Natalie Many home buyers that come to us are interested in Spanish property, and we understand the lure. The real estate market offers much potential for an ideal property investment overseas. But also, a gorgeous outdoors lifestyle in the sun.
However, it is shrouded in much mystery, and some buyers are cautious given the tales they heard from the 1980s when the property market crashed. With that in mind, we have put together this guide that aims to answer the most common questions and help you search for a Spanish home.
Guide to the Spanish Property Market
1: Is Buying Property in Spain a Good Idea?
Yes, if you do your research, take your time, and educate yourself as much as possible to ensure the property is an ideal investment and matches your lifestyle and expectations. For example, buying in a rural village when you intend to use the property for holidays will guarantee future disappointment.
Likewise, buying in a holiday village when you plan to live in Spain all year round does not match your future expectations. When buying a home, all our agents can match you with perfect properties that fit your criteria. Also, read is buying property in Spain a good investment?
2: Are Brits Still Buying Homes in Spain?
Yes, they are. Spain has no restrictions that property buyers must be part of the EU. The fundamental difference that came after Brexit is that it affected residency laws and tax rules, but the property buying process has not changed.
3: Can I Rent Out My Property?
Yes, owners can rent out property in Spain. However, you need to adhere to laws as set out by the Ley de Arrendamientos Urbanos. Also, check locally regarding regulations and rules, and do not pay income tax on the rental money.
4: What are the Extra Costs when Buying?
As well as your property budget, factor in between 10% to 15% for extra purchasing costs and taxes, which vary from region to region. On newly built properties direct from the developer, homebuyers pay 11.5% in taxes. On resales properties, you pay the Impuesto de Transmisiones Patrimoniales. In addition, factor in notary, solicitor, land register, gestoria, and banking costs.
If using a mortgage to buy a Spanish home, you will also pay extra administration fees. All clients receive a complete payment plan before signing contracts detailing what to pay and when, so you are always fully aware and in the driving seat.
5: How Can I Find a Property in Spain?
To find a property in Spain, get in contact with us today. Let us know your budget and requirements, and we will send a portfolio of homes for sale via email. Alternatively, browse our home listings of apartments and villas for sale in many areas of Spain. Each property listing contains everything to know, including the price, location, home features and contact details to find out more or arrange a viewing.
6: Do I Need to Use a Spanish Lawyer?
Spanish real estate laws do not require the use of a lawyer. This is fine if you know the language and understand the culture and society. Many foreign home buyers do not, though, so we advise you to employ a solicitor.
7: When Do I Pay the Deposit?
When you choose the home you want to buy, employ a solicitor to do numerous legal and background checks. Once your solicitor confirms everything is as it should be, pay the deposit, and we can start the whole process of applying for your deeds.
8: Annual Maintenance on Apartment Complexes
If you choose to buy an apartment, you will pay an extra monthly or yearly maintenance fee towards the upkeep of communal areas. Before purchasing, we will check for details of the last annual general meeting between apartment owners and up to date payment records. The last thing you want to do is buy on a complex where other owners do not pay.
9: What is the Inheritance Law for Properties in Spain?
Currently, Spanish inheritance laws say the property will go to dependents and surviving spouses. For this reason, draw up a Spanish will.
10: What Do I Need to Buy Property in Spain?
We help all our clients buy property, but the five main things home buyers in Spain need are a foreign identification number. We also advise opening a Spanish bank account to pay for the purchase and handle the running and upkeep finances. However, when transferring money, do not use the bank. Instead, use a foreign exchange company like Wise because they offer lower transfer fees and better exchange rates. Find out more about what you need to buy property in Spain here.
11: Where is the Best Place to Buy?
This will depend on your budget and lifestyle preferences. As a general trend, many people buy on the southern and eastern Costas that offer the best weather. Few people buy in the north of Spain. This article discusses the six best places to buy property in Spain, dependent on previous trends.
12: Is Moving to Spain a Good Idea?
Yes, thousands of expats from all around the world live in Spain all year round. Despite Brexit, Brits also make up a considerable percentage of them. As well as the weather, lifestyle, Spanish culture and food, there are many other benefits. In this article about moving to Spain, we discuss the pros and cons so you can make an informed decision.
About Us
We are Spot Blue international real estate agents. We have helped thousands of home buyers invest in real estate abroad. We hope this guide to Spanish property has been helpful, but call us today if you have any more questions. Also, follow us on Facebook to stay up to date with overseas real estate and Spanish property news.
