If you are interested in purchasing an apartment in one of Madrid’s emblematic areas, we can offer you advise and help you find different options. In addition, if the property requires refurbishment, we can take care of the renovation work, the furnishing and the management of the rent.
Why investing in Spain?
The real estate market has been recovering after the crisis of 2008. It has bottomed down in December 2012, and from then until December 2015 rise a 10%. Madrid is one of the Communities that grew the most.
According to the Central Bank of Spain the real estate market will grow by 5% in 2016, and we expect a much higher growth in Madrid.
The economy is increasing and banks are selectively offering mortgages with lower rates to buyers. But the growth in real estate is also stimulated by the fact that buyers more and more consider a property as a financial asset that offers higher profitability than inflation in the medium term.
What is the expected profitability?
If you will by now, the return you can expect from renting a property is around 4%. The possible revaluation of the Real State market can increase this return depending the neighborhoods and type of property up to 10% or more.
Can I buy a property in Madrid if I am NOT A RESIDENT?
Yes, of course. It may seem complicated if you do not speak the language, do not know the city or do not have friends or relatives. But it is not as complicated if you have a person or a Company that you can trust for advising and managing your investment, the one that will always be on your side.
Why choose us?
We have been buying, renovating, and renting out properties in Madrid for the past 16 years. We established great professional relationships with our clients and value their trust in what we are doing. We have a list of loyal clients that use our services again when they are back to Madrid
Our priority is to find the best option that suits your wants and needs. Location is what we consider to be one of the most important facts when choosing a property in Madrid. We advise on such topics as which neighborhood, how we can help managing your property and the possible profits you can make out of your investment.
The basic procedure to buy a property in Madrid is as follows:
- Find the property: Reserve a property with an amount no bigger than 3.000 euros so that the agency/ seller will not show this property for a short period of time.
- ARRAS contract: At this point the seller and the buyer should have agreed on: price, expenses and time limits to legally complete the purchase in the notary.
- Tax expenses
The seller: Plusvalía tax
The buyer: ITP tax: Madrid – Second-hand properties – 6%
New properties – 10%
Barcelona – Second-hand properties – 10%
4.Extra: Notary expenses, Registro, Gestoría
(These expenses in Madrid would total around 7% (ITP + Extra) considering second-hand property)
The Arras obliges the buyer to pay 10% of the property value to the seller. If the buyer cancels the purchase, he will lose this amount. If the seller cancels he will have to return the double of this amount to the buyer.
NOTARY- (Escritura pública)– sign the agreement and legalize the transaction. The buyer has the right to choose the notary. The buyer has to bring at least two bank guarantee checks from a resident bank in Spain: One for the amount due to the seller; and another for the payment of taxes, notary, Registro and Gestoría. The seller should bring the keys of the property.
This is the basic procedure, but sometimes sellers and buyers go directly to the notary. It is also normal that the agencies charge sellers a fee of 3%, not the buyer, but there are some agencies now that also charge the buyer 3% fee.
What happens if I am NOT a RESIDENT and I found a perfect property that I want to buy?
You could lose the purchase if, at that moment, you do not have the following documents:
1) NIE (Número de Identidad de Extranjero) – Foreigner’s national identification card.
2) Spanish bank account with sufficient funds.
For this reason we always advise to have this documents previous to start looking for a property.
How to obtain NIE?
Obtaining NIE is simple as long as you do it within Spain. You would need your passport to do this.
European Union citizens could obtain it in 1 day
Non-EU citizens in around 1 week
(Make sure about vacation days in Spain, as it can take much longer than expected)
Another way to obtain the NIE is from the Embassy or the Consulate of Spain in your country of residence and, depending of the country, it could take around 10 days.
Once you have the NIE, you can open a Spanish bank account in Madrid. At the bank they will ask you to provide: your passport, the NIE and a bank statement of the bank that will send the money.
For helping to purchase a property in Madrid we charge a 3% with a minimum of 3000 euros.
For renting the property: one month for annual contracts and 20% for temporary contracts with a minimum of 500 euros.
This amount would allow you to relax as we are going to be in charge of any problems that the clients may have with the apartment.
All of these fees are subject to Spanish VAT (IVA) of 21%
There is an initial property search deposit of 1000 euros, fully deducted from the final fee, when the purchase is completed.