Buying in Spain 2018 - Property Guides Your guide to buying a home in Spain, safely
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Buying in Spain
2018
Your guide to buying
a home in Spain, safely
• Your timetable to buying in Spain
• Focus on where and what to buy
• Set your budget
• Understand the legal processes
• Buy safely in Spain
Property Guides
Contents
3 Buying safely in Spain
About this guide
4 Is 2018 the year?
Reasons to own a home in Spain
6
Spain’s property market
in 2018
Property trends to look for in 2018 Speak to the experts
10
Brexit and You Buying a property in Spain is a simple matter
Gaining your EU rights of putting one foot in front of the other. But you
before March 2019 do need to ensure that you are on a firm footing
12
by having a team of professionals behind you.
Deciding What to Buy At Property Guides we call the perfect team
Essential decisions to make our Golden Three: estate agent, lawyer and
24
currency specialist. Contact us to be introduced
How to Buy to your Golden Three.
Key financial points to consider
30
020 7898 0549
Making an Offer
Helpful tips for negotiation spain@propertyguides.com
32 The Legal Process
The legal process explained
propertyguides.com/spain
Buying safely in Spain – about this guide Property Guides was set up after a close relative of one of the company’s founders fell foul of a property scam overseas nearly twenty years ago, with tragic results. Our aim has always been to make buying in Spain safe. Since then, new laws have been brought in in Spain, the property business has been cleaned up and the cowboys driven out of town. Most of them anyway. Still, many of us are understandably nervous. We want to spend our holidays, long weekends or even our retirement in the sun, but we’re nervous about sending so much money to another country with an unfamiliar legal system, language and currency. We’ve read stories about British people who have run into difficulties when buying property in Spain. We’re worried about getting a properly-built home, about signing contracts we don’t understand, about healthcare, pensions, currency and now Brexit! The Spain Buying Guide’s aim is simple – to help you to buy safely in Spain. Our founder’s tragic experience could have been avoided if honest, up-to- date and reliable information had been available to her. Since 2004 we have been putting that right. Not everyone delays buying because they’re worried. Some just don’t know where to start. We can help you too, with a roadmap and clear explanation of the buying process, the costs and timescales. Along with a trustworthy estate agent and a good, specialist lawyer, the third way to eliminate risk is to stop exchange rate movements wrecking your budget. You wouldn’t agree to buy a home in your own country where the 3 price could move by 10 or even 20% before you have to pay for it, yet that is the risk you take if you don’t lock in your exchange rate. We will explain how you can prevent that. The Spain Buying Guide will help you achieve your dream of home- ownership in Europe’s favourite place to relax and enjoy life. It’s easy if you follow our simple steps. Visit our website propertyguides.com/spain for more information about buying property in Spain. You can read property market updates, news and area guides. Sign up to our fortnightly blog written by our British writer in Spain – lifting the lid on what life is really like in Spain. Happy house hunting! Elaine Ferguson Customer Service Manager Spain Property Guides Resource Team 020 7898 0549
4
Is 2018 the year?
Buying a home in Spain
You can own a home in Spain
You can swap the 50 hours of sunshine 3. Property market
that London averages in January for the
Spanish property rose in price by 6.7% in
190 hours that Costa del Sol gets. You can
2017, according to the EU statistics agency,
enjoy the lower living costs, weather in
and looks set to rise by a similar amount in
which you can play golf, swim or just sit
2018. That is faster than in the UK (5%) but
outside comfortably all year, the emptier
is not so high that it looks unsustainable.
roads, the excellent health service, the
Moreover, in most areas prices have not
family-oriented lifestyle, the food and
yet returned to pre-financial crisis levels.
the wine and the friendly people.
