Are you considering purchasing real estate in Valencia? This vibrant Spanish city offers a unique combination of culture, climate, and opportunities. Read on to learn everything you need to know about the buying process, required documents, and taxes.
Why Valencia is the perfect investment
Valencia, Spain’s third-largest city, is a gem on the Mediterranean coast. With over 800,000 inhabitants, this city offers:
- More than 300 sunny days per year
- 19.5 km of “blue flag” beaches
- A beautiful historic center
- A 9 km long city park
- The world-famous Las Fallas festival
Moreover, real estate prices in Valencia are significantly lower than in Madrid, Barcelona, and other major European cities. The strategic location and excellent connections also make Valencia attractive to international companies, resulting in a growing economy.
Essential steps for buying real estate in Valencia
To purchase real estate in Valencia, you need two crucial items:
- An NIE number (registration number)
- A Spanish bank account
Obtaining an NIE number
You can obtain an NIE number in three ways:
- Apply in person at the immigration police in Valencia
- Authorize someone in Valencia to apply on your behalf
- Apply at the Spanish embassy in your home country
Opening a Spanish bank account
Opening a Spanish bank account is relatively simple and usually takes no more than 40 minutes. You’ll need:
- NIE number (or passport if you don’t have an NIE number yet)
- Passport
- Latest tax return
- Tax identification number
- Information about your profession
- Your fiscal address
Financing and purchase costs
Spanish banks typically offer financing up to 60-70% of the purchase value. Keep in mind approximately 15% additional purchase costs on top of the property price, including:
- 10% transfer tax (IVA or ITP)
- Lawyer fees (approx. €2,000)
- Notary fees (approx. €800)
- Registration fees (approx. €500 or 1.5% of the purchase price for new builds)
- 3% real estate agent commission (plus VAT)
The buying process in Valencia
- Find the right property
- Sign a private purchase contract (arras)
- Arrange additional matters (NIE number, mortgage, etc.)
- Make an appointment with the notary for the property transfer
The importance of a good lawyer
A lawyer can help you with:
- Checking the documentation
- Resolving any issues with the property
- Paying taxes related to the purchase
- Transferring utilities to your name
Taxes for property owners in Valencia
- Non-resident property tax: 2% of the cadastral value (IBI)
- Annual tax return for non-residents
Selling real estate in Valencia
When selling, you’ll pay tax on the added value, ranging from 19% to 23%. The Spanish government withholds 3% of the sale price as retention.
By following this guide, you’ll be well-prepared for buying real estate in Valencia. Whether you’re looking for a holiday home, a permanent residence, or an investment opportunity, Valencia has something for everyone!