Buying a property in Torrevieja, especially for a non-resident in Spain, can be an exciting process but requires attention to various details. Below is a detailed step-by-step guide.
1. Preliminary Research
a. Define Your Budget
Before starting the search, it’s essential to establish a clear budget. In addition to the property’s price, consider taxes, notary fees, and other associated costs.
b. Explore the Area
Torrevieja is known for its beaches, warm climate, and services. Research different neighborhoods to find the one that best suits your needs and lifestyle.
2. Property Search
a. Contact us
Working with a local real estate agency can significantly ease the process. We will provide information on available properties and help you navigate the market.
b. Virtual or In-Person Visits
If you can’t travel, request virtual tours of properties. If possible, plan a trip to Torrevieja to view the properties in person.
3. Legal Verification
a. Legal Advice
Hiring a lawyer specialized in real estate is advisable. They will ensure that all documents are in order and that the property has no liens. Lawyers usually charge between 1.200€ and 1.800€ + VAT.
b. Obtaining a Foreign Identification Number (NIE)
As a non-resident, you will need an NIE to carry out transactions in Spain. This number can be obtained through the police or at the Spanish consulate in your country.
Your lawyer can also request the NIE on your behalf for an additional fee of about 150€ to 200€.
4. Financing
a. Mortgage Options
If you need financing, research mortgage options available for non-residents. Some banks in Spain offer specific products for foreigners. Usually they finance up to 65 or 70%.
5. Making an Offer
a. Negotiation
Once you find your ideal property, your real estate agent or lawyer will help you present a firm offer with a deposit. Making a firm offer with a deposit is a strategic way to enhance your chances of securing a home.
Find out how to propose a firm offer.
6. Contracts and Documentation
a. Sale Agreement
If the offer is accepted, a purchase contract is signed, and a deposit is paid, typically 10% of the purchase price. This is a key document outlining all the terms of the purchase. It should be reviewed by your lawyer before you sign it.
b. Document Verification
We will make sure the seller has all necessary documents, such as the energy efficiency certificate and the habitability certificate.
c. Opening a Bank Account
It is advisable to open a bank account in Spain to manage payments related to the purchase and other expenses.
7. Notarial Deed
a. Signing the Deed and Final Payment
The final step is signing the deed before a notary and make the agreed payment to the seller. This can be done in person or via a power of attorney if you cannot be present. Notaries charge between 700€ and 1.200€.
b. Taxes
Settle related taxes, such as the Property Transfer Tax (ITP) or VAT, depending on the type of property (Resale or New Build). In Torrevieja and Orihuela Costa both ITP and VAT are 10%.
8. Property Registration
a. Registration
Once the title deed is signed, it is necessary to register the property in your name at the Land Registry. This will grant you legal rights over the property. The landregister charges between 300€ and 500€ to register your property.
b. Receipt of the Deed
Keep a copy of the deed and the registration receipt as proof of your ownership.
9. Post-Purchase
a. Service Management
Set up services such as electricity, water, and internet in your new home.
b. Annual Taxes
Remember that owning property in Spain entails fulfilling tax obligations, such as paying the Property Tax (IBI) and your yearly non resident tax. The yearly non resident tax can be managed by a lawyer for an additional yearly fee. Usually between 120€ and 150€, plus the tax which depends on the value of the property you own.
Conclusion
Buying a property in Torrevieja can be a straightforward process if each step is followed carefully. Having the support of local professionals, such as real estate agents and lawyers, is crucial for facilitating the experience and ensuring a safe purchase. With proper preparation, you can soon enjoy your new home on the beautiful Costa Blanca.
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