Plenty of residents of the UK and Northern Europe are discovering that purchasing property abroad is an achievable and desirable goal. Because these properties offer a good level of capital growth, lower airfares and low European interest rates have made buying in countries like Spain more attractive. You will enjoy lots of sunshine and it’s just a short trip to Spain. purchasing in Spain may have gotten some bad press recently, but it can be safe if you follow some underlying rules. Here is your basic buyers guide for purchasing real estate in Spain:
- When considering purchasing property first look to arrange your finances.
An Spanish mortgage like Your Spanish Mortgage
can steer you through the complex procedure - It is important that you obtain professional help before venturing into any unfamiliar legal territory.
- Take care not to reach beyond your financial limits.
- You should expect that time deadlines will be extended.
- Don’t trap yourself into a contract until you have money ready.
- Be prepared for the Spanish purchase process, which is different in Spain than in the UK and elsewhere in Europe.
- 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. There have been a lot of situations where buyers from abroad do not get the results they seek because they either asked the wrong questions or did not ask questions at all before hand. 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 might happen when purchasing rustic land?
- What costs will need to be taken into account, such as typical attorney’s fees and taxes?
- Are there any licenses in place, such as building licenses or first licenses of occupancy?
- If the building is less than ten years old, is there a 10year building warranty in place?
- Did you purchase this product directly or was it a cessation of contract?
- Will there be any under declaration in this purchase?
- Be sure to ask what extra costs you might be liable for, such as taxes on capital gains, inheritance taxes or income tax.
- Are there any unforeseen deposits to pay? At which stage of the transaction are they deemed nonrefundable?
- What other attorney fees and additional legal expenses will be incurred?