ARTICLE

Tips for buying in Spain

As with when you go on holiday, it's do as the Romans do when buying a house in a foreign country. Spain has its own way of doing things when it comes to property so make sure you know how things work before taking the plunge.

Tips for buying in Spain

Golden rules

  • Talk to a recommended lawyer, even if you have not found your property.
  • Hire a car, drive around and look at as many areas as you can.
  • Open a Spanish bank account.
    Ensure you have enough to pay for the Black Money percentage of the price.
  • Get yourself a good and reputable lawyer, independent of the estate agents.
  • Understand the difference between urbanised and non-urbanised properties.
  • Learn some Spanish.

Black money
"Will an envelope of used Euros be acceptable?"
You offer the full price and expect to pay it via contract. However, expect to be introduced to the black money system which, although illegal, is protocol in Spain. When you buy a house, a certain percentage of your money is undeclared and therefore, untaxed. Make sure you understand all the implications of this system and use a reputable lawyer.

Solicitors & language
"How come you know how much I have to spend on renovation?"
Your solicitor seems very thick with your builder...? It is a must that your solicitor is independent of the builder or estate agent. They should be able to fully translate the law for you so that you understand exactly what you are getting for your money and check that there is no debt on the land.

Proindivisos
"So who does own the land the house is on?"
You get a hefty council tax bill which seems to cover more land than you have. This is when the house you buy is on illegally divided land. It is not advised to ever buy this kind of a house, unless you want to rely on your neighbours coughing up for their share of the council tax every year!

Non-urbanised property
"Can we afford the kitchen we wanted?"
The price of all the basic and less basic kitchen kit and basic garden is not in your calculations. If you buy non-urbanised property, you are essentially buying the shell of your house and the land only. So although you get to choose the colour of your walls, remember the extra costs for your kitchen and turf!

Deeds
"How many lanes did you say?"
If you go for a non-urbanised area, make sure your lawyer cross-checks the deeds to your house with possible plans for future urbanisation. Very important if you want to avoid a road being built through your land!

Payment
"I thought we could pay the deposit next week?"
If you buy an urbanised house, you pay your deposit, then a percentage of the price of the house every month until completion so that you have 60-70% left to pay on completion. For non-urbanised properties, you pay a 10% deposit, then the rest on completion.

Off-plan
"Did you really want lime green throughout, darling?"
Buy a non-urbanised property and you get to choose your tiles, flooring and paint. But if you buy urbanised off-plan, you might as well put that colour wheel away as the plans are already laid out for you.

Related sections: Living In The Sun

COMMENTS