The Ultimate Guide To Buying Property In Spain

The Ultimate Guide To Buying Property In Spain

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Let’s Buy In Spain Spanish Property Guide How to Successfully Purchase Spanish Real Estate – Step by Step Welcome! Thank you for your interest in our Spanish property purchasing guide. We have almost three decades of experience selling Spanish properties of all types to buyers from Spain, the United Kingdom, France, Germany, Russia and Holland. We produced this guide to help buyers understand the important steps to the Spanish property buying process, and offer you advice on the advances you should undertake to make sure buying a property in the beautiful country of Spain is absolutely successful and as hassle-free as possible! By the time you have read this guide you will have a very good understanding of how to approach buying your dream Spanish home in the sun. Where to Begin Everything you need to know to get started on your property purchasing journey. Financial Matters It is very important to get your finances in order before moving to Spain. Finding Your Dream Property Perhaps the most important step – how to find the perfect Spanish property and start the buying process. Legalities The vital legalities you must be aware of before you make the move to Spain. Moving Everything you need to know regarding getting your possessions to Spain. Property Management How to arrange effective management of your property in your absence. Insurance Protect yourself!

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Published 25 March 2015
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Let’s Buy In Spain Spanish Property GuideHow to Successfully Purchase Spanish Real Estate – Step by Step
Welcome! Thank you for your interest in our Spanish property purchasing guide. We have almost three decades of experience selling Spanish properties of all types to buyers from Spain, the United Kingdom, France, Germany, Russia and Holland. We produced this guide to help buyers understand the important steps to the Spanish property buying process, and offer you advice on the advances you should undertake to make sure buying a property in the beautiful country of Spain is absolutely successful and as hassle-free as possible! By the time you have read this guide you will have a very good understanding of how to approach buying your dream Spanish home in the sun.
Where to BeginEverything you need to know to get started on your property purchasing journey.Financial MattersIt is very important to get your finances in order before moving to Spain.Finding Your Dream PropertyPerhaps the most important step – how to find the perfect Spanish property and start the buying process.LegalitiesThe vital legalities you must be aware of before you make the move to Spain.MovingEverything you need to know regarding getting your possessions to Spain.Property ManagementHow to arrange effective management of your property in your absence.InsuranceProtect yourself! Tips on the best insurance for your property and healthcare. Copyright © All Rights Reserved
Speakto anexpert If you have any questions about the content in this guide, or would prefer to speak to someone with extensive knowledge as an expat living in Spain, get in touch – our friendly staff are waiting to hear from you.info@letsbuyinspain.com www.letsbuyinspain.com UK +44 0845 0042093
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Introduction
Thank you for downloading our guide to buying Spanish property. If you are on the fence about buying a
property in Spain, we hope we can convince you it is a marvellous idea.
There are many diverse reasons that UK expats decide to move to Spain; there is an extensive choice of resorts to
chose from, numerous outdoor activities and wide sandy beaches, and of course the fantastic climate. The
lifestyle is Spain is far more laid back than that of the UK, and you should find your stress levels drop
considerably when you move to Spain!
Furthermore, when you think you can buy a large detached luxury villa complete with pool for the same price as
a small flat in many UK cities, the prospect of moving to the sun becomes even more attractive.
You have undoubtedly heard of the pitfalls than some unfortunate foreign buyers encounter when buying a
Spanish property, but these can be completely avoided with due care and diligence.
This guide will teach you how to proceed with caution from the very firsts steps when you plan to move and visit
Spain to view potential properties, to obtaining finance, and successfully completing the sale. Needless to say, all
the steps should be carefully managed to prevent stress or financial losses.
Some problems facing buyers are by caused by the recent economical crisis in Spain, and it is so important to
protect your interests when purchasing in Spain, or indeed any other foreign country. Too many unwary buyers
have entered into Spanish purchase agreements and signed contracts without comprehending the terms, and
not sourcing proper legal advice while believing cowboy property developers, who were offering deals that
frankly were just too good to be true.
What started out as a small family business is now a thriving Spanish property portal, so visit our website at
www.letsbuyinspain.comfabulous property bargains, or contact us if we can help you in any way withfor some
the buying process.
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 Fill out the form on our website, or call us on (+44) 0845 0042093. We are here to help! From the team at letsbuyinspain.com
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1. Where to Begin Everything you need to know to get started on your Spanish property journey
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While it might seem a lofty dream, in reality purchasing a dream home in Spain is a goal that is attainable for most people; but it does require a certain amount of vision, and of course planning. Moving to another country is not a case of waking up one morning and deciding you will up sticks and go – it is usually an idea that develops over a period of time. In many cases, the idea of moving to another country is planted after spending an enjoyable holiday in your desired region, or perhaps you have friends or family who have already made the move? Once you have made up your mind, like most people you will probably start a property search online and begin to hang out in expat forums asking questions about schools and employment opportunities in your chosen area. You may have visited an overseas property exhibition in the UK and asked about financing possibilities when buying a Spanish property. There comes a time when you need to decide to turn these small steps into real actions, which means actually booking a ticket to Spain or picking up the phone and speaking to an agent based in Spain. Unless you take this all-important step, your dream of moving to warmer climes and leaving the rat-race of the UK behind is likely to remain just that – a dream. If you do not feel entirely ready to give up the UK for good, you can join the thousands of Brits who own a property abroad they use as a holiday home several times a year for family holidays, and as a means of generating extra income through vacation rentals. This way you have the best of both worlds – you can get used to the Spanish way of life at your own pace without leaving your job, UK hometown, friends and family behind for good.
