Buying Guide Details

Buying Property in northern Spain

Where to buy property in northern Spain

Prospective buyers of property in northern Spain can expect lower property prices than on the sunny, southern costas and a very different climate and lifestyle. With few expats here, anyone buying a property in Galicia, Asturias, Cantabria or the Basque country (Pais Vasco) with the intention of living in the region full time will need to be keen to integrate with the local people. Renovation properties in northern Spain are a popular choice for overseas buyers ready to embrace the adventure of a new life abroad.

The Costa Verde (‘Green Coast’) is well named, as the lush landscape stretches along the coast of the Bay of Biscay. The cliffs, coves and fishing village are evocative of Cornwall and its coast, and in the northwest there is a Celtic connection that appeals to many property buyers. There are mountains and wine regions too.

There are some notable cities in the north. Santander, Pamplona and Bilbao, the latter in particular having undergone a major programme of modernisation over the last few years and now boasting a some truly world-class architecture and facilities, can offer urban living with a distinctly regional note quite unlike Madrid or Barcelona. Leon, Oviedo and San Sebastian might also be of interest – though prices might be surprisingly high.

The regions that comprise northern Spain have their own distinct characters, the Basque country (Pais Vasco) and Galicia in particular are each defined by their individuality and a strong grip on their own languages and cultures.

The Proocess of Buying Property in northern Spain

Anyone wishing to buy (or sell) a property in northern Spain 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 northern Spain 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 in northern Spain
Taxes payable depend on whether the property in northern Spain being purchased is new-build or resale. Currently, transfer tax of around 7% is applied on resale property in northern Spain, which includes stamp duty. For new-build property in northern Spain, 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 in northern Spain 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