Buying Property In Spain

Buying Property In Spain

Every year many thousands of​ properties in​ Spain are sold to​ foreign investors. What is​ the attraction? Firstly the country has a​ great climate and that is​ particularly appealing to​ those people living under the grey skies of​ northern Europe. Getting there is​ both quick and relatively cheap. a​ flight from London in​ the United Kingdom to​ Malaga on the south coast of​ Spain takes only a​ little over two hours. it​ is​ possible to​ get some very cheap flights with either one of​ the well known budget airlines or​ by picking up a​ spare seat on one of​ the hundreds of​ charters that fly to​ Spain every day.

There is​ a​ wide selection of​ property to​ choose from both in​ type and numbers. Consideration of​ the following points will help to​ narrow the search. Size of​ the property, the garden and the number of​ rooms required. People planning to​ emigrate with children should check out what schooling is​ available locally. Consider the local health & social services. Choose between a​ built up area or​ open countryside. How near is​ the beach, a​ town, the shops, the bars and restaurants, public transport, its frequency and what time does it​ stop in​ the evening?

Many developers looking to​ improve their own cash flow will offer property for sale off plan. The potential buyer may be able to​ view a​ show home but in​ many cases they are literally shown a​ development plan or​ a​ scale model. an​ initial deposit is​ payable followed by several stage payments. a​ couple of​ advantages, if​ property prices rise between purchase and the completion of​ the project the buyer will own a​ property worth more than they have paid for it. Secondly, most developers will allow the buyer some say in​ style and design of​ both the inside and outside of​ the house. The down side is​ the amount of​ time buyers will have to​ wait until the development is​ completed, often in​ excess of​ 12 months. And of​ course they don't know what they are getting for their money until the property is​ completed.

The cheapest property available in​ a​ finished state is​ likely to​ be an​ apartment. These are often on an​ urbanizacion or​ housing estate that will often include other types of​ property such as​ townhouses and villas. These small communities will include a​ pool and landscaped gardens. Some kind of​ security is​ often employed either in​ the shape of​ guards or​ CCTV cameras. a​ community charge is​ payable to​ cover these facilities. a​ word of​ caution. Many of​ these properties are let to​ holidaymakers during the summer months. Some to​ English people with children. The noise these guys make while on holiday has to​ be heard to​ be believed. if​ it's not the kids during the day it's their drunken parents in​ the early hours of​ the morning.

A detached, purpose built villa offers more privacy and seclusion but it​ will cost more than a​ comparative property within a​ community.

Buyers looking for a​ more of​ the Spanish experience should look at​ properties within an​ established town or​ village. Many of​ these properties look small but are surprisingly spacious once inside.

A Finca is​ a​ property standing on a​ plot of​ land in​ the countryside. it​ may be a​ tumbledown farmhouse or​ a​ just completed villa. Many fincas have a​ good deal of​ land and this may have fruit orchards or​ olive groves.

Finding the right property should be no more than a​ question of​ looking. Once a​ decision has been made on the location and the type of​ property it​ is​ time to​ talk to​ the estate agent. Make certain this person is​ registered with the authorities and holds a​ license. Many estate agents have a​ background in​ time share developments so the hard sell can be expected. Any claims made by agents should, wherever possible, be substantiated by an​ independent source.

Any offers to​ purchase a​ property should be made in​ writing and include the following: The price, how it​ is​ to​ be paid and in​ what currency. The amount of​ the deposit, to​ ensure the property is​ withdrawn from the market, and when it​ is​ to​ be paid. The completion date. Who is​ responsible for the payment of​ which taxes. And a​ detailed list of​ what is​ included in​ the price, furniture, fixtures and fittings and a​ proviso that all systems, air conditioning, etc. are in​ good working order. it​ is​ vital that this is​ done in​ conjunction with a​ solicitor. Many English speaking solicitors are to​ be found throughout Spain. No document provided by an​ estate agent or​ others should be signed without a​ solicitor having prior site of​ it. This cannot be stressed enough.

When an​ offer is​ accepted the solicitor should firstly make a​ check with the land registry. if​ all is​ well a​ private contract binding both parties to​ the deal is​ prepared. Following that is​ the preparation of​ the public deeds (Escritura de Compraventa) which must be signed before a​ Spanish notary. Upon completion the solicitor will fax the title deed to​ the local land register confirming the identity of​ the new owner and ensuring that the property cannot be sold a​ second time.

There are certain charges involved with yearly maintenance of​ the property and these may include, community fees, electricity, real estate tax, rubbish collection charges, water. if​ the property generates rental income the owner will be liable
for property income and wealth tax. The estate agent should be able to​ provide this information.

A mortgage application in​ Spain is​ relatively straightforward. The following original documents need to​ be shown, passport, if​ employed, the last three months payslips and if​ self employed, accounts of​ the last 3 years, an​ accountant's reference, and tax returns.

A further 10% of​ the agreed price will have to​ be found to​ cover additional fees that include: Legal fees of​ approximately 1%, Notary and Land Registry Fees of​ approximately 1%, Title Deed Tax of​ 0.5%. a​ Valia tax, payable on any increase in​ land value may be payable. On a​ new construction IVA tax is​ levied at​ 7%. it​ is​ charged at​ the full rate of​ 16% for purchases of​ land. Purchases of​ used property are subject to​ a​ transfer tax and this like the IVA comes in​ at​ 7%.

People planning to​ move to​ Spain for a​ period in​ excess of​ 6 months must apply for residency. Spanish property owners' who do not have residency should appoint a​ financial representative and they must be resident in​ Spain. This can be a​ lawyer or​ tax adviser or​ to​ save a​ few Euros a​ neighbour or​ friend. it​ is​ to​ this person that all correspondence regarding the property will be sent.

Consider appointing a​ gestor or​ legal representative. They will look after all the paperwork and in​ Spain there's plenty of​ it​ to​ look after. There's that residency to​ begin with. People planing to​ work will need a​ work permit. if​ opening a​ business they can assist with the licenses and permits that will be required. They will also advise on the import of​ pets, cars, furniture and electrical goods. And they can sort out pension payments in​ Spain.

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