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Member states of the EU Map
Not from an EU Member State? In 2013 the Spanish government approved a much awaited investors residency law which became known as the golden Visa. The Golden Visa allows non-EU state residents to purchase a property in Spain and spend time in the country without restrictions. The reason for this change in law was to give the struggling property market a nudge in the right direction. Therefore, even if you are not a resident of a European Union country you are now able to purchase a property in Spain and travel freely to and from the country. The minimum investment must be over a total of 500,000€, although this can be spread over several properties. You should also take into consideration you can expect to pay a further 11 or 12% of your investment for tax, VAT, stamp duty and professional lawyer and notary services.
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The Very First Step The first step to making a successful move to Spain is knowing exactly what you want. All you need to do is open a new text or xl file on your computer or get out a notepad and pen, and begin writing! Ask yourself what I would be your perfect home. If you will be living alone, a luxury villa with independent grounds and multiple bedrooms may not be the best idea; you don't really want to spend your time maintaining a large home in which you only use 25% of the space. You need to decide if you will use a terrace, garden and a swimming pool. If you plan on letting the property as a holiday rental for part of the year, these are great assets as you will be able to command higher rents and have more prospective tenants but if not, you may find you have little use for a pool or garden once you actually move and live in Spain. You also need to think about the location of your property. If you do not drive, or do not wish to own a car in Spain ideally your new home will be within easy walking distance of local facilities, shops, public transport and where apt, the beach. Remember to gather your information from a variety of sources and do not rely on a single website or book. Determining exactly what you want will give you a much better chance of moving successfully - those who do really not know what they're looking for in advance usually end up with something less than perfect for their needs, so don't let this happen to you.
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Why Do You Want To Move? Also write down why you are planning to move. Common reasons include a better quality of life, the need for more living space, escaping the dreadful UK weather, or you want to live your life with less rushing and stress. Maybe you have a young family and want to bring them up in a more relaxed environment away from city crime and gangs. If you are planning on purchasing a holiday home, it could be your reasons include having an idyllic place to spend quality time with your friends and family without wondering if you can afford the accommodation several times a year. Or maybe you want to combine owning a second home with the possibility of earning rental income to cover your vacation and property maintenance expenses. Either way, writing down your reasons is a good place to start and therefore remind yourself from time to time why you are doing this.
Gathering Information Gather together as much information on moving to Spain as you possibly can when starting your relocation journey. You have to be realistic, and note down both the positive and negative aspects you will come across. Internet research and reading magazines and books will give you a wide range of facts and opinions to form a good idea what to expect.
Online forums are a great source of information, and you reading these forums will give you an idea of the complaints and negative aspects of living in Spain that regularly re-occur among forum members. Bureaucracy and red tape, along with too much paperwork are complains regularly listed. On the other hand, you will find frequent praise for the health services and Spanish education system. Another way to expand your knowledge before making a concrete move is to visit an overseas property exhibition in your area. This allows you to speak people in the know without actually having to get on a flight to Spain. Write down any questions you have, as eventually you will want answers to these from those living in your chosen area or an experienced property agent when you finally make your first definite step.
Some Questions to Ask Yourself about Your Ideal Property and Possible Answers:
Question: What is my preferred area? The Costa Blanca or Costa Calida. Question: Which towns interest me most? Javea, Denia, Aguilas and Cartagena. Question: Is it important to for us to be by the sea? No – We would not like the summer crowds and would prefer a property a kilometre or two away from the very busy areas. Question: What type of property most interests you? An apartment in a block, detached villa, townhouse or other? I would really like a detached villa, but would consider a townhouse. Question:How many bedrooms and bathrooms will you need? At least three bedrooms and an extra guest bathroom would be perfect. Question:Are you willing to take on an older property that main need work? No – We would not be able to do reforms ourselves and I feel we do not know enough Spanish to deal with contractors. Question:Do you want to be among expats or does a more Spanish way of life appeal? Ideally, a mix of both.
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Question:Is having your own pool important? We would like our own pool for the grandchildren when they visit, but as long as they have access to a nearby communal or club pool they would be happy. Question:Is a sea view important to you? No, a mountain view would be fine. Question:Is it important that the property be rentable for holiday lets? No, we will not be renting it out. Question:Are there any other requirements as regards to the property? Itmust be in a location where I am able get a good broadband connection and satellite TV. Question:Is it near enough to the airport? Yes, Alicante is just over an hour away, but the town is well connected with airport transfer companies and some public transport options. Some Questions to Ask Yourself When You have Narrowed Down Your Property Search
Question:Is it important that you are in walking distance of the beach? 8 Not vitally, because we plan on owning a car – but it would be nice to be able to walk. Question:How far can I comfortably live from local shops? 7 I need small shops where I can buy my daily needs within walking distance – I do not want to have to get thecar out every time I need bread or because we have run out of milk. Question:Is it important that I am near to bars and restaurants? We would like a few bars or restaurants within walking distance as we don’t want to have to get a taxi every time we go for a night out. Question:Are you comfortable with the medical facilities in the area? Yes this town has a hospital just 10 minutes from the centre with an A&E department. Question: Is there anything else important to us? Access to local transport, off-road parking, and some children living in the area for when the grand kids visit.
