Effective Advice when Buying Property in Spain
Many Europeans now embrace the concept of buying a home in a different country. With a drop in the cost of air fares, interest rates in Europe becoming lower, and the property itself offering capital growth, countries like Spain have become more enticing to potential buyers. Spain has a quick flight time and a great climate, and much possible prosperity. If you’re willing to ignore bad press and follow some basic rules it can be very safe to buy in Spain. The following is a fundamental guide for those interested in purchasing real estate in Spain:
- When considering purchasing property first look to arrange your finances.
Use an expert in mortgages in Spain to help you. - Take expert legal advice before you sign on any dotted lines.
- To save yourself from becoming financially strapped, you should spend wisely and frugally.
- You should expect that time deadlines will be extended.
- Until you have the required funding, do not sign a contract to purchase anything.
- Be aware that the procedure for buying in Spain has its own idiosyncrasies and don’t assume that it will be the same as it is in other markets.
- Fully realize the way taxes are accrued based on the specific ownership structure that you choose.
Before you make any purchases, it would be wise for you to approach the situation with a list of questions that for your Spanish Lawver. Many examples of people purchasing foreign property have negative results because they didn’t ask the right questions before they began the transaction. Before completing the transaction, you should get answers to the following questions:
- Is the land that the purchase sits on registered as urbanized or rustic? What complications can come from purchasing land that is rustic.
- What costs will have to be accounted for, including standard legal costs and tax costs?
- Are there any licenses in place, such as building licenses or first licenses of occupancy?
- Is there be a ten year warranty on the building, if the building was constructed less than ten years ago?
- Is this a result of a foreclosure or direct sale?
- In this specific purchase, will any be under declaration?
- Be sure to ask what extra costs you might be liable for, such as taxes on capital gains, inheritance taxes or income tax.
- Do any deposits need to be paid? When in the process are refunds no longer possible?
- What lawyer costs and other legal fees will need to be paid?
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