be required.

• What duties and to whom should I pay when buying real estate?

To change the ownership of a property, you need to pay a state tax of 10% of the purchase price. Notary and register services may cost you 4% of the deal amount. Bank’s services for opening an account and registering a mortgage, if needed, would cost 1% of the mortgage amount.

·    Does the purchase of real estate in Spain entitles me to apply for a residence permit?

Yes, buying property in Spain entitles non-citizens of the EU the right to apply for a residence permit, provided that the investment exceeds EUR 500,000.

·        What are the rates of property tax in Spain? How do I find out the amount of tax that I will pay annually?

The tax rate depends on the city and the province. The usual rates diapason is 0.8% - 1.3% depending on cadastral value, as well real estate class.

·         Do you assist in renting out my real estate after it is purchased if I am not planning to live there permanently? What is the tax rate for the rental income?

Yes, we do. The VAT rate, if applicable, is 21%. The applied rate of income tax depends on the type of contract.

·         Can I rent a villa or apartment in Spain with your intermediary?

Yes, it is possible. Since not all real estate objects from our database can be published on our web-site, kindly contact us if you are interested in renting, specifying your preferences related to the object.

·         Can I contact you for selling my property in Spain? What are your commissions?

Yes, we provide such an opportunity. The commission is determined individually in each case, but in average it varies from 4 to 5% of the deal amount. We will be glad to be of help if you contact us!

 

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