Buying a home in Spain: A guide for Swedish non-residents

2024-08-05

Spain, with its beautiful beaches, rich culture, and warm climate, has become a popular destination for Swedish people looking to buy a second home or even relocate. The picturesque town of Calpe, located on the Costa Blanca, is particularly appealing for its stunning views, vibrant community, and convenient amenities. If you're considering purchasing a property in Calpe, Mäklarringen is here to guide you through the process.

Below, we've outlined key steps and considerations to help make your home-buying journey smooth and successful.

1. Initial considerations and research

Before diving into the buying process, it's essential to do some preliminary research and planning:

Budget: Determine your budget, including the purchase price, taxes, fees, and any additional costs such as renovations or furnishings.
Location Preferences: Consider the type of property and location that best suits your needs, whether it's a beachfront apartment, a villa with a sea view, or a townhouse in the city center.
Purpose of Purchase: Decide if the property is for personal use, rental investment, or both. This will influence your choice of location and type of property.

2. Understanding the legal aspects

Buying property in Spain involves specific legal processes and requirements. It's crucial to understand these to ensure a smooth transaction:

NIE Number: Non-residents must obtain a Foreign Identification Number (NIE) for any financial transactions in Spain. This can be done at the local police station or via the Swedish embassy in Stockholm.
Legal Representation: It's advisable to hire a local lawyer who can guide you through the legalities, such as property checks, drafting contracts, and ensuring that the property has no debts or encumbrances.
Power of Attorney: If you cannot be present in Spain for the entire process, you can grant power of attorney to a trusted representative to handle matters on your behalf.

3. Financing your purchase

Understanding the financial aspects of buying a home in Spain is crucial, especially for non-residents:

Mortgage Options: Swedish buyers can secure a mortgage from a Spanish bank or a Swedish bank with international branches. Typically, banks offer up to 50-70% of the property's valueas non resident.
Currency Exchange: Consider the exchange rate and potential fluctuations when transferring money from SEK to EUR. Using a currency exchange service can help you get a better rate and reduce transfer fees.
Additional Costs: Be prepared for additional costs, including property transfer tax (usually 10-12% of the purchase price), notary fees, and registration fees.

4. Finding the right property

With your legal and financial groundwork laid, it's time to find the perfect property:

Real Estate Agent: Work with a reputable real estate agent like Mäklarringen, who has local knowledge and can provide a curated selection of properties based on your preferences and budget.
Property Visits: Schedule visits to shortlisted properties. This step is crucial to get a feel for the property, the neighborhood, and the surrounding amenities.
Property Inspection: Conduct a thorough inspection of the property to check for any issues or necessary repairs. Your agent and lawyer can assist in this process.

5. Making an offer and signing the contract

Once you've found the right property, the next steps involve making an offer and completing the necessary paperwork:

Negotiating the Price: Your agent can help negotiate the purchase price. It's common in Spain to negotiate, so don't hesitate to offer less than the asking price.
Reservation Contract: Once an offer is accepted, a reservation contract is signed, and a deposit (usually around €5,000) is paid to take the property off the market.
Purchase Contract: The next step is to sign a long-term purchase contract with a 10% down payment. Before signing, it’s crucial to thoroughly check the property, with the help of your real estate agent and/or a lawyer, to ensure there are no hidden issues. Once this contract is signed, the property is effectively reserved for you, provided you fulfill all the obligations stipulated in the contract.

6. Completing the purchase

The final steps involve completing the purchase and taking ownership of the property:

Final Payment: The remaining balance is paid on the completion date. This is usually done at a notary's office, where both parties meet to sign the deeds.
Notary and Land Registry: The notary will register the new owner at the Land Registry. This step officially transfers the property to your name.
Post-Purchase Tasks: After the purchase, you'll need to set up utilities, pay property taxes, and arrange for any maintenance or renovations.

7. Living in Calpe and integrating into the community

Once you've purchased your property, the next exciting phase is settling into your new home and community:

Local Services: Familiarize yourself with local services, including healthcare, schools, and transportation.
Community Involvement: Engage with the local community by participating in events, joining clubs, or simply exploring the area. Calpe offers a vibrant mix of cultural activities and outdoor adventures.
Language and Culture: Learning Spanish can greatly enhance your experience and help you integrate more easily into the local culture.

8. Additional considerations for Swedish buyers

As a Swedish buyer, there are a few additional aspects to keep in mind:

Tax Implications: Be aware of the tax obligations in both Spain and Sweden. Consulting with a tax advisor can help you navigate any potential tax liabilities.
Healthcare: Ensure you understand the healthcare system in Spain and arrange for appropriate health insurance if necessary.
Residency Permits: If you plan to stay long-term, explore the options for obtaining a residency permit.

Conclusion

Buying a home in Calpe as a Swedish non-resident can be a rewarding experience, offering a beautiful retreat or a profitable investment. With the right preparation and professional support from Mäklarringen, you can navigate the process smoothly and enjoy all that this stunning region has to offer. Whether you're looking for a vacation home, a permanent residence, or an investment property, Calpe's charm and appeal are sure to captivate you.

Feel free to contact Mäklarringen Calpe for personalized assistance and start your journey towards owning a piece of paradise in Spain.