The ultimate guide on how to buy a house in Orihuela Costa

The Spanish property market is currently booming, with property prices expected to fall below inflation rates over the coming year. For this reason, many people take the exciting step of buying a new home, whether for a complete change or for a second home in the sun. If you’re looking to get around Spain’s stunning Costa Blanca, with a superb Mediterranean climate, well-developed infrastructure and stunning coastline dotted with coves, Orihuela Costa could definitely be the place for you.

So you may have spent hours browsing real estate sites to find your ideal property, but you’re not quite sure where to go from there. Don’t worry, Euro Weekly News has put together a guide on how to buy a house in Orihuela Costa, including the types of properties available and details on the actual process of buying a house in Spain, as well as a list of recommended all important real estate agents to help you secure your perfect property.


Types of houses in Orihuela Costa

Orihuela Costa is a very attractive option for many potential buyers, both economically and aesthetically. Although actually about 20 kilometers from the main resort town of Orihuela, it borders the Region of Murcia, home to the bustling town of the same name, and the beautiful Mar Menor, the largest saltwater lagoon, despite what its name may suggest. Orihuela Costa’s ideal location means you’re never far from amenities, facilities and leisure attractions without missing out on those all-important rest days by the beach.

As one of the most developed – and therefore popular – areas on the southern Costa Blanca, Orihuela Costa is mainly made up of new properties such as houses, bungalows and apartments housed securely in modern residential complexes. . For those looking for the higher end of the housing market, there are also many luxury villas, penthouses and duplexes.

Due to the wide range of properties on offer, prices can vary depending on whether you are looking for a small, unassuming vacation home or a luxury resort large and sophisticated enough to be the envy of all your guests. On average, you can expect to pay around €30,000 for an apartment or around €100,000 for a villa.

buy a house in orihuela costa
Image – Mark_studio/shutterstock

How to buy a house in Orihuela Costa

Legal advice

One of the first things to do when considering buying a property in Spain is to seek advice from an independent lawyer who specializes in Spanish land law (urbanismo). An independent lawyer will work on your behalf exclusively rather than with the interests of a real estate agent or developer.

The Spanish conveyancing system is different from the UK system, so you need to ensure that the people involved in the transaction are qualified and experienced in Spain. To avoid scams, exercise extreme caution if a realtor or attorney advises you on ways to save money or time by taking shortcuts. It is essential throughout the process that every necessary legal document is read and completed appropriately. Keep reading to see our recommendations on the best estate agents to buy your property in Orihuela Costa.

A solicitor will help you with things like the Land Registry Extract (nota simple) which is available from the Colegio de Registradores and which you should read before making any purchases or signing any documents.

Image - Zivica Kerkez/shutterstock
Image – Zivica Kerkez/shutterstock

spanish notaries

You will need a Spanish notary to prepare the sales contract and issue the public deeds to secure your new home in Orihuela Costa. The decision as to which notary you want to use is up to you as the buyer of the property. This is a civil servant whose duty it is to provide free and unbiased legal advice on all parts of the contract before signing. Once the date fixed for the signature, you have 3 days in advance to go to the notary and ask all your questions.

Here you will find a list of English-speaking notaries.

Image - Africa Studio/shutterstock
Image – Africa Studio/shutterstock

UK estate agents, developers and lawyers

If you haven’t made it to the end of this article yet and are considering working with a UK estate agent, solicitor or developer, you need to make sure they are qualified, reliable and have experience. work in Spain. Solicitors, in particular, must also be registered with the official UK Law Society and specialize in international transactions.

However, if you are going with a lawyer based in Spain, you can verify that they are registered and practicing with the local bar association (Colegio de Abogados) by asking for their registration number. It is also imperative that your lawyer has professional liability insurance and that you do not make any payments or sign any documents until you have sought independent legal advice.

Image - Jacob Lund/shutterstock
Image – Jacob Lund/shutterstock

Translators

Suppose your Spanish is not at the level of legalese. In this case, it is important that you have all relevant documents and contracts translated by a freelance translator to ensure that you understand everything every step of the way.

