House Buying in Spain 

This is a quick guide to what we feel are the really important  items when considering the purchase of a property in Spain   

Which will hopefully help you save you money, time & hassle      

It must be pointed out that the information in this fact sheet is only a guide and implies no responsibility or liability on our part for any decision taken as a result of reading this article. It is a result of our own experience in buying a house in Andalucia, but should apply in principal anywhere in Spain. We found there are things that you are not told, either by accident or design, and which you may not find out until too late. There are also costs that are levied which you also may not be aware of. We were lucky, we chose a good real estate agent, the actual purchase process and aftercare was good & hassle free, Although there are many reputable agents, it maybe worth the effort doing some research as to peoples experiences, to perhaps give you an idea as to who to choose. 

What this fact sheet tries to do is highlight what could be regarded as the very important points and the possible things to avoid, which will hopefully help you save time, money and unnecessary hassle when considering purchasing a home in Spain and help to make your dream come true. 

• Abogado  (Lawyer)  THE  most important person to employ when considering purchasing your home in Spain, as all reputable real estate agents will advise you. They will also give you a name of the lawyer they use (there is no real conflict of interest here as it is in their interest as well to make sure things go smoothly). REGARD IT AS ESSENTIAL WHEN PURCHASING A PROPERTY IN SPAIN TO EMPLOY THE SERVICES OF AN ABOGADO. If an agent or anyone else say to you "you don´t need a lawyer" I would strongly advise you to walk in the opposite direction.

• Surveyor  - By choice have the prospective property surveyed (particularly in the case of a resale property)

• Escritura (deeds)  Be extremely wary of any property without an escritura ,  (whatever you are told elsewhere ) Please take proper legal advice (so that you are fully aware of the implications)  before even considering  purchasing a property without a full escritura.  

• 10% deposit –  When you choose the property you wish to purchase a 10% deposit is usually required to secure. This deposit is non refundable so be sure this is the property you want.  There is also a date and time agreed at the time of lodging the deposit (usually between 8 and 12 weeks) to finalize the purchase. It is possible to agree an extended time with the vendor, but whatever date is decided remember that the full purchase price plus purchase tax (less deposit ) has to be paid by the date agreed.

• Commission – The advertised price of the property includes the agents’ commission. This is paid by the buyer and can be anything up to 5%.or more.    

• On Cost  - 

The Cómpeta card school, complete with guard dog!        

        

• Water & Electricity –  Select a property that is connected to mains water and electricity. Be very wary about advertisements for properties saying that electricity / water is nearby and could easily be connected (sometimes connections are refused and/ or could cost a lot of money).

• Town / Urbanization / Campo (Countryside) – These are the 3 main types of property and ultimately it is the purchaser’s decision which to choose. This fact sheet attempts to highlight the main and what we regard as the most important differences.

• Town - Most houses in a village or town are mainly townhouses (attached properties) (there are exceptions) and some have been in existence for hundreds of years, they have very thick walls, designed to stay cool in the heat of the summer, and as a result can get quite damp in the winter (a tin of emulsion and a paint brush is an essential item). These houses can also be quite small, on several levels with steep steps. Remember also that  Spanish people live and work in these villages and that Spanish is the predominant language. The villages can also be quite noisy. The Spanish in these villages are some of the most friendlyt people on earth and are extremely tolerant, but if you do not like noise or are not prepared to try the language, this should not be your choice.  

• Urbanization – These can be anything from 3 houses to several hundred and can be anything from apartments to large detached villas. Most have communal pools. Urbanizations are expected to basically run themselves and are required to form a committee to run them, maintain the area etc. Very few Spanish live in urbanizations and if you are of a mind to live among people of your own nationality then these are ideal for you. Remember that the rates will be more expensive, due to the maintenance required. There will possibly be a lot of restrictions (agreed by the committee ) e.g  no pets etc.  If you want to leave all these rules and regulations behind, then urbanizations are not for you.

•   Campo (countryside) – These properties can be cortigos/fincas (old farmhouses) or villas (new or old). 

• Villas - Most, though not all, usually have swimming pools and are also quite new, (built within the last 20yrs). The older ones usually have quite a bit of land. The newer ones seem to have less and less land and have had the earth disturbed to allow for building.  

