Your Complete Guide to Buying Property in Spain

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
Resale property
• 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%
Additional costs
• 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

Buying Spanish Property, 5 Useful Tips

Costa Blanca Villas

Spanish property

If you are new to Spanish property for the first time it’s very important that you use the best professionals and get the best advice or you could be one of those people that end up in Spanish property horror story.
Nearly all the stories that you may have read about in the past could have been avoided if the people in question had followed the following guidelines.

 
Tip 1        Always use a Spanish lawyer

 
Well this is the number one tip and probably the most obvious. You wouldn’t buy a property in the UK or any other major country without using a lawyer so why would you not use a lawyer in Spain when you know nothing about the property market. However many people do this and end up in huge problems. Make sure that the lawyer you use works for you and not the seller. Simple sensible tips but one that will help you avoid Spanish property heartache. Please read our buyers guide for more detailed information.

 
Tip 2        Choose an agent that speaks your language and one you can trust

 
Again very important find an agent that speaks your language and one that is on your side and can look after your interests as lost in translation is a real problem with some property deals in Spain. It also makes sense to find a professional agent who fully understands the market and that can introduce you all the right professional lawyers and accountants but most importantly one you can trust.

 
Tip 3        Make a Spanish Will

 
Again very important but it makes sense to take to your lawyer and understand the inheritance laws here in Spain. Most importantly making a Spanish will is a must even if your just buying a holiday home or planning to live in Spain full time. This will make life a lot easier for your spouse and family should the worst happen.

 
Tip 4        Understand the different property buying taxes.

 
Very important because the lower priced property might be more expensive. In Spain you have two type of property sales, New Developments and Resale’s which are treated differently for tax rates with New Developments currently attracting 4% IVA and resale’s attracting 8% property transfer tax so a resale property that has a lower price than a new development might actually be more expensive.

 
Tip 5       Make sure you know the community fees of your property

 
Simply put depending on the quality and facilities your property offers will make a big difference to the amount of community fees that you have to pay. There can be big differences in monthly costs between different developments. So don’t walk in blind make sure you know these facts before you buy.

 
I hope you find these tips useful and if you would like to know more detailed information please request a copy of our Spanish property buyer’s guide.

Spanish property buyer’s guide.
Spanish property