Buying a property in Spain
The Spanish climate and lifestyle make the idea of buying a property in Spain very attractive. Just as you would do when buying a property at home it is essential that you do your homework and that you seek proper professional advice before signing any contract or parting with any money. Remember, the agent who is trying to sell will receive a handsome commission for doing so and while there a many reputable agents in Spain, Nevertheless, some may not have your interests at heart.
When buying a property in Spain, research is vital. While searching the internet and reading books on the topic will give you a general idea, it is strongly advisable that if at all possible you should visit the area where you intend to buy before making any decisions. It is important that you should follow these rules:
- Do your research
- Find a property that meets with your actual requirements
- Work out your budget, You should add on to the purchase price an additional 12% to cover the conveyancing charges which would include taxes, registration, notary fees and legal fees
- Take into account that annual taxes will have to be paid on your Spanish property. If your Spanish property is in an apartment complex enquire what the management charges are
- Be aware that you would have to open a Spanish bank account for the purpose of paying utilities
- Consider your personal needs as they are now and as they will be in the future
- Seek tax advice on your investment
- Before signing any documents or paying a deposit consult with your Spanish lawyer.
In choosing your property you should give some serious thought to location to reflect your requirements. If the property is for use as a holiday home, do you wish to be near the sea or in the countryside close to the mountains?
If the property is for investment, you must have regard to the rental potential of the area.
Before signing any documents or parting with any money it essential that you take professional legal advice. Your solicitor will ensure that your interests are safe guarded and will carry out checks to ensure the following:
- Who is the legal owner of the property.
- Are there any mortgages or charges attaching to the property.
- That all utilities and taxes are paid up to date.
- Has any additional building work been carried out and if so, the legal status of this and whether or not it has been registered.
- Ensure that all building licenses have been properly obtained and that planning permission has been complied with.
Before you can complete the purchase of your Spanish property it is necessary for you to obtain an NIE (Numero de Identificacion de Extrangeros). This is necessary for you to become registered with the Spanish tax authorities. It may be obtained by you personally or alternatively SPANISH LEGAL SERVICES can obtain this without you having to travel to Spain by preparing a Power of Attorney for you to sign to enable SPANISH LEGAL SERVICES to do this on your behalf. Similarly, SPANISH LEGAL SERVICES can prepare a Power of Attorney for you to enable them to sign the title deed and close the purchase on your behalf should it be inconvenient for you to travel to Spain to do so.