Are you looking to Buy Property in Valencia or Spain?
Whether you’re looking to buy a property in Valencia’s city center, its surrounding areas or by the beach, there are so many great options and you will get much more value for your money than you would in neighboring cities Madrid and Barcelona.
There are some really helpful online platforms that can help you with your search such as idelista.com but as there is so much choice and information, you may find it overwhelming, particularly if you are searching from abroad.
Here are some of our property FAQs answered for both Valencia and the rest of Spain
+ Why Valencia?
Of course, it’s a personal choice but if you are a city lover, Valencia is Spain’s third largest city and has it all. Valencia has a large and varied selection of restaurants and bars with an endless list of incredible tapas bars, a good choice of international cuisine and Michelin starred restaurants. The city is rich in history and culture and the beach is just fifteen minutes away.
The climate is second to none and there is so much choice in terms of places to visit nearby.
Along with the beach, there is stunning countryside for hikes and cycling very close by. In just a one hour drive north you can be in the mountains and ski in the winter, and if you head an hour and a half east you can enjoy some of the most stunning beaches the Mediterranean has to offer.
There aren’t many reasons why you wouldn’t want live here!
+ Where in Valencia?
Some of the nicest areas to live in the center and that are popular amongst expatriates are Barrio del Carmen, Russafa and Benimaclet to name a few. The center is made up of low to mid-rise apartments and so if you’re looking for privacy, space and perhaps a pool with an ample garden, you can find some incredible chalets in the surrounding areas such as Campolivar, l’Eliana, Rocafort and Santa Barbara. Furthermore, some of Valencia’s best private international schools are situated in these areas which is a huge plus if you’re looking to move here with children.
If it’s beach life that you’re looking for then look no further than El Cabanyal, a charming and up and coming area close to Valencia’s center and, it’s right on the beach. Over the last few years I have been following El Cabanyal’s growth and now it is home to some of Valencia’s coolest restaurants and bars. Shops are also starting to open up – all pre-Covid of course however we imagine this will pick up again once everything is back to normal. There are other neighboring beach towns worth considering such as El Saler or El Perrello however these are quieter and slightly further out and tend to be better suited for second summer homes.
+ How easy is it to get around the city?
Distances in Valencia are short and whether you are on foot, bike, in a car, on a bus or taking the metro, you can always manage to get to where you need to be in approximately 20 minutes, it’s our rule of thumb living here and it’s pretty much always accurate.
More recently, Valencia became a bike friendly city with its newly added network of bike lanes and there is Valenbici which is the equivalent to the UK’s Boris bikes or France’s Velib systems. Both the bus routes and metro lines around the city and to the surrounding areas are also very efficient and inexpensive.
Parking in the street in the city center is almost impossible and private parking unless you have it in your building is pricey and hard to come by and so using other means of transport is highly recommended.
+ What documents do you need to buy a property in Spain?
The only requirement to buy a house in Spain is to request a NIE (Foreigners Identity Number), which serves to identify you when making the purchase-sale contract and to pay the corresponding taxes.
The NIE can be requested in Spain at the General Directorate of Police or, in the event that you are not physically in Spain at the time of the request, at the Embassy or Honorary Consulates of your residing country or through a power of attorney that can be granted in order to request the NIE on your behalf.
+ Do you need a bank account to purchase a property in Spain?
It is not mandatory to open a bank account in Spain but it will facilitate the payment of taxes and expenses.
+ What are the basic steps to buying a home in Spain?
Negotiate the price with the seller
Check that the property belongs to the seller and that it is free of administrative charges or mortgages. You can do this by requesting a report at the Property Registry called “Nota Simple”
In some cases, you can sign a deposit contract and pay a percentage of the final price as a down payment. This document is an agreement by which both parties agree to finalize the sale in the near future. The usual price of this agreement or deposit is usually 10% of the house.
Sign the purchase-sale contract before a Public Notary and pay the remain balance of the property
Register the property in your name before the Mercantile Registry and pay the corresponding administrative expenses.
+ What are the costs involved when buying a property in Valencia?
When purchasing your property in Valencia, we advise that you calculate the additional costs generously to avoid any nasty surprises.
When buying property in Valencia, you should account for approximately 15% of additional costs however if your property is under €100.000, this will increase slightly for both lawyer and real estate agency fees.
