Foreign buyers take over a significant volume of operations in the Spanish real estate market, which reaches more than 20% in regions such as the Balearic Islands, the Canary Islands and the Valencian Community. The opportunities that this audience represents and the
limitations on mobility imposed by the pandemic They deserve to pay special attention to this segment and have a strategy that also takes these buyers into account.
During the last quarter of 2020 home purchases by foreigners in Spain reached 11,800, 10.7% of the total, according to the data of the Association of Property Registrars. The most numerous were the British (14.5% of the total), followed by the French (8.3%), Germans (8.1%), Moroccans (7.4%) and Belgians (6.1%).
In the Balearic Islands, one out of every three home purchases was made by a foreign buyer (32.7%), while more than 20% of the operations in the Canary Islands (22.5%) and the Valencian Community (21, 7%), and more than 10% in Catalonia (11.4%) and Andalusia (11.3%).
Thus, and despite the fact that
restrictions on international mobility are promoting in some areas a drop in purchases by foreigners, or precisely because of this, putting together a strategy designed for this audience increases the possibilities of sale, especially in the case of
most exclusive properties, among whom this type of buyer has a special weight.
There are real estate agencies focused on
sale of real estate to foreign public, both at street level and online, which have the advantages of knowing the channels in which these buyers move, the language and the necessary procedures to carry out this type of operation.
If the idea is to make the sale in a particular way and it is clear that the home, due to the area in which it is located or due to its characteristics, may be of interest to foreign buyers, it is worth dedicating an effort to this audience.
There are real estate portals focused on users located in other countries, but Spanish portals are also an option to reach these buyers without ruling out national buyers.
The translation of the advertisement into several languages, including English, is essential in this regard. French and German are also languages to consider. Some free online translators offer acceptable results, although a professional translation is always better.
The quality and variety of the images and the detail in the description they create a greater attraction among potential buyers, while helping to filter those who are truly interested in the house.
The location of this audience outside of Spain makes it essential to add other tools to the advertisements of this type of property to be able to get to know the home without moving.
360º videos and virtual visits are great allies in this regard and many image companies carry them out for an amount of around 200 euros.
The more options offered to the potential buyer to get to know the house in detail without having to travel, the greater the opportunities that will be available to sell, and the greater the time savings. In this way, it is possible that the buyer only has to make a last visit to the home in person, which can be used to formalize the operation.
Formalization in person or remotely
When a property is sold to a foreign buyer, the procedures to be carried out and the taxes to be paid by the seller do not vary, but yes for those who buy the home, who can formalize the purchase in person or from another country.
The seller must have a
energy certificate of the house and of the habitability certificate in those autonomous communities where it is required, and You must pay the capital gains tax and have paid the Real Estate Tax, which may be distributed proportionally with the seller. In addition, the seller must declare the capital gain from the sale in the personal income tax return for that year.
The procedures for the sale of the property begin with the property reservation and then with the earnest money contract, which can be signed and sent via email or formalized using an electronic signature tool.
Regarding the term of sale that is stipulated in the deposit contract, it must be taken into account that if the buyer needs to resort to a mortgage and is a resident in Spain, the process may take longer than if he requests it in his country of origin.
For the signing of the public deed of sale, a field in which much progress is also being made regarding the electronic signature, Yes, the presence of the buyer or a lawyer or person of their trust to whom they have granted a power of attorney is necessary until such time., which must be apostilled and translated into Spanish by sworn translation.
Consuls also have the ability to issue powers of attorney, so if the buyer carries out the procedure at a Spanish consulate in his country of residence, the procedure is simplified, since the document will not need a sworn translation.