The country's territory preserves Roman architectural monuments, Moorish palaces of Andalusia, the mosques of Cordoba, Granada, and Seville, humble early medieval churches in the mountains of Asturias and the Pyrenees, huge cathedrals and castles from the Reconquista era in Castile and León, and finally, the stunning modernist architecture of Barcelona, which is by no means limited to the works of the great Antoni Gaudí. The entire country is one vast open-air museum, surrounded by beautiful seacoasts where resorts are organized, and many of them are the best in Europe. Therefore, as noted by Zagorodnoye Obozreniye, it is not surprising that Spain is one of the world's largest tourism centers. Tens of millions of tourists visit this magnificent country annually. A vacation in Spain leaves indelible impressions on the soul, so one wants to return again and again. And the easiest way to do this is to have your own home in this blessed country.
A multitude of people from all corners of Europe come to Spain, purchase real estate, move for permanent residence, and invest money. In recent years, Spain has consistently been among the best countries in terms of quality of life, so the country's population increases by about 1.5% annually. This growth is not due to refugees or immigrants who came to earn money and subsequently become a serious social problem, as often happens in northern countries of the continent. No, quite established people come to Spain, wishing to invest in real estate. As everywhere, Spain has places that are extraordinarily suitable for recreation, tourism, business, and life in general.
Where, what, and how much
Wide avenues, beautiful fountains, shady parks, and majestic palaces make the country's capital one of the most beautiful cities in the world. In addition, Madrid is one of the largest European centers of education, science, and industry, which adds attractiveness for business and investment, including real estate investments. The second most important city is Madrid's eternal rival, Barcelona, the capital of Catalonia. It is one of the most beautiful cities not only in Spain but also in Europe.
Costa Brava is the northern part of Spain's Mediterranean coast, which begins 40 km north of Barcelona and stretches to the border with France. There are many picturesque, secluded spots where rocky shores alternate with quiet coves, and pine forests descend to the sea itself. The Costa Azahar coast (translated as "Coast of Orange Blossoms") is located near Valencia, Spain's third-largest city. The name is not accidental: for centuries, orange tree plantations requiring a mild and warm climate have been cultivated here. Like other Spanish coasts, Costa Azahar is actively being developed, because the favorable climate promotes the creation of new tourist centers.
Costa Blanca (Spanish for "White Coast") is the coast that occupies most of the province of Alicante. Here are world-famous resort centers such as Benidorm and Torrevieja. Generous sun, warm sea, delightful beaches, and beautiful landscapes are complemented by numerous monuments. Costa Cálida is located between Andalusia and Valencia. Tourists are drawn here by unlimited opportunities for water sports, an abundance of entertainment, excellent hotel infrastructure, as well as the historical and cultural heritage and modern life of cities such as Murcia, Cartagena, and Lorca.
"Sunny Coast" - Costa del Sol - is the southernmost part of Spain's Mediterranean coast, located in Andalusia. The region is famous for its excellent climate, modern infrastructure, and comfortable hotels. It is also extremely interesting from the perspective of history and culture - in Europe, there is no longer a corner where West and East are so closely intertwined.
Among the islands, the most popular are the pearl of the Mediterranean, Mallorca, and Tenerife, the largest island of the Canary Archipelago, spread out in the middle of the Atlantic Ocean. The nature of these regions has nothing in common, but its diversity on each island is striking. Of course, the islands have developed infrastructure both for recreation and for permanent residence.
Spain is one of the leaders in the European real estate market. This is explained by the constant growth of the country's population and the equally steady demand for housing in resort regions, mainly from foreigners. In 2006 alone, more than 0.5 million homes were purchased in Spain. The average cost of new housing, according to 2006 data, was about €2,400 per square meter.
Of course, the highest average real estate prices were in the capitals - Barcelona (over €4,000 per m²) and Madrid (about €3,900 per m²). Even high prices by European standards in resort regions - about €3,000 per m² - do not stop buyers. In the Spanish market, as in any developed and established one, the choice of real estate is large - you can buy a modest studio worth about €100,000, or you can buy a luxury villa in an elite village from €2.5 million.
Real estate prices in Spain are steadily rising, and in 2006 the increase was 16%, although the pace fell by 5% compared to 2005. Nevertheless, the construction boom is not even thinking of ending. New territories are being developed, and analysts predict a doubling of the pace of housing construction in the country in the coming years.
