Buying Spanish Property the Easy Way
September 7th, 2009
Many Europeans now embrace the concept of purchasing a home in a different country. Because these properties offer a good level of capital growth, lower airfares and low European interest rates have made buying in countries like Spain more attractive. Spain has a quick flight time and a great climate, and much possible prosperity. purchasing in Spain may have gotten some bad press recently, but it can be safe if you follow some basic rules. Here is your basic buyers guide for purchasing real estate in Spain:
- Arrange your finances first.
An Spanish mortgage like Your Spanish Mortgage
can steer you through the complex procedure - Take expert legal advice before you sign on any dotted lines.
- Avoid overstretching yourself financially.
- Stand by for time deadlines to be extended.
- Do not commit yourself to a private purchase contract until you have the funding that you need.
- Be aware that the procedure for purchasing in Spain has its own idiosyncrasies and don’t assume that it will be the same as it is in other markets.
- Fully realize the way taxes are accrued based on the specific ownership structure that you choose.
Prior to deciding to buy, you should get answers to a list of vital questions from your attorney in Spain. Foreign buyers can run into trouble when engaging in local business transactions, finding that they do not get the results they expected or wanted. Misunderstandings arise because the buyers failed to do their homework, or at least to ask the correct preliminary questions. Before you sign a contract, you need to think about the next few questions, and others that you may have:
- Is the site where the property is located listed as urban or rustic? What are the implications of purchasing on land that turns out to be rustic?
- What costs will need to be taken into account, such as typical attorney’s fees and taxes?
- Are there any licenses in place, such as building licenses or first licenses of occupancy?
- If the building is less than ten years old, is there a 10year building warranty in place?
- Is this transaction being made with a direct purchase or is it part of a termination of deed?
- In this specific purchase, will any be under declaration?
- Will further costs be incurred by you such as capital gains, inheritance, income or other taxes?
- Do you need to pay any extra deposits? At which stage of the transaction are they deemed nonrefundable?
- What lawyer costs and other legal fees will need to be paid?
Entry Filed under: Living With Real Estate, Regional Events etc., Tips