Introduction
to buying a property and Real Estate in Spain |
|
![]() |
![]() |
Introduction buying property in Spain is now more popular
than ever, with increasing numbers of people following their
dream in purchasing a holiday home, buying property to rent
out or moving lock, stock to the sun. The British love the
pleasant, healthy climate and in recent years the Spanish
local authorities have made great efforts to increase the
number of foreign tourists and residents.
Now is a good time to buy property in Spain as European
interest rates are low and there is a wide selection of
property options available, from developed plots, farmhouses
and village locations, through to villas, townhouses and
new apartment developments.
Buying a property abroad is an exciting experience. However,
you must go looking for your home with an open mind. You'll
soon realise that it is virtually impossible to find exactly
what you want, so you may need to compromise on some issues.
Using qualified professionals will protect your interests,
making the purchase of your home in Spain a risk free and
stress free experience.
|
![]() |
![]() |
-
Settle on a region - Spain is a big place. Consider
the location first and foremost. Decide on a particular
town, village, development or hillside where you'll want
to spend a lot of your time, or even live permanently.
This involves a whole series of individual choices. Research
the area to find out what it is like in different seasons,
what facilitates are available and the travel times to
different places. And ask yourself, would you be happy
living there? Look at estate agents in the region and
find out the prices that you would expect to pay.
-
Think about the kind of property you are looking
for - The area, size, number of rooms. But keep an
open mind. It could be worth looking at different types
of properties in different residential areas. By looking
at a variety of homes you'll build up your knowledge of
the present market values in the area you are looking.
-
Speak to an estate
agent - Only negotiate with those that are officially
registered and hold a licence. Make sure you feel comfortable
with the agent and start looking at as many properties
as you can. What you'll need the house for will change
your considerations. If you're moving to Spain you may
want somewhere quieter, but if you plan to rent out the
house you may want somewhere more commercial etc. A good
agent will help you through the whole purchasing procedure.
Remember, if you feel the estate agents in Spain isn't right, look for
an alternative who will give you the service you expect.
-
Research all legal issues and costs involved.
Find a Solicitor
(abogado) to advise and assist you - Before you have
decided on a property in Spain it is important to be fully
aware of the legal process and costs involved in your
property purchase. Obtain professional. advice and check
your finances take account of these additional costs .
Whatever housing option you choose, your experienced solicitor
should anticipate all contingencies.
-
Organise your administration - There are administrational
factors that need to be considered prior to your house
purchase
-
Making an offer - Make your offer in writing
if possible (of course, subject to contract), and include
not only the price, but also the amount of deposit, when
you are prepared to pay it, when you are prepared to complete,
what you consider to be included in the price (for example
furniture and fittings if applicable) and, an often neglected
point, that all machinery equipment and installations
should be in normal working order.
-
When an offer is accepted - The solicitor takes
the legal responsibility for checking the land registry
and if all is well will then prepare a private contract
which will bind both parties to the deal (you may be asked
to lodge a deposit on the property, to take the property
off the market). The solicitor will next prepare the public
deeds (Escritura de Compraventa) for signature in front
of a Spanish Notary. When the balance of the purchase
price is paid and vacant possession of the unencumbered
property is granted, the sale is completed.
-
Immediately after completion - The notary will
fax details of the title deed to the local land register
to inform them of the identity of the new owner. This
will prevent the property from being sold twice. The notary
and the land register act together to protect and guarantee
your interests. Your solicitor can also arrange for the
transfer to your name of utilities and services such as
water and electricity and organise their payment through
a local bank.
|
![]() |
![]() |
Buying off-plan/new build - These properties have
yet to be built. Buyers purchase on the basis of only seeing
a show home or development plan something like Polaris World Properties
- Advantages - you can choose the perfect location and
pick from a number of styles and designs (both exterior
and interior) to construct the villa/house that you would
like to live in. It's a more affordable option as payments
for new builds are made in instalments, with final payment
after the finished building is delivered.
- Disadvantages - because payments are in instalments
a substantial initial deposit is required. This option
can also take some time as you wait for the house to be
completed. Check future plans for the area. Remember,
further builds may ruin the views you have purchased.
Resale Properties - These are older houses that
are up for sale.
- Advantages - you actually see the finished product.
The moving in process could be as easy as buying furniture
and arriving with your luggage. A significant number of
resale properties are sold with their furniture so it
could be even easier.
- Disadvantages - you may have to compromise in other
areas. If the property requires a lot of work consider
the maintenance or replacement costs. Call local handymen,
local English papers in the Spanish region should have
adverts. Plan realistically the cost of 'doing up' a whole
property.
Urbanizaciones - Simply means housing estates.