 

• Cortigos/fincas – These can be anything from ruins to totally reformed properties. They usually have quite a of land with them and are usually agricultural with fruit trees, olives, avocados vines etc. This can bring its own problems as it can be quite labour intensive. One of the best solutions, if you do not want to do the work yourself, is to ask a local farmer to look after the crop for you.  

 

• There is another option and that is to purchase a plot of land and arrange to have a property built. This can be a long process and it is vitally important to employ the services of a reputable builder and ensure guarantees so that no money is lost.  

Water – It is essential to have a large deposito (water reserve tank) with a pump, as the water in the summer is cut off on a regular basis and can be off for several days. The areas vary and sometimes old cortigos/fincas have water rights (particularly where there are crops) but it is always best to err on the side of safety.  

Track – Most properties are only accessible via a dirt track, some worse than others and a lot are not for the faint hearted. During the summer some look quite good, but in the winter they can be positively dangerous. (a good estate agent will advise you on the usability), but it is a vitally important point to consider.

Reselling – There are 2 very important factors to consider here.               

• If you are a non resident a percentage of the selling price is withheld by the government.

• If you sell the property less than 2 years after purchase (whether resident or non resident), a percentage of the selling price is also withheld.  

 (these two items could be subject to change and should be confirmed with your abogado)  

• Real estate agencies - there are many reputable estate agencies in Spain and most will give you good advice, but remember that at the end of the day they are trying to sell you a property.  

• Mountain Villages – As the name implies, these villages are in the mountains and are only accessible via long winding mountain roads (although some are being upgraded) they are still not for the fainthearted  

• Research – We recommend that before coming to look at properties, you research your project carefully. 
  • Try and decide the area of Spain you would like to live.  
  • Take a look at the real estate agents advertising on the internet to see what’s available. If possible speak to someone with experience of dealing with local agents to get a reference.
  • I would  recommend dealing with local agents, actually living in the area you are looking at, a good one will tell you everything, warts and all. In this regard I would personally recommend Brogan-Properties (Steve Brogan is one of the most professional people I have ever met.).  Remember an agent in England may never have been to the area. 
  • Go to local property exhibitions, but do not get hooked into any commitments.  
  • Decide on what type of property you are looking for, although it maybe a good idea to look at all types to see the difference.  
  • Decide what you want the property for, A holiday home, rental property, or a house to live in. All have their problems, particularly maintenance wise. (Spanish houses are definitely not maintenance free). If you intend to live here, then obviously you will be able to look after the house yourself. If you intend renting the property, then you will need to employ someone to look after the house and for the changeovers etc. (keep this in mind when fixing your budget) If the property has a pool, it requires regular maintenance. (Water & Chemicals are expensive) bear in mind also that, unless you are extremely intrepid or mad, you will not be able to use the pool all year round 
  • Before coming to Spain, make appointments with agents to view the properties you would like to look at.  
  • Leave yourself plenty of time for viewing, the last thing you want to do is to rush into anything, only to be disappointed and spoil your dream before it starts. It is very easy to make hasty decisions in this climate.  
  • Take photographs as it is quite hard to remember what you saw, particularly if you have seen a few.  
  • If you like something, have another look, you might spot a problem you did not see the first time.
  • If you want to live inland, check out the roads first and if they are not for you it is best to find out now.  
  • Set your budget before leaving, it is very easy to fall in love with a property that is above this, so too avoid disappointment, don’t look!  

• REMEMBER> the deposit is non refundable, so be sure it is the property you want before handing over any money.

• Will – If you own property in Spain it is a requirement to make a Spanish will. In Spain it is normal for any possessions to be handed down to the family but in the case of a foreigner, where the family or beneficiaries nominated live in another country, it is essential to make sure they are named to avoid any possessions going to the government (It is also advisable to tell the beneficiary, as a claim has to be made within a specific time. Although a good lawyer would undertake to do this should the worst happen. It is essential to employ an abogado (lawyer) for wring up of a Spanish will. The lawyer will write up the will in Spanish and guide you as to Spanish law, he will also attend with you when the will is authorized by a local Magistrate (also a legal requirement).

Spain is a beautiful country to live in, happy house hunting…………………….

We hope this fact sheet has not put you off purchasing your dream home in Spain, but highlights some of the most important aspects to you, so that your purchase goes as smoothly as possible. It is only meant as a guide and  no way implies any commitment on our part.  We  cannot be held responsible for any decisions arrived at as a result of reading this fact sheet…….. E & OE

 

 

  

 

  

 

 

                             

       

 

      

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