Buying a house in Alicante, requirements for foreigners
Buying a house in Alicante is an excellent investment, which also allows you to live in one of the most sought after areas of the Spanish coastline, however, in the case of foreign investors the process can be complex.
At Asesoría Orihuela Costa we offer you a consultancy legal service throughout the whole buying process, so that you can purchase your property on the Costa Blanca.
Is it possible to buy a house in Alicante if you are a foreigner?
Yes, it is possible for foreigners to buy a house in Spain, but there are some conditions and procedures that must be followed. Spanish law allows the purchase of property by foreigners, either as residents or non-residents. The following are some important considerations:
- Obtaining a Foreigner Identification Number (NIE): Before entering into any real estate transaction in Spain, foreigners must obtain a NIE. This tax identification number is required to carry out any type of economic activity in the country, including the purchase of a property.
- Financing: Foreigners can finance the purchase of a property in Spain through a mortgage, but they may face additional requirements compared to Spanish citizens. Banks may require additional collateral, such as a larger deposit or proof of a stable income. Banks usually lend a maximum of 70% to non-Spanish residents. The interest rate is higher than for residents, which is logical, the bank knows you.
- Signing a purchase contract: Once the property is selected, a purchase contract is signed between the buyer and the seller. It is advisable to have the assistance of a lawyer or advisor specialised in real estate transactions to review the contract and ensure that all legal aspects are in order. It is very important to check if the house has a certificate of first or second occupancy and also to check that the house has no debts.
- Payment of taxes and fees: When buying a property in Spain, foreigners must pay taxes and fees associated with the transaction. These may include Transfer Tax (ITP, 10% in Alicante; 8% in Murcia) or Value Added Tax (VAT, 10% throughout Spain), depending on the type of property and whether it is new or second-hand. Notary and land registry fees must also be considered.
- Registration of the property: Once the purchase is completed, the property must be registered in the corresponding Land Registry to confirm the ownership of the new owner. This process ensures legal certainty and protects the property rights of the buyer.
- Change the electricity and water contracts to the new owner’s name.
It is important to bear in mind that regulations and procedures may vary according to the nationality of the buyer and the type of property, therefore, it is advisable to seek appropriate legal and financial advice before making a property purchase in Spain.
In addition, it is essential to research and fully understand the tax and legal implications of buying a property in the country.
What are the advantages for a foreigner to buy a house in Alicante?
Buying a house in Alicante, Spain, offers several advantages for foreigners wishing to settle in this province. These are some of the most outstanding advantages:
- Favourable climate: Alicante enjoys a Mediterranean climate with more than 300 days of sunshine a year, making it an attractive destination for those looking for a warm and pleasant climate all year round. This makes it an ideal place to enjoy outdoor activities and explore the beautiful beaches and landscapes of the Mediterranean coast.
- Quality of life: Alicante offers an excellent quality of life, with a relaxed and tranquil atmosphere, a rich culture and delicious Mediterranean cuisine. The region has a wide variety of services and amenities, including high quality hospitals, international schools, excellent transport links and a wide range of entertainment and leisure options.
- Affordable properties: Although the real estate market in Alicante is very active, property prices tend to be more affordable compared to other European cities and regions. This means that foreigners can find a variety of housing options, from modern flats in the city centre to villas with sea views on the outskirts.
- Affordability: Buying a home in Alicante can be a profitable long-term investment. Rental demand in the region is high, especially during the summer season, offering the opportunity to earn additional income by renting out the property when it is not being used.
- EU Residency: For foreigners wishing to settle permanently in Spain, buying a property in Alicante can be the first step towards obtaining EU residency.
This allows you to enjoy freedom of movement within the Schengen area and access to services and social benefits in Spain and other European countries.
Is it possible to buy a house in Spain without having the nationality?
Yes, it is possible to buy a house in Spain without having Spanish nationality. As stated above, foreigners can purchase property in Spain, either as residents or non-residents, with no specific restrictions as to nationality.
However, it is necessary to obtain a Foreigner Identification Number (NIE) to carry out the transaction, as well as to comply with the corresponding legal and fiscal requirements.
The process can be very complex, at Asesoría Orihuela Costa we offer you the advice you need for the purchase of your property in Alicante.
Tips for buying an affordable house in the province of Alicante
When looking for an affordable house in Alicante province, it is important to follow some key tips.
Firstly, it is essential to research the property market thoroughly and compare prices in different areas of the province. There are hundreds of estate agents of all nationalities.
Some estate agents have a bad reputation but those in the Alicante area are very professional and attentive to clients.
Demand that the agent you work with is registered in the registry of estate agents in the Valencian Community. This is a better guarantee for the client.
In addition, it is advisable to contact local estate agents who can offer personalised information and advice.
It is also suggested to consider the option of buying a house in less touristic areas, as they tend to have lower prices.
On the other hand, it is essential to be clear about the available budget and establish a maximum spending limit.
Finally, it is advisable to be patient and not to rush into a decision, as patience may allow you to find cheaper opportunities.
