Magnificent Spain! It can't leave you indifferent. It enraptures, the country where one comes for inspiration. Velazquez, Picasso, Goya – all these great artists created plenty of their masterpieces there.
Spanish atmosphere charms: fascinating guitars, passionate flamenco and world-famous spectacular corrida. Breathtaking beauty of modern architecture and monuments of the past possesses some unbelievable magnetic effect. Feel it yourself at theart gallery Prado in Madrid, at the museum of Salvador Dali in Figeuras (Catalonia) and of course in splendid works of Antoni Gaudi in Barcelona: Casa Batllo, Park Guell and outstanding Sagrada Familia.
It's Spain which is a birthplace of cinema director Pedro Almodovar, actress Penelope Cruz, football-player Raul, Formula-1 racer Fernando Alonso, the best flamenco dancer Joaquin Cortes and numerous other celebrities.
Spain is a great spiritual place. One comes there to enjoy brilliant chef-d’oeuvres of great masters of the past and the other – to spend unforgettable time on adorable coasts of the Mediterranean and to feel delight in participating in impressive national holidays. But still everyone comes to Spain to fell in love with it forever.
Sooner or later a brilliant idea of buying some property in Spain comes, and that is a great way to keep this marvelous country in your heart.

Spain is a prosperous European country but still the living costs there are not that expensive as in other countries of Western Europe. Nevertheless Spain is included in top-10 countries of EU which have the best standards of living.
Comparing to the most popular countries, the level of property prices in Spain is not too high. The buying procedure is much easier for those who want to invest in real estate there.
Spanish real estate market is popular among both foreigners and natives. That’s why such investments in rather stable market decrease the risks.
Spain is a country of EU with very strong political and economical systems. And long-term investing in property in Spain always guarantees a success despite the recent situation on the market.

The local currency is Euro, other currencies can be widely exchanged at the banks and exchange offices.

Spain occupies the major part of Iberian Peninsula. Balearic Islands in the Mediterranean and Canary Islands in the Atlantic Ocean, which lay opposite the African coast, also belong to this kingdom.
Madrid is the capital and the heart of Spain. It is the city of astonishing beauty.
Barcelona (capital of Catalonia) is known as a city of art. Wonderful city of Seville (capital of Andalusia) is a homeland of world famous Don Juan and Carmen.
Valencia is one of the most beautiful cities of the Mediterranean with its picturesque landscapes, mild climate and fantastic beaches.
Undoubtedly, Spain is also a world clubbing center. Ibiza Island which also belongs to Spain is a paradise for people enjoying electronic music, freedom and numerous new acquaintances. The best dance clubs are situated there: Renaissance, Ministry of Sound, Pacha, Café del Mar, Amnesia and many more.

Its never decreasing popularity among the toursits makes Spain attractive for renting property and overall stable real estate market.

Once you've chosen a suitable property and the purchase price and conditions are agreed, your agent will prepare a letter of intent, to be signed by both parties. The letter of intent states the conditions of the sale and the reservation period during which your lawyer is to check the property on legal details and to draw up a private purchase contract. If you haven't already appointed a lawyer now would be a good time to do so. Anyone intending to sell or buy property in Spain (or indeed anything else which involves paying tax to the Spanish inland revenue) needs a NIE by Spanish law for tax purposes. Applying at your nearest consulate is more expensive than getting a NIE in Spain but it still may be an advantage for a lot of non-resident property-buyers.

What is NIE?

NIE is Identity Number for Foreigners (Numero de Identidad de Extranjeros). The modern NIE is actually just a piece of paper with your name and number and a official stamp.
Until recently, foreign non-residents in Spain could buy or sell property without a NIE. Then, once it became necessary to have one, their legal representative could get one for them. But recent legislation passed in Spain has made it necessary for anyone paying money to the Spanish Inland Revenue (Hacienda) to have a Spanish identity number, and to obtain it in person unless you give someone else legal representation.

You need to take into account unavoidable extra expenses when buying a house in Spain. These include the services of legal advisors, translators, taxes, possible mortgage expenses and, most importantly, the services of a notary. The notario is the person responsible for drawing up the deeds (escritura), the tax due (registro catastral) and the registration of the names of the new owners in the Spanish property register (registro de la propiedad). and tax register (registro catastral); he charges fees to the vendor and purchaser, according to a fee schedule set by the government.