It is the perfect position, affordable prices
We believe that 2018 represents an with plenty of room to rise further. Read
unprecedented, literally once-in-a-lifetime our property market update on page 6.
opportunity to move to Spain or buy in
Spain. Here is why: 4. Cost of Living
You might think that the UK is an expensive
1. Brexit place to live, but in global terms, except for
Buying a property or living in Spain is property, it compares quite well. Countries
possible for anyone, for now. It may not like France, Italy, Australia and the USA
be so easy if you don’t make the move are all more expensive to live than the
before March 2019. If you establish yourself UK. But not Spain. In Spain your pension
as a resident before March 2019 you will goes much further and your holidays are
retain all your rights just as if you had lived cheaper. Prices undercut those in Britain by
there for years. That includes subsidised around 30% in restaurants and 16% in the
healthcare, the right to a pension, to work, supermarket, according to Numbeo, the
study, retire or just hang out. Those who price comparison site for expats.
buy after March 2019 may have to apply 5
for visas, be limited in what they can do, 5. Flights
and pay full price for healthcare.
While countries like Greece virtually shut
down for the winter, there are affordable
2. EU rights for your family flights to Spain from even the most out of
Those pre-Brexit rights will extend to your the way airports. You can get to just about
parents, grandparents, spouse, civil partner every corner of Britain to every corner of
and dependent children and grandchildren Spain with ease, all year. It also offers the
too. But you need to be a registered legal chance to drive, take the train or even a
resident before March 2019. ferry once in a while.
“Those pre-Brexit rights will extend to
your parents, grandparents, spouse,
civil partner and dependent children and
grandchildren too. But you need to be a
registered resident before March 2019.”
Spain’s property
6
market in 2018
Buying a home in Spain
Spanish property prices on the rise
Strong economic growth, healthy banks, such low mortgage rates, and should
cheap mortgages and booming tourism continue to do so throughout 2018.
all helped to push Spanish property prices
Spain is enjoying record levels of tourism.
up in 2017. The signs point to this trend
The country attracted 82 million tourists in
continuing throughout 2018.
2017, making it the world’s second-most-
visited country and helping to raise its profile
What happened last year? as a second home destination even more.
Looking back at last year, the most recent The tourist business accounts for more than
figures from the European Union’s Statistical 11% of GDP (i.e. more than one euro in every
Office (Eurostat) show that prices rose ten euros spent in Spain) and is especially
steadily across Spain in 2017. Growth was vital along the coasts and in the Balearic
recorded during each of the four quarters and Canary Islands. Indicators point to this
up-to September 2017, adding up to home popularity continuing in 2018.
prices being 6.7% higher than at the same
time in 2016. The rises continued for the final The regional picture
three months of 2017, with prices continuing
If the national figures are encouraging, most
to rise at the same rate, according to Spain’s
foreign buyers are more concerned with
National Statistics Institute.
the local property market in the Costas and
There were more properties being bought other tourist residential hotspots, and these
last year too. Research from Spain’s may behave differently from regions where
Association of Notaries confirmed that the just local people live. Typically, annual house
number of sales transactions in summer price inflation in the Canary and Balearic
2017 was 13.5% year-on-year. Other sources Islands, Catalonia, the Costa Blanca and
put it even higher, with 16% more homes Costa del Sol, as well as the larger cities,
bought in the past year compared to 2016. comfortably exceeds the national average. 7
Last year, price rises in each of these
Will the rises continue in 2018? exceeded 10%. This year you can probably
expect similar.
Several banks and financial institutions –
including BBVA bank and property valuation
firm Tinsa – predict that average Spanish
house prices will rise by 5% during 2018.
Some, including the respected Instituto de
Práctica Empresarial (IPE), forecast 6%.
Tinsa expects the number of sales to
continue to rise in 2018 too, by 10 to 15%.
The number of properties financed with a
mortgage and the number of construction
licences granted for new homes should rise
at a similar rate, predicts Tinsa.
