Article prepared especially for our French clients looking to buy a house in Valencia, but valid for any non-resident citizen
You’ve researched several regions in Spain and decided that the Valencia region might be right for you, you’re right.
Valencia is the third most populous city in Spain with 800,000 inhabitants (1,600,000 in the metropolitan area), located 350 km south of Barcelona on the Mediterranean coast and 370 km from Madrid.
Valencia is one of those cities where it is possible to live centuries-old traditions and also to discover the most innovative experiences. It is a city that welcomes you, welcomes you and gives you the feeling of being part of it with its festivals, its emblematic places, its inhabitants, its beaches and its landscapes and above all 300 days of sunshine per year.
The region of Valencia is distinguished by its great natural heritage and the diversity that composes it. More than 20 natural parks covering a wide range of landscapes: islands, coastal mountain ranges, wetlands … An infinite number of places to walk, play sports or relax.
You have decided to buy in the Valencia region, whether it is for a second home or to live there year round, the needs will be different. To live there all year round, it is advisable to settle near a town with all services and the airport nearby.
Before starting the tours, you need to calculate your budget
Buying a house in the Valencian community
– If you need financing, be aware that banks rarely lend more than 80% of the selling price of the house. So make sure you have the missing 20%, plus mortgage fees. In addition, ancillary costs are never financed by a bank, namely (ITP tax, notary fees, registrations and agency fees)
– If you did not need financing, you will therefore need to allow about 14% on top of the price of the value of the house for ancillary costs.
Your budget established and your search criteria defined, you can now contact us. We have a native French agent who will be happy to take care of your project. Karine has already helped many Francophones find the home of their dreams and made all the administrative procedures easier for them.
If necessary, we also work with a French / Spanish lawyer.
COMPLETE THE CONTACT FORM
Have you made all the visits, found your dream home and feel ready to take the plunge?
HERE ARE THE DIFFERENT STEPS OF THE PURCHASING PROCESS
1- MAKE A “RESERVA” PURCHASE OFFER
Now is the time to negotiate the price and make an offer. Speak openly with your real estate agent so that he can advise you and make the offer. Your offer is accepted, good news, it is now necessary to establish a reservation contract with the owners. You must be sure of your purchase decision because this contract is legally binding on both parties. The seller must cancel all visits that were planned.
At this stage, once the reservation has been signed by both parties, you will be asked to pay by transfer to the owners’ account an amount defined between the 2 parties.
(Proof of transfer to support).
If, despite your decision and after reflection, you decide to stop the process, you will lose the amount paid when signing the reservation contract. If, on the other hand, it is the owner who decides not to sell his property any more, he will be obliged to return your deposit plus give you compensation corresponding to the amount paid (i.e. double).
This reservation is for a limited period, you must quickly sign the purchase / sale agreement. It must be signed within ten days, the time necessary to draft the contract and perform all checks on the property sold.
2- THE PURCHASE / SALE COMPROMISE: EL CONTRATO DE ARRAS
This is the most important step, because in this contract will be included all the special clauses negotiated between the 2 parties as well as the legally binding clauses.
When signing this, a deposit of approximately 10% of the price of the house must be paid into the owner’s account by transfer (proof of transfer required).
The time limit for going to the notary (between 1 and 3 months unless agreed between the 2 parties) will also be noted, a date that must be observed under penalty of losing the deposit.
PLEASE NOTE: In France, there is the 10-day withdrawal period which does not exist in Spain.
TIP: Make sure you have your NIE on the date you go to the notary.
As when signing the reservation contract, if you withdraw from the purchase, while all the clauses have been respected, you will lose your deposit, if it is the seller, he will have to pay you twice the deposit paid .
It is rare that a seller no longer wishes to sell his property at this stage of the process, moreover if all the conditions are met.
If, however, you decide to withdraw from the purchase without valid justification, you may be asked to pay part of the agency’s commission for the work done upstream.
We therefore advise you to think carefully before making the offer and signing the reservation contract and be sure to make the right choice because the consequences in the event of withdrawal will make you lose money.
Our agency undertakes to carry out all checks on the property sold:
• verify that the property belongs to the seller and that he is able to sell it. Verification with the property register (registro de la propiedad)
• to verify that the property is registered in the land register (cadastro), if this is not the case, the owner will be required to regularize it before signing at the notary.
• To verify that the property is not late in payment in terms of local tax (IBI), water and electricity bills as well as condominium fees if there are any.
4- SIGNATURE AT THE NOTARY
The notary in Spain does not have the same function as in France. He is not in charge of carrying out the checks on the goods, on the other hand, he systematically requests all the documentation on the checks that we will have made for you, he will also ask for the last bills of water, electricity, the latest local tax, copy of the property register, cadastral entry, mortgage waiver, your valid identity document and your NIE.
Without all these valid documents, the notary never agrees to take action and postpones the signing until everything is in order.
We recommend that you open a Spanish bank account so that you can transfer your funds from France to Spain. (All receipts for transfers must be kept carefully and above all you must verify that the original account number is entered). In Spain too, notaries must justify the origin of funds in the context of the fight against money laundering
5-PAYMENT OF PROPERTY AND FEES
You will need to ask the bank to prepare a cashier’s check that you will give to the owner in the presence of the notary. The sums paid beforehand when booking and when signing the compromise will obviously be deducted.
On the day of signing at the notary’s office, you must first have made the various transfers and provide you with proof of payment:
Additional costs must be paid directly to the notary’s account, it is the notary who is responsible for paying all taxes and fees.
The agency fees must be paid into the bank account of the owners of the ChaletValencia ® agency.
6-CHANGE OF DOMICILIATION OF SUPPLY CONTRACTS
Our agency is responsible for changing the contracts for water and electricity, internet, etc. in your name.
HOW TO OBTAIN THE NIE
To buy a house in Spain it is necessary to have a foreigner identification number, just like to open a bank account, open a telephone line, set up a business, etc.
You can request it directly in France from a Spanish embassy or request it during a trip to Spain at an authorized police station.
Our agency can help you obtain it by completing and submitting the file on your behalf.
Since the problems we are having with COVID-19, Spain no longer issues NIEs (momentarily), it is still possible to carry out the NIF, a number which currently replaces the NIE for the purchase of a good. This number is only valid for 3 months but it allows you to carry out all the procedures while waiting to receive your final NIE. (Procedure to be carried out in “Hacienda”)
OPEN A SPANISH BANK ACCOUNT
To open a bank account, you must bring the following documents:
• valid identity document
• DECLARANT number appearing on your tax return
• NIE or NIF
• Tax address in France
• Mail address
• Telephone number
Our agent can assist you in this process
Our independent real estate agent will assist you in your administrative procedures, in order to obtain your NIE or NIF and to open your Spanish bank account.