How to Purchase Spanish Property the Simple Way
28 August 2009Many UK and North European citizens are finding the idea of purchasing overseas more attractive and achievable. Since decent capital growth is offered, lower air prices and interest rates have made buying property in Spain more desirable. Spain offers short air travel time, excellent sunshine and plenty of potential growth. Although purchasing property in Spain has received a bad rap, you can get a great deal if you follow a few basic guidelines. Here is your basic buyers guide for purchasing real estate in Spain:
- A good rule of thumb is to make sure to have your finances arranged first when purchasing real estate in Spain.
Consider using a Spanish mortgage expert to guide you through the process. - Seek out legal advice before signing any documents.
- Take care not to reach beyond your financial limits.
- Stand by for time deadlines to be extended.
- Don’t trap yourself into a contract until you have money ready.
- Be prepared for the Spanish purchase procedure, which is different in Spain than in the UK and elsewhere in Europe.
- Fully realize the way taxes are accrued based on the specific ownership structure that you choose.
Before you make any purchases, it would be wise for you to approach the situation with a list of questions that for your Spanish Lawver. Foreign buyers can run into trouble when engaging in local business transactions, finding that they do not get the results they expected or wanted. Misunderstandings arise because the buyers failed to do their homework, or at least to ask the correct preliminary questions. Before signing on the dotted line you should get answers to some of the following:
- Is the land that the purchase sits on registered as urbanized or rustic? What are the implications of purchasing on land that turns out to be rustic?
- What costs will have to be accounted for, including standard legal costs and tax costs?
- Are there any licenses in place, such as building licenses or first licenses of occupancy?
- If the property is under a decade old, does it include a 10 year building warranty?
- Is this transaction being made with a direct purchase or is it part of a termination of deed?
- In this specific purchase, will any be under declaration?
- Will further costs be incurred by you such as capital gains, inheritance, income or other taxes?
- Do you need to pay any extra deposits? At which stage of the transaction are they deemed nonrefundable?
- Are there any additional legal costs or fees to be paid?
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