This is all underpinned by Spain’s buoyant
economy. It’s one of the fastest growing
major EU countries; GDP is forecast to grow
by 3.1% this year and unemployment is at
a nine-year low. More people in jobs want
better houses, and Spain’s banks, no longer
toxic, are lending more freely again. That
includes to international buyers. Thanks to
the European Central Bank’s (ECB) interest
rate being negative, it actually costs banks
to leave their reserves in the ECB, which is
why they have been offering homebuyers
Buying a home in Spain
Canary and Balearic Islands: Property buyers still account for a substantial portion
values are expected to continue to grow, of the market but estate agents report an
often faster than Spain’s other tourist increasing number of Europeans, including
areas. For the main part, this is due to the Scandinavians and Belgians, arriving on the
regional governments adopting a stricter scene. This increased demand – more buyers
approach to development, which in turn competing for each property – should help
has led to a shortage of homes to buy and to maintain healthy price growth, at least
competition to buy the best properties. in the more tourist-dominated areas. Price
Prices in 2017 rose by 7.5% in the Balearics rises have stalled somewhat, according to
and nearly 5% in the Canaries, says Tinsa. Tinsa, overall. Property in the Costa Blanca
is still really good value, with even seafront
Catalonia and the Costa Brava: Overall,
property available for well under €100,000,
prices in 2017 rose nearly 9%, but growth
and offering huge rental potential.
did slow towards the end of 2017 due to
the political crisis there, which lessened Costa del Sol: The Costa del Sol attracts
demand from foreigners. Will this effect the second highest number of foreign
continue given that the independence buyers, often the wealthiest, and where
movement seems to have been crushed? average prices are a little higher than
2018 looks like a good year to buy, though the Costa Blanca. Home to the upmarket,
you’ll need a budget of €100,000-plus. fashionable areas of Marbella, the Golden
Mile and Sotogrande, demand for Spain’s
The Costa Blanca: The long stretch of
most exclusive €1million-plus properties is
coast that includes Torrevieja and the
expected to remain strong.
resorts of Orihuela Costa, as well as Jávea,
Dénia and Benidorm in the north, remains There are, however, still plenty of affordable
Spain’s top area in terms of the number of properties available. Rightmove has a
8 annual sales to foreign buyers, with most thousand homes available on the Costa del
buying as second home or to retire. UK Sol priced below €125,000.
9
10
Brexit and YouBuying a home in Spain
Bagging your EU rights
before March 2019
The news in December 2017 that an initial “When you go to the police station to
agreement had been reached on the rights register,” says Raquel, “you have to show a
of UK nationals in Spain was a welcome Spanish address/domicile, and to buy or rent
Christmas present to the British people a property you have to get your NIE number.”
hoping for a long, affordable and relaxed It’s actually very simple, says Raquel, for
life in Spain. British people to become legally resident
and protect their rights to live and work in
The agreement states that “There will
Spain for ever: “If you arrive in Spain on 1st
be no change to the rights and status of
February and complete on or rent a house
UK nationals living in the EU while the UK
on 2nd February. On 3rd February you can
remains in the EU.”
become a legal resident in Spain.”
Even better, if you are living in Spain
Residency does not, however, give you the
by March 2019, when the UK leaves the
right to become a burden on the Spanish
European Union, your right to live in Spain
state. EU nationals, including those British
will be preserved. The agreement says:
people resident before March 2019, must
• UK nationals who are lawfully residing in either be working, self-employed, a student
Spain by 29th March 2019, will be able to or able to support themselves financially.
continue to reside in Spain. Employed workers will need to show
contracts and an employer’s social security
• That includes children born or adopted
number. Self-employed people must show
outside Spain after the 29th March 2019.
evidence such as a registration on the
• Close family members (spouses, civil Mercantile Registry or via evidence of social
partners and unmarried partners, security payments.
dependent children and grandchildren 11
If you don’t work you must show evidence
and dependent parents and grandparents)
of health insurance, although in the case of
will be able to join you, so long as the
British retirees this will be covered by the UK’s
relationship existed on 29th March 2019
S1 form. You may also have to show a bank
and continues to exist when they join
balance of at least €6,000 for an individual
you in Spain.
or €10,000 for a couple.
• Any paperwork required for applications
If you are still there after five years,
will be kept simple, free or low cost. You
all those restrictions will fall away and
will have at least two years to submit it.
you can claim permanent residency.
• You and your family members can leave
Spain for up to five years without losing
your right to return.
• You and your family will continue to have
the same access as you currently do to
healthcare, pensions and other benefits.
