Real estate in Spain for Ukrainian citizens: features of purchase and registration

The Kingdom of Spain is one of the most popular countries in terms of immigration and investment among foreigners, including Ukrainians. As of mid-2022, the number of Ukrainian immigrants is over 100,000 people. The most active period in terms of relocation was observed since 2014 and this year it broke records. This trend has led to a rapidly growing demand for property Spain, which for some are of interest for their own residence, for others – a reliable preservation of capital. How to buy an apartment in Spain for a Ukrainian , about the conditions for buying Spanish real estate and other important points – read in this article.

Immigration to Spain in Ukrainian

Along with other Russian-speaking immigrants, Ukrainians prefer to buy housing on the Mediterranean coast of Spain – in Costa Blanca. And if the south-eastern part is popular for recreation among Europeans, then Torrevieja is home to the largest number of citizens from the post-Soviet space. It is worth noting that Ukrainian citizens, whose priorities are a European career, choose Madrid for life. And Barcelona and Marbella prevail in the choice of politicians, show business stars and other wealthy immigrants.

Ukrainians quickly become accustomed to the local culture and freely master the Spanish language. Many speak Spanish quite well after a year and do not experience a language barrier. In addition to easy adaptation, Ukrainian immigrants can exchange the driver’s license obtained in their country for a Spanish one, absolutely free of charge and without passing an exam.

The most popular real estate in Spain for Ukrainians is apartments in central locations or apartments within walking distance of the beach. Houses are purchased less often, only in 15-20% of cases.

Mortgage lending for Ukrainian property buyers

Ukrainian citizens can also buy real estate in Spain on credit, and the credit terms are quite attractive: at 2-4% per annum, without guarantors, the repayment period is up to 20 years. However, not all Spanish banks are willing to lend to Ukrainians, for example, Bankinter – a high percentage of refusals and protracted responses like: “Your application is under consideration.” It is also difficult to get a loan from Bankia, after the merger with BMN, the financial institution is in a “suspended” state and has a hard time cooperating with foreigners. The situation is completely opposite with La Caixa, Banco Sabadell and Banco Popular Espanol: they have a loyal attitude towards Ukrainian borrowers. Mortgage lending in a Spanish bank for real estate abroad for Ukrainians is issued on the basis of the following package of documents:

• a certificate from your place of work, certified by the accounting department and signed by the director, which should contain information about your salary, position and the company itself;
• statements of outgoing transactions from your bank account for 3-6 months, indicating the balance of funds on the day of issue;
• 2-PDFO certificates for the current and previous year, certified by the seal of your company where you work;
• official confirmation of the absence of debts from the Credit History Bureau (ubki.ua) or from the bank;
• a letter of recommendation from a banking institution;
• copies of the title to real estate: apartment, house, land plot, etc.;
• pension payments for the last 12 months – for pensioners;
• certificates of no criminal record, certified and apostilled in Ukraine (not always required).

The package of documents should be submitted for translation to a sworn translator and a notary in Spain to avoid any claims from Spanish banks.

It is worth noting that banking institutions in Spain are more willing to lend to foreigners who purchase real estate worth €100,000 or more. It is more difficult to obtain a mortgage for a studio apartment with a price tag of €30,000 – it is simply not profitable for the bank.

Stages of buying Spanish property

Is it possible to buy real estate in Spain for cash ? Of course, just keep in mind: without declaring, it is allowed to bring $10,000 or another currency in equivalent. However, you can transfer money to Spain to buy real estate , having previously opened an account there. Read about this below – in frequently asked questions. The procedure for buying an apartment in Spain is the same both with a mortgage and for cash, and takes place in the following sequence:

• Selecting Real Estate

Buying a residential property is a fairly large purchase that needs to be approached in the most balanced and reasonable manner. Decide what will suit you for living: a classic apartment, a spacious apartment, a luxury villas in Spain or a bungalow? Do not skimp on spending time on viewings. If you like several options and are confused, visit the properties again to take a closer look at all the details and feel the atmosphere of the area. Listen to your feelings, and once you have decided, make a deposit and thus the housing will be secured for you.

• Obtaining an identification code in Spain

It is not possible to conclude a deal immediately, since you first need to obtain a foreigner’s tax identification number – NIE. Without it, it is impossible to carry out any legal transaction. As soon as the identification number is received, you can safely open an account in a Spanish bank, from which you can pay for the purchased housing and pay taxes. Then the property is checked for status according to the Housing Code, as well as for the absence of debts and encumbrances.

• Conclusion of the deal

When signing the purchase and sale agreement, a notary must be present. After the transaction is concluded, you are given 1 month to pay tax duties and send documents for registration of ownership in the State Register. Expenses usually amount to 10% of the value of the real estate. The registration period is 2-3 months.

Frequently asked questions

When purchasing real estate in the Kingdom of Spain, Ukrainians face a number of questions. Let’s look at the most basic ones. Is it possible to transfer money from Ukraine to Spain? According to the NBU resolution adopted in 2017, individuals can conduct currency transactions and transfer funds abroad. The option is also available with an e-license, on the basis of which money is transferred abroad, including for the purchase of real estate. The license is issued by the bank where you are served, free of charge. Also, to obtain it, you can contact the Spanish financial institution where you plan to open an account and clarify the list of documents with them. With an e-license, you can transfer no more than $50,000 per year or the equivalent of another currency. If the cost of the property is higher, Ukrainians can do the following:

• Obtain licenses for all family members, which allows you to significantly increase the amount of transfer. Moreover, in Spain you can open family accounts.
• Take cash with you: up to $10,000 per person without declaration, amounts over this amount will need to be declared and documents on the source of receipt will need to be provided.
• Ask real estate specialists for additional legal ways to transfer funds from Ukraine to Spain.

Is it possible to buy real estate in Spain without citizenship? In order to buy a house or apartment in the Kingdom of Spain, you do not need to have citizenship of the country. However, if you want to obtain Spanish citizenship in the future, you will need to renounce your Ukrainian passport, since dual citizenship is not provided for by Ukrainian law. In general, when buying Spanish real estate, you can obtain a residence permit in the country, and after 10 years of residence – permanent residence status. Read more about residence permits and citizenship in Spain in this publication. You can see current offers for Spanish real estate in our catalog . By contacting the managers of the Deniz Estate company, you will learn more about how to buy housing in Spain for Ukrainians , and also become the owner of the property on legal grounds. Our office in Kiev: Kiev, V. Lipkovskoho st., 45, The Work, office 14 * Reception at the office by prior arrangement