During the last year foreigners bought in Spain more houses than ever. In particular, international investors bought about 48,000 homes, which according to the Real Estate Expert, Ignacio Acosta Sorge, an increase of over 13% and over 13% of total purchases. This is evidenced by the most recent statistics provided by the government itself, which also is evident that the citizens of UK are by far the most houses bought: 21% of the total. So today we bring you a series of questions and answers so that you are clear about how to buy a house in Marbella or anywhere in Spain and abroad.
Can any foreigner to buy a home in Spain?
To buy an apartment in Spain, is only needed Identification Number (NIE), which is a personal, unique and exclusive number of sequential nature. You may apply for the NIE in person or through a representative authorized to delegations and sub-delegations of Government. And immigration offices. From abroad it is also possible to process this document.
When it comes to buying a home, real estate agencies can streamline this process. If you have made finding housing and is clear about the property to be purchased, an agent of real estate, for example, you can draw up a contract of deposit or signal that will serve to expedite the processing of the NIE. It is also important to make a tax provision. For more information on these aspects and other really interesting, you can enter our video-home for you to expand your knowledge about it through short, and attractive videos.
If a foreigner buys a house but maintains his residence in another country, pays taxes in Spain?
It is understood that all taxes and expenses associated with the purchase of the housing must be paid in Spain, IVA in case of new or ITP housing if used, and the costs of appraisal, notary fees, agency and record. Similarly, taxes such as property tax or the rate of waste arising from the purchase of this property, are paid here.
In Spain there is the Income Tax Non-Resident (IRNR), which is a direct tax levied on income earned in Spanish territory by individuals and non-residents, except entities that are taxpayers for income tax of Persons (IRPF). It means that a person has his habitual residence in Spanish territory when remain in Spain more than 183 days during the calendar year. In that case, personal income is taxed, not IRNR.
According to the Real Estate Publicist, Ignacio Acosta, everything will depend, however, on whether it is or not support a personal tax abroad and the existence of double taxation agreements. For example, in terms of rental income, would have to establish the tax basis on the rateable value or if the property is rented on annual income earned. The general rate of IRNR is 24%.
Can a foreigner apply for a mortgage in Spain or only in your country?
In the market there are mortgages for non-residents, which are loans that are granted to foreigners without legal residence in Spain. Since the aim with the new law on entrepreneurs is to provide that foreign of a residence permit, it is logical that it would adhere to the same mortgage deals to which you have access a person with Spanish nationality.
In principle, foreigners may have a bank account in your country, but the recommendation, if you plan to buy a home in Spain is that it has a branch presence in our country. There are many Spanish companies operating abroad.
However according to the Real Estate in Marbella, Panda Estates, currently there are 3 banks that provide loans to non-resident foreigners in Spain, they are: Banco Sabadell, Banco Popular and Banco Santander. Also CaixaBank allows citizens not Spanish open an account, so the only requirements are the non-resident certificate and passport.
Having a house in Spain gives foreigners the right to register or obtain a residence permit?
Not the same voter registration that residence permit. The municipal census depends on the municipality and it must be discharged all people living in the municipality, whether domestic or foreign, the latter having its regularized in the Register of the Ministry of Interior or situation.
With regard to residence a couple of years the Spanish government approved the Law on Entrepreneurs, whereby a person who buys a property in the country and whose price exceeds 500,000 euros will have the opportunity to obtain a residence permit and even work permit. Children under 18 and your spouse. According to wikiHow, the permit must be renewed every 5 years, and this will require the person to keep the investment.
Do they have capacity to acquire a property for more than 500,000 euros?
In principle, the Government’s intention is to attract foreigners with enough time to respond to buying housing, even with cash payment capital. It is important that mechanisms are in place to prevent money laundering.
The requirements for granting mortgages are fairly rigid with respect to the creditworthiness of the applicant, which is the task of the bank assess the economic capacity of the buyer. We are talking about a minimum amount of 500,000 euros. Given that mortgages that subscribe now cover as much as 80% of the appraised value, the applicant should have prior savings of 100,000 euros, plus 10% of expenditure, is about 50,000 euros.
On the other hand, there have been several immigrant associations have criticized the initiative, understanding housing as a very serious and sensitive issue that should not be in relation to immigration. Thus, those affected admit that the proposal aims at a kind of immigrant upper-middle class, while discriminates against another kind of immigrant who already has been working in Spain helped lift the Spanish economy.
Consulted legal sources claim that the amendment to the Aliens Act actually has the focus on Chinese and Russians, who have a higher purchasing power, which could raise the amount needed to grant a residence permit, but not perhaps reach levels of Ireland and Portugal.
Who are the foreigners most buy homes in Spain?
According to the latest statistics, some 10,000 homes were acquired by investors or tourists of this nationality at a time when he is in doubt what the relationship of the United Kingdom with the European Union (EU). Far from the British are the French, Germans or Swedes, who accounted for between 6% and 7% of purchases. Chinese citizens, who are increasingly looking for investments in Spain, made just over 4% of the total.
In the opinion of industry professionals majority, the most interest today to buy property in Spain are the Russians, the Chinese and Nordic. Faced with weak domestic demand, the foreign customer is an increasingly strong appeal. In Spain, the number of Chinese registered and Russian only accounts for 4.1% of all foreigners, but no one denies that become active buyers in the Spanish real estate market since the crisis. The fall in housing prices has led to and put on a plate this growing investment.
