1. Is it true that buying property in Spain directly with the developer provides a better deal?
2. What are the benefits of using independent UK agent or property consultant and estate agency in Spain?
3. What is the advantage of using smaller estate agents or property consultants to large Spanish estate agents?
4. What are the risks by dealing with the estate agents in Spain?
5. What if I find the same Spanish property for sale for less?
6. What are other extra costs we have to budget for when buying property in Spain?
7. What is the Escriptura?
8. Do I have to be in Spain to complete the property purchase transaction?
9. The prices for Spanish property are in Euros. How do I get money to Spain?
10. What are the advantages and disadvantages of arranging finance in UK or Euro mortgage when buying a property in Spain?
11. What are the main benefits of buying a new (off-plan) property in Spain?
12. Do you offer re-sale properties to view during the inspection trip?
13. What documents are required to arrange mortgages to buy a property in Spain?
14. Will we have to pay a deposit to buy a property in Spain?
15. Are there Spanish schools where English children can go?
16. Can our State pension be transferred into our Spanish bank account?
17. How can I get a job in Spain?
18. How good is Spanish healthcare system?
19. What are the rules to become a Spanish Resident?
20. What are the guarantees offered to foreign investors in Spain to protect their equity during the period of construction?
21. What would provide a better return and can be easily let - a villa or apartment?
22. What are the up and coming areas for buying a property in Spain at the moment?
It is absolutely not true. The commission is normally payable to the estate agency for sale of property in Spain, if you deal directly to the developer it stays with the developer; you would not get any discounts! The same applies to the property finding service from other professionals, who are not directly involved in the property market in Spain, e.g. solicitors and accountants. In some instances they will directly involved with the developer and might try to advice you to buy a specific project having their own reasons in mind.
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A good property consultant will listen to your requirements and objectives and would be able to advice you when the right time to buy a Spanish property on a specific development, suggest alternative developments. Steer clear from large Spanish estate agents, who work on large property turnover and sales targets. They do not listen to the client's requirements as such. Medium to small size overseas property consultants companies, like ours, have more chance to give you independent advice as they rely on your custom and word of mouth.
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You would not be pressurised to buy during the viewing trip as is the common practise for the larger estate agents who employ hundreds of staff and have big overheads. Smaller Spanish or UK estate agent will give more independent advice, as they would rely on your references to friends, colleges and relatives.
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The main risk for the buyer is if the Spanish estate agent goes bust and if you make direct payment to the construction company through estate agent, always asks for indemnity insurance. We do not take payments from the clients, except from the reservation fee to take the property from the market. The payments should be handled by the solicitor, as it is the safest option.
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The only explanation to that would be that the website or the price list has not been updated, when you actually make a visit you would be informed if the property price has changed. You would not get a better price by dealing with the vendor or developer directly, the prices are the same for everybody, and however on re-sale you can make an offer.
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We recommend allowing 10-11% on top of the purchase when buying property in Spain, which would cover VAT (IVA), legal, notary public fees, stamp duty, etc. Your solicitor would explain the breakdown of the figures. Please bear in mind that if you are looking to get a mortgage, additional arrangement and survey fees would apply as in other European countries, including UK.
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This is the title document transferring ownership of the Spanish property. Under Spanish laws it has to be signed before a Spanish Notary Public. The solicitor will arrange this.
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The buyer of the Spanish property may attend in person before the Notary, but other arrangements can be made for a Power of Attorney to be granted enabling another person to attend on their behalf. This is done in the Spanish form and signed in front of the Notary.
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We always recommend using the exchange rate companies who can minimise or illuminate the currency exchange risks fluctuation, especially if you are buying a property off-plan and the stage payments are spread for over 12 months. The currency fluctuation can be very significant, the more expensive Spanish property you buy. We always recommend reputable companies who will give you better quotes than your own banks. This can save you from hundreds to thousands of pounds and maximise your investment returns.
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The advantages of releasing equity in UK (the main option of arranging the finance) when buying a property in Spain are that you will not be paying high mortgage arrangement fees (that can reach up to 3-4% in Spain). Arranging a mortgage in Spain would not tie up your UK assets if you can't keep up the Euro mortgage payments, you will only lose your holiday home not your main residence! The interest rates in EU are significantly lower than in UK.
Be aware of currency exchange fluctuation. We would be able to recommend several reputable companies that help you to address this issue.
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Off-plan projects have 10 years building guarantee, which only came to force in Spain 3 years ago. New properties are normally built to a higher standard with fitted kitchens and bathrooms, which saves your money. Also when buying off-plan you generally more competitively priced and offer higher capital growth of your investment.
