Measures to promote foreign investment in Spain, established by Law in Support of Entrepreneurs, have not produced the desired effect called for EU citizens.
The reasons that expectations are not met lie mainly in several neighbouring countries, such as Portugal, Greece, Malta, among others, have enacted rules that have the same purpose with more flexible criteria and less red tape.
However, the fall in property prices has allowed a gradual increase in purchases by foreigners, attracted by the advantages conferred by law and by the climate and the way of life of our country.
If you are considering buying property in Spain, you should know that besides the purchase price, you must meet some expenses and taxes. The first are those arising from the intervention of the notary and registration in the Land Registry.
As for taxes, vary if the estate is new or second hand. The tax on the purchase of a new home is VAT at 10%. If the house is 2nd hand, will have to be paid the transfer tax, the applicable rate varies from one autonomous region to another, between 5 and 10%.
It is highly recommended that if you decide to buy a home in Spain, seek advice from lawyers in the field to ensure if there is any burden on the property or any charge to decrease value or limit the right of ownership. Also planning your situation will prevent problems to transmit it in the future and avoid to be affected by obligations or liabilities incurred by the previous owner.
Your legal advisor also ensures the correct assessment of taxes arising from the operation, avoiding future claims by the Treasury.
Araceli Boltas Freixas/Gemma Pérez Boyé
VBB ABOGADOS Barcelona