Buying in Spain

Spain: The ideal place

Whether you're searching for an apartment for yourself or a house to spend time with your family, a second home in Spain is the ideal place for this. With miles of beaches, plenty of sunshine, a fantastic culture   & gastronomy , low housing prices, and relative proximity to the Netherlands with very well connected airports, Spain is very attractive to Dutch people looking to invest in foreign real estate. 

Purchasing a second home is not something done in one day. There are several factors to consider when investing in a second home in Spain.

THE COSTS OF PURCHASE 

When buying a home abroad, you must account for various expenses beyond the purchase price. In Spain, you can expect to pay an average of about 13 % of the purchase price. This includes 4-10 % transfer tax (which varies by region and is calculated based on the selling price in the deed of ownership or the reference value*, so get well-informed), notary fees, property registration, and possibly lawyer fees. Regarding new developments, it applies 10 % VAT, and between 0,5-10 % IAJD tax.

_{* Reference value is relatively new in Spanish law. The difference between the cadastral value and the reference value is that the latter is used to estimate the market value of the property based on the data from the real estate cadastre and that it represents the minimum reference by which taxes must be paid when purchasing or inheriting a home (ITP, IAJD).}

Tax Authority

Thanks to the double taxation agreement between Spain and the Netherlands, you only need to pay taxes in Spain. However, don't forget to declare your property to the Dutch Tax Authority. The value of your Spanish property will be taxed in box 3, though you will receive a reduction in box 3 tax. This reduction depends on your overall wealth. It is also possible to buy a property in Spain through a company (SL in Spanish)

The value of your Spanish property for box 3 is not determined by a valuation like the Dutch WOZ value. The Dutch Tax Authority looks at the 'value of the property in economic transactions' – basically, the sale value. The reference date is the value as of January 1 of the tax year. The 'valor catastral' (cadastre value) used by Spanish municipalities cannot be used as a baseline, as it often deviates significantly from the actual value. It's best to hire an expert to determine the correct value.

PROPERTY VALUE INCREASE OR DECREASE

Of course, you hope your property appreciates over the years. Maybe the earnings could be a bonus for later. Investing in real estate often becomes truly interesting if you're in it for the long term, think 10 years or more . This is true in Spain as well. If you decide a holiday home in Spain isn't for you after one or two years, you could suffer a loss when selling.

New construction
Different rules often apply to new construction. If you buy 'off plan', i.e. from paper, before the start of the actual construction, it can be very interesting to sell again after 2, 3 years. After delivery of your home, prices increase on average by 10-30 %.

CONSTRUCTION GUARANTEES FOR NEW CONSTRUCTION HOUSES IN SPAIN

As the owner of a new-build home in Spain, you are entitled to legal guarantees. They offer you protection against possible financial damage caused by construction errors and defects in your new home.  

RENTing OUT?

Purchasing a vacation home in Spain can make renting it out an appealing option to cover costs and potentially make a profit. However, this also brings additional responsibilities such as maintenance, cleaning, and management. We assist you in determining whether renting out a Spanish property after purchase is the right choice for you. 

WHAT QUALIS DO FOR YOU

Do you already have a property in mind or could you use some help? Qualis assists you at no costs with your new adventure so you won't face any unexpected surprises. Our real estate agents are local experts familiar with the buying or selling process like no other. They also speak the language and are knowledgeable about local laws and regulations, as well as the latest listings.

Here is a selection of our Spanish properties. If your dream home isn't listed, tell us your wishes, and we'll search for you at no cost. And if desired, we'll take you on a viewing tour, entirely without obligation.