09.05.09
Good Advice when PurchasingSpanish Property
Many residents of Britain and North Europe are finding the idea of purchasing foreign property a more desirable and realistic goal. 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 prospective buyers. Spain offers short air travel time, excellent sunshine and plenty of potential growth. It may not have been a good idea to buy in Spain in the past, but it can be done more safely if you stick to some general guidelines. Here is your basic buyers guide for purchasing real estate in Spain:
- Get your finances together before you do anything else.
An spanish mortgage can steer you through the complex procedure - Take expert legal advice before you sign on any dotted lines.
- Take care not to reach beyond your financial limits.
- Be prepared for time deadlines to be protracted.
- Don’t trap yourself into a contract until you have money ready.
- The Spanish purchase process is not the same as it is in the UK and other places
- Fully understand the way taxes are accrued based on the specific ownership structure that you choose.
Before making any purchases in Spain, it would be advisable to first approach your lawyer with a series of questions to be answered. Foreign buyers can run into trouble when engaging in local business transactions, finding that they do not get the results they expected or wanted. Misunderstandings arise because the buyers failed to do their homework, or at least to ask the correct preliminary questions. Before signing on the dotted line you should get answers to some of the following:
- Is the site where the property is located listed as urban or rustic? What are possible consequences of buying on property that is listed as rural?
- What costs will need to be taken into account, such as typical attorney’s fees and taxes?
- Are licenses already in place, for instance property contracts or first liens of residency?
- If the property is under a decade old, does it include a 10 year building warranty?
- Is this transaction being made with a direct purchase or is it part of a termination of deed?
- Will there be any under declaration in this purchase?
- Will further costs be incurred by you such as capital gains, inheritance, income or other taxes?
- Do you need to pay any extra deposits? At which stage of the transaction are they deemed nonrefundable?
- Are there any additional legal costs or fees to be paid?
