Your Guide to Buying a Property in Spain
We understand that buying a property in another country can be overwhelming. There’s so much to consider. The unfamiliar legal system, language barrier, and currency are huge factors when you’re considering a new home abroad.
If you’re looking to purchase a property in Spain request a free copy of our Spain Property Guide. Inside you’ll find an overview of all the essential information you need along with tips and tricks from our industry experts.
Moving Currency was created to assist customers from all around the world with foreign exchange and money transfer services. If you are interested in purchasing real estate, we specialise in transferring and exchanging funds. Our professional and experienced account managers will advise you on how to get the best deal, save you money and guide you through the process.
Moving Currency provide fast, reliable and secure money transfers in a way that suits your needs. You can organise your money whenever you want, wherever you want.
Once you’ve read our guide, please feel free to get in touch if you need any further information.
Why Spain?
Whether you want to move to Spain permanently, enjoy your retirement, or the property is for work or investment reasons - your dream home in Spain is closer than you think.
The amazing weather, golden beaches and more relaxed way of life are hard to resist. Of the 1.3 million Brits living in Europe, over 300,000 of them live in Spain. It’s a popular destination for those looking to purchase a holiday home, invest in a rental property or move there permanently and enjoy the warm Mediterranean climate. And it’s easy to see why.
With over 3,000 hours of sunshine each year, you can bet on nothing being spoilt by the weather. The lower cost of living means more of your income can be spent doing what you enjoy. Life in the sun doing what you love brings benefits for both your physical and mental health. The extra hours of sunshine mean Spain is open for longer. Enjoy a leisurely evening stroll (or paseo) and chat with friends, have some drinks or shop late into the evening. You can make the most of the outdoors all year round and enjoy all that Spain has to offer.
Spain is a family-friendly country with a wide range of activities and lifestyles to suit everyone. From excellent education and healthcare to vineyards and golden beaches, your journey to the Spanish way of life starts here.
Decisions, Decisions
Before you start the exciting property search phase, you need to make sure you have all the essential information about the property acquisition process in Spain. Your decisions may change along the way, but it’s good to have a basic plan before you get started. Here are some questions to ask yourself:
Let’s talk money
Be clear from the start on your maximum budget and try not to sway from this figure. We advise budgeting an extra 10% for additional costs and fees and put some extra away for plane tickets if you plan to visit the property more than once. Don’t forget that we can help you get the best exchange rates when you’re ready to buy.
Definitely, maybe, or absolutely not!
Think about what the property must-have, and the things you’d be willing to compromise on. Are you set on a pool, or would you like something near the beach? Does the property need parking or more than 3 bedrooms? It’s essential to be clear on what you don’t want just as much as what you do.
Who are you buying this for?
Knowing exactly why you are buying this property and how it will be used will give you clarity and direction. Will this property be for you and your family? Is It an investment for your children’s future? Or will it be rented out or used as a holiday let? Do you see yourself in Villa or an Apartment? Think about the type of property you will be buying and how it fits in with your needs both now and in the future.
Research is key
We all look forward to a holiday each year, but the reality of living in a different country can be overwhelming. It’s a big decision and you need to be as well-informed as you can before you get started. Here are some of the best ways to research your potential new home:
· Talk to professionals
· Engage with online forums and groups
· Read blogs, magazines and newspapers
· Visit the location and spend time in the local community
· Chat to locals and expats about their experience
· Research the local crime rates
· Check the distance to the beach, local shops and the nearest hospital
· What’s on the local ‘things to do’ list?
We know it seems like a lot of questions, but you need to be clear on what you want. The more information you know about your goals, the property, and the local area, the better.
Where to buy
The secret with real estate purchases is location, location, location. So will it be beach, city or countryside? With so many amazing areas in Spain, how do you choose the right location for you? Here’s our guide to the most popular areas of Spain:
Costa Del Sol
The up-market areas of Marbella and Puerto Banús are great places to explore, shop, and spot a celebrity or two along with a few multi-million euro villas. The surrounding cities of Malaga and Seville are just a drive away and there is lots to do for families with seaside activities, great restaurants and endless beaches. There are also houses inland that are much more affordable and have that Spanish countryside charm.
Costa Blanca
Costa Blanca is on the South-Eastern coast. It spans over 200km and has a wealth of attractions for everyone. The gorgeous beaches are the perfect spot to relax during the long hot summers and the fields of almond trees and vineyards provide the perfect backdrop. Alicante is a popular tourist spot but is a traditional Spanish town at heart, and it retains a laid back, welcoming atmosphere. The mountains and valleys offer a varied landscape.