Usually customers who are looking for re-sale property are the ones who are planning to move to Spain within a short period of time. It is a standard practice for a resale property in Spain top put £2,000 deposit to secure your offer. The full amount needs to be found within 30 days of offer acceptance.
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Of course we offer re-sale properties in Spain. After all not everybody is a property investment buyer. A lot of people are buying retirement or thinking of relocating to Spain permanently. We offer a large database of properties for sale in Spain.
Please bear in mind that the properties for sale in Spain are marketed from different offices and we need to know in advance (before you arrive to Spain) to make key arrangements and to allocate sufficient time for the viewings.
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Arranging mortgages to buy a property in Spain for non-residents is very standard and non-complicated procedure. In fact, Spanish interest rates are significantly lower than UK ones. Mortgages are usually arranged within 2 days. The following documents are normally required:
- A photocopy of the last income tax return or 3 months salary slips
- Last 3 bank statements
- The last three years of accounts for self-employed people.
Spanish banks normally lend maximum 70% of the property value. Usually when you buy off plan, by the time a mortgage is required (end of construction) the value of your investment goes up. It was known that the investors were getting 100% on the original value of the property as the mortgage is based on the current market valuation, not the selling price.
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The deposit (or reservation fee) is payable if you want to take a property in Spain of the market and agree the price. As gazumping is illegal in Spain, leaving a reservation fee would give you a peace of mind that the property is reserved for you. Normally it is in the region on £2,000, but varies from the developer to the developer. You can either pay by cheque or by credit card.
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There are many private international schools for British children, but local schools are also available and the education is of very high standard. The details about the schools in a particular area in Spain can be obtained from the Spanish Embassy in London or by visiting the website that should answer many of your questions: http://spain.embassyhomepage.com
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The rules and regulations are changing frequently, please refer to the UK Benefits Agency for more up to date information:
The Benefits Agency
Customer Service Unit
Department of Social Security
Pensions & Overseas Benefits Directorate
Room TC109
Newcastle upon Tyne
NE98 1BA
Tel: 08459 154811
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UK citizen who becomes a resident in Spain and has NIF number has the right to work, as long as they have a valid passport. The same rights are granted to UK nationals who seek work in Spain as to the locals.
We do not provide assistance with finding employment in Spain; however there are many options that people who seek employment in Spain can follow:
1. Recruitment agencies can be used for professional people or executives.
2. Local job centres who are offering non-skilled jobs (National Employment Institute) - INEM
3. Looking through the adverts for overseas jobs vacancies, for example "Overseas Job Express", or place your own advert in Publicatas Ltd (tel 0207 385 7723)
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The healthcare is available to all EU residents in Spain, however you would need to fill the E111 form from the post office, before you travel which explains exactly what it covers you for. British nationals of retirement age are entitled to free healthcare due to the agreements between two governments. The standard of medical care in Spain is very high.
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Spanish law states that all non-residents who own the property in the country should also register to become a Spanish resident to obtain a NIF number. It can be easily done at a local police station. Anyone who lives in Spain for more than 183 days a year should apply for official residency.
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Bank guarantees are compulsory on the property development in Spain, which means that your equity is protected during the period of construction and if the company cannot complete the project the bank will refund the payments made up to date. Our company does not deal with the construction firms that have not got a permission to build or offer bank guarantees; however we strongly advise you to use a local lawyer to deal with the legal side when buying a property in Spain to check that aspect.
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There is no clear cut answer to that, but if you are looking for a good return combined with personal holiday use, it is better to stick to buying an apartment in Spain. 2 bedroom holiday apartment with preferably two bathrooms is a very good choice. The maintenance charges on apartment complexes are less expensive than maintenance charges on a villa - cleaning of the swimming pool, etc. Spanish apartments are easier to let than villas and in the right location they can be let through the year, not just the holiday season.
Villas in Spain cost approximately twice as much as apartments and the capital gains are the same percentage for the same area. During your viewing trip to Spain our representative on the ground would be able to advise what apartment complex represents a good investment.
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The opinion of the consultants involved with Spanish property market is very unanimous - Costa Calida, Costa Almeria and Costa de la Luz are the most promising areas for investment in Spain. Costa del Sol property market has matured and the prices do not show high capital growth, however these areas offer good properties for sale on the re-sale market, if the buyer is looking to purchase a holiday villa or apartment in this area. This is the buyer's market now and offers are welcomed. Costa Blanca remains a very popular destination for British property buyers, South Costa Blanca in particular as the prices remain very attractive here.
Disclaimer: We take care to check the information provided on this website at the time of publishing. However it is subject to changes, we carry no responsibilities for its correctness. The information is also provided by the third parties and needs to be verified by the solicitor or other professional advisor at the time of your property purchase in Spain.
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Villas for SALE
