Where should I buy? Schools in Spain? Healthcare? Legal fees? Please browse through this section for helpful
hints and answers to all your questions on buying property in Spain.
Here is our in depth guide to buying property in Spain packed with useful information to answer all those
important questions. You can click on the links below or scroll down to browse the entire section.
Buying Property in Spain
Buying a home is the biggest financial decision people usually make in their lives. Buying a
property in Spain is just as big a decision and shouldnt pose any problems as long as the
correct procedures are followed and legal and financial advice is taken. Anyone considering
purchasing property in Spain whether it be for investment, a holiday home, relocation or
retirement should ask themselves the following questions to make sure they have all the relevant
information to make a purchase that will not lead to disappointment.
1. WHY?
As simple as it may seem, make sure you understand the reason for your purchase as this will
affect the type of property that you are buying. A property bought as investment for rental
income may need to be in a different location to a property bought as a couple retiring who are
looking for peace and tranquility. Property on the coast or on a golf course generally attracts
higher rental prices, but purchasing a property inland may present better value for money. A
holiday apartment on the coast may not be ideal for a family with schooling requirements wanting
to relocate looking for a property with garden and pool. If you will be living in your home all
year, avoid places with seasonal variations in tourism and therefore levels of local services
provided. Think ahead the holiday home may in time become something more permanent.
2. WHERE?
Make yourself familiar with the area that you are looking to buy in. Research the internet,
consult tourist information guides, speak to friends, look at the areas guide featured on this
website for areas guide. Weigh up the pros and cons of each area: decide whether you
are looking for somewhere with an ex-pat community or somewhere more Spanish, on an urbanization
or rural, coastal or inland, consider which airport offers the best flight connections, how the
market price of property varies in different areas, establish what local amenities are available.
Spend some time in the area, speak to other ex-pats who live there.
3. WHAT?
Decide what type of property will best suit your needs: an apartment, a townhouse, a detached
villa. A garden with a pool is always an attractive idea but if the property is only to be used
occasionally as a holiday home you must remember that they must be maintained. There are
financial advantages to buying a property off plan such as a development planned but not
started or one currently under construction the promoters generally factor in price increases
for the properties as the various phases of construction are completed to allow for guaranteed
capital growth as an incentive to buy earlier on in the construction to see our
buying off-plan guide. Another popular option in Spain is to buy a plot of land and have your
own house built to order. As well as often being cheaper than buying a resale property, having
a house built to order will allow you to arrive at your dream home generally buying a resale
property will mean compromising somewhere - to see our bespoke build guide.
4. HOW MUCH?
As in any country, there are other costs associated with the purchase of property in Spain other
than just the agreed purchase price of the property. As a rule of thumb, allowing an additional
10% of the purchase price will cover transfer tax of 7% for second hand property or 7% IVA (VAT)
applied to new property and legal fees. If you buy a property on a community development there
will be an annual maintenance charge to consider which will contribute to the upkeep of the
development and cleaning of the public areas. There are additional costs associated with setting
up a mortgage to see the separate guide to mortgages on this website.
5. WHO?
Choose a good English speaking local Spanish lawyer to represent your interests when purchasing
property in Spain. Their role is to ascertain that all the relevant deeds are present and correct
and relate to the correct property and vendors in question. They will also check with the local
town hall to ensure that there are no developments planned in the vicinity which could affect
the property directly or indirectly in any manner. Lawyers normally charge about 1% of the
declared purchase price of the property but its an excellent investment for peace of mind.
6. WHEN?
Knowing when funds must be available for when the various payments must be made will allow
for a smooth trouble-free transaction. Good value properties in Spain will sell extremely
quickly so be prepared to make a quick decision. You will need to back up any accepted offer
with an initial holding deposit (generally 3,000) so make sure you have access to this in cash
when viewing properties. With a resale property, the next payment is usually 10% of the purchase
price when private contracts are exchanged, with the remainder being settled on completion.
If you are planning on raising finance for the purchase, make sure you have the 10% required for
the deposit and the necessary finance agreed. If you are buying off-plan, make sure you are aware
of what the contract stipulates for when and how much must be paid at various stages of
completion. Also be aware that generally banks will not mortgage a property until it is
completed. You must also be fully aware of the payment terms agreed when having a property built
to order. Making sure the appropriate finance is in place at the correct time will help to
avoid problems.
Making the right investment is key and if you pick the right investment,
you could be in for a handsome return.
Where should I buy? Schools in Spain? Healthcare? Legal fees? Please browse through this section for helpful
hints and answers to all your questions on buying property in Spain.
Buying a home is the biggest financial decision people usually make in their lives. Buying a
property in Spain is just as big a decision and shouldnt pose any problems as long as the
correct procedures are followed and legal and financial advice is taken. Anyone considering
purchasing property in Spain whether it be for investment, a holiday home, relocation or
retirement should ask themselves the following questions to make sure they have all the relevant
information to make a purchase that will not lead to disappointment.