Holiday properties in Spain
The Porta Mondial property brands are specialised in holiday properties in Majorca, Ibiza, Menorca, Tenerife and the Costa del Sol.
Choose your dream property from a portfolio of some 3,000 houses, villas, fincas and apartments in premium locations. We are there for you – on the spot: with 9 offices in Majorca, and in Ibiza, Tenerife and Marbella. Our property experts are thoroughly familiar with the market and will advise you with regard to the property’s location, price and condition. Whether you are looking for a new home in southern climes or an investment property – you can rely on us as a reputable and experienced property business.
Thanks to our international network we are also at your disposal in Germany and will be happy to assist you at our estate agencies with any questions you may have about buying a property in Spain.
Tips for buying a property in Spain
Buying a property in Spain is different to buying a property anywhere else in Europe. Using the example of Majorca, we have put together a list of the most important points for ensuring that all the legal formalities have been properly completed when you buy a property in Spain.
Please note that this guideline does not constitute legal advice, but is purely for information purposes. Depending on the individual case, it is recommended that you consult a local solicitor before buying. On request, we will be happy to recommend highly reputable law firms.
We at Porta Mondial will assist you, as a buyer, with any questions you may have. With the assistance of the authorities and solicitors we can, for instance, clarify the following points for our clients.
Important questions to ask before buying a property
- Is construction possible and permitted on the plot?
- Is the building legalised or subject to any right of continuance?
- Is the seller recorded in the Land Register? Are there any encumbrances on the property?
- Are there any restricted rights in rem on the property (right of use, security interest in land)?
- Application for a N.I.E., an ID number that is mandatory for non-resident buyers and sellers.
- What fundamental features of the property are recorded in the Land Registry (catastro)?
Once all outstanding questions have been answered, there is nothing to stop you buying your dream property. In Spain – as in Germany – taxes and charges fall due during and after the purchase of a property.
Here is an overview of the main charges
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Purchase from a private individual
- Property transfer tax (ITP)
- Municipal appreciation tax
- Property tax (I.B.I.)
- Wealth tax
- Income tax
In Spain it is not uncommon for a specially-founded company to be set up as the owner of a property. If the seller is a legal person, the buyer is liable for the following taxes:
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Purchase from a company or self-employed person
- Value added tax
- Stamp duty
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Purchase of company shares
- Property transfer tax (ITP)
Apart from taxes, there are also incidental purchase costs involved:
- Notary costs (approx. 0.1 – 0.2 % of the purchase price)
- Costs for registering the Deed of Sale in the Land Register (approx. 0.1 – 0.2 % of the purchase price)
- Notary and Land Register costs incurred for the creation and registration of a mortgage
- Estate agent costs, if borne by the buyer
- Costs for legal advice
- Solicitor’s fees
- Tax advisor fees
- Legalisation costs
Long-term lettings in Spain
Long-term lettings are becoming increasingly popular in Spain, with both locals and foreigners. This type of letting is understood to mean a lease with a term of at least 12 months, in accordance with Spain’s Rental Act (LAU - Act 29/1994 of 24 November on Urban Rentals).
There are many different reasons why people choose to rent a property long-term in Majorca: Some need to be on the spot for professional reasons and will rent for that period. Others are seeking rest, and use the rental property for recreation and holidays. Many tenants are potential buyers who cannot or do not wish to make a purchase decision at that particular time but who have a strong connection with Spain, or simply want to try living there for a while.
Thanks to their precise knowledge of the market, the rental experts at Porta Mondial can give you an accurate picture of the local market situation and market development. We know the going rent for a given property and can also explain it to you. Our professional knowledge allows us to inform you about country-specific matters of both a legal and cultural nature, so that you are well-informed in every area.