• Your professional qualifications will
Your Overseas Home
continue to be recognised. With 2018 such a crucial year, Spain Property
Guides will be at Your Overseas Home to answer
But what is “lawfully residing”? Spanish all your questions. This is a special property
lawyer Raquel Perez of Perez Legal Group and advice show for those people in the final
says: “As soon as you arrive in Spain and stages of buying in Spain. The first three events
buy or rent a property, you can declare your planned for 2018 are in London in March, then
resident of Spain.” She explains that being Manchester in April and Glasgow in June. Check
a legal resident is more than simply signing out the website for FREE tickets and dates of
the padrón at the town hall. You apply at the new events. www.youroverseashome.com
Oficina de Extranjeros in your province or at
a designated police station.12
Deciding What to BuyBuying a home in Spain
Step One: Essential Decisions
Your dreams and intentions may change What MUST your Spanish
throughout the process, but organising your
initial plans is the place to start. You should
home have?
ask yourself these five basic questions. What are your deal-breakers, the must
haves? How many bedrooms or bathrooms
Why are you buying? do you need? Is a pool essential or would
a local beach be better? Outdoor space?
So you know you want to buy a property
And what would you like your Spanish home
in Spain, but why, exactly? Analysing and
to have? What would make it perfect for
articulating your thoughts can help motivate
you? Do you want a terrace, garden and/
and direct you, so write down your ideas.
or a swimming pool? (See our checklist
Here are some examples:
on the next page).
• “We want to enjoy more space, sun and
warmer weather.” What are your turn-offs?
• “Our pension will go much further in Spain.” It’s nice to be positive, but focusing on what
• “I want a place to enjoy memorable we can’t stand can be quite liberating too!
holidays with family and friends.” Would you hate queueing for hire cars every
time you go to Spain? Fortunately Spain’s
• “Now the kids have left home, we need public transport is fantastic, but do check
a new adventure.” the routes work for you. Do you find a sandy
• “Property investments in the UK look a bit beach less appealing than your own pool?
iffy in 2018, why not try abroad?” Are you worried that you’ll be saddled with
all the pool cleaning, or cooking? Now is
• “I don’t want ever to look back on my life the time to say it loud and clear. Would you
with regret, never having made the move.” find the presence of holidaymakers on your
13
doorstep all summer a little irksome?
How will you use it? You want to love this home, so spell out
This is crucial to ensuring that you really what will stop that happening, then see
enjoy your property. What will you do with if your partner or spouse feel the same!
it? Long weekends, three weeks over the
summer, for investment, for relocation, for
holidays and then eventually retirement? Be
honest with yourself. If you really don’t think
you’ll be nipping down for weekends, you
can save money by being further from the
airport. If you don’t want other people using
it and don’t need the money, why worry
Buying tip!
about rental or investment potential?
How much can you afford? Pull together as much information
There may be ways to raise more money, on moving to Spain as you can –
or even share the costs, but get an idea both positive and negative. Research
of your realistic budget from the off. (See newspapers, magazines, books, etc.
our finance guide on page 25). You should Look online at expat groups/forums
budget for at least 10% extra for buying costs. (particularly for issues or complaints
Don’t forget also that you won’t quite get that stand out or reoccur) and Spanish
the “interbank” rate for your currency that’s property websites.
shown on the news and the FX sites, but a
percentage point or two below that. (See our Visit overseas property exhibitions to
currency guide on page 26). On the other get first-hand information before
hand, you might be able to knock a little bit paying out for a viewing trip.
off the price of the property too.Buying a home in Spain
Checklist to a perfect property
The location: Essential Preferable
Which costa?
Region, province?
Expat area or more Spanish?
City, town, village, country?
Maximum distance to shops?
Max distance to airport?
Max distance to hospital?
Max distance to beach?
Need public transport?
Other location requirements?
The property:
Budget (in pounds)?
Old or modern?
14
House, flat?
Detached, semi or neither?
Bedrooms?
Bedrooms with ensuite?
Bathrooms?
Living area – open plan?
Separate dining room?
Wheelchair accessible?
Rough square metres?
