Buying property and a new home can be a hugely exciting and rewarding
experience. Buying a property abroad adds to this, with the anticipation of a
new investment, second home, perhaps even a new life in a different country.
Buying property however, is not without worry. All 'moves', even those
planned with military precision will endure some issues or unforeseen
problem/s. Buying a property in a different country, Spain included, will
inevitably lead to additional worry - different language, rules, procedures
and property regulations.........
Why Spain?
For most, the weather and the year round warm, generally consistent
climate is the lead factor - for example, the Costa Blanca, (mid way coastal
/ costa region), offers sunshine of more than 320 days a year, with an average
temperature of 17.5C / 64F. The climate also lends to more 'outside' living,
with much time spent meeting, eating, walking (perhaps even sunbathing) in
the great outdoors. Add to this, with Spain having been the favored retirement
and emigration destination for huge numbers, of UK and Northern Europeans,
during the last 10-15 years, and Spain pretty much 'has it all' (Familiar banks
and financial institutions, doctors / dentists, schools etc..)
With low European interest rates, now is a good time to buy property in Spain.
There is a wide selection of property options available, from developed plots,
farmhouses and village locations, through to villas, townhouses and new
apartment developments.
Property Buyers Check List
We put together the following details, advice and 'property buyers check list'
to provide a guide against the more popular questions, demands and
issues when searching and buying property in Spain.
1. Location, where to buy
2. Contacting estate / property agents
3. Legal issues
4. Costs
5. Making an offer
6. The survey
7. Completion
1. Location, Where to buy:
Your first decision is find a region / area / town which has the type and
availability of property you are looking for, within your budget. Surprisingly,
property can vary widely in type and availability even from town to town -
The mix of typical town housing and apartments with newer, modern
terracing / urbanization and villas can vary enormously.
Consider the area, infrastructure, amenities, travel, airports - most of all,
could you honestly see yourself 'living there'?
2. Contact local Estate / Property Agents:
Find and make contact with qualified, reputable local estate and property
agents in your chosen area. With the now many 100's on offer, not always
easy, or successful, particularly when you are distant from Spain (in the UK)
Consider the Charterhouse Homes 'Touchbase' spanish property search
and referral service.
3. Legal Issues:
Research all legal issues and costs involved. Find an English speaking
Solicitor (abogado) to advise and assist you. Similar to buying a property in
the UK, using a solicitor is your guarantee that the 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.
** Much has been made recently over the so called 'Land Grab' within the
Valencian community region - these Land Laws have affected legal
issue and status, but to relatively few properties and can be avoided by
seeking experienced legal advice.
 Latest details: LRAU and LUV Land Laws
4. Costs involved:
The breakdown of purchase fees vary depending on the property you are
looking to buy. New build properties attract I.V.A (VAT) on the building and
land where as resale properties attract stamp duty. Common fees include -
legal (1%), Notary & registration(1%), Title deed (0.5%), Valia tax(increase
in land value). Generally, you should budget for 10% against the property
price and purchase costs involved.
More info: Costs of buying property in Spain
5. Make an offer:
Like the UK, your estate / property agent will help and advise you about making
your offer. Make your offer in writing (Always subject to survey and contract) and
should include details of the agreed offer price and any fixtures, fittings that are
to be included within the offer - as well as the amount of Deposit you wish to
lodge. If successful, your offer should then be formalized as your intent to
purchase. Do this through your solicitor, with a contract between you as the
buying party and the property vendor / seller. You will be asked to lodge your
deposit at this point, which is normally 10% upwards of the purchase price,
which sees the property removed from sale (off the market). Your solicitor will
begin the legal searches and coveyancing, including - preparation of the public
deeds (Escritura de Compraventa) for signature in front of a Spanish Notary.
More info: Contracts details when buying property in Spain
6. The survey:
We strongly suggest you follow up your accepted offer with a survey of the
property. Do this reasonably quickly as it shows the seller how serious you
are about the purchase as well as early identification of any possible problems
with the build and condition of the property. Any issues discovered by the survey
could be used to re-assess the offer price - or for major issues, to pull back your
offer entirely, to carry on your search elsewhere (make sure that your 'offer'
includes 'subject to survey').
7. 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 organize their payment
through a local bank.
Note: The information set out above is our interpretation of the various laws and
regulations when purchasing a property in Spain. The detailed information has
been checked by us, so that as far as possible, all information is correct at the
time of publish. However Charterhouse Homes cannot accept liability for any
inaccuracies or change to the information provided.
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Guide to Buying Property in Spain
