14/09/2022 by H·S·H Luxury Real Estate 0 Comments
Balearic Islands are one of the Mediterranean areas with the greatest real estate diversity
How to buy a property in the Balearic Islands?
The islands are known for their mountains and the sea, but their strong property market confirms the high demand, both nationally and internationally. Before facing such an important purchase, potential buyers should know the best way to obtain a property. Today, in the H-S-H Luxury Real Estate blog, we explain how you can buy a property in the Balearic Islands.
WHAT YOU SHOULD CONSIDER BEFORE BUYING YOUR HOME
The first step is to analyse your financial situation and your savings to find out if you will be able to afford the necessary amount to make the purchase. In general, you need to contribute between 30% and 35% of the price of the house and have an amount reserved for possible unforeseen events, as well as to equip your home.
It is also important to know what type of home best suits your lifestyle and needs. Where you work, if you like to invite friends and family over, how many people you will live with or if you like bright rooms. The Balearic Islands encompass all types of homes, so to find the most suitable one it will be necessary to set aside some time beforehand to sort out your priorities.
Finally, you need to take into account the tax costs, which are as follows:
- VAT, in the case of a new house. This is a tax that amounts to 10% in general housing and 4% in social housing and special regime housing.
- Stamp Duty (AJD), which in the Balearic Islands is 1.5%.
- Transfer Tax (Impuesto de Transmisiones Patrimoniales (ITP), in the case of a second-hand house. In the Balearic Islands this tax ranges from 5% (for properties not exceeding 200,000 euros and which are first homes) to 8%.
In order to buy a property in the Balearic Islands you must have the following documents:
- Possess the National Identity Document (DNI), in case you are a resident, or the Foreign Identification Number (NIE), in case you are a foreigner.
- Have a bank account in Spain. If you are a foreigner, after obtaining the NIE you must open a bank account in the area of the Balearic Islands where you are going to live. This is absolutely necessary in order to purchase the property.
Once we have obtained this documentation, these are the next steps:
1- Establish a purchase price for the property that satisfies both parties in the process.
2- Request the Nota Simple of the property. This is a basic document in the procedures related to estates and properties and it is necessary to know the state of the property.
3- Sign a deposit contract. This is a private agreement between seller and buyer prior to the final purchase of the property. In this, both parties undertake to carry out the sale and purchase and the buyer pays a percentage of the sale price of the property.
4- The sale will be finalised with the deed before the notary. This process includes the official exchange of contracts between the buyer and seller.