View?
State of repair?
Outside space:
Garden?
Terrace?
Pool, private or communal?
Garage?Buying a home in Spain
Step Two: Countdown to Buying
Working out a timetable is a powerful tool Three months from owning:
in turning dreams to reality. Many people
• Viewing trips.
wait until the spring or autumn to start
looking – but why wait until everyone is • Attend property exhibitions (see box
buying? High demand, after all, generally below)
means higher prices. Not only can you start
• Sort out NIE number.
looking at property at any time, but quiet
times can be good for picking up bargains • Make an offer.
too. Estate agents will be keener and sellers
• Protect your budget with currency
more motivated, fearful of being stuck with
specialist. Consider forward contract.
a property for another season.
• Book a survey, if required.
A tactic that we find works well is to set
an end date and fix in your mind being
in the property by then. Then work your Two months from owning:
way back from that. Tick these off as you • Sign reservation contract, if required,
achieve them. to start buying process.
• Sign deposit contract and pay deposit.
Six months from being a
Spanish home owner: • Contract notary.
• Narrow down your choices using our • Plan removals and decoration.
checklist and propertyguides.com/Spain • Ensure utilities will be connected.
articles. Prepare a list of must haves and
nice-to-haves. • Make final payment. Sign sale contract.
• Speak to Smart Currency Exchange. Until • Receive keys and move in.
15
you have consulted our currency partner
it will be impossible to set your budget.
Remember, you will not be able to access
the “interbank” rate that you see on the
news and on the property websites, so
it is essential to get an idea of your real
buying budget and lock that in.
• Speak to a mortgage advisor, if required. Your Overseas
• Set your budget. Home
Spain Property Guides will be at several
Five months from owning: property exhibitions in 2018. Your
• Begin your detailed property search. Overseas Home is a special show for
those people in the final stages of buying
• Speak to a lawyer about how best to in Spain. It is for those who have decided
structure the deal. they are definitely buying, but they just
need to get a few niggly legal, tax or
Four months from owning: inheritance questions answered first,
and then to look at some properties.
• Speak to estate agents.
There are at least three events planned
• Narrow down properties for realistically for 2018, starting in London in March,
achievable viewing trips. then Manchester in April and Glasgow
in June. Check out the website for
• Book a viewing trip(s).
FREE tickets and details of new events.
• Detailed discussions with lawyer and www.youroverseashome.com
Smart Currrency Exchange.Buying a home in Spain
Step three: Where to Buy
Spain’s costas vary quite significantly in Brava, where the Pyrenees meets the
character, climate and the cost of homes. Mediterranean.
The Costa Brava is cool, classy and cultural.
The Balearic Islands Part of Catalonian, it’s a hard-working
The Balearics are among the most popular area with a strong sense of style – the land
tourist destinations in Europe, but such is the of Gaudi, Dali and Miro. The weather is
ease of getting there and the year-round perfect for summers but chillier than the
appeal of a city like Palma that there is more southerly costas in winter.
also a settled international community too, With just a two hour flight from Barcelona
especially in Mallorca. Although one of the or Girona to London or Manchester, and
more expensive parts of Spain to buy a advance fares as low as £20 each way,
home, few people ever regret buying here. ‘euro-commuting’ is a real possibility from
Mallorca has something for every taste and both the Costa Brava and Costa Dorada.
budgets above around €150,000. Idyllic
villages such as Valldemossa and Deia, the
Costa Dorada
wealthy shops and nightlife of the capital
Palma, with its medieval old town and The 300 kilometres of the Golden
cobbled alleyways around the cathedral, Coast include the cities of Barcelona
family-friendly resorts along the south- and Tarragona and resorts such as
east coast, beautiful country homes inland, Salou, Sitges and Roc de Sant Gaietà.
