To celebrate Lucas Fox’s 10 year anniversary we are creating a series of Top 10 blog posts on LFStyle. There’s been a lot of interest in buying property in Spain recently. The historic low property prices and good exchange rate mean the market is picking up considerably. Key advice to anyone interested in buying in Spain is to first make sure you do your homework. Here we give you our Top 10 tips.

by Carrie Frais

Article published on May 24, 2015 in LF Recommends

Article tagged with Spain, Top 10

Top 10 Tips on Buying in Spain

Employ a reputable estate agent

Choose an agent that has an in-depth knowledge of the areas you are interested in, who listens to you and your requirements and who speaks the language. A good estate agent should ensure that your property purchase is smooth and as stress-free as possible.

Location, location, location

“So far 2015 looks set to be the year that the market really turns the corner and that transaction levels start to increase significantly,” explains Lucas Fox co-founder Alex Vaughan in this year’s market reports. “The prices of properties in prime areas will recover first and now is a great time to take advantage of low prices and buy in the best prime micro location you can for your budget”.

Buy in the right place and you are guaranteed a better return on your investment in the long run.

Know your restrictions on buying property

If you are an EU national, buying a property is fairly straightforward. If, however, you are a non-EU national there might be time restrictions as to how long you can stay in the country. Specialised emigration companies or the Spanish Embassy will be able to advise in this regard.

Organise your finances as soon as possible

Applying for a mortgage can be a lengthy process especially if buying abroad. You will need at least a 30% to 40% deposit plus extra finance for all additional costs including legal fees and taxes. Speak to a broker and try to get pre-approval before starting your search. It will save you time in the long run and will give you a clear idea of your potential budget.

Find a good solicitor

It is not obligatory by law to seek legal assistance for a property purchase but it is strongly recommended to do so. This is normally a fixed fee, but it can vary due to the complexity of the transaction. If possible, use a solicitor recommended by your chosen real estate agency or by a friend who has gone through a similar property process.

Familiarise yourself with the steps involved

Before you begin the purchase process, you will need to obtain a Spanish fiscal ID number (NIE, Número de Identificación de Extranjeros). You will also need to open a Spanish bank account. Make sure your estate agent has fully briefed you on the process and timescales involved, from making an offer to completion and beyond.

Be aware of all the fees involved

Buying costs and fees will include Government transfer purchase tax, Notary fees, Land Registry fees, legal fees and various other miscellaneous expenses, including structural surveys and mortgage arrangement fees (if applicable). Government taxes vary from region to region, ranging from 6% to 10%. If purchasing in Catalunya, for example, where transfer tax is 10%, you will need to budget an additional 11.5% to 12% on top of the purchase price.

Consider using a surveyor

It is not always common practice amongst local buyers to use a professional surveyor before you commit to buying a property in Spain but we strongly recommend you do so. Ensure the surveyor has the relevant qualifications and discuss with him or her what you want to be included in the report and the fees involved.

Check annual expenses

Once you have purchased your property, annual ongoing expenses and taxes can include service charges, municipal property tax (IBI), electricity, water and gas rates, non-residents income tax and wealth tax. Make sure that you are fully briefed on the potential running costs and ongoing taxes before making your purchase.

Go for it!

Once you have decided to move forward with the transaction, then be safe in the knowledge that – if you have followed the above steps correctly – it will be one of the most exciting journeys of your life. Spain’s enviable climate, outdoor lifestyle, superb culture and renowned gastronomy will be a constant reminder of why you have decided to purchase a home in one of the world’s truly great places to live.