Spain on a whole, has a lot to offer; from exquisite beaches and bustling tourist towns with vibrant night lives, to quaint villages for those who want peace and tranquillity – even a place to retire! Spain is definitely a destination that has proved to be quite popular with foreign property buyers for many years.
Buying property in Spain offers something for everybody, from the old traditional Spanish-style villas to wonderful properties with amazing view of the sea along the Costa Blanca – the choices are endless. Not forgetting that properties are often cheaper than their UK counterparts, there is more than just the charm of Spain that appeals to foreign buyers. But buying property in a foreign country can be quite daunting, considering the different legalities and processes involved. So other than employing Santiago from Spain to manage the process for you – why not consider these top tips from Spaniards in the know.
Know your market
The secret that many a Spaniard will share with you for successfully buying Spanish property is research, research and more research! A successful purchase is much more likely if you thoroughly investigate the various regions, the type of properties available, prices and relative values, and the procedure for buying property.
Learning the ins and outs of the Spanish property market will also help you avoid any potential pain in buying property in Spain. Having a better understanding of the legal and financial requirements, tax laws, property regulations as well as the best places to buy, are just a few of the many factors you need to consider.
Wise up on the legal stuff
Buying property in Spain for investment or for the purpose of residency is relatively straightforward if you are a national from a country within the European Economic Community. However, it is strongly recommended that your hire a lawyer who is familiar with Spanish land law (urbanismo), and has experience in assisting foreign nationals with investments in Spain. This is advised as the Spanish property conveyancing system is quite different to that of the United Kingdom.
Be sure to know all the costs
Before settling on the budget for your property purchase, you also need to factor in any additional costs, such as lawyer and estate agent fees as well as the tax that you will pay to the Spanish government in order to secure the property. Normally, the property purchase price includes the estate agency fee (between three to five percent), whilst 10% of the purchase price is paid as a transfer tax. In addition, there are other registration fees, which may vary depending on the purchase price.
When it comes to tax, a NIE number, or Tax Identification Number for foreigners is a prerequisite when buying property. This will enable you to file and pay taxes into the Spanish Tax office.
Property processes and regulations
Buying a home in Spain also comes with its strict and unique property regulations that need to be followed, especially for investment purposes. While your lawyer and estate agent will be aware of these, it might be worthwhile doing some of your own investigation beforehand. Some important questions you should be asking are:
- Has the property been registered properly?
- Does the property comply with Spain’s Coastal Law?
- Are there charges, encumbrances or debts against the property?
- Are there tenants living in the property?
- Do you know your rights as an owner and investor?
Consider property in Calpe
If you are looking for a quiet spot to call home in retirement, then Costa Blanca which comprises some 200km of Alicante's coastline, is a great bet, with a number of seaside apartments, including the many Calpe villas on offer, that will be a worthwhile investment for your portfolio.
For more expert advice on buying property in Spain, as well as to view the many Calpe villas on offer, contact us.