In this section below we have put together a good overview of the costs and processes involved whe buying a Spanish property.
The Landmark team can help with as much or little of this as required, so please feel free to ask any questions that you might have after reading.
The first thing to think of when looking at Spanish property is the price, as the price you see advertised will not be the final buying price.
So, in Spain you must put VAT on all advertised prices (called IVA in Spain), this is 10% for new builds and approximately 8% on resales, you then have stamp duty which is around 2% and then have the solicitor’s fees and expenses at approximately 2%. So, if you always add 14% on top you won’t be far out.
If you are looking at having a mortgage to buy your Spanish property then the costs will go up to around 16%, this is only due to the extra cost involved with setting up the mortgage.
Next, you will need to appoint a Spanish solicitor to help you with the Spanish conveyancing and we have a couple that we would be happy to recommend due to their excellent track record. To buy a property in Spain you will also need to have an NIE number, this is simply a Spanish version of our National Insurance Number, and is required to buy a property in Spain. This is done through a registrar and stamped by the notary all of which your solicitors will help you with (usual cost is around €500 and is the only upfront cost before buying the property). This then gives you an identity in Spain and you can now buy a property.
You will also need to open a Spanish bank account which we always recommend you do with one of the big high street banks in Spain (La Caixa, Banco Sabadell, Santander, etc) this is just done for transferring money between England and Spain.
We also recommend giving power of attorney to your Spanish solicitors so that they can sign on your behalf and you don’t need to keep flying back and forth to Spain to sign all of your documentation, but this is of course your decision.
The next step is to find your property, this is something that we will help you with, as we have done with hundreds of other customers. We will start by ask for your property criteria so that one our our experts can send across a specific selection of properties just for you. From there you can choose which ones suit you the best and which you would like to view. We would always recommend to select at least 5 properties for viewing, even if there are a couple that don’t completely hit the spot they will at least give a good comparison to the others.
Once you have a good selection that you are happy with its time for a viewing trip. Again, we are here to help with this as much or as little as you need with regards to hotels, flights and guided tours. When you are on your viewing trip we will pick you up from the airport, take you to your hotel, give you a guided tour of the local area (beaches, bars, restaurants, etc) and of course take you to all your selected properties. We will also introduce you to the solicitors and bank so that you have everything in place should you find a property that you like
Once you have found your new home you would be asked to put a reservation fee down which, depending on the developer, this would usually be about €4,000. This simply secures the plot or property for you.As a side note and for peace of mind all the developers that we work with have a ‘bank guarantee’. This is effectively an insurance so that if something were to happen to the developer and your property doesn’t get built then the bank would pay back all money to you.
Lastly when it comes to Spanish mortgages you will no longer find the 100% mortgages that they use to offer 10 years ago. They are very similar to the mortgages you find here in England and typically you will need between 30% - 40% deposit and there are a number of providers that we can introduce you to.
This overview of the buying process should give you good idea of how most of the process works in Spain , but please get in contact with us if you would like more detail to a particular part or if you have any questions. We would be more than happy to help.
The Landmark Team