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Buying a Home in Spain
Property Ownership
Non-Spanish buyers are entitled to a FREEHOLD ownership of a villa, apartment or a piece of land.
The Buying Process
Once a verbal agreement has been made, the next step is to formalise the terms of offer in writing. The non-refundable deposit of between €3000 & €5000 is then paid. The next step is to exchange contracts of sales, which normally takes place within 4 weeks, during this time your lawyer will have completed the searches and investigation of any outstanding debts, and at this stage between 30% - 50% will be paid.
The sale is formally completed when the public title deeds of purchase are signed before a notary. The final payment is made and possession given to the buyer. Your lawyer will then arrange payment of all relevant transfer taxes and will handle the formalities of registration of your title deeds.
Legal System
There are many excellent lawyers in Spain who are fluent in your language. All communication with your lawyer will be in English. Your lawyer will ensure the Spanish legal requirements are met and that the property is bought free of encumbrances, charges, liens or debt and is up to date in all its payments of local contributions and community charges etc.
Other costs
You should allow an additional 10% on the top of the purchase price, this will cover the following costs: 1% for legal fees, notary fees (scale is fixed by law & range from €300 to €1200), land fees (approx 20% less than notary fees), 7% for VAT/IVA and stamp duty 1%.
Mortgage Finance
Spain is one of the easiest places to obtain a mortgage. Spanish banks freely lend to non-residents and mortgage rates are generally lower than most European countries. Spanish banks will normally lend up to a maximum of 70% of the property value.
All this can be arranged for you in the UK by experienced financial advisors.
Should I learn the language?
If you’re planning to work in the Spanish community it is advisable. Spain is one of the easier languages to learn and many people get started using a phrase book.
Residential Permit
Spanish regulations state that anyone who lives in Spain for more than 183 days should have official residency. This is a simple process which can be done at the local police station, where they will also issue you with a NIF number.
Employment
Anyone from the UK who becomes a resident in Spain and has obtained a NIF number has the right to work in Spain without a permit, providing they have a valid passport. UK nationals are entitled to the same treatment as Spanish citizens in matters of pay, working conditions and social security.
Standards and cost of living
The cost of living in Spain is dramatically lower than the UK. A couple with no mortgage could easily live on £120 per week and still eat out regularly.
The annual cost for running an average priced 2/3 bedroom property will be somewhere between 2,000 and 2,500 euros. This will include water, electric, gas, local rates, community fees and house and contents insurance.
Education
If you have children the standard of education in Spain is generally very high. Schools and colleges are widely available and if your children are young, it is recommended that you put them into the local school. State education is free.
Alternatively, they can attend private international schools where they study English.
Healthcare
The healthcare in Spain is extremely efficient and available to all EU residents. The E1-11 form is required and can be obtained from your local post office. In addition, all British citizens of retirement age benefit from free healthcare under the reciprocal arrangements. You can also take out private health insurance at a reasonable cost in Spain or back in the UK.