and then the raucous (but fun) nightlife of Most people come for the beaches, the
resorts like Magalluf. nightlife and the entertainment such as
PortAventura, the huge waterpark near
Many people prefer Menorca, “the Jewel
Tarragona with Europe’s highest freefall
of the Balearics”, for its quieter and more
waterslide. The hinterland is beautiful
16 relaxed atmosphere. There are hints of
too, with vineyards in the foothills of the
Britain’s colonial rule in the 1700s, in some
mountains. The River Ebro, one of Spain’s
Georgian architecture and the British have
mightiest, provides diverse wildlife and
tended to feel at home here (well, where
outdoor entertainment.
don’t we?). The island’s main draw is its
beautiful coastline, with more beaches than Property is cheaper than in most costas,
Mallorca and Ibiza put together. Menorca but off-season the coast is very quiet and
is harder to reach in winter, but prices are it’s colder than the more southern stretches.
lower than in Mallorca too.
Ibiza, “The White Island” may be more Costa del Azahar
famous for clubbing and hedonism, but The Orange Blossom Coast has been
wander off from the coastal strip and hiding its light behind an orange bushel for
you’ll find it’s a wooded island with lovely too long! Often bypassed by British house-
peaceful rural areas. It also has a spiritual hunters it is as beautiful as the northern
undercurrent, mixed in with the hedonism. Costa Blanca that borders it. It also has
Property is pricey, as you might expect, but the city of Valencia, with its dramatic
has enormous rental appeal in summer, so modern architecture and a rich cultural life.
it’s an excellent option for sheltering from The food is pretty good too – Valencia is
the British winter then renting your place generally credited as the home of paella.
out all summer.
Coastal towns along its 250 kilometre
length include Alcossebre, Benicassim,
Costa Brava Peñiscola and Gandia. Houses are
Wooded cliffs lead down to pretty bays. affordable too, as peak British expat
Around each headland is another gorgeous demand tends to stop at Denia, a little
view and a road leading down through the further south. Partly that’s because many of
pines to a classy village with a sandy beach us prefer the option of flying into Alicante,
and maybe a marina. We’re in the Costa which is a couple of hours’ drive south, and
there are fewer flights into Valencia Airport.A guide to Spain and its islands
See the map for the coasts, then search for them at
propertyguides.com/spain/buying/where-to-buy
for more idea of what they are like.
Asturias
Cantabria
Páis Vasco
Galicia Navarra
La Rioja
Catalunya
Castilla y León
Aragón Costa Brava
Costa Dorada
Madrid
Costa del Azahar
Extremadura Catilla-La-Mancha Valenciana
Balearic Islands
17
Costa Blanca
Murcia
Andalucía
Costa Calida
Costa De La Luz
Costa Almeria
Costa Del Sol
Speak to the experts
Canary Islands
Visit our website propertyguides.com/spain
for more information about buying property
in Spain. You can read property market
updates, news and area guides.
020 7898 0549
spain@propertyguides.com
propertyguides.com/spainBuying a home in Spain
The Costa Blanca expat community of whom the British are the
largest group. Even stunning-looking modern
Whether you want an adventurous retirement
villas with pools are available for under
of golf and sailing, a holiday home just a
€150,000 and getting here is easy, being just
short hop from the airport, a permanent
45 minutes’ drive from San Javier Airport.
home with an easy commute back to the UK,
the Costa Blanca is an easy and affordable Further west is the region’s largest city,
option. The sun beats down for 320 days of Cartagena, with many grand buildings
the year on both the residential apartments in Spain’s distinctive modernist style
of Benidorm and Torrevieja, and the inland (with renovated two- or three-bedroom
villages. apartments for under €100,000).
Cartagena has a thriving economy based
The Costa Blanca is an affordable choice
on ship-building, but the authorities are
for property, with apartments available
promoting the port as a major tourist
from little over €40,000, and the savings
attraction with bars and restaurants on the
continue into its golf courses and amenities,
quayside. Outside of town there are resort-
reasonably priced compared to Spain’s
style developments with communal pools
more blingy costas.
for a similar price, and villas from around
Alicante airport has flights from every €125,000.
