Frequently asked questions
A purchase in Spain has a processing time for lawyers, notaries and banks of around 6-8 weeks, whether you are buying a house or an apartment. The whole purchase is done in Spanish. We are of course here to help you, but we always recommend that you hire a lawyer or a representative who can also help you with the legal issues.
When you buy a home on the Costa del Sol, certain taxes and fees are added to complete the purchase. We will of course help you through the whole process, but in short, there are different amounts depending on whether the purchase is for a second-hand home or for a newly built home.
When buying a second-hand home: 7% tax. In addition, 1% + VAT to the lawyer.
When you buy a newly built home, VAT is added instead:
10% VAT (IVA) (Impuesto sobre el valor añadido)
1.5% stamp duty (IAJD lmpuesto de Actos Juridicos Documentados)
2.0% of the cost to the notary and 1% to the land registry and VAT to the lawyer.
It is important to use a lawyer to make sure that the property you are buying is completely legal and that there are no debts or income that need to be cleared by the seller.
WE can recommend some experienced law firms that can guide you through the whole buying process in your own language, but if you want, you can of course hire your own lawyer.
The lawyer is the person who will prepare the purchase agreement and at this stage a percentage of the property price is paid. You will then also set a date for completion with the notary. After you have signed the deed with the notary, your solicitor will help you with name changes, contracts for electricity, water and telephone and more.
Empadronamiento, also known as Padrón Municipal de Habitantes, is a municipal register, similar to a voter list. Registration in the register places a resident of a town on the list of local residents.
Registration with the Padrón Municipal de Habitantes is compulsory for anyone moving to Spain and planning to live here for more than six months a year. You can register individually or as a family.
No, you don't have to. It is enough to contact a real estate agency. We at Hostedby have access to all the apartments and houses for sale throughout the Costa del Sol. Along with most reputable estate agents, we have a common brokerage system in which all the Costa del Sol estate agents work and share their properties with each other.
Therefore, it is enough to go to ONE real estate agent who will find the home you are looking for, who will make sure that everything is done correctly, that all the paperwork is in order and that you receive the advice and guidance you want before your purchase. Please note that this does not affect the price of the property either. The estate agents' commission is split between them and is always paid by the seller.
Together with your Hosteby broker, we will help you apply for a. NIE number (a bit like a personal identity number) which identifies you and allows you to sign contracts in Spain.
A NIE number is applied for BEFORE you can make a purchase. Without a NIE number you cannot apply for a title etc. Many of our clients apply for their NIE number before they arrive in Spain. This can be done via the Spanish Embassy in Sweden. It takes approximately 3 weeks to obtain your NIE number, and the certificate is valid for 3 months from the date of issue.
There are two Swedish taxes that affect anyone who owns a Spanish holiday home but is still resident in Sweden. These are the tax on rental and the tax on sale.
TAX ON RENTAL INCOME
In Spain, you have to declare your rental income quarterly on form 210 from the tax authorities. In Spain, this is considered to be a rental income and the preferential value to be declared is 2% of the assessed value of the property (Valor Catastral). In Sweden, the first 40,000 crowns are tax free and if the rental income is higher than this, it is taxed with a deduction of 20%. Spain requires the rental income to be taxed there too as the property is Spanish and they have priority on this. The tax you pay in Spain can then be deducted in your Swedish tax return.
CAPITAL GAINS TAX ON SALE
When you sell a property in Spain, you must also make a capital gains declaration in Sweden, declaring the resulting loss or gain. The gain is taxed at 22% in Sweden and then you have to pay 19% of the capital gains tax to the Spanish tax authorities within 3 months. The buyer of the property is obliged by law to pay 3% of the purchase price to the Spanish tax authorities, i.e. the seller only receives 97% of the purchase price when the title is transferred. The 3% paid by the buyer is then credited to the seller's capital gains tax return. The tax paid in Spain is credited to you in Sweden.