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Buying Process - Things to Consider


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Buying a property in Spain is a very different from the UK process. Therefore it is essential to use the services of 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 UK media is fond of repeating the tales of woe of those unfortunate people who fell foul of cowboys and dodgy builders and ended up with an illegal property or on an off plan development that was never finished properly. Fortunately these cases represent a very small minority and mostly happened several years ago in the greed led property boom. Now most of the cowboys have chased out of town and the corrupt mayors are in the jailhouse and new stronger regulations are in force to protect the buyer. However you should still endevour to use experienced estate agents and solicitors who have earned a good reputation over many years. 

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.

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 expencive 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 11% of the purchase cost (13% if you want a Spanish mortgage) This is made up of 8%  property tax/vat, 1% stamp duty, 1% for your legal costs/solicitor and 1% in Notary fees etc.

Spanish mortgages are available up to 70% of the cost of the property not including the buying costs. Even if you do not need a mortgage there are some tax advantages in having one. If you decide to use a Spanish mortgage then your estate agent can introduce you to different bank managers or mortgage brokers who will make all the arrangements for you.


Third:  Choose Your Estate Agent(s)
You are already using the internet so from the security of your own computer you can select an estate agent(s) 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.

Estate agents are paid their sales commission by the vendors as in the UK.  

Buyers agents are retained by the buyer and if you choose this service they will recive their fees from you and not the buyer. The costs of this service are less because the buyers agent normally charges a lower sales commission than the estate agent whose fees are subtracted from the sales price.


Fourth: Choose the Region/Area
Many buyers choose to buy in an area where they have been on holiday but later wish they had looked at the alternatives. So unless you have a specific reason for choosing one area eg: close to friends, then you should consider different areas before buying.

If your property is to be for holiday use the location will be determined by the family interests and ages of the children etc. This will could include nearness to a good beach, golf course, marina etc. and whether you intend to rent out the property.

Most property buyers in Spain tend to buy at the coast without considering the alternatives unlike France where buyers tend to go for the country locations first. If the property is to be the main residence then you should also consider the pros and cons of choosing coast or country. If daily visits to the beach are important or you have a boat then obviously nearness to the coast is important.

However if you are not so keen on the beach or the overcrowded tourist areas and are unable to afford the high premiums of a sea view then you should consider some of the beautiful country areas that can be found about an hour from the coast. Here you will find attractive and historic small towns where you can buy so much more for your budget. These unspoilt areas still have full amenities but with lower prices and with sufficient ex-pats to make new friends but not enough to spoil the quality of life of "real Spain"


Fifth:  Choose a Short List of Properties
Once you have your finances in place you can make a short list of suitable properties in different areas and plan to make a viewing visit or visits to see if one of these is the right one for you. 


Sixth: Make a Visit to View
Once you have seen several properties and areas you will understand the current values and be able to compare different properties and areas with more confidence. Many people arrive with a set idea of what they want but after having a good look around realise there are better alternatives for them.

Unless both the property and the area "tick all the boxes" then you should not buy but continue your search until you do find the best one for you.  A good and ethical estate agent will never pressure you into making an early or wrong decision. They should give you the pros and cons of each property and area with a warts and all report so that you can form your own judgement.


Seventh: Appoint your Solicitor
Once you have finally chosen the property that best matches your requirements you need to appoint an Spanish solicitor who speaks good English and is independent of the builder or vendor. They will draw up a sales/purchase contract and arrange to get your NIE number (this is a fiscal number that you will need before purchasing a property or car etc in Spain)

Your Spanish solicitor will do the conveyancing and make the important checks before you exchange contracts and pay a deposit. The final completion of the property purchase is done at the Public Notary where a new deed (escritura) is drawn up in your name(s) and is where the keys and final payments are exchanged. They will also arrange for the utilities (water, electric, telephone) to be changed into your name(s)

Your solicitor will normally be able to offer the services of a fiscal representative who will attend to all your Spanish tax affairs and ensure all your bills are paid correctly.
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