The cost of transfer or buyer tax in Spain makes up 10% of the purchase price. Lawyer fees account for between 1-2%, often with a minimum of €2000 excluding VAT and notary fees are approximately 1%, as well as the real estate agency commission which is between 3-5% excluding VAT and with a minimum of €3000 excluding VAT.
If your property is a new construction, you should also expect to pay a 1.5% registration fee.
+ What other expenses should be taken into account when buying a property in Spain?
The Public deed at the notary's office
The Registration of the deed in the Property Registry
In case it is necessary to request a mortgage, it is necessary to include the appraisal and the notary, the mortgage taxes and the registration of the deed to the Property Registry
During the year you will also have to face other taxes, such Real Estate Tax (IBI), Wealth Tax -if applicable, Personal Income Tax (IRPF) or, if you do not live permanently on Spanish territory, the Non-Resident Income Tax will have to be paid.
+ What taxes are associated with buying a house in Spain?
Buying a property is subject to various taxes, which on average raises the price of the house substantially.
Among them are:
The Value Added Tax (VAT), in the case of new homes or first transfer which is a tax rate of 10%.
The Property Transfer Tax (ITP), in the case of second-hand residences or second transmission. The tax rate is between 6 and 10% depending on the Autonomous Community where the property is located and must be paid if VAT is not applied on the transmission.
Tax on Documented Legal Acts (AJD). It must be paid if the house is bought and VAT applied and if it is bought by mortgage at a rate of between 0.5 and 1.5%.
+ How easy is it to get a mortgage in Spain?
Mortgages with Spanish banks are possible however this will depend on your situation, age, your income as well as your financial situation and whether you have any debts. Overall, Spanish banks are stricter than say in the UK.
It should also be noted that each Bank has its own risk criteria, in which the country of residence can be included, and that properties abroad are not usually accepted as collateral, since it is difficult to reach them.
In general, non-resident buyers in Spain can enjoy the same mortgage conditions as Spaniards, that is, up to 80% coverage in the case of a first home, and between 60 and 70% in the case of a second home. This means that you must have a minimum of 20% of the price of the house in funds.
Additionally, none of the extra costs such as lawyer and real estate agent fees can be included in the mortgage and so you will need a considerable amount of equity capital in order to finance through a Spanish bank.
It is also important to take into account that typically, in Spain, mortgages are contracted for a minimum of five years and a maximum of thirty, with 75 years as the maximum age to finalize the mortgage.
+ Other tips for buying a house in Spain
To the extent possible, we recommend that you:
Visit the house personally before paying, that means, check first-hand the state of the house, the surroundings, the transport routes that connect with the area, etc.
Find out who owns the property by requesting the “Nota Simple” document at the Property Registry and check its legal and urban situation to ensure that you don’t any problems or scams later on
Upon acquisition, register the home at the Property Registry to demonstrate that you have the absolute rights of the house that has been bought in Spain
If a deposit contract is made prior to the Notary, go to an expert to verify the content of the contract and its effects to avoid any uncertainties and in particular any errors, we highly recommend delegating all legal tasks to a qualified expert.
How can Encantada help?
Encantada is here to help you find your dream property here in Valencia, we can also assist if you are looking to buy property in the Costa Blanca thanks to our unrivaled network of contacts.
Based on your tastes and criteria, we will make selections and organize viewings on your behalf.
If you are buying your property remotely and can’t be here in person, we will work closely with you, take the viewings for you and send detailed feedback and videos so that you can feel confident in buying your new Spanish home even if you can’t be present.
Our network of architects, builders, handymen and interior designers will also be at your disposal and we can also recommend the right banks for your mortgage.
What legal services do Encantada offer around the purchase of a property?
Checking the property has all the necessary and normal licenses and utilities and is free of debts and other charges
Drafting a contract of sale or negotiate a contract supplied by the vendor
Providing information about the taxes due for purchase
Reviewing all documents prior to purchase
Assisting with the Spanish notary to grant the Deed of Sale
Arranging registration of your title at the Spanish Land Registry
Receiving the registered title back from the Land Registry, checking and forwarding.
Get in touch.
If you require assistance around the purchase of a property here in Valencia or the Costa Blanca, please contact us using the form below: