Are you searching for a guide to buying property in Sitges? If it is so, then you have found the right blog. In this blog, we will give you an in-depth guide on how you can own property.
We will walk you through what it takes to get a real estate deal done and how to do it. So let’s start without further delay as there is much more to discover.
Before you search for your dream home, you need to understand some basics about financing your purchase.
What Kind of Financing Is Available?
Several types of financing are available when you buy real estate in Sitges.
The financing will depend on what type of property you want to buy and how much money you have available for investing in real estate.
For example, conventional bank loans are your best option to purchase an apartment building or commercial property.
They offer lower interest rates than other loans like FHA mortgages or VA loans.
However, if you only want one single-family home, then there may not be enough equity present in the property for banks to make an offer on it at all.
What are the costs associated with buying property in Sitges? Costs related to purchasing real estate include:
- The cost of the home itself (also known as “purchase price”)
- Registration Taxes
- Closing costs (including title insurance, escrow fees, and loan origination fees)
- Notary Fees
- Property taxes (which vary by state)
When you buy a property in Sitges, there are many different costs to consider.
The most obvious is the property’s purchase price, which can vary widely depending on how much square footage you’re looking for and what amenities are available.
Moreover, notary fees are paid to a notary public, who verifies and authenticates signatures on real estate documents.
The cost of notary fees varies from country to country, but in Spain, they are typically between €500 and €1000.
Furthermore, Registration taxes are a fixed fee to register your property and get a title deed. In Sitges, the fee is 1500€ – 2000€.
You’ll also pay for any renovations that need to be done before you move in and for all of your closing costs.
Finally, there are taxes—both federal and local—that will be due each year, which is almost 10 % of the price you have paid for buying property.
Getting a Nie
A Nie is a Non-Resident Individual. The Nie number is given to anyone with a foreign (non-Spanish) address.
It is a requirement for most things, including renting an apartment or buying property in Sitges.
To get an NIE (Número de Identificación de Extranjeros), you’ll need to follow the following steps:
- Fill out the application form.
- Submit your documents to a Consulate of Spain in your country or person at the Spanish Consulate in Barcelona.
- Pay €10 for processing and get an appointment date for your interview with the Spanish police.
Opening a Spanish Bank Account
To open a Spanish bank account, you must have your passport and some identification.
You must also fill out a form with your name, address, and other information.
Once your bank account is set up with an ATM card, you can use it to withdraw from any ATM in Spain using the PIN printed on the card.
Finding a Suitable Property Within Your Budget: Investing in Paradise
Finding a suitable property within your budget is simple if you know what to look for. So, keep reading; we have a step-by-step guide for you.
Signing the reservation Contract
Once you have found a property you like and are ready to proceed, sign the reservation contract.
This contract is more formal than the previous one and will include details about how you will be paying for your property.
Ensure you read this contract carefully before signing it, as it holds important information about buying a home in Sitges, Spain.
The Signing of the Aras Contract
After signing the reservation contract, it is time to sign Ara’s contract. Ara’s contract is a legal document that outlines your rights and responsibilities as a buyer and seller.
It includes information about how much you will pay for your property when you must pay it and how much interest you will pay on any late payments.
It also outlines what happens if there are problems with the property after closing, such as damages or repairs that need to be made.
If something goes wrong with your purchase, you can get help from your lawyer or legal aid organizations.
They can help answer questions about what happened and what remedies are available to resolve disputes between buyers and sellers.
Hiring a Notary
The secure and trustworthy way to buy property in Sitges is to hire a notary. The government licenses notaries, providing services such as:
- Verifying documents and signatures
- Creating legally binding contracts for the sale or rental of real estate
- Issuing certificates of authenticity for legal documents, and more
Signing the Escritura Contract- Final Deed
Signing the Escritura Contract: Final Deed is the final step in your property purchase.
You will be required to sign this document before a notary public or a lawyer who will provide you with a certificate of authenticity.
This document is then filed at the Property Registry Office in Barcelona, where it will be stored indefinitely.
- Since there are many different types of contracts, it is essential to make sure that you understand precisely what type of escritura contract you are signing.
- To make sure that you are fully informed about all terms and conditions associated with your contract, it is recommended that you consult with an attorney.
- The Escritura Contract- Final Deed is only valid if it has been signed by both parties involved: buyer and seller (or their attorneys).
- It should also contain all relevant information regarding the sale, including details about the property (such as location) and any other pertinent information.
The Golden Visa
The Golden Visa program allows foreign nationals to qualify for a Spanish residency permit by investing in property in Spain.
To qualify, you must be able to meet all of these requirements: You must invest at least €500,000 (about $600,000) in real estate or other assets in Spain.
For example, you will meet this requirement if you want to buy a house worth €400,000 (around $500,000) and put another €100,000 into a savings account or investment fund.
You must show sufficient funds to cover your expenses while living in Spain without relying on social benefits or unemployment insurance.
Purchasing Real Estate in Spain to Obtain a Residency Visa: Living the Sitges Lifestyle
The criteria for obtaining a residency visa in Spain are as follows:
- The candidate must be at least 18 years old.
- The candidate must have the financial means to pay for their health insurance.
- The candidate must have enough money to support themselves and their family.
In this blog, we have provided a guide to buying property in Sitges. So there you have it. There is no need to be nervous, nor is there a rush, and take your time to get things done correctly.
If anything, research and ensure you will keep your finances in order.
Is It Expensive to Live in Sitges?
Sitges is one of the most expensive cities in Spain. The city is well-known for its beautiful beaches, attracting many tourists yearly.
What are the Pitfalls of Buying Property in Spain?
Only buy a property that’s reasonable for your budget. Ensure all your documents are in order before signing on the dotted line.
How Long Can I Stay in Spain If I Buy a Property?
If you are a Spanish national, you can stay in Spain for 90 days without any restrictions as long as you have the proper documentation.