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Questions & Answers - Spain
What is the property purchasing process?
An initial reservation of between 3,000 & 5,000 euros is required on the property. Within 30-45 days a contract will be drawn up for the property purchase, this time period allows the solicitor to carry out all relevant searches on the property and clarify any questions/queries on behalf of the client. On signing the contract a further 30-50% of the purchase price is generally paid. The sale is formally completed when the public title deeds of purchase are signed before a notary. The final payment is made and procession 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.
What is the law on foreigners owning a property?
Non-Spanish buyers are entitled to a FREEHOLD ownership of a villa, apartment or a piece of land.
What is their legal system like?
There are many excellent lawyers in Spain who are fluent in your language. All communication with your lawyer will be in English, so don’t worry about understanding legal documents. 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. In addition we will ensure that all monies paid over are protected by a bank guarantee issued by the developer.
What are the costs involved in buying a property?
You should allow an additional 10% on the top of the purchase price. For legal fees (around 1%), notary fees (the scale is fixed by law & range from 300 euros to 1200 euros), land registry fees (approx 20% less than notary fees), IVA (VAT) currently 7% & stamp duty @ 1%.
Can we borrow overseas for a mortgage?
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. Mortgages are available up to 25 years although 10 or 15 years are most common. Rates currently range from 3.5% up to 4.5%.
Can we open up an overseas bank account?
Both residents and non-residents can open a bank account in Spain, many of which are English banks (Barclays, Abby National and Nationwide, to name a few).
Can I rent my property?
Spain enjoys a strong rental market for all types of property in all areas. The twelve month season means Landlords can enjoy year round rental returns.
What is the currency?
The currency in Spain, as with most European countries is Euros
What is the cost of living?
The cost of living in Spain is dramatically lower than the UK.
What is the food like?
Spain has a huge variety of wonderful food from the traditional Paella to a traditional English breakfast. But do try Tapas which are a variety of little snacks served when you order a drink.
What is the weather like?
Spain is a place with just two seasons, spring and summer. With winter temperatures around 20-22 degrees on the Coast, rising to high 30's and high 40's in the summer. In the mountains you can enjoy excellent skiing in warm and sunny conditions.
What is the language/Do they speak English?
Although English is widely understood you will find that Spanish people appreciate genuine attempts to speak to them in their own tongue.
Do they have a health service?
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.
Do they have a good education system?
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.
