General Information on Spain
When buying we strongly recommend you to instruct a local lawyer to ensure that all is in order. If dealing with a new development it must be checked that the plot / land is suitable for building purposes, i.e. zoning restrictions, building regulations, access to an official road, availability of water and electricity supply, telephone lines.
In the case of purchase of an apartment or house the lawyer needs to check building planning and other permits, the history, reputation and reliability of a developer and the title to the property. Property for sale in Spain is now more popular than ever, Spain is still the number 1 destination in Europe for buying second homes or relocating to.
In addition many people are also looking for " buy to rent " properties to supplement their earnings. Buying in Spain on average costs a little less than 10%. This should cover all buying costs including lawyer's fees. As a general rule lawyers charge around 1% of the full purchase price. Mortgages are easily accessible and can be obtained by non residents subject to certain criteria, normally the maximum lend is around 70% of the purchase price.
Buyers Guide
Once you have found a property, you can negotiate the terms and conditions of the purchase. It is recommended that a lawyer assists in this process, in order to comply with all legal criteria.
A lawyer is necessary to provide the legal guarantees that the property being purchased is free of debt, embargos or charges and has fulfilled its obligations with regard to payment of taxes, local contributions or community charges.
When the negotiations are complete, the offer is made in writing. A reservation deposit is included with the formal offer, until private contracts are exchanged. The deposit should be given to your lawyer to be held in a protected, bonded account until completion of sale.
After the owner has accepted the offer, the next step is to exchange private contracts. Your lawyer will have completed all his investigations into the property and arranged with the owner to settle all outstanding debts. The private contracts set out the details of the agreed offer and set a date for final completion at the notary. At this stage, you are expected to pay between 10% - 30% of the purchase price, depending on the type of property and mortgage granted.
The sale is then formally completed when the public property deeds are signed in front of the notary, the final payment is made to the seller, and possession of the property handed to the buyer, with the keys.
Once the property deeds are signed, the notary will advise the local land registry of the changed title deed. All the relevant taxes on the purchase will then be paid by your lawyer on your behalf and he shall register your title deeds. Your lawyer should also assist with the transfer of the local utility suppliers accounts to your name and arrange their payment through direct debit from a local bank account in your name.
Language
Spain is split into 17 autonomous regions and has four major languages: Spanish, Catalan, Gallego ( Galician ) and Euskera ( Basque ).
Economy
Despite a recent downturn in many European economies, the Spanish economy remains one of the strongest in the European Union.
This strength is derived from the incredible pace of reform and investment over the last 30 years. Spain became a full member of the European Union in 1986. The major industries that contribute to the Spanish economy are agriculture, tourism, fishing and mining.
Currency
The old currency of the Peseta has now been replaced by the Euro. |
New Developments
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