A quick 101 on buying a property in Valencia
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.
Why live in 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.
Getting 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 my 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.
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.
Getting a mortgage in Valencia
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.
If you are a non-resident, the maximum mortgage granted will be 70% of the purchase price or appraisal value of the property. They will also apply the lowest appraisal value so be prepared to be financed for a lower amount than expected. For a rural house you should anticipate a lower amount of around 60% on the appraisal value of the property.
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.
Speaking from experience
“The decision to buy a house in a foreign country, especially one where you do not speak the language fluently can be quite challenging” comments Daniel from Manchester who bought his property in L’Eliana in early 2019.
“Luckily, here in Valencia I was able to speak with friends and family who had made the move previously and who were able to help me narrow down the areas I was searching in and find what I have now realized is my perfect home.
The complexities of purchasing a house in a foreign country can seem daunting at first however, with the right advice and contacts the process can be relatively pain free, in fact I personally found it easier than purchasing my first home in the UK.
I also love the fact that here in Valencia, you get a true experience of Spanish life and all the people I have met so far are wonderful. I would say that the best reason to move here is to immerse yourself in a fantastic culture and not to try and replicate where you have come from.”
Encantada is here to 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 and Balearic Islands.
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 and builders will also be at your disposal and we can also recommend the right banks for your mortgage.
Encantada’s in-house lawyer Maria is also at hand to assist with the paperwork. Her services include:
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 purchse
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.
For whatever assistance you require Encantada’s is here and for any inquiries, please don’t hesitate to write to me directly: steph@encantadaworld.com
Thank you for reading, we look forward to hearing from you!