Spanish Property Guide

Buying property in Spain is certainly a big commitment and even if it�s your life dream to own a luxurious Andalucian property you should ensure you know all the facts before you start looking and certainly before you buy. This step-by-step guide is meant as a resource for you to refer to as you progress through the buying process. As such, it may be a good idea to bookmark or print this page for future reference.

Preparation

Before you start searching for property for sale in Spain, you should consider exactly what you are looking for. Decide on your total budget and remember that this should include the purchase price, associated purchase costs, and any cost of renovation. Also decide on the area where you would most like to purchase. Spain has such a lot to offer and the various regions all offer something a little different to one another. If you intend to live in the Spanish property you purchase then you will need to consider the local amenities.

	Budget
	Region
	Amenities
	Access

A Note on Costs

Spanish property buying is liable to similar charges as in many countries. This includes an initial transfer tax, currently 6% or 7% for second hand and new properties respectively. You will also need to pay a half percent stamp duties.

A deed transfer charge, approximately two hundred to three hundred Euros, and notary charges also need to be paid. These charges usually accumulate to around 10% of the property value so ensure that you budget adequately for this.

	Transfer tax (IVA) between 6% and 7%
	Stamp Duties of 0.5%
	Deed transfer charge
	Notary charges
	Legal fees

Starting Your Search

Searching property for sale in Spain on the Internet is a good place to start. Narrow your search down to the regions that are of particular interest as well as the budget you have allowed yourself and any other important factors. Ask yourself how many bedrooms you need. Will you be having friends and family over to stay? It�s surprising just how many people will want to come and stay when you own Spanish property.

Some Spanish property does not have full amenities. Check whether the property you are looking at has electric, water, and gas fitted and allow for this in your total budget if not.

While an online search will give you a good list of potential properties you really should consider visiting the properties you are most interested in at least once. Visiting a property twice is preferable because you may see something you missed the first time. Obviously, if you do not live in Spain itself then this can be more difficult. Try to arrange as much as possible before your visit. Certainly arrange to view the most important properties and try to ensure that a second viewing will be possible during the duration of your stay.

	Use Internet to draw up a short list of the most interesting properties
	Arrange to visit the appropriate region/s
	Arrange viewing before you visit

Arranging Finance

Spanish property is comparatively cheap when compared to other European countries. However, there is a very real chance that you will need to arrange finance to purchase the property in the shape of a mortgage or home loan. Be aware that if you are moving from abroad then Spanish banks will offer up to around 60% of the property value. If you are interested in a new build then the developers themselves may be willing to offer up to 80% repayable over 20 years.

Check interest rates and take your passport, permits of residency, payslips, and property documents. Without this information you will not be able to finalize any kind of mortgage or loan. Also be aware that the exchange rate will usually play a big part in the amount you pay. Exchange rates can fluctuate wildly so pay particular attention to this when looking to make a purchase. If necessary buy as much currency as you can immediately in order to ensure that you have the appropriate money.

	If new property enquire about finance with developers
	If second hand property enquire with local banks
	Check you have the appropriate documents � passport, wage slips, residency permits, property documents
	Check exchange rates and work accordingly

Deeds And Licenses

Spanish property has come under some fairly close scrutiny in recent years. Of particular concern has been the fact that a lot of Spanish property simply is not registered and has no title deed. While new laws have been enforced that necessitate the registration of new properties in certain areas, this isn�t the case with a lot of Spanish townhouses.

Because of the lack of title deeds, it can be a long and drawn out process before the deal actually comes to completion. Even when it does, some buyers are faced with fines because of previous dealings with the property. There are several things you should check before you agree to purchase.

If you are buying a second hand house then, wherever possible, try to ensure that you are provided with the following documents:

	Property title deeds
	Real estate tax receipt for the last year
	Urban land tax receipt
	Community charge receipt (if the property is part of a community)
	Recent domestic bills

If any of this information is missing then you should attempt to sort the problem out with the property owners. If necessary, ask them to contact the Catastral Department and Town Hall. This is often the only possible way that a person can find out how much of the land is theirs and how much they are legally entitled to sell. In some cases, property owners are not entitled to sell as much land as they first thought. In fact, it is not entirely uncommon that the property was never declared in the first place.

While this may all seem daunting it is far from being unusual so there are solutions to most problems. If you have taken on the services of a specialist lawyer or solicitor they will be able to help by informing you of the best route to take. Certainly don�t let the process put you off because you could be missing out on the property of your dreams for something that can be sorted out in no time and with minimal effort.

Insurance

Fire insurance is the only compulsory insurance that you must take out when you have a mortgage. You should also look at life insurance and comprehensive contents insurance to protect you against all eventualities.

Have you got everything?

	Preparation � budget, region, amenities
	Inclusion of all costs within budget
	Search online to draw up a shortlist of properties
	Visit the most interesting properties at least once
	Arrange mortgage or home loan
	Ensure seller has all deeds, licenses, receipts, and information
	If not, ask seller to get the appropriate information from Town Hall
	Insurance