Investing in the purchase of a property in Spain with ESPHOUSES [ https://www.esphouses.es ] , is a very good idea if you want to get the best return for your money. With the ease, the variety of options, and the prices of the properties that we have on the Costa Blanca, your purchase will revalue itself with the passage of just a little time. In addition, thanks to all the services that a real estate agency like ours can offer you, the acquisition of a new property on the Costa Blanca in Spain will be a task of the most comfortable and simple. Investing in the real estate market in Spain For a long time the Spanish real estate market has been the goose that lays the golden eggs, but since the last economic crisis things have changed radically. Prices fell by up to 50% in some cases, sales came to a standstill and banks stopped granting financing. However, in 2014 it was possible to regain stability in the sector and from 2015 onwards, in the last 4 years there have been important signs of recovery that are manifested in the increase in sales and purchases, rising prices especially in large cities and growth in the number of mortgages granted. What is the profile of the real estate investor in Spain? In Spain, people continue to invest in real estate, although there are different profiles of real estate investors and each one is looking for different things. The average profile of the property investor in Spain is a foreigner, from Northern or Eastern Europe, who wants to find a second home on the Costa Blanca to live in on vacations, or even to move in permanently. They find many advantages beyond the good weather and the quality of the property itself. Investing in a new home in Spain, brings with it a series of very attractive advantages, which we are going to explain below. Aspects that drive real estate investors There are many reasons why real estate investors, both national and foreign, may be driven to invest in Spain. We highlight the following reasons: The price of money Interest rates in Spain are very low, so financing can be found with attractive conditions, which encourages investment. Product scarcity. There are certain products such as new-build homes or offices in the center of large cities that are in short supply, making them attractive products for investors. The possibility of Madrid becoming the financial center of Europe There has been a lot of speculation in recent months about the possibility of Madrid becoming the new financial center of Europe, mainly due to the possible consequences of Brexit. This is attracting foreign investors to Spain. Boosting the rental market For many years we have lived in the culture of buying homes, but the economic crisis has made us rethink things and we are now tending more towards renting, especially by young people looking for their first home. This has led to a reactivation of the rental market, which is interesting for real estate investors. How to calculate the costs of buying a home? When we buy a house we should not only consider the purchase price, but it is also necessary to take into account the purchase costs of the house and the taxes in order to be clear about how much money we are going to need in total. A priori, we must distinguish what are strictly expenses derived from the sale and purchase and what are taxes, therefore, two groups can be highlighted: - Expenses of the home purchase: - Notary expenses. - Expenses of the Registry of the Property. - Expenses of agency. - Expenses derived from the mortgage (for the case in which financing is requested). With ESPHOUSES [ https://www.esphouses.es ] you acquire the advantage that many or practically all of these additional expenses are included in the price of the property. We have professionals such as notaries, lawyers and experts who will help our clients to formalize all the bureaucracy, procedures and formalities that are necessary, always assisting them in their own language. In any case, we believe that it is convenient to know which are the taxes that directly affect the sale and purchase of a property: - VAT or ITP. - AJD. - Municipal capital gains tax. Next, we are going to see in more detail each expense and tax that affects the purchase and sale of a house: Expenses of Notary (WITH ESPHOUSES, IT IS INCLUDED IN THE PRICE OF THE HOUSE) The purchase and sale so that it has access to the Registry of the Property has to be formalized in public writing before Notary. Therefore, for the elaboration and signature of the deed the Notary charges a fee called notary fees that are legally established and that depend on the amount of the document that is signed. Land Registry Expenses Once the deed of sale has been drawn up and signed, it is taken to the Land Registry for registration. The Registrar charges a fee for this which is legally established and which will depend on the price of the sale. In some cases an agency is contracted to carry out the formalities of payment of taxes and registration of the deed of sale in the Land Registry. In this case, there is no regulation on the fees, so they should be consulted in each case. VAT or ITP One or the other tax is paid depending on whether it is a first delivery of the property by the promoter, in which case VAT is paid, or a second delivery, in which case the sale and purchase will be taxed with the ITP (Transfer Tax). AJD The AJD or Stamp Duty (Impuesto de Actos Jurídicos Documentados) is payable on all sales and purchases made together with a mortgage. The tax rate depends on each Autonomous Community and is between 0.5% and 1.5%. Municipal Capital Gains Tax This is the Tax on the Increase in Value of Urban Land. It is calculated taking into account the cadastral value and the number of years that the seller has owned the property. Based on the provisions of the Law, it must be paid by the seller, but a different agreement between the parties is allowed. It must be paid within 30 calendar days from the signing of the deed. Who pays the purchase and sale expenses? The Civil Code in its article 1455 establishes the following: "The expenses of granting deeds will be of account of the seller, and those of the first copy and the others subsequent to the sale will be of account of the buyer, unless otherwise agreed". Therefore, a base is established, but the parties may agree otherwise. In this sense it is usual that the expenses are paid in their totality by the buyer and the municipal surplus value is paid by the seller. Conclusion: To forget about additional expenses, invest in a property with ESPHOUSES It is important to know all these additional expenses to the purchase of a property in Spain, however, you must be very clear that with ESPHOUSES, you can forget about all this, because in the price you pay for your property, we include the help, management and advice that are necessary for the investor only has to take care of enjoying your investment, your new property on the Costa Blanca in Spain. [ https://www.esphouses.es/inmuebles/ ] Contact us [ https://www.esphouses.es/contacto/ ] and start investing in your new property on the Costa Blanca of Spain.