A Guide to Buying a Property in Spain

Introduction:

The Internet has revolutionised the process of buying a property in Spain – now you can start your search from the comfort of your own home. HomeEspana brings together all the information you need in one place, with an extensive database of properties to look at. Whether you are researching an off plan property investment in Spain or are interested in Spain property resales, HomeEspana has a wealth of properties to choose from. New build, off plan and resales - from luxury golf villas to rural property sales in Spain – even renovation projects and ruins for reform. We have the expertise and resources to ensure you are well-prepared even before you make your first property viewing visit to Spain – and if you need help or clarification on anything, our friendly staff are only a phone call or email away.

Spain remains a popular choice for UK buyers and this does not look set to change any time soon. In 2004, British buyers accounted for a quarter of purchases of new properties in Spain by overseas buyers; around 14,000 transactions. Spain still enjoys a low cost of living, and has numerous attractions for the UK buyer as proven by its enduring popularity as a holiday destination. The property market has remained buoyant. Spain still remains affordable to the average overseas buyer. Increasingly, buyers are looking to different areas of Spain in their search for property and less to the ‘traditional’ ex-pat areas like the Costa del Sol. More and more people are buying rural property in Spain – and Home Espana's huge range of inland Costa Calida and inland Costa Blanca property for sale reflects this new diversity. Many inland properties in Spain are extremely affordable. If you dream of a Spanish home by the sea, though, you’ll be delighted by our excellent portfolio of coastal properties.

Some Things To Remember When Purchasing a Property in Spain

Note: this will give you some idea of the processes involved – it is intended as a general guide only. Home Espana's professional staff will guide you through your own property purchase with our customary care and attention to detail.

In order to own property in Spain you must have a Fiscal Identification Number (NIE – numero de identificacion de extranjeros) and you also need a Spanish bank account (to enable you to pay for amenities supplied to your property – eg., electricity, telephone, water etc.)

You will also need a solicitor – Home Espana enjoys a professional relationship with an experienced bilingual solicitor (Abogado). It is your Abogado’s job to carry out a series of checks on the property and ensure the conveyancing runs smoothly.

Once you know you are serious about buying a property in Spain you will need to work out your budget and stick to it! Remember to take into account all the costs involved. Bear in mind the cost of your property plus IVA (transfer tax, the Spanish equivalent of VAT). This is quite high – 7%. Stamp duty in Spain stands at 1 or 2%. Also, there set charges associated with the registration of the property into your name. These vary but, as a rough guide, allow a sum equivalent to 10% of the property price for ALL the associated costs. You also need to take into account costs of visits to Spain to look at properties and moving costs.

You may also need to consider mortgages – our staff can also advise you on this. You will need to decide between a mortgage within your home country or one held in Spain. As with many things there are pros and cons for each. You must ensure that if you need a mortgage you have approval before you make any offers on a property: otherwise you risk losing your deposit. Home Espana can advise and liaise with Spanish banks to obtain the best rate and deal for you in terms of your mortgage.

Under Spanish law the definition of a Spanish resident is someone who spends more than six consecutive months in Spain in any calendar year. This renders you eligible to pay Spanish taxes. These include a yearly charge levied by the local Town Hall – an annual real Estate tax (IBI). If your property is a resale, the previous owner is obliged to provide you with bills which detail this.

You will also be liable for Wealth Tax, another annual tax based on the value of the property and any income from the property.

If you buy in a complex or large development Community Charges will be payable – these are to cover general maintenance, gardens, communal areas, and swimming pools etc.

When you purchase property in Spain the price will be in Euros – therefore, you will have to buy the currency to pay for it. In recent months, Sterling has fluctuated by as much as 10% - this can have serious repercussions for your property purchase: if the pound strengthens your property will cost you less, if the Euro strengthens it will cost you more. If you are not prepared to gamble on the fluctuating exchange rate it is possible to 'fix' the exchange rate for your purchase.

View the property at least twice, preferably at different times of the day. Talk to your potential neighbours.

Check the amenities: gas, electricity and water.

Get the property checked over by a builder or an architect.

Before you sign anything, get your lawyer to check ownership of the property.

Your lawyer will ensure there are no outstanding debts on the property. In Spain, debts remain outstanding on the property: make sure you don't inherit someone else's debts.