If you’ve been thinking about spending some time abroad and buying a property in Spain as a holiday home or for longer-term living then this guide to buying a property in Spain will help you to understand all of the aspects involved with your purchase. It will explain the legal requirements and offer tips and advice to help you avoid any pitfalls.
How long does it take to buy a house in Spain?
There is no law stating how long it will take to buy a property in Spain. The time taken between when the contracts are signed and the ownership of the property is transferred at the Notary usually depends on a number of factors such as:
the availability of funds: are the funds in place to complete the purchase or is a mortgage required?
the date agreed for completion by both parties:
how efficient the lawyers are:
Generally speaking, the exchange can be done within two weeks. In reality, however, timescales can differ.
2 to 4 weeks: A property can exchange within 2 to 4 weeks if the funds are in place, the property has no debt, and all of the documentation is in order.
4 to 8 weeks:
More than 8 weeks:
What taxes do you pay when you buy a property in Spain?
When you buy a property in Spain you will have to pay tax. The tax you will pay depends on whether or not the property is a resale property or a new build property. If the property is a resale property you will pay ITP. If the property is a newly built property you will pay IVA.
What taxes do you pay when you own a property in Spain?
Do you pay council tax on property in Spain?
When you buy property in Spain, you must pay a tax known as IBI. IBI (Impuesto sobre Bienes Inmuebles) is a tax which every property owner must pay and it is similar to council tax in the UK (although, generally, much more affordable). IBI is a tax which is collected annually either by the local town hall (Ayuntamiento) or the SUMA offices. It is used to finance local services such as street lighting and maintenance of facilities. It may be used for rubbish collection and waste disposal (basura) or, in some municipalities, this may be charges separately.
Note: IBI is not the same as Non-Residents property tax which should be declared and paid using the Non-Resident Tax Return form (Modelo 210).