Property taxes in Spain

When buying a house in Spain it is important to estimate the taxes you will have to pay, not only when you actually purchase your Spanish property, but also local taxes and housing rates which are paid on a yearly basis by all home owners in Spain. Spanish housing yearly rates depend on the value of the house and the area it is in, but here is a rough guide to all the tax expenses you will need to take into account when deciding what house to buy.

Taxes payable at the time of the purchase

Re-sale purchase tax: House buyers of re-sale property (as opposed to brand new) are required to pay the Impuesto de Transferencia de Propiedad - Transfer Tax - which is now 7%
New Properties purchase tax: buyers of brand new houses in Spain are liable to paying 7% IVA (VAT) if the house is finished or is being built at the time of the purchase, plus an extra 0.5% stamp duty. However, if you buy land in Spain, commercial premises or parking spaces in garages, then the VAT payable rises to 16%.
Increased patrimony tax payable to Spanish Treasury: When a property sale in Spain takes place, a capital gains tax must be paid by the seller. According to Spanish fiscal law, the buyer withholds 5% of the total purchase price to make sure that the seller does not take the money and run.This amount represents a capital gains tax on the profit made by the seller at the time of the sale. That is the difference between the current (official) sale price and the price paid by seller when he/she originally purchased the property + the value of any reforms and improvements carried out since then.

The capital gains tax is payable to the Spanish Treasury (Tesoro Público) and is 5% the said difference for non residents and 3% for residents - but this is only the advanced deposit. The estimated amount retained at the moment of the sale is payable once everything has been presented to the local registry and the new deeds are available. This means that property sellers not living in Spain will have to arrange for their lawyer or gestoría to see to the necessary paperwork and to formalise the full tax payment a few months after the sale. The final amount could be as much as 30% the profit you make on your sale, so if there is a very big difference between the price you are selling for and the price you originally paid, it might be worth applying for residency before you sell (nationals of EU member states are automatically granted residency, although the paperwork can be a bit tedious) in order to be eligible for the reduced percentage for residents. Please note also that you need a NIE to pay this tax. Any seller who is over 65 and has been a legal resident in Spain for the last three years does not have to pay this tax. Residents and non-residents who purchased the property they are now selling before December 1986 are also exempt from the capital gains tax.

Plusvalía Tax: The Plusvalia Tax is a tax set by the local authorities and based on the increase of the value of the land from the date the owner acquired the property to the time of the present sale.
The local authorities determine the amount of plusvalía to be paid for each house purchase in Spain, depending on the area where the property is located. The market value or sales price of the property does not have an effect on the plusvalía tax.
Normally, but not necessarily, the seller pays the plusvalía tax. However, this will depend on the sales agreement. The tax is calculated according to the ratable value of the property and the number of years it has been in the ownership of the vendor.

Overall cost of purchasing property in Spain

You can estimate that taxes and fees will add up to about 10% of the overall value of the property you are purchasing.

Hardly any other country in Europe has as many holidays as Spain does. The main ones originally were base on religious traditions but through the centuries turned into joyful pastime with singing and dancing.

Seeing two quarelling Spaniards, hold your good citizen's reflex. They are probably discussing latest part of their favorite soap opera. You should do your best to speak excitingly and passionately.

An average distance between Madrid and the Moon is 384,4 thousand kilometres.

The Spaniards have late breakfast at 2 p.m. and late dinner at 10 p.m. During the mean, please, skip such topics for discussion as Civil war, the period of Franco governing, corrida and private life.

If you are asked to leave for a breakfast, you shouldn’t accept this invitation: it’s just a mere formality. If you would be asked twice, you should refuse again. And only if you’d be asked for the third time, then it sounds as a sincere one.

"To be in time" in Spain means to be in the appointed place 15-20 minutes after appointment hour.

You should never make a visit in time of siesta, unless you are the massager.

Despite the Don Quixote's war on windmills, the luxurious Spanish property market is vibrant.

When Spaniard slaps you on the face, it is customary to either slap him back or not to do it.

You should always offer to share your meal while traveling by train, but not necessarily by throwing it at your co-passengers. If your co-travelers refuse you should refuse as well on their proposal. You can play offended, if you like.