The profile of Chinese buyers attending two ways. On the one hand, there are the billionaires who like to buy spectacular homes in the best areas, especially in cities like Madrid and Barcelona, as revealed some promoters, but also like to buy second homes in Mallorca and Marbella , regardless of whether there are more people of Chinese origin in the district or in the building.
In the first half of last year, foreign citizens came to star in some communities between a third and a quarter of purchases. This is the case of the Balearic Islands, which accounted for 33.5% of all acquisitions in the second quarter, Canarias (27.5%) and Valencia (25.7%). Murcia, Andalusia and Catalonia showed percentages between 12% and 15%, while Madrid concentrated only 4.7% of operations. Aragon coalesced 4.5%; La Rioja (2.8%); Navarra (2.3%); Asturias and Cantabria (1.9%); Castilla-La Mancha (1.8%); Basque Country (1.7%); Castilla y León (1.1%); Galicia (0.6%) and Extremadura 0.4%.
On the other hand, there is a part of Chinese middle class population that invests in the Spanish brick for work, showing a preference for houses between 60 and 80 square meters, or even lower. Data registration are in line with this growing interest. Autonomies with more Chinese empadronados are Catalonia, with 49.290, and Madrid, with 46,032, far from the figures presented by other coastal communities such as Valencia, with 19,344, and Andalucia, with 17,789. According to the National Statistics Institute earlier this year. In Spain there were a total of 175,813 registered Chinese.
As for Russian buyers, usually, both buyers with high purchasing power as middle-class citizens. Buyers average common purchasing power usually couples from 30 to 50 years who opt for apartments second residence of one or two rooms. In 2011, the Russians bought a total of 1,645 homes in Spain, it ie 7.86% of the purchased by foreigners, and did so mainly for tourism purposes. Unlike the Chinese, they tend to concentrate their real estate acquisitions on the east coast, on La Costa del Sol and Costa Almeria and unique properties in Madrid, Barcelona and Marbella. In fact, already it is beginning to say that they are displacing the traditional market of British buyers. According to INE, in early 2012 there were 57,275 Russians in our country.
According to the latest data from the Ministry of Employment and Social Security, corresponding to June this year, almost all Chinese citizens who live in the country have the card (174,585 of 175,813 registered Chinese). On the other hand, they are Russian residents who have no greater extent of these documents (40,386 of the 57,275 registered voters Russians). Many of these potential foreign buyers have long complained of procedures requiring them to the Spanish Government to be homeowners in Spain, something many developers have asked to be flexible to be able to output the stock.
How are the houses they acquire?
The British spend an average 190,633 € in apartments on the Alicante coast. Mostly it comes to apartments or small houses with an average area of 138 m2. The English buyer is not found exclusively in Alicante, is also quite significant number of properties acquired in the Costa del Sol, in the Canary Islands or Murcia.
The Russians are certainly the most money invested in Spain. Especially in large villas or villas of about 398 m2. Their favorite destinations are La Costa Catalana, Girona specially Alicante. As for the French we can say that acquire homes with an average value of 171,644 € and an average area of 83 m2. While the Germans do in the Balearic and Canary by an average value of 338,715 €. In most cases it is townhomes or half detached villas of 200 m2.
How do they access to the Spanish real estate market?
Typically, potential Chinese buyers are usually very reserved. In addition, the language issue greatly affects the time to close any sales, as claim professionals working with these customers. The Chinese buyer avoids bank financing for a cultural issue and, initially, try afford it for himself through his own savings or borrowing from family or friends. Some of the channels more frequent access to them are also Chinese consultants who collaborate with Spanish consulting and real estate that offer a bilingual service. In the latest edition of SIMA Autumn, as well as the previous one, it has devoted an exclusive space for potential Chinese buyers thanks to a collaboration agreement with InfoChina Management to facilitate investment.
As for the Russians, there are many real estate agencies located in Moscow selling houses in Spain. The Spanish agencies with a Russian partner are the best positioned, as well, many of them have catalogs of houses in Cyrillic alphabet. The Spanish real estate fairs is also promoting the real estate business with potential Russian buyers, such as the latest editions of Barcelona Meeting Point, which has invited senior members of the Russian Federation, and entrepreneurs of the country, to know the Spanish market interested in investing in Spain.
Are foreign good payers?
The Chinese, as their reputation precedes them, often working from sunup to sundown, plus savers and good payers. In Chinese culture a default is almost like a stain on the honor, it is a source of discomfort for an individual, therefore, always they tend to meet payments on time. Most mortgages have a term shorter repayment than those of the Spaniards and the default rate is really low, say some real estate agencies also dedicated to dealing with this client.
As for the Russians, the number of closed transactions and the increase in the Spanish real estate market, reflect on their own that the increasing number of operations that are closed by these citizens. In fact, the Russians are an important group that energizes the housing market in many countries and not miss their payments, in fact, in many cases, pay in cash.
There is no doubt that foreigners are an important part of the Spanish housing market, which is why today we wanted to offer this kind of guide with questions and answers to the most common about questions.
Drafted by: MARA
Word Count: 2.164
Contribution to reader: provides users really important information regarding buying homes in Spain by foreigners, the way they do, how and who are most show interest in the area.