Beach-frontage for urbanizaciones is now at a premium. If
you decide to forgo a beach frontage, you should expect
a lot more inside and outside space for the same money.
- Advantages - convenience, both in the process of house
purchasing and responsibilities of property maintenance.
Facilities, ready-made social contacts, greater security,
lower taxes and the possibility of owning a home in a
location where fully detached properties are hugely expensive.
- Disadvantages - high community charges, inflexible
and restrictive community rules, difficult neighbours,
lack of space and privacy and lack of control over the
future of the development.
Villas - Detached, purpose-built holiday villas
usually found on the Costas. You'll pay more for a detached
villa than for a house of equivalent size and comfort on
an urbanizacion.
Apartments - Usually built as holiday homes on the
Costas.
- Advantages - these are usually the cheapest places to
buy on the coast.
- Disadvantages - offer limited comfort plus the flats
are often so reasonably priced because they're in the
middle of resort towns where noise could be a problem.
Town and village houses - Small inland towns and
villages have a lot of properties but limited outside space
as groups of properties tend to be clustered together.
- Advantages - the size of these properties can be quite
deceptive and tend to follow the traditional Spanish decoration.
- Disadvantages - older houses may require checking and
new work with regard to wiring and plumbing. Fincas -
A plot of land or an estate outside of or in-between towns
and villages. Properties advertised as fincas can run
from tumbledown farmhouses to lavish modern villas. Advantages
- They are often on their own land in the countryside.
Fincas - generally come with a substantial amount
of land, which may include olive groves and fruit orchards.
- Disadvantages - you won't be on the coast front, and
to find cheap land or run down properties you'll probably
have to look further inland.
|
![]() |
![]() |
The solicitor
will take care and assist you in all the different steps
involved in the transaction. There are many excellent English-speaking
solicitors in Spain. Choosing the right solicitor is your
guarantee that Spanish legal requirements are met, the property
is registered in the vendor's name and that it is free of
any mortgages, charges, encumbrances, debts or other liabilities.
Clear everything with your solicitor. Do not sign any contract
or agreements with an agent, get them sent to your solicitor.
They will negotiate and discuss the purchase terms with
the seller's solicitor. The terms should not be limited
solely to price but should cover in detail all your requirements
like the completion date, the form of payment, etc.
Barclays Bank have published a free guide to buying in Spain, the brochure is packed with useful information to help with the whole buying process as well as a range of mortgage products on offer as well as local banking facilities to help you settle once you've completed your purchase. Click here to register with Barclays to receive your free brochure.
|
![]() |
![]() |
Additional Fees Typically around 10% EITHER - I.V.A. (VAT)
on new construction - 7% of the contract price (16% on land)
OR - Transfer Tax (Stamp Duty) on resales - 7% of the declared
value PLUS - Legal Fees - 1% approximately, Notary and Land
Registry Fees - 1% approximately, Title Deed Tax - 0.5%
of the declared value, Plus Valia tax on any increase in
land value - Varies, and may not even apply. Fees differ
slightly in the Canaries.
|
![]() |
![]() |
Some things to consider when choosing the location of your
holiday home in Spain:
- Do you prefer the town or country read up on our country
information guide?
- Do you want to be inland or on the coast?
- Do you want to be isolated or in the thick of it? (Most
people prefer to be within about an hour's travel time
of a town)
- How much outside space do you want?
- Private house or urbanisation?
- How close do you want to be to your neighbours?
- How close do you want to be to shops, bars and restaurants?
- Where's the nearest public transport, how often does
it run, what time does it end?
- How far is the beach?
- How far is it to sports facilities, golf, tennis, swimming
etc?
- How good are the local health & social services?
- Arts and entertainment, what's available in the area?
- Neighbours, what are they like and how much do you want
to see them?
|
![]() |
![]() |
Once you have chosen the right estate
agent with the necessary experience and knowledge of
the property market, they will help you find a suitable
property. The agent will advise as to the best areas to
invest in, comparing prices and qualities. You should ask
for details of the out-goings payable every year to maintain
the property:
- Annual Real Estate Tax (1131)
- Community fees
- Charges for rubbish collection
- Water rates
- Electricity charges
- Property Income and Wealth Tax
|
![]() |
![]() |
Consult your solicitor,
if they are happy, get your agents help and you can make
an offer, confirm the details in writing, covering all the
following points:
- The price Declared price on the escritura (title deeds)
- Payment method and currency
- Fixtures and fittings
- Furniture (with inventory)
- Who pays which taxes
This way you only have to negotiate once and there should
be no hold ups. The skill of the agent comes into play carefully
bringing the vendor and buyer into an agreement. Having
funds available at this time will convince the vendor you
are serious and not just fishing.
|
![]() |
|
