International payments to Spain for buying property
Low-cost air travel to Europe, a predictable climate and relatively cheap 'value for money' property in Spain makes a move abroad to a European country rather tempting! They also provide
attractive investment opportunities for people looking to extend their asset portfolio.
Affordable properties overseas are in great demand not only for people emigrating, but for holiday homes, second homes, buy to let rentals and retirement homes.
Timeshare and Co-ownership properties, International property investments, are also ways that people try to maximise their income.
Consider an International mortgage for your property overseas and check the mortgage interest rates - this can make a huge difference to your investment - get a good deal and don't pay top dollar!
Look at international loans as well as commercial and residential mortgages for the purchase of your property in Spain - brokers and lenders will help you finance your purchase.
If you get in debt, you may need to refinance your house. Mortgage payments can be made via foreign currency brokers (FX) and international payments
can be made directly to a Spanish bank or mortgage corporation. Low international transfer fees and quick payment processing are things to look for from your bank, or money transfer service provider.
International Institutions will have expert knowledge of financing options and purchasing property in Spain.
and they will have staff to advise you every step of the way and can mediate between you and the local Spanish authorities if necessary.
These International institutions may charge for their expertise, but will be
familiar with the type of problems you may experience during the house buying process - in the long run it is worth considering if this could save you a dollar or two.
Spanish Mortgage;
It is possible to finance a property in Spain with an International mortgage. Spanish Mortgages are available on any type of residential property, whether a small apartment, a house in a Spanish town, large villa, traditional finca or a brand new development. For a mortgage in Spain normally the maximum amount that will be advanced is 75 % of the value of the property. Usually the term of an International Mortgage in Spain is between 10 and 30 years. Proof of income and other supporting documents are required to progress a mortgage application into a Spanish mortgage offer.
For cash and 'paper money' and coins in local euro currency for spending on your trip to Spain, tourist holiday rates will probably apply rather than the business FOREX rate that you will get for your house purchase.
Foreign currency dealers will be useful for exchanging money for making online payments of deposits, down payments to builders or contractors or
mortgage payments, whether GBP/EUR or simply euros from a euro account that you may have - they can trade and transfer money on your instruction.
When If you require finance to buy your property, decide which International mortgage deals are best for you.
Repayment mortgages and interest only mortgages are the two most common mortgage types. If this is going to be a holiday home, or a second residence, you may wish to consider a buy-to-let mortgage.
There are many specialist money lenders who will talk to you in detail about the financing options of your property in Spain and will offer
practical advice to anyone considering a move overseas.
Below are some useful words in Spanish that you may come across while organising a mortgage to purchase properties in Spain.
Abogado - Lawyer.
Acta - A document prepared by a notary when adding a property to the Spainish land register.
Administrador de Fincas - Licensed property administrator
Agente de la Propiedad Inmobiliaria - Property agent
Agrupacion - Combining parcels of land.
Alta catastral - The value of a Spainsh property, calculated by the town hall for tax purposes.
Arras - Money put down as down payment or deposit
Arrendamiento de obra - A contract between a builder and the owner of a property.
Asesor - Business accounting and tax services provider.
Aval - Guarantee requested by the bank to approve a mortgage application
Boletin de enganche - Certificate for the installation of electrical facilities - necessary for access to electrical power.
Caja de ahorros - Savings bank offering mortgages
Certificado bancario de devisas - Certificate from the bank confirming the money / purchase price has been paid.
Certificado final de obra - Architects completion certificate.
Certificado registral - Certificate informing about debts of a specific property
Chalet - Villa
Codigo civil - Civil law.
Colegio oficial de arquitectos - Official body of architects.
Comunidad de propietarios - Community of property owners
Contrato de arrendamiento - Rental contract.
Contrato de Compraventa - Private property sales contract.
Copropietarios - Co-owners.
Declaracion de obra nueva - The declaration by a notary of the construction of new buildings.
Delegacion de urbanismo - Surveyor’s office responsible for granting building permits.
Demarcacion de costas - The Government department that is responsible for the protection of the coastline.
Derecho de superficie - Land rights.
Documento privado - Private document
Documento público - Public document
Domiciliar - To pay a bill by direct debit
Domicilio - The address where you live
Edificabilidad maxima - The maximum construction area.
Efectivo - Cash
Embargo - Seizure or retention.
Escritura - A certificate of purchase issued by the notary.
Escritura - Deeds
Escritura pública de compraventa - Title Deed
Euribor - Euro Interbank Offered Rate
Fianza - Security payment or deposit.
Finca - Estate
Finca registral - Registered plot of land.
Gestoría - Firm specialised in obtaining official authorisations, permits, licences etc
Hacienda publica - Tax office
Hipoteca - Mortgage.
IBI - An annual tax on Spanish property, like council tax.
IBI - Impuesto sobre Bienes Inmuebles - Annual real estate tax
Impuesto de actos juridicos documentados - Stamp duty.
Impuesto de Transmissiones Patrimoniales - Property transfer tax payable by property purchaser
Impuesto sobre construcciones, instalaciones y obras - Local tax on new constructions.
Impuesto sobre el Incremento del Valor de los Terrenos - Tax on the increase of land value
Impuesto sobre sucesiones y donaciones - Death duty and inheritance tax.
Impuesto - Tax
Impuestos municipales - Municipal or local taxes.
Incremento de patrimonio - Capital gain
Inmobiliaria - Estate agent
IVA (Impuesto Sobre el Valor Anadido) - Equivalent of VAT
Ley de arrendamientos urbanos - Urban rental law.
Ley de la propiedad horizontal - Tenants law.
Libre de cargas - Free of debts
Licencia de obras - Building permission.
NIE (Numero Personal de Indentificacion de Extranjero) - Tax Identification number issued to all foreigners/non residents.
NIF (Numero de Indentificacion Fiscal) - Tax identification number for residents.
Nota simple - Certificate from Property Registry
Nota simple informativa - Extract from the land register.
Notario - Notary
Obra nueva - Document certifying a brand new building
Oferta vinculante - Bank document certifying the exact mortgage conditions
Pago en efectivo - Cash payment
Parcela - Plot of land.
Piso - Flat
Plus valia - Tax levied on the increased in value of a property since it was last sold -vendor is liable.
Plusvalía - Municipal Capital gains tax on the sale of property
Poder - Power of attorney
Precio - Purchase price.
Préstamo con techo - Loan with variable interests - fixed minimum and maximum
Préstamo hipotecario - Mortgage loan
Propiedad - Property or possession.
Propietario - Owner of property or possession.
Registro de la propiedad - Land registrar.
Registro de la Propiedad - Property ownership Register
Residencia /permiso - Residency/ permit
Residente - Resident
S.A. (Sociedad Anonima) - Public limited company.
S.L. (Sociedad Limitada) - Company with limited liability.
Se vende - For sale
Seguro de amortización de préstamos - Loan repayment insurance
Seguro Multirriesgo Hogar - House insurance
Señal - Deposit, down payment
Servidumbre de transito - Right of way/access rights.
Solar - Plot.
Suelo urbanizable - Land that can be built on.
Tasa - Rates.
Tasación - Independent valuation of property
Tipo de interés - Rate of interest
Título de propiedad - Property Deeds stating the ownership of property, date of sale etc.
Toma de posesion - Taking possession.
Valor Catastral - Assessed value of property for tax purposes
Valor real - Actual value.
Finance and payment for International mortgages
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