Tips and advice for purchasing in Spain
Do your research early
Find out how the buying process works before you even go and have a look at properties. The process of buying in Spain is significantly different to that in the UK so don’t assume that things will work in the same way.
Look into the finances early
Work out your budget. Look at the total cost of buying including legal fees, taxes and so on. Identify how much of a deposit you are likely to need and when that is payable. If you need finance to help fund the property look into this as soon as possible.
Do not try and cut corners to save money
It is likely to cause you a problem in the future. If there is a problem with the property it is better to find out before you buy as solving problems afterwards can be much more expensive. Not obtaining a survey or a valuation or cutting corners with legal fees is very short sighted.
Think about why you are buying and be honest with yourself
A property for personal use is often very different from a property that you would rent out, which in turn is often very different from a retirement property.
If you are buying for an investment do your research and be realistic about the amount of income that you can get from the property
Do not believe the sales hype in relation to number of weeks rental or money per week – carry out your own investigations into the true figures.
Think about exit strategy when you buy
If you are likely to want to sell the property in the future then think about who is going to want to buy your property from you and how marketable it is likely to be. Just because you like it doesn’t mean that other people will.
Think about inheritance at this stage
Make a Spanish Will to make sure that your wishes are followed and that the inheritance is carried out in the most tax effective way.
Take advice on who should own the property before you buy
The form of ownership is probably the most important decision that you will make when it comes to the property and has a major effect on taxes and inheritance. Taking advice now can save you thousands of pounds (if not tens of thousands of pounds) later on. Once you have completed many of your opportunities are lost.
Use an independent lawyer to help you buy your property
Do not use the lawyer who is acting for the seller, use one who is interested only in protecting your position. Make sure that your lawyer understands both Spanish law and also the law of your home country as there is an interaction between the two jurisdictions in terms of taxes and inheritance.
Investigate your ongoing obligations after you have bought
Once you have bought your property there are still things that need to be done. You will have to pay certain annual taxes. You may have to pay community fees. It is recommended that you have contents and buildings insurance Understand your obligations in Spain and also your obligations back home.
This information has been kindly provided by Peter Esders of Judicare – E-Mail: [email protected] and quote SLC/LSP