Everything you need to know about buying real estate property in spain- Foreigners’ guide

Statistics show that in the last few years, foreigners have bought real estate property more than ever. International investors lead this list with close to 50,000 properties in the country. Many foreigners want to live in Spain for the cheap housing, warm weather and culture. The financial crisis in Spain led to a property market crash, which explains why the property is so cheap in the area. With the infrastructure and building development, recovery is underway making the real estate prices increase gradually as time moves.

Can you purchase property in Spain?

The government provides a needed identification number to foreigners who want to purchase property in Spain. The number is personal, unique and created in an exclusive sequence. To get the needed identification number you can apply it personally or get a government authorised delegator to perform the tax. This document may not be difficult to process even when you are not in the country.

You can hire real estate agents to take care of the whole process. This includes finding you a property and making the purchase. Ensure you have them informed of the type of property that would suit you best. Tax provisions are also important when purchasing the home in Spain.

Will you be required to pay the taxes in Spain if you buy property but live in another country?

All foreigners are required to understand that the expenses and taxes that come with purchasing property in Spain should be paid in the country. The property tax and rate of waste should also be taken care of in Spain. The income tax non resident is a tax obligation in Spain that is imposed all income that is earned in the country by the non resident individuals. This tax does not apply if you are an entity of income tax of person which means you have been a resident for more than 183 consecutive days in a calendar year.

Can you apply for a mortgage in Spain?

The government and other lenders offer mortgages for foreigners. This means you can get a mortgage even when you are not a resident in the country. The rules of the mortgage are similar to those given to the citizens of the country. Even so, the recommendation you get should have a presence in Spain. Currently, only three Spanish banks provide loans to non residents.

With property, do you have any right to register for a resident permit?

The residence permit will depend on the municipality. In some places, you are allowed to get a resident and work permit if you purchase a home that is worth more than Euros 500,000.  This permit requires a regular renewal every 5 years and you must keep the investment property.

Can you acquire a property that is worth more than Euros 500,000?

The Spanish government aims at attracting foreigners who can afford the houses and make cash deposit payments. The requirements for a mortgage are difficult for foreigners. The bank at hand will look at your economy capacity and credit worthiness before providing you with a mortgage option.