Costa Almeria
Costa Almeria covers most of the bottom third of Spain. If you want to buy a property near the ocean, you’ll get great value here. This area is also known for giving us Picasso, bullfighting, and tapas. There are various resorts in the area, but the focus is more on traditional Spanish culture and quiet neighbourhoods.
The Balearic Islands
The Balearic Islands are popular all year round, so it’s a great place for a holiday let. It is easy to get to with regular and cheap flights available from the UK. There is something for every budget here with Mallorca and Menorca having the highest number of expats. Menorca is the quieter Island with a more relaxed atmosphere, while Mallorca has more of a buzz with resorts scattered along the coastline.
Valencia
Valencia is a traditional Spanish city that is steeped in rich history and culture. If you are looking for city life with more affordable options you may find what you’re looking for here. The locals are friendly welcoming of the growing communities. There are beaches and mountains on your doorstep and a pleasant all year round climate to enjoy.
What to do when you find ‘the one’
So you’ve finally found it. The property you’ve been searching for. So, what are the next steps to securing your dream property?
Negotiate a price
Use the research you have done to stay in control of the negotiations. Have your deposit ready to go and move quickly, but don’t worry if it falls through. Once the offer has been accepted your agent will ask you to sign a reservation agreement and pay a reservation deposit to reserve the home and take it off the market for around 30 days. You will then need to instruct a lawyer who will carry out the necessary checks. We also advise you to arrange a survey of the property at this point.
Get an idea of costs
The purchase of a property isn’t just the amount it says on the tag. There are extra costs associated with purchasing a property in Spain. The main costs you will come across are:
Transfer tax (ITP) - This is levied at 8% across most of Spain on resale properties
Notary fees – These are normally split between the buyer and seller. Allow for 0.5 to 1% of the purchase price.
Land Registry fees – Around 1% of the purchase price.
Independent lawyer fees – Allow for €2,00 to €3,000 but this can be higher.
Valuation fees - Around €350.
Stamp duty - 1.5% of the mortgage deeds and an additional 1% for new-builds.
VAT - VAT of 10% will apply instead of ITP if the property is newly built.
Get a good Estate Agent
Finding a reliable and ethical Estate Agent is essential when purchasing a home. Even more so when you’re buying abroad. Choose one that has good reviews and has experience working with international buyers. Use technology as much as possible and ask for updates regularly so you can stay in control of what’s going on. We are happy to recommend a number of providers!
Lock in your exchange rate
When you know where you stand, give us a call. At Moving Currency, we can lock in your exchange rate today and secure it for your future purchase. The risk of exchanged rates fluctuating throughout your purchase can add extra worry as rates can change daily so give yourself peace of mind by securing your exchange rate with us.
The Legal Bit
There are no restrictions for foreigners that want to buy a property in Spain, but the process will be very different. There are several steps we advise you to take when purchasing including investing in an English-speaking Spanish solicitor who can oversee the entire process and ensure you fully understand any documentation. Here are the other important parts you need to know, broken down into 4 stages:
Step 1: Get a Número de identificación de extranjero Number (NIE)
The NIE is similar to a National Insurance number in the UK. You’ll need it for almost everything so make this a priority. You cannot buy a property in Spain without an NIE. Your Estate Agent can help make sure you have all the correct documentation and explain how to obtain one.
Step 2: The Notary and Lawyer
The Notary represents the Spanish legal system. They are similar to a solicitor in the UK and are required for any property transaction in Spain, but do not work for either party directly. Their role is to ensure the paperwork and transfer of ownership is legal and correct. The lawyer is a separate party and will deal with:
The right to sell
That all local taxes on the property are paid
That the property has been legalised
That any recent renovation work complies with regulations
If there are debts against the property
Step 3: Deposit Contract
You will be asked to sign the deposit contract within the 30-day window of your reservation agreement. This sets out the detail of the sale including price, payment method and completion date. A deposit of 10% is paid at this stage. If the buyer pulls out of the sale after this point the deposit is not refundable and if the seller breaches the contract, double the deposit must be paid back.
Step 4: The Escritura
Signing the Escritura is similar to completion In the UK completes the process and is the contract of sale. It will be signed at the Notary’s office by you or your lawyer if you grant power of attorney. You will pay the balance of the property and receive the keys in return.
Enjoy your new Spanish home!
We hope that this guide has provided you with a more in-depth understanding of buying a property in Spain. Don’t forget to request your free copy of the guide here.
We wish you luck with your property search!
Have we sparked your interest in buying a property in Spain? Get in touch today and our team will be happy to answer any questions you have. Contact us on our UK number 0207 435 7052, our USA number 516 548 6485 or email info@movingcurrency.com
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