Spain has a number of laws under which any foreigner can buy property to live in the country. Foreign capital is one of the best ways to supplement the state budget. Therefore, foreigners can easily buy houses while getting a good deal.
The Canaries are in demand among holidaymakers by the sea. The island’s most popular resorts offer comfortable living conditions all year round. Preferential tax conditions, reasonable prices and a wide range of real estate motivate investors to acquire housing in the state.
Nuances to be aware of before buying a home
Can citizens of other countries buy apartments? Yes, by law real estate is available to any foreigner. But there are a few nuances, without which buying a house can be difficult.
These include the availability of documents such as:
– NIE (analogue of TIN);
– An income certificate or other document which shows that you have money in your personal account.
You will also need to open an account with one of the banks in Spain. This will help you get a loan or take out a mortgage to buy your new home. You will have to pay tax on residential or commercial property.
How to take out a mortgage without living in the country
Mortgages are available to residents and foreigners who have not taken out residency documents. The difference in lending conditions is in the package of documents required. Differences are also visible in the amount – non-residents will receive up to 70% of the value of the home on credit, and EU residents up to 80%.
Before applying for a mortgage, you should familiarise yourself with a number of conditions that may vary depending on the chosen bank:
– the interest rate (up to 3.5% per annum);
– the type of interest rate (floating, fixed or mixed);
– the principle of calculation of the interest rate.
The mortgage agreement must be signed by a notary and the information is then entered into the relevant register.
Spain is one of those countries where every property owner must pay several types of taxes. For foreigners, the amount of value-added tax is indicated. If the villas are purchased in the Canary Islands, 6.5% of the value of the property must be paid.
There is also a tax on the ownership of the house. Owners must pay an amount which is 0.7% of the cadastral value. Another one is the income tax. In Tenerife or Gran Canaria, the amount can vary (up to a maximum tax percentage of 45%).
Simple purchase of real estate
For many people real estate abroad is still a pipe dream. But if you have sufficient income and you believe that a yearly vacation at the sea in your own villa will benefit your family, why not take advantage of the opportunity?
All you have to do is choose the right seaside apartment with the best facilities for you. You can go for a walk along the sandy or rocky beach, enjoy the sound of the surf and inhale the fresh scent of seawater as you leave your holiday cottage. While you’re away in your home country, you can rent it out for a bit of extra income.
You don’t have to spend your own time looking for a house. If you want to buy a property in Spain or the Canary Islands, contact Housetenerife. The consultants will offer you the best option for villas, apartments or houses at the best price. You will be able to enjoy your holidays by the sea all year round, explore the Canary Islands and return to your own home.