Frequently Asked Questions About Buying Property as a Foreigner in Torrevieja and Orihuela Costa
Buying a property abroad can be a complex process, especially for those unfamiliar with the legal and tax systems of the country. In this article, we address the most frequently asked questions from foreign clients interested in purchasing property in the Torrevieja and Orihuela Costa region.
1. What are the additional costs when buying a property?
When buying a property in Spain, apart from the purchase price, there are certain additional costs to consider:
Taxes: For second-hand properties, the Transfer Tax (ITP) in the Valencian Community is usually 10%. For new properties, VAT (10%) and the Stamp Duty (AJD) apply.
Notary and Land Registry fees: These can vary but typically amount to between 0.5% and 1% of the purchase price.
Real estate agency fees: Although these costs are usually covered by the seller, it is important to confirm this at the outset.
Mortgage-related expenses (if applicable): These include the property appraisal and other costs associated with the loan.
2. What legal requirements must I meet as a foreigner to buy property in Spain?
Foreign Identification Number (NIE): This document is mandatory for any economic transaction in Spain and can be obtained at an immigration office or through a consular representation.
Spanish bank account: It is highly recommended to open a bank account in Spain to facilitate payments related to the purchase, such as taxes, services, and maintenance.
Personal documentation: A valid passport or identity document.
Proof of funds: If you are not applying for a mortgage, you must demonstrate that you have the necessary funds for the purchase.
3. What are the most recommended areas to buy in Torrevieja and Orihuela Costa?
Torrevieja:
La Mata: Known for its extensive beaches and family-friendly environment.
Aguas Nuevas: A modern development with excellent services and accessibility.
Los Balcones: A quiet area ideal for those looking for spacious residences.
Orihuela Costa:
La Zenia: A highly sought-after area due to its proximity to the sea and the La Zenia Boulevard shopping center.
Cabo Roig: Renowned for its exclusive sea views and marina.
Villamartín: Ideal for golf enthusiasts and those seeking modern and tranquil developments.
4. What is the process of buying a property in Spain for foreigners?
Reserving the property: A deposit agreement is typically signed, and a down payment (usually 10% of the sale price) is made.
Legal verification: It is essential to have a specialized lawyer check that the property is free of charges and that all documentation is in order.
Signing the purchase agreement: This is done before a notary, at which point the remaining balance is transferred to the seller, and ownership is formalized.
Property registration: After signing, the property must be registered in the Land Registry under the buyer’s name.
5. What are the advantages of buying a property in this area?
Climate: Torrevieja and Orihuela Costa enjoy a Mediterranean climate with over 300 sunny days a year.
Quality of life: A wide range of services, cultural and sports activities, and excellent local cuisine.
Secure investment: These areas are highly sought after for both permanent and holiday residences, ensuring a good return on investment if rented out.
In summary, buying a property in Torrevieja and Orihuela Costa can be a straightforward process if you have the right advice. Local real estate agencies experienced in working with foreign clients can guide you through each step to ensure everything is handled efficiently and transparently.
