Buy property in Spain safely with Spanish Hot Properties
Quite simply Spain has something for everyone and is the chosen second home or holiday home location for all of Northern Europe. Whilst UK citizens make up about half of all international Spanish property purchasers there are still plentiful buyers of Spanish property from Scandinavia, Finland, The Netherlands, Belgium, Germany and Russia (to name but a few) who are attracted to Spain for its year-round sun, stunning scenery, brilliant golf courses, excellent transport and, most importantly, the Spanish way of life. Increasingly, more people are looking to change their lives and lifestyle. Spain is becoming not only a holiday home destination, but somewhere to emigrate tofor the long term. With the fantastic flight and Airport infrastructure you can travel directly to almost anywhere in the world from Spain at competitive prices. So, a businessman based in Málaga could easily live there and still run a successful business in Northern Europe.
How do I reserve my dream property?
Once you have found your ideal property then you will need to place a reservation deposit which is currently 6000 Euros. Deposit payment can be made by credit card or bank transfer and will be held in your name. Wedon’t recommend that you carry cash in your pocket but do ensure that this sum is readily available as a delay could mean your dream becoming another person’s reality. Payment of this sum fixes the price, confirms your intention to buy and means that the property is taken off the market and reserved for you and will stop you getting gazumped.
How do I obtain a Mortgage and what costs are involved?
If required. It is important to select the mortgage that is right for you,taking into consideration your personal circumstances. It might be that you prefer to raise capital in your home country before arriving in Spain. Do let us know if you require a Spanish mortgage so that we can advise you prior to your departure to bring with you all the necessary documentation and receive the expert advice you need. If you require a mortgage and prefer to use a Spanish lender you will usually be able to borrow up to 70% of the value of your property repayable over 10 – 30 years depending on your age. Generally your repayments must not exceed 35% of your net monthly income or joint monthly income if two people are applying. Costs involved can amount to 3 – 4 per cent of the amount you are borrowing. Spanish Hot Properties would also recommend that you consult our approved mortgage broker prior to your visit so they can help you ascertain what options would be available to you.
Should I use a Spanish Lawyer?
Probably the most important step is to instruct a Lawyer. We recommend that you select someone with local knowledge who speaks your language. Spanish Hot Properties believes using a Spanish Lawyer is a must. Your lawyer will carry out numerous checks to ensure that your chosen property is indeed owned by the person selling it and that it has been marketed correctly. Your lawyer will also ensure that there are no undeclared debts owing on the property and that all service bills and taxes are paid up to date. Using a lawyer safeguards your investment and means that when you receive ownership of your property you will not inherit any outstanding debts.
What costs are involved in buying a property in Spain?
The purchase taxes vary depending on whether you buy a new build property or a resale:
New Build property:
• Stamp duty – 1.5% of the purchase price
• No transfer tax
• VAT, at 4% (reduced from 8% in 2012) Due to increase to 10% on 1 January 2013
• No stamp duty
• Transfer tax – 8% of the first €400,000 and 9% on over €400.000 and 10% over €700,000.
• If buying with a mortgage besides the normal costs, it will also be necessary to pay stamp duty on the mortgage liability amount at 1.8%
• notary fees which may range from 300 – 1.000€ depending on the price of your property
• fees to register the property of about 60% of the notary charge.These amounts will will be around 10% to 11% of the purchase price.
What is my budget?
This is the most important question you should ask yourself before you begin your property search. Work out your budget and then deduct 10% buying costs from that budget. Now visit the home page of our website and go to our specialized property search and check out the various properties on offer. Alternatively you can contact us with your budget and somebody from the Spanish Hot Properties team will send you a selection of the best available properties for your budget.
What if I still can’t decide?
That’s one of the easier question to answer just contact Spanish Hot Properties and one or our dedicated team will only be too pleased to discuss your own situation in
detail and give you the correct advice to put you on track on for your Spanish property search. We will also be able to help you with any specific questions with regards to living in Spain and any other general questions that you may have.
We hope you have found this article helpful and below are some useful authority links if you want to investigate further.
Property in Spain
Buying property in Spain UK goverment advice