Legal and Financial

You will need a Spanish bank account (to enable you to pay for amenities supplied to your property - eg., electricity, telephone, water etc.)

You will also need a lawyer, obviously a lawyer that speaks your language and is experienced in Spanish law. Villa2Spain introduce you to English speaking lawyers if you wish.

Once you know you are serious about buying a property in Spain you will need to work out your budget and stick to it! Remember to take into account all the costs involved. Bear in mind the cost of your property plus IVA (transfer tax, the Spanish equivalent of VAT). This is quite high - 7%. Stamp duty stands at 1 or 2%. The Property Registration Office will also charge a fee to register the deeds in your name (around 300 Euros). As a rough guide, allow a sum equivalent to 10% of the property price for associated costs.

If you need a mortgage we can also advise you on this. You will need to decide on a mortgage with a British company or one held in Spain. As with many things, there are pros and cons for each: Villa2Spain can advise you on all aspects of choosing a mortgage.

Under Spanish law the definition of a Spanish resident is someone who spends more than six consecutive months in Spain in any calendar year. This renders you eligible to pay Spanish taxes. These include a yearly charge levied by the local Town Hall - an annual Real Estate tax (IBI). If your property is a resale, the previous owner is obliged to provide you with bills which detail this.

If you buy in a complex or large development Community Charges will be payable - these are to cover general maintenance, gardens, communal areas, and swimming pools etc.

When you purchase property in Spain the price will be in Euros - therefore, you will have to buy the currency to pay for it. In recent months, Sterling has fluctuated by as much as 10% - this can have serious repercussions for your property purchase: if the pound strengthens your property will cost you less, if the Euro strengthens it will cost you more. If you are not prepared to gamble on the fluctuating exchange rate it is possible to ‘fix’ the exchange rate for your purchase. This can work in two ways. If you have the funds available in full you can purchase all your currency via a 'Spot Contract' - you then hold the funds in a deposit account and make payment as and when needed. If you do not yet have all the funds available then you can purchase as much currency as you can afford at present and reserve an exchange rate for the remaining payments (you must pay 10% of the value immediately, and the balance in full by the date you have reserved your currency until). This is called a ‘Forward Currency Contract’ (in effect: Buy Now, Pay Later). The exchange rate for this is not as good as a Spot Contract but it does have the advantage of enabling you to know your costs beforehand.

View the property at least twice, preferably at different times of the day. Talk to your potential neighbours.

Check the amenities: gas, electricity and water.

Get the property checked over by a builder or an architect.

Before you sign anything, get your lawyer to check ownership of the property.

Your lawyer will ensure there are no outstanding debts on the property. In Spain, debts remain outstanding on the property: make sure you don't inherit someone else's debts