When we talk about the real estate market, we are referring to Real Estate in Spain, a term that is currently widely used. Specifically, we refer to assets that, due to their nature, are immovable from the site where they are located.
It also means real estate, and is an Anglo-Saxon term that encompasses the rental and sale and purchase of property. In this sense, Spain is currently one of the preferred places to invest in real estate. It ranks seventh among the most attractive countries for investment in this sector.
Real Estate legal news in Spain
As difficult as it was, Real Estate in Spain in 2021 saw a 32% increase in investments compared to 2020. We are talking about more than €12,000,000,000,000. Compared to 2019 the increase was 1.6%, and for this year everything indicates that we will be 2.4% above compared to 2021.
That is why technical expertise is crucial to the success of a negotiation of this magnitude. The investor should never overlook details such as:
- The necessary requirements in terms of compliance.
- Legal assistance.
- Coordinate the notary offices.
- Be up to date with taxes.
- Registration in the corresponding Registry.
- Necessary documentation.
No less important is the application of anti-money laundering measures according to Law 10-2010. This procedure takes time and the investor could get discouraged, that is why there is professional advice to guide on these matters.
What to consider
For those who wish to invest in Real Estate in Spain, there are a few things to keep in mind.
1. The legal system
To detail well the operation in terms of the capacity to be able to buy and the legal details that leave it totally “armored”.
2. Contracts
Careful attention must be paid to the validity of the contracts to be entered into, as well as to the details regarding guarantees, terms and penalties for non-compliance. This is of paramount importance because it anticipates possible unfavorable events that could tarnish the success of the operation.
3. Tributes
It is important to know all the details regarding taxation and the costs associated with the maintenance of the property. It is important to detail in time the current legal basis of the country.
Can anyone invest in Spain?
Yes, any individual or legal entity can do so, as long as the investment is not between 1.500.000€ and 3.000.000€. In this case, it must be subject to a special regime according to RD 664-1999, which also applies to funds originating in tax havens.
Stages of investment
In Spain the payment of the price of the property is made in two parts, a first part known as a deposit, which ranges from 5% to 15% of the amount of the sale. It is a way of sealing the commitment and has a penalty for non-compliance. The contract will establish when to pay the remaining amount in a second stage.
Can the operation be done from another country?
Yes, especially if the investor is within the EU. There are cases in which a visa is required, but the investor can authorize legal representation by granting powers of attorney, which can be done in the investor’s country of origin.
When the investment exceeds €500,000, the investor is entitled to a golden visa. It is an incentive for those who wish to bring their capital into the country. A good legal advisor will help you obtain it without having to travel.
A good time
It is definitely a good time to invest in real estate in Spain, as long as you have the necessary professional advice. With optimal legal guidance from experts in the area, you will be able to successfully complete your operation and maximize your investment. For any questions you can contact the law firm of Carlos Baño León since we are experts in real estate law and we have more than 35 years dedicated to it in the office.
