Buying Guide Details

Buying Property in Granada

Where to buy property in Granada

Situated in southern Andalucia, Granada was really opened up to British property buyers by the recent introduction of low-cost direct flights from London and Liverpool. It retains an authentic Spanish feel, though it benefits from being central to some diverse property development, in golfing and skiing in particular.

The climate here means that it is somewhere to holiday at any time in the calendar and investors should note that there is genuine potential for year-round rental income – not just from holidaymakers but from a resident student population, too. There’s a new medical campus in the south of the city which gives a ready-made rental market for an investor in the area.

With a reputation as one of Spain’s most beautiful cities and as a cultural and culinary hotspot, the city has appeal to a discerning visitor looking for authentic Andalucia. Buyers in the city centre will find a knowledge of Spanish helpful as the property market there is not geared towards the overseas investor.

There are some great property bargains further out from the centre, and for those with an eye for renovation projects an old townhouse in need of some TLC could be a very inexpensive way into the local property market. The Sierra Nevada mountains have a ski season from November to April but continue to draw visitors during the summer months, through hiking, cycling and birdwatching.

The Process of Buying Property in Granada

Anyone wishing to buy (or sell) a property in Granada must first obtain from the state – in person – a fiscal number for foreigners known as NIE (numero de identificacion de extranjeros)
Once the buyer has received the NIE number, the buyer’s lawyers can make an offer on their behalf. When a price has been agreed, it is recommended that both parties sign a preliminary agreement which outlines details such as the completion date
A deposit of 10% is the normal amount placed to secure the deal. After this, if the buyer pulls out they lose the full deposit but, should the seller decide not to go ahead, he/she must return double the amount of the deposit – i.e. 20% – to the buyer
If a property in Granada is purchased off-plan, it is usual for payments to be broken into stages, the balance being paid when construction finishes
On completion, when all the necessary checks have been carried out, both parties sign the escritura (title deeds) in the presence of a notary. The buyer then pays the balance, plus all other fees and taxes. Copies of the deeds are sent to the Land Registry and the tax office.

Homes Overseas Property Club

Homes Overseas has joined forces with a collection of IFA specialists to form the Homes Overseas Property Club (HOPC), designed for existing and prospective overseas property homeowners.

The Club – which has access to international lawyers in no fewer than 43 different countries - has been set up in order to guide people through some of the various issues relating to buying and maintaining a property overseas. It offers advice on a range of topics, including financial, legal, insurance, taxation, property management and foreign currency matters.

For further information please telephone 0845 838 7142 or email info@homesoverseaspropertyclub.com

Fees & Taxes

Taxes and fees usually amount to around 10% of the total purchase price of the property
Taxes payable depend on whether the property being purchased is new-build or resale. Currently, transfer tax of around 7% is applied on resales, which includes stamp duty. For new-build property in Granada, VAT (IVA) of 7% is payable in addition to 1% stamp duty
On top of this there is also plusvalia (capital gains tax), which is set by the local authorities and depends on the area concerned and the amount of profit being made on the sale. This is usually paid by the seller
If the buyer is purchasing land or commercial property rather than residential, VAT is 16% as opposed to 7%. Stamp duty remains the same
Most Spanish lawyers charge around 1% of the final purchase price, and notary fees are around 0.5%
Agents’ fees can vary anywhere between 2% and 15% – so be careful not to be ripped off

Getting there

There are flights to Granada direct from Liverpool, Gatwick and Stansted.