Buying a property in Spain is a simple and straight forward process.  Naturally, we all have concerns, doubts and questions.  The Buying Guide below tackles the most frequently asked questions.

How does the buying process work?

• Agree the sales price. 
• Complete a reservation form and pay a small holding deposit.  Under Spanish law, this holding deposit freezes the price and secures the property for you by formally taking it off the market.
• The reservation form will be valid for approximately 2 weeks.  In this time, your solicitor will carry out all the necessary searches on the property to make sure that all the documentation is in order.  The holding deposit is usually only refunded in the event that you are legally not able to proceed with the purchase of the property, due to problems arising from its documentation. 
• You will then apply for your fiscal number (N.I.E. or Numero de Identificacion Extranjero) at this time, which you need in order to complete on the purchase of the property.
• Private Purchase Contract (equivalent to UK’s Exchange of Contracts) will be signed by both buyer and vendor at which point 10% of the sales price will be paid to the vendor.
• Completion at the public notary’s office is typically 4 – 6 weeks later, again, the date is a mutually convenient arrangement between buyer and vendor.   On the day of completion a member of our staff and your solicitor will accompany you to the Notary where a formal handover will be executed.  The outstanding balance, plus all the taxes and fees, are paid at this stage.  The Notary is a government appointed Spanish lawyer, responsible for administrating the formal handover of properties.

Is the buying process different for ‘off-plan’ properties?

Yes, but only slightly.  The only real difference is the time lag between signing the Private Purchase Contract and completion.  Depending on the developer there may or may not be stage payments to consider before completion, when the balance will need to be paid.  Again completion will take place at the Notary’s office where the handover is executed.

What will it cost me to buy a property in Spain?

Given that there are various taxes and fees associated with buying a Spanish property, we recommend you budget for an additional 8.5% on top of the sales price.  If you are considering taking out a Spanish mortgage, then you should account for roughly between 10% and 11%.  These additional costs include a 7% property tax, land registry, solicitor and notary fees. 

Will I need a solicitor?

While you are not obliged to use a solicitor to execute the sale or purchase of a Spanish property, we strongly recommend you use a local solicitor, who speaks your language and is experienced in the local property market, to ensure you have complete peace of mind.

While we carry out preliminary checks of a property’s title deeds, a solicitor will carry out all detailed searches, to check that the property you have chosen is free of any outstanding debt, encumbrances, that it is free of any tenants and to make sure there aren’t any possible future land discrepancies or threats. They can also assist you with applying for your fiscal number, transfer of utilities into your name and organise the payment of local taxes.

We cannot find a villa that we like.  Should we consider a new build?

Simply put, yes! While there is a great choice of resale properties, a new bespoke villa, designed completely to your specifications may be the right solution for you.  While a resale property is available immediately, new builds typically take anything between 12 and 18 months to construct.

If you are not in a rush and have a flexible budget, the possibilities are only limited by your imagination and ideas.  Prices tend to start from around £300,000.

We require financing to buy our Spanish property.  Can you help us?

We are continuously monitoring local banks and mortgage brokers to offer our clients the best financial products and most favourable terms.  We are able to offer mortgages with no tie-ins, interest only schemes and repayment mortgages, with terms up to 40 years in some cases.

Mortgages can be arranged to buy a plot of land or an existing villa, to finance a building project or a property that is half way under construction.  Usually a P60 and several pay slips are sufficient for a bank to secure a mortgage.

What are my on-going costs of owning a property in Spain?

An average sized, detached 3 bedroom villa with its own gardens and pool, for example, would cost roughly 4,000 Euros per year, depending on usage of utilities.  The key costs are as follows:

• SUMA (Local Tax)

• Basura (Rubbish collection)

• Utilities (Water, electricity, gas, etc)

• Pool cleaner

• Gardening     

If you have a mortgage then repayments would need to be factored into the costing.  Many property owners use summer rentals to offset the annual running costs and in some cases pay off their mortgage repayments, while enjoying free holidays at the same time.

Who will look after my property while we are not there?

Sea Point Villas can arrange for a complete property management service, to include: key holding, pool cleaning, gardening, maintenance, cleaning, house checks and linen services if required.  If your property has not been fitted with a security system, we will gladly introduce you to a local security solutions provider, to ensure you have complete peace of mind while away from your Spanish residence.

Is it expensive to live in Spain?

Generally speaking, living in Spain is roughly 30% cheaper than in the UK.  Depending on how much water, gas and electricity you use, running a property can costs as little as 600 Euros per year while community costs may be as little as 300 Euros for a townhouse or bungalow.

Schooling is free unless you prefer to enroll children in a private international school (that are far cheaper than in the UK).  National healthcare is free and of a far superior standard to that of the UK, while medication needs to be paid for.