The Fundamental Do’s & Don’ts for Spain Golden Visa Program
Spain seems to be finally coming out of the economic recession. After years of crisis, the market prices are probably at their lowest level and starting to rise. So this is probably one of the best times in decades to buy property in Spain. Lots of properties that are in the market can be bought for 2/3 of what their current owners paid for them years ago.
The purchase of a property of certain value also allows investors to apply for Spain Golden Visa. This advantageous program grants its successful applicants Spanish residence permit. However, investors should be careful about the risks and downsides of the process. It is always good to do some research and have an idea about the program beforehand. This article offers fundamental tips about Spain Golden Visa Program.
Choosing the Property
When choosing a property abroad, first thing to keep in mind is that locals know the place better. So, it is a good idea not to decide on anything without the assistance of local real estate consultants. Local teams know the best locations with good infrastructure and distance to important centres. They know where is safe and secure, and where is affordable. These agents usually save investors a lot of time, money and energy. Since the return of an investment is always important, choosing the right property is crucial. Once the property has been selected, it is advisable to pay a deposit and sign a reservation document.
Opening a Bank Account in Spain
Since the investors will be making international transactions, it is a good idea to open a bank account in Spain. If the property purchase is finalized, the investor will need an account for the mortgage payments anyway. Any bank can be used for the overseas account but it is advisable to choose one close to the investor just in case. Also, when working with big amounts of money, small differences between banks’ policies can make a great difference. So it is a must to gain information about the charges of each bank.
Appointing a Local Lawyer
Legal matters are always hard to get a grasp of. Even when the case is like so with one’s own country, it is much more complex when the system is somewhat foreign. Investing big sums of money into another country sounds risky and frightening as it is. Yet doing so without knowing the judicial details is infinitely more risky and frightening. To overcome this problem, it is advisable to always consult with a local lawyer. Local lawyers know the process, the area, the people and the needs of investors. They are able to protect investors from potential problems. They obviously know the laws and requirements. One thing to be careful about local lawyers though is the conflict of interest. Investors should be certain that their lawyer does not have any business-related connections with any of the involving parties.
Signing the private contract
The private contract is the paper that is signed within a month following the down-payment. If the purchase is from an individual owner, it usually entails a payment of 10 percent of the purchase price. However, if the house is a new-build or the owner is a property developer, percentage changes between 25 and 40. The deposit is usually included in this percentage.
In this contract, it is very important to reflect every commitment and condition that have been agreed upon. So, investors should notify their lawyers for them to be able to state everything clearly in the paperwork. Nothing should be taken for granted before getting reflected in the contract.
Signing the Deed of Purchase and Delivery of Possession
Before signing the title deed of the property, it is a good idea to wait for the developer to get the First Occupation License from the Town Hall. In the cases where investors buy the property as brand new from developers, it is advisable to never sign the deed before seeing this license. Moreover, it is important that the snag list of the property is reported before signing the title deed. The developer has to take care of the list in a reasonable timeframe. Also, to prevent any potential problems, it is wiser to take care of notary actions at the presence of a lawyer.