Buying Guide Details

Buying Property in Valencia

Where to buy property in Valencia

Property in the central quarters of the city is noticeably cheaper than in, say, Barcelona, and Valencia has its own thriving commercial life as well as a wealth of history which is still celebrated in the fiestas of today. It is the most commercially important city on Spain’s Mediterranean coast, host to numerous trade fairs throughout the year and a showcase for Spanish business to the rest of Spain and the world – English is widely spoken here.

The arrival of the Americas Cup this year is a further step in a remarkable transformation for this city – redevelopment sees new properties and business premises in the heart of the city. There historic cathedral and Old Town, the Barrio del Carmen, rub shoulders with the ultra-modern science museum and Imax cinema.

It shouldn’t be forgotten that Valencia is a city by the sea, and there are a couple of beaches close to the town for enjoying the sunshine and the Mediterranean.

It has become better known in recent years for its ‘land grab laws’, whereby illegally built properties have been forcibly repurchased from unsuspecting property owners. There are ongoing negotiations about how to resolve the problem but prospective property buyers should note that their properties should not be at risk as long as reputable professionals are appointed to conduct their purchase.

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The Process of Buying Property in Valencia

Anyone wishing to buy (or sell) a property in Valencia must first obtain from the state – in person – a fiscal number for foreigners known as NIE (numero de identificacion de extranjeros)
Once the property buyer has received the NIE number, the property 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 property 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 property buyer
If buying property in Valencia 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 property 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 in Valencia
Taxes payable depend on whether the property in Valencia being purchased is new-build or resale. Currently, transfer tax of around 7% is applied on resales, which includes stamp duty. For new-build properties in Valencia, 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 property buyer is purchasing land or commercial property in Valencia rather than residential property in Valencia, 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 Valencia direct from a few airports in the UK.

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