Real estate transactions in Europe
- How to deposit money into an account to buy real estate in Europe?
- What are the real estate taxes in Europe?
- What documents are required to purchase real estate in Europe?
- How can a Ukrainian buy real estate in Europe?
- How can our company help?
Real estate transactions in Europe
Many people today are thinking about buying real estate in Europe. This is explained by the fact that the European region has always been an attractive place for foreign investors to open their own business, and therefore young entrepreneurs always require their own housing to permanently reside in the country. In addition, many citizens also expect to obtain a residence permit in Europe when purchasing real estate. Such legislation does exist, but not in all European countries. Therefore, in this article we will talk about the features of real estate transactions in Europe.
How to deposit money into an account to buy real estate in Europe?
First of all, it should be noted that in the EU countries and in the UK it is customary to pay for the purchase of housing in non-cash form. Therefore, to purchase real estate, you need to properly legalize your own funds if you have them in cash. To confirm income when purchasing real estate in Europe you usually need:
- Choose the most suitable bank that is loyal to legalizing funds and opening an account;
- Submit a pre-contract for the purchase of real estate (contract of intent to purchase housing in Europe);
- Indicate personal information of the future owner of the bank account: full name, registered address of residence, valid postal address, place of work (profession and position), taxpayer identification number of the country of origin, international passport;
- Submit a tax return on payment of all necessary taxes and fees for the last 6 months;
- Provide documents on income or a certificate of employment for the last 12 months;
- Deposit cash into a bank account.
It's important! In each individual situation, when purchasing real estate, the bank may additionally ask you to perform other actions or provide relevant documents in order to legalize money for the purchase of real estate and open an account with a financial institution.
What are the real estate taxes in Europe?
Each European country has completely different interest rates for the purchase of real estate, and therefore it is necessary to analyze the legislation of a particular state.
- Austria - when purchasing real estate in this country, you need to pay taxes and fees from 7,6% to 10,6%, depending on the amount of housing. In addition, the amount also depends on the federal state in which the property is located and the agent’s commission;
- Belgium - from 16,7% to 27,6% depending on the amount of housing. In addition, the rate also varies depending on whether it is primary housing (new buildings) or secondary housing (used);
- Bulgaria - 2,8% to 7,6% depending on the amount of housing;
- Germany - from 7% to 7,6% depending on the amount of housing. In addition, the amount also depends on the federal state in which the property is located and the agent’s commission;
- Denmark - from 0,7% to 1,2% of the housing amount;
- Spain - from 6% to 10,5%. Most of this amount goes to property transfer taxes. Stamp and notary fees together range from 0,5% to 2%.
- Poland - from 5,35% to 8,1%.
There are also annual property taxes that the owner must pay.
What documents are required to purchase real estate in Europe?
- a photocopy of the buyer’s identity document - a foreign passport of a citizen of the host country;
- current legal documentation about the property (its area, location, current owners, etc.);
- the seller’s statement of readiness to sell the property and the preliminary agreement, if one was concluded with the buyer;
- confirmation of the availability of financial resources for the purchase of real estate or a certificate from the bank about creditworthiness, you also need confirmation of the legal origin of funds;
- a certificate from the tax authorities about the absence of debt on mandatory contributions (indicates that the buyer of the property does not have any debt to pay taxes and fees);
- documents on marital status (they make it clear for what purpose real estate is purchased in the country and whether it is possible for members of the citizen’s family to obtain a residence permit in the future).
In certain cases, it may be necessary to translate documents into the national language of the country in which the transaction is carried out.
How can a Ukrainian buy real estate in Europe?
- Conduct a study of the European market to determine the feasibility of purchasing housing;
- Open an account in a foreign bank;
- Confirm the origin of funds to replenish your bank account;
- Obtain special permission to purchase real estate (applies to certain countries, for example, Austria and Poland, if we are talking about real estate in the border area);
- Open a tax account and obtain a taxpayer identification number;
- It is imperative to involve a realtor to confirm the buyer’s actual intentions to purchase a home;
- Take into account the presence of additional financial costs when purchasing real estate (temporary residence abroad during the time during which the property will be selected and the transaction will be concluded, payment of taxes and services of real estate agencies, commission for notary support, payment for translator’s work, etc.) ;
- Re-register real estate documents.
It's important! If you have a business in Europe or anywhere else in the world, then to purchase housing you can also use a loan from a legal entity to purchase real estate for a long term of more than 20 years. The lawyers of the consulting company Jurisprudential will explain exactly how to implement this in practice during the free consultation.
How can our company help?
Real estate transactions in Europe
Purchasing real estate abroad is a fairly lengthy process that requires legal knowledge and understanding of local legislation. Therefore, turning to professional lawyers when purchasing real estate is a rational decision. Such lawyers who will help you legally purchase real estate are the consulting company Jurisprudential. We provide services in the field of real estate transactions not only throughout Europe, but also anywhere in the world, which allows our clients to avoid problems with paperwork and dishonesty on the part of both realtors and sellers. Ultimately, this leads to obtaining the desired result in practice. More information at a free consultation.