With its exceptional climate, relaxed lifestyle, and a wide selection of exclusive properties in areas like Costa Blanca and Ibiza, buying a luxury property in Spain can be both a rewarding and straightforward experience—provided you understand the process and have the right guidance.
How long does it take to buy a house in Spain?
The average timeframe to complete a property purchase in Spain ranges from 6 to 12 weeks. However, this may vary depending on factors such as the complexity of the transaction, the availability of legal documentation, or whether the buyer requires financing. For cash buyers with legal representation in place, the process can be significantly faster.
What is the longest part of the process?
The longest stage is usually the due diligence process, during which your lawyer verifies the legal status of the property: checking for debts or encumbrances, confirming proper registration, and ensuring there are no ownership disputes. This step is essential to avoid any legal issues after purchase.
Who holds the deposit during the process?
Once the private purchase contract is signed—usually a “Contrato de Compraventa con Arras Penitenciales”—the buyer typically pays a 10% deposit. This amount may be transferred directly to the seller, or it can be held in a secure client account by the buyer’s lawyer or the real estate agency until the signing of the public deed.
Is it easy for UK citizens to buy property in Spain?
Yes, even after Brexit, it is still relatively easy for UK citizens to buy property in Spain. You don’t need to be a Spanish resident to purchase a home. However, you will need to obtain an NIE (Foreigner Identification Number), open a Spanish bank account, and comply with the relevant tax obligations.
Can I buy a property in Spain without being a resident?
Absolutely. Many non-residents, including British buyers, purchase property in Spain as second homes or investment assets. Non-residents enjoy the same property ownership rights as locals and can even apply for a Golden Visa if the investment exceeds €500,000.
Is it hard to sell a property in Spain?
The Spanish real estate market is generally dynamic, especially in high-demand areas like Costa Blanca and Ibiza. The time it takes to sell a property depends on the market conditions and the pricing. Working with a reputable agency like Luxinmo can greatly accelerate the sale through targeted international marketing and a network of qualified buyers.
How much tax do you pay when selling a property in Spain?
When selling a property in Spain, the following taxes and costs may apply:
- Capital Gains Tax (CGT): Non-residents, including UK citizens, pay 19% on the net profit made from the sale.
- Plusvalía Municipal: A local tax levied on the increase in the value of the land, calculated by the town hall.
- Other costs such as legal fees, agency commissions, and a possible 3% withholding of the sale price if the seller cannot prove Spanish tax residency.
Who pays the purchase taxes and stamp duty in Spain?
In Spain, the buyer is responsible for most of the taxes and costs associated with the property purchase. These include:
- Transfer Tax (ITP): Between 8% and 10% for resale properties, depending on the region. In the Valencian Community, the rate is 9% for properties under €1 million and 11% for properties over €1 million.
- VAT (IVA) and Stamp Duty (AJD): For new builds, the buyer pays 10% VAT plus approximately 1.5% stamp duty.
- Additional costs such as notary fees, land registry fees, and legal representation are also paid by the buyer.
In this post, you'll find more tips about buying a luxury property in Spain.
Buying luxury real estate in Spain with confidence
With the right support and a trusted agency, buying a luxury home in Spain as a UK citizen is a smooth and secure process. At Luxinmo, we specialise in exclusive properties across Costa Blanca, Ibiza, and the Costa del Sol, offering expert legal advice, multilingual assistance, and a curated portfolio of homes tailored to your lifestyle. Whether you're looking to invest, relocate, or simply enjoy Mediterranean living, we're here to guide you every step of the way.
