Good Advice when Buying Property in Spain
Plenty of residents of the UK and Northern Europe are discovering that purchasing property overseas is an achievable and desirable goal. 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. You will enjoy lots of sunshine and it’s just a short trip to Spain. buying in Spain may have gotten some bad press recently, but it can be safe if you follow some underlying rules. Here is your basic buyers guide for purchasing real estate in Spain:
- Get your finances together before you do anything else.
An Spanish mortgages like Your Spanish Mortgage
can steer you through the complex procedure - Before you sign any binding contracts, seek expert legal advice.
- To save yourself from becoming financially strapped, you should spend wisely and frugally.
- Stand by for time deadlines to be protracted.
- Do not commit yourself to a private purchase contract until you have the funding that you need.
- Be prepared for the Spanish purchase procedure, which is different in Spain than in the UK and elsewhere in Europe.
- Fully realize the way taxes are accrued based on the specific ownership structure that you choose.
Before making any purchases in Spain, it would be advisable to first approach your lawyer with a series of questions to be answered. 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 signing on the dotted line you should get answers to some of the following:
- Is the property’s land pastoral or urban? What are the implications of purchasing on land that turns out to be rustic?
- What costs will have to be accounted for, including standard legal costs and tax costs?
- Are licenses already in place, for instance property contracts or first liens of residency?
- 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?
- Will there be any under declaration in this purchase?
- Will further costs be incurred by you such as capital gains, inheritance, income or other taxes?
- Are there any unforeseen deposits to pay? When in the process are refunds no longer possible?
- What lawyer costs and other legal fees will need to be paid?
