Buying Real Estate in Spain: Tips for Success..

Property:Real-Estate

Real estate investors are starting to realize Spain has much to offer. More and more buyers find themselves flocking to Spain to look for property. Spain has much to offer in the way of real estate, including farm homes, plots of land, villas and even town homes.

If you plan to buy abroad there are several costs you need to consider. There are also legal matters you will have to address to make sure your transaction is legal. Here are some prime considerations if you plan to buy property in Spain.

Costs

There are many costs you need to pay I addition to the cost of buying a property. Initially you are liable for a transfer tax or IVA, which is roughly 6-7 percent of the cost of the property, plus a ½ percent tax duty. Here are some other initial costs you will pay:

• Registration fee to change the deed into your name.
  

• Notary charges for copies of your documentation, usually up to 10% of the purchase price of your property.
  

• Commission for opening a mortgage in some banks.
  

• Local town hall charge or annual real estate tax.
  

• Community charges if you live in a community that provides maintenance, gardens a swimming pool and other amenities.
  

• A wealth tax.
  

Financing Your New Property

Now is a good time to buy property in Spain. Many developers will finance non-residence up to 80 percent of the cost of a mortgage. Local banks usually offer up to 60% for European residents. Here are some considerations when loan shopping:

• Find out whether interest rates are fixed or floating.
  

• Keep in mind a bank will need documentation, including: your passports, residence permit, pay slips, sale contracts and copies of the deed.
  

• Keep in mind the price of the property is in Euros. You’ll have to convert it to figure out how much money you need.
  

• Because the exchange rate rises and falls, it may be in your interest to consider the weight your dollar has when buying a property.
  

• You may want to buy the currency you need immediately, then hold it in a deposit and send payments through your account. That way you get a good conversion ratio on your exchange.
  

Legal Considerations

If you plan to buy a property in Spain you should know many owners do not register their properties. Because of this you should take time to find out how many square meters the owner legally owns by the Catastral Department and Town Hall. However, many families fail to tell the Town Hall of their ownership, thus proof of the property’s square feet and ownership can take some time.

Often there are cultural obstacles to overcome as well. Occasionally for example children assume ownership when their parents pass away. This can result in a situation termed “Expediente Dominio”. In this case you may have no proof or ownership or a title to buy. Because of these hassles you may not be able to get a mortgage on non-registered properties. Fortunately there is a wide selection of new properties to choose from without the registration problems associated with older homes.

Antigone - www.spaingolfproperty.co.uk/