A guide to buying property in Spain for Hungarian buyers

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Spain’s rich culture, stunning landscapes, and warm climate have made it a popular choice for international property buyers. If you are Hungarian and considering purchasing a property in Spain, you are joining a growing number of foreigners who have discovered the benefits of investing in Spanish real estate.

We aim to provide you with a comprehensive guide on buying property in Spain as a Hungarian buyer, covering key considerations, legal requirements, and practical tips to ensure a smooth and successful purchase.

Research and Location Selection

Before diving into the Spanish property market, it’s essential to conduct thorough research and identify the ideal location for your investment. Spain offers diverse regions with unique features, such as the bustling cities of Barcelona and Madrid, the sun-soaked beaches of Costa del Sol, and the serene countryside of Andalusia.

Consider your preferences, lifestyle, and objectives when choosing the right location that suits your needs and budget.

Engage Professional Assistance

Navigating the Spanish property market can be complex, especially for foreign buyers. Engaging the services of a reputable local real estate agent, lawyer, and translator is highly recommended.

A reliable agent can provide valuable insights, assist with property searches, and negotiate on your behalf. A competent lawyer will guide you through the legal aspects, ensuring compliance with Spanish regulations.

 Financial Considerations

Understanding the financial aspects of buying property in Spain is crucial. As a Hungarian buyer, you will need to consider the following:

1. Budgeting: Determine your budget, including the purchase price, associated costs (taxes, notary fees, etc.), and ongoing expenses (property maintenance, utilities, etc.).
2. Financing: Explore your financing options, whether through personal savings, Hungarian banks, or Spanish lenders. Ensure you understand the terms and conditions, interest rates, and any potential currency exchange risks.
3. Taxes and Fees: Familiarize yourself with the applicable taxes and fees, such as the property transfer tax (ITP), value-added tax (VAT), notary fees, and registry fees. Consult with a tax advisor to understand your tax obligations in both Hungary and Spain.

Legal Requirements:

It’s essential to comply with legal requirements during the purchasing process to protect your investment. Consider the following key steps:

1. NIE Number: As a foreigner, you will need to obtain a Spanish tax identification number (NIE). This unique identifier is required for various legal and financial transactions.
2. Due Diligence: Conduct thorough due diligence on the property, including verifying ownership, checking for liens or encumbrances, and reviewing planning permissions and licenses.
3. Purchase Contract: Once you find the desired property, a purchase contract (contrato de arras) will be drafted, detailing the terms and conditions of the sale. Have your lawyer review the contract, to ensure your interests are protected.
4. Notary and Registry: The final step involves signing the deed before a notary public and registering the property in the Spanish Land Registry. Your lawyer will oversee these procedures, and ensure legal compliance.