Purchase formalities
Despite the similarity of laws in the countries that are part of the European Union, each has its own features. Spanish legislation is quite liberal towards foreigners buying real estate.
Any type of real estate in Spain must be registered in the Property Registry (Reglstro de Propiedad), where you can obtain information about the exact area and price of the property, find out who its owner is and whether he has any debts. The main official document, called the Escritura Publica (escritura), is issued in the name of the owner, which is then assigned its own number for entry into the registry. Under Spanish law, only the owner or a person with a notarized power of attorney from him has the right to sell real estate. Usually, the right to sell is entrusted to an agency that must have an appropriate license. Each firm or agency has its own escritura, the data of which is stored in the Property Registry, where you can inquire about it. If there are several owners of the property, or the owner is married, then the consent of all owners is required for the sale.
For the purchase, a private sales contract is drawn up, which, among other things, specifies the terms and method of payment. Upon signing the contract, the buyer pays about 10% of the price, thereby reserving the property. After concluding the contract, the buyer must obtain a foreigner identification number from the local police in order to then properly complete the transaction with a notary.
Then, within a month, the main official sales document - the Escritura Publica - is drawn up. The remaining amount is paid when the escritura is signed, after which the buyer becomes the full owner. There are various payment terms. For example, you can take out a mortgage loan, which for non-residents of Spain can be up to 70% of the property value (according to ubiquitous statistics, last year the average mortgage amount was about €150,000). The current mortgage interest rate is 4.25-4.75% per annum. All these conditions are stipulated in the contract before signing. The escritura is signed by the buyer and seller at a notary's office in the presence of a Spanish notary.
At your request, you can include not only the name of the owner, but also all members of his family in the document. After the signing procedure, it remains to register the property in the Spanish Property Registry. The registration process usually takes about three months. Although in Spain it is common to understate the value of real estate in order to reduce current expenses and taxes associated with the purchase (that is, the escritura declares a value 10-20% lower than the actual price), it is better to avoid this, as legal problems may arise in the event of resale.
Expenses for buying new and secondary real estate differ. Notary expenses when purchasing any real estate are paid according to a scale that progresses depending on the cost (for example, when buying real estate, the tax will be slightly higher if a mortgage is taken out). Expenses for document processing when registering in the Spanish Property Registry are paid when entering the name of the new owner and property details in the registry. This amount is also determined by a special scale and depends on the purchase price. For example, for housing costing €100,000, it is €180. The services of a private lawyer will cost about €850.
When purchasing new real estate, VAT is paid (for apartments and residential houses - 7%, and for commercial facilities intended for private production and for undeveloped land plots - 16% of the value stated in the escritura). The tax on documentation of legal acts is 0.5% of the property value.
When purchasing real estate on the secondary market, a transfer tax of 7% of the declared value is charged. Also paid is the municipal tax Plus Valia, based on the official assessment of the increase in property value at the time of its sale. Theoretically, this tax should be paid by the owner, i.e., the seller, but in practice, the buyer usually covers all taxes. The amount of tax, indicated by the local municipality, depends on the 'age' of the property and the period during which it was owned by the last owner.
All expenses for processing the purchase without taking into account the mortgage amount to about 8% of the property value; a mortgage increases these costs to approximately 11%.
Pleasing Inexpensiveness
The cost of maintaining a home often comes as an unpleasant surprise to buyers. Fortunately, prices in Spain are very humane. Utility bills are low, and on average, the total annual bills for electricity, water, and gas for a family of three or four start from €600 per year. Maintaining an apartment of about 100 m2 costs €1,100-1,400 per year, including electricity, water, property tax, insurance, and HOA services. Electricity bills are sent every two months, water bills every three months. Money is deducted from a bank account, and owners receive a receipt by mail showing the amounts of resources or services consumed and their cost.
The purchase of housing gives the owner and his family members the right to obtain a one-year Schengen visa with the right to reside in Spain for 90 days within a six-month period. After a year, the visa is renewed - and so on indefinitely.
Sometimes the country eases the conditions for obtaining a residence permit, so all owners of Spanish real estate have considerable chances of becoming citizens of the European Union.
Spanish laws do not create unnecessary obstacles for a person wishing to purchase real estate, and thanks to affordable mortgages, buying a home on the sunny coast becomes affordable for the middle class.
Василий ФИЛИППОВ.
«Загородное обозрение»