Advice for buying in Spain

   

 

    Buying a property in Spain is a very different from the UK and US process. Therefore it is essential to use the services f a professional estate agent and solicitor to guide you through the whole buying process to ensure you join the majority of people who have a trouble free journey to owning their new home in Spain.

The following are the main points to consider in sequential order for buying a property in Spain.

    FIRST:  Decide the Main Use - Holiday Home or Main Residence or Future Main Residence 

This is important because it determines your choice of region and area. The requirements of a holiday home are totally different from those of the permanent resident. Normally the holiday home should be near an airport or two, should be close to the beach and holiday entertainments and be easy to maintain. These attributes will also make it easier to rent out to produce a holiday letting income. Consideration should be given to properties that offer 24/7 security for a lock up and go property with low maintenance to avoid spending valuable holiday time working.

   If the property is to be used as a main residence the normal requirements are to be away from the tourists areas and in attractive locations where there are other permanent residents with amenities and activities that are open all year round and not closed up in the off season. This opens up other areas for the permanent resident which may offer a better quality of life and at the same time be less expensive than the holiday areas.

   There is also the consideration for the climate in winter. For example the areas south of Alicante to Almeria have the best winter temperatures and are most suitable for full time or winter residents with plenty of all year round activities and culture.


   SECOND: Plan How Best To Finance Your Spanish Property

You will have to determine the budget for your new Spanish home which should include all the buying costs which are currently around 12%-15% of the purchase cost plus mortgage costs if required. This is made up of:
 
RESALE Properties Transfer Tax:  10% (Valencia) 8% (Murcia)
 
NEW Properties Taxes :   10% IVA (vat) + Stamp Duty 1.5% (Valencia) 2% (Murcia)
10% IVA (Vat) instead of transfer tax 
  
Notary & Legal Costs:   2% approx.
Notary and registration fees are around 1,500 Euros. Then there is 1% for your legal costs/solicitor 

Mortgage Costs: 1%-2% bank set up charges

Spanish mortgages are still available up to 70% loan to value (LTV)  

   THIRD:  Choose Your Estate Agent 

You are already using the internet so from the security of your own computer you can select an estate agent who can offer the experience, area knowledge and choice of the sort of properties that appeal to you. Request detailed information not just on the properties that interest you but also about the areas and amenities that are available.

As in the UK Spansih estate agents are paid a sales commission by the vendors so their service should be free to the buyer.


   Fourth: Choose the Region/Area as the Location is of Equal Importance as the Property itself

Remember just as in the UK the location is as if not more important than the property itself. So choose an agent who has a wide experience of different areas and ideally who can offer a property finding service and who is prepared to show you different areas in diiferent regions.