Buying a house in Spain from Nelemans during Corona!

At the moment you can no longer read news or it is about COVID-19 and its impact on our health or economy. That can of course be paralyzing, but fortunately we see the number of infections decreasing week after week. That is good news and Spain is slowly emerging from the lockdown. And with that comes new prospects for the future. After all, buying a house in Spain remains a dream for many people.

Spring is usually the time to orientate yourself on a purchase and financing for a second home in Spain. With the arrival of COVID-19, the world suddenly looked different. Because we cannot travel, a viewing is not that easy now. Fortunately, inventive solutions such as viewing virtual houses and conducting advisory conversations via video or telephone are often possible. A purchase or an application for a Spain mortgage can therefore simply take place remotely.

During such a pandemic, many realize that life cannot be taken for granted, which is why we receive a lot of questions from customers. We have selected the top 5 questions below. Perhaps that also answers your questions.

Can you currently take out a mortgage in Spain?

Yes, that's possible. You can receive full remote mortgage advice, receive a quote and open a bank account if you reside within the EU. However, it is important that you already have a NIE. That is actually the only condition. A NIE application is the only thing that is not (yet) possible at the moment, but is necessary for a transfer and Spain mortgage. You will have to pay IVA (VAT) for new construction or transfer tax (for existing construction) on your home, so you need a tax number. In Spain this is called a NIE.

Are there also adjusted lending conditions at Spanish banks because of COVID19?

No, of course the bank will check whether COVID-19 has an impact on your disposable income as an entrepreneur or when you are employed. Ultimately, if the income is sufficient, there are no objections or adjustments to the conditions. Interest has risen slightly in the past 8 weeks, but we expect this to be only temporary.

Some banks reduce the maximum advance payment for residents from 80% to 70% of the value of the home. For non-residents, 70% is already the maximum. Please note that the additional costs at purchase cannot be financed.

Can I come to Spain for a viewing or to sign a transfer?

No, that is not (yet) possible at the moment. We expect this to be allowed again from mid-June, depending on the development of the virus. We therefore advise clients to issue a power of attorney to their lawyer. You can pass through that power of attorney, provided you are in possession of a NIE. You do not have to travel to Spain yourself. Your purchase will then be made entirely from your "lazy chair".

What is the Spanish real estate market doing at the moment and are prices also falling?

Do you want to buy a holiday home in Spain and do you expect a bargain? At the moment we see little change in price. Of course, opportunities will come along and in some cases we see a slight fall in prices. But they are more individual in nature, it is not a market movement in a general sense. Now that it seems as if we have passed the peak of COVID-19, we do not expect that decline to continue.

What is good advice, buy now or wait until the autumn?

Nelemans' opinion is that it should feel good. Buying a home abroad is no small feat. However, with the proper guidance of the right real estate agent, lawyer and a mortgage broker in Spain such as ourselves, a purchase and financing from a distance is easy to do. Once you have made the decision, you will be amazed at how easy the process is if you engage the right professionals for it.

Source: Second Home