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2. Financial Matters
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It is vital you get your finances in order before moving to Spain
Work Out Your Finances Whether you are looking to spend anywhere from tens of thousands, to hundreds of thousands of pounds on a property in Spain, it is nothing short of a huge decision to make. So of course, it is a decision that should never be taken lightly. Before making the decision to purchase a property, it's extremely important that you take the time to work out your finances. It's vital to know how much money you intend to spend as well as your financial sources, whether they involve either selling or re-mortgaging your property in the United Kingdom, or if you are selling other assets to raise the necessary funds. When purchasing any kind of property, it's also important to consider all of the costs that will be involved in addition to the purchase price, as well as any other unforeseen issues that may arise. If you do not have a firm grip on your available funds, as well as know when the funds need to be released, chances are you may become very attached to purchasing a property that realistically, you can't afford to buy. Therefore making a financial plan is a very important step on your journey to buying your dream home in Spain.
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Determine Your Budget Once you have determined exactly how much money you are able to spend, you will be able to eliminate any properties you know you will not be able to afford. This will help lessen the chance of you becoming attached to a property in an area where you cannot afford to live. Make a note of the following important financial points to consider: How much money you actually have available to in hard cash to go towards the purchase of a property. Determine how much of a deposit you will need to pay, and figure out the monthly payments should you decide to take on a mortgage. Decide whether or not to re-mortgage your home in the United Kingdom, which will release equity. Add up all fees, taxes, etc. that will come with purchasing the property. Write down the maximum price you are willing to pay for the property, fees and taxes included (See additional costs on the following page). Sum the overall cost of general maintenance of the property per annum, as well as the cost of spending time there.
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Additional Costs As previously mentioned, there are other costs involved with purchasing a property in Spain. These costs depend on a few different factors: Whether the property is new or a resale The actual purchase price of the property Whether or not you are purchasing the property with a mortgage Generally, you will want to ensure that you allow approximately 10% to 12% of the total purchase price to cover all necessary fees and taxes. These fees and taxes include the following: Transferring tax for a property that is being re-sold ITP, which is generally levied at 8% across the whole of Spain, will need to be paid; however, ITP is levied at 10% in the Costa Blanca region, with the exception of Murcia Notary fees, which generally run between approximately 400€ to 900€ Land Registry fees, which are roughly half of the cost of the notary fees Fees for independent lawyers, which can cost anywhere between 1,000€ and 2,000€ If you are purchasing a property with a mortgage, you will need to pay valuation fees of approximately 350€ as well as stamp duty, which is around 1.5% of the mortgage deeds, and a lender's commission, which generally around 1% of the capital loans If the property is a new build, you will need to pay VAT of 10% rather than an ITP If the property is newly built, 1.5% of the total purchase price will be put toward a stamp duty In addition to these fees and taxes, there may be other expenses. For instance, if you are not a resident of Spain, you will have to purchase a tax identification number, (NIE) before you will be legally able to purchase property. Issued by the General Directorate of the Police, this is something that needs to be used on all communications and tax returns addressed to the tax authorities, and must also be fully processed before completion of sale.
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Avoid This Costly Mistake Perhaps the biggest mistake that you can make financially is failing to realize the impact that exchange rates have on the total purchase prices of properties. Purchase prices are in euros, and if you agree to purchase a property in Spain, you must know the total amount of euros you will need, with the only exception being if you already have the required amount in a Spanish bank account. The exchange rate process is often overlooked, even though you can either save a lot or lose a lot of money with this kind of a transfer. However, you have the ability to lock in an exchange rate today for a purchase that you intend to make later on down the road. This will allow you to agree to the current selling price in euros, while at the same time, securing the overall price of the property in pounds. In regards to financing, there are many different methods you can take advantage of to finance a property in Spain. For instance, properties can be funded through various loan options, all of which should be carefully considered and examined before either selecting a real estate agent or looking for a property in general. It's also helpful if you obtain a mortgage that has been agreed to before you begin the process, whether you decide to go with a UK-based mortgage or a Spanish-based option.If you are not currently living in Spain, you will have fewer choices to take advantage of regarding borrowing money than you would in the United Kingdom. This is because Spain was hit hard during the recent financial crisis compared to the UK, which ultimately led to much stricter lending conditions. If you are considering applying for a Spanish mortgage , you will need to provide proof of both your identity and income, as well as other details regarding your credit cards and any bank accounts you have. It's also extremely important to know how much you will need to repay per month for the mortgage, since choosing the wrong deal will only end up causing you financial difficulties.