Spain is an ideal country for real estate investments, whether by buying a house and renting it out or by buying a house and then selling it after renovation. Furthermore, it is also an ideal country to move to.
Many foreigners are uncertain about what steps to follow before buying a house in Spain. Keep up reading to learn the 7 basic steps!
1. Property Registration
First,you need to inquire a ‘certificate’ of the property at the land registry whereby you can check the following data:
- Who the owner is
- Liens on the estate (mortgages, easements, forfeitures…)
- Lack of registered landlords (non-registered landlords have no protection)
- If the housing is subsidised (important obligations and limitations apply)
2. Land Registry
Once you obtain the certificate, approach the land registry to learn the taxes on the property.
Please be advised that the land registry does not certify limits or the square meters of the property.
3. Urban PLanning
We must check that all licences are in order and that the estate is a legal construction. This is especially relevant when purchased on blueprints or directly from the developer. The city council can inform you about whether the property plot or the building have all licenses and permits and can provide you with an urban certificate.
4. Costal Law
In the event that you wish to purchase a property or real estate nearby the sea, you must consult the Coastal Demarcation and inquire a certificate stating that the property is not affected by the Spanish Coastal Law of 1988, especially if it is located within the so-called maritime public domain (10 m).
5.- Off-Plan Property Sales
Make sure that the developer has hired a civil liability insurance to cover potential structural flaws in the building. This insurance must be included in the book of the building provided to you.
On the other hand, the developer must also have an insurance to guarantee your payments on account of the sale. You must verify that this warranty is individual and not a collective one for the whole real estate development. You should also check that your partial payments are transferred to a specific account, that may be used only the construction of your specific development.
Make sure that the final completion of the property you buy is signed by the architect director and that it is registered in the Land Registry.
6. Community of homeowners (appartments)
If you buy a flat which is part of a building, it is advisable to check the statutes and internal rules in order to avoid future surprises with your neighbours. These internal rules or statutes may regulate aspects such as uses of pools, terraces…
Taxation shall differ if you plan on purchasing a new house from the developer or a second-hand property.
Carbray understands that these procedures are complex and time-consuming. This is why in order to invest in real estate in Spain or move to this country, you will need a lawyer specialised in real estate law. Carbray makes available real estate lawyers who will help you find your home and arrange all procedures so that you can focus on your activities. Call us at + 34 934 880 972 or contact us through the web form.