Image - mundissima/shutterstock
Image – mundissima/shutterstock

Mortgages

Often people looking to buy properties do so with the intention of applying for a mortgage rather than buying the property outright. It is highly recommended that you analyze and compare the different services offered by loan companies to ensure you get the best deal. The lender should be able to explain if you have any doubts about the terms and conditions. For more information on how to get a mortgage in Spain, click here.

As with buying a home in the UK, there is a range of mortgages on offer which vary in terms of repayment periods, interest rates and initial start-up costs. Whether you choose a fixed rate mortgage or an adjustable rate mortgage, it is important that you fully understand the mortgage agreement you are signing.

If you are applying for a mortgage, you will need to pay an appraisal of the property. This is often arranged by the bank. At the end of this real estate evaluation, the bank will know what percentage of financing it can provide.

Banks in Spain generally lend an amount equivalent to 80% of the purchase price or appraised value, although some manage to finance 90-100% of the purchase price, usually settling for the lower. In 2022, the expertise will cost between €250 and €600 depending on the company carrying out the process, the type of property and its estimate. Some banks, but not all, will cover these costs. Once the assessment is completed, it is valid for six months from the date of issue. For more information on mortgages, click here.

Image - ACTS_DATA STOCK/shutterstock
Image – ACTS_DATA STOCK/shutterstock

NIE – foreigner identification number

As a foreign buyer, you will need an NIE number (Numero de Identidad de Extranjero) to carry out tax transactions in Spain such as opening a bank account or buying a property. You can obtain a NIE number by registering as a resident at the Oficina de Extranjeros (immigration office) in Spain or at a designated police station. If you are looking to buy a property but have not yet moved to Spain, you can apply for a NIE number at the Spanish Embassy or Consulate in the UK.

Alternately, if you give your solicitor a power of attorney (PoA) they will be able to obtain the NIE number(s) on your behalf. One benefit of giving your attorney power of attorney is that they can also open a bank account for you. While useful for setting up direct debits to pay for community charges, utilities, broadband, council tax, etc., it is essential for checks/bank drafts when it is is about the completion of the property.

Image - pxl.store/shutterstock
Image – pxl.store/shutterstock

Taxes and additional fees

Taxation in Spain is a complex matter and the taxes associated with buying, selling and renting property in Spain differ from region to region.

In Orihuela Costa, for example, buyers must pay a 10% trade-in value tax only when the property is new construction and has been purchased directly from the developer. Whereas for a resale property, a tax (usually between six and ten percent of the deed price) must be paid on the transfer of assets.

It is always advisable to seek the advice of a professional accountant or tax adviser. Information can also be found on the website of the Spanish tax authority (Agencia Tributaria) and on the Living in Spain guide.

Other additional costs you will want to consider include a reservation deposit. This is what you pay to have a property taken off the market and is usually between 5-10% of the price of the property. In order to ensure that you have enough money to cover taxes, notary fees, legal fees, cadastre and bank charges, etc., it is recommended that you set aside at least 15% of the rental price. purchase.

Image - ure/shutterstock
Image – ure/shutterstock

What documents do you need to buy a house in Orihuela Costa?

You will need many documents when buying a property in Orihuela Costa. The best and surest way to make sure everything is in order is to sell through an experienced real estate agent who can help and guide you through the process. Costa Blanca Homes in Spain are the best in the area to help you organize the correct and relevant documents and to help you on your journey.

The main documents you need may include:

  • Your NIE and passport.
  • Deeds of ownership.
  • Preparation of utility contracts, community fees and “Suma” invoices.
  • Liaison throughout the transaction with the representatives of the Buyer and the Notary.
  • The organization of the appointment of the notary and all the administrative formalities related to the sale.
  • Translation at the Notary.
  • Calculation of the 3% holdback.
  • Calculation and advice on capital gains tax.
  • Fiscal representation throughout the process.
  • Calculation of goodwill and a letter of “good standing” with your community fees from your community administration.
Image - Property records: George Rudy/shutterstock
Image – Proprietary records: George Rudy/shutterstock

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