Buying Property in Spain

Introduction

Buying property in Spain is more popular than ever, with increasing numbers of people following their dream by purchasing a holiday home. Some buy a property to rent out and help to finance the upkeep, whilst others move lock, stock and barrel to a new life in sun. British people love Spain’s pleasant climate and healthy lifestyle; in recent years the Spanish tourist board has made great efforts to increase the number of foreign tourists and residents.

Now is a good time to buy property in Spain as European interest rates are low and there is a wide selection of property options available, from developed plots, farmhouses and village locations, through to villas, townhouses and new apartment developments.

Buying a property abroad is an exciting experience. However, you must search for your future home with an open mind. You'll soon realise that it is virtually impossible to find exactly what you want, so you may need to compromise on some issues. Using qualified professionals will protect your interests, making the purchase of your home in Spain a risk free and stress free experience.

Buying Checklist

1. Settle on a region - Spain is a big place. Consider the location first and foremost. Decide on a particular town, village, development or hillside where you'll want to spend a lot of your time, or even live permanently. This involves a whole series of individual choices. Research the area to find out what it is like in different seasons, what facilitates are available and the travel times to different places. Most importantly ask yourself, would you be happy living there? Look at estate agents in the region and find out the prices that you would expect to pay. (See Specific Points To Consider When Choosing Your Location).
2. Think about the kind of property you are looking for - The area, size, number of rooms. But keep an open mind. It could be worth looking at different types of properties in different residential areas. By looking at a variety of homes you'll build up your knowledge of the present market values in the area you are looking. (See Housing Options for Purchase).
3. Research all legal issues and costs involved. Find a Solicitor (abogado) to advise and assist you - Before you have decided on a property in Spain it is important to be fully aware of the legal process and costs involved in your property purchase. Obtain professional advice and check your finances take account of these additional costs (See Legal Issues and Costs Involved). Whatever housing option you choose, your experienced solicitor should anticipate all contingencies.
4. Organise your administration - There are administrational factors that need to be considered prior to your house purchase. (See Administration before Buying and Finance Sections).
5. Making an offer - Make your offer in writing if possible (of course, subject to contract), and include not only the price, but also the amount of deposit, when you are prepared to pay it, when you are prepared to complete, what you consider to be included in the price (for example furniture and fittings if applicable) and, an often neglected point, that all machinery equipment and installations should be in normal working order. (See Making an Offer).
6. When an offer is accepted - The solicitor takes the legal responsibility for checking the land registry and if all is well will then prepare a private contract which will bind both parties to the deal (you may be asked to lodge a deposit on the property, to take the property off the market). The solicitor will next prepare the public deeds (Escritura de Compraventa) for signature in front of a Spanish Notary. When the balance of the purchase price is paid and vacant possession of the unencumbered property is granted, the sale is completed. (See Glossary).
7. Immediately after completion - The notary will fax details of the title deed to the local land register to inform them of the identity of the new owner. This will prevent the property from being sold twice. The notary and the land register act together to protect and guarantee your interests. Your solicitor can also arrange for the transfer to your name of utilities and services such as water and electricity and organise their payment through a local bank. (See Living Costs in Spain).