corner of the UK, all year. Drive north from
La Manga and Mar Menor are the best
the airport and, after skirting the tower
know areas for UK property buyers. Europe’s
blocks of Benidorm shimmering in the heat
largest saltwater lagoon, El Mar Menor
haze, the countryside is greener, with pine
(the small sea), is the perfect place to learn
forests and palm trees. Former fishing
watersports such as wind surfing, sailing and
villages and small towns like Jávea, Moraira
diving. The narrow strip of land called the La
and Dénia combine historic castles, rural
18 Manga (“the sleeve”) separates it from the
beauty, pretty coves, beaches, mountains
Mediterranean. This thin stretch of land, 24
and excellent fish restaurants. They are still
kilometres long, is packed with apartment
traditional Spanish towns that have thriving
blocks and superb amenities including
and fun expat communities too, being far
marinas, supermarkets, sailing schools,
enough from the airport to turn off the
leisure centres, shops, bars and restaurants.
long-weekenders and appealing more
to permanent residents and retirees. The resort of Mar Menor is rather special,
with golf courses, superb tennis facilities
South of Alicante the weather is warmer and
and all the luxurious touches you would
the countryside is flatter. The beaches are
expect from Spain’s most famous gated
pristine, property developments have been
development. Within the local area there
kept low-rise and there is highly accessible
are, however, some delightful villages which
local entertainment for every age group,
are off the tourist track and retain their own
from golf courses to water parks. Torrevieja
traditional lifestyle, bars and restaurants.
and Oriheula continue to attract large
These are becoming increasingly popular
numbers of British property buyers.
with British buyers too, looking for
authenticity and affordability more than spa
Costa Cálida and beauty treatments on the doorstep as in
With year-round flights and year-round La Manga.
warmth, this long stretch of coast is holiday-
home heaven. Highlights include the small Costa Almeria
town of Águilas, curving around a couple
The Costa Almeria is in Andalusia, the huge
of beautiful sandy bays. Apartments go
region that covers the bottom third of Spain
from €50,000; resort-style property out of
and gave us flamenco, bullfighting, Picasso
town around 50% more than that. Almost in
and tapas. Almeria is at the far eastern part
the centre of the Costa Cálida is the Gulf of
of the region, and is relatively inexpensive:
Mazarrón: 35 kilometres of beautiful sandy
you can buy a villa with a sea view for less
beaches and fishing villages. It has a livelyBuying a home in Spain
19Buying a home in Spain
than €150,000. Almeria includes well-known The hills overlooking the beaches are
resorts like Roquetas de Mar, Almerimar, thronged with multi-million euro villas, but
Carboneras, Mojácar and Vera, all with alongside the upmarket resorts such as
pretty harbours or long sandy beaches. Marbella, Puerto Banús and Estepona, there
are less expensive neighbourhoods like
Fans of the Costa Almería say it is more
Torremolinos, Mijas and Fuengirola too. All
Bohemian and alternative than its
are easy to reach from the airport at Malaga
neighbouring coasts. Vera is famous for
– you’ll appreciate the savings on car hire –
naturism, Almanzora for cave homes. There
and with so many flights that weekend trips
are still resorts though, including the Desert
really are doable.
Springs golf resort, where Ian Botham and
Daley Thompson have been homeowners. Don’t forget the inland appeal. There are
There are lively British expat communities in “white villages” that retain their age-old
Mojacar in particular. traditions and beyond that the rolling hills
of olive and almond trees, with affordable
You can get there via Almeria Airport with
country homes in the “campo” (countryside).
easyJet and Ryanair from many UK airports.
The Costa del Sol has exciting cities, most
notably Malaga but with Granada, Seville
Costa del Sol and Cordoba all within reach, it has culture
The Costa del Sol is 160 kilometres of as the birthplace of Picasso and flamenco
sundrenched pleasure. The quality of dancing, it has wonderful food and drink and
the beaches goes without saying, but the gave the world tapas.
seaside fun includes every family-friendly
entertainment you can imagine, great Costa de la Luz
shopping opportunities, Michelin-starred
The stretch of coast that leads from Gibraltar
restaurants, championship golf courses,
20 up to the Portuguese border is known for
marinas and spas – everything for the well-
wide, empty beaches, full of windsurfers
heeled him and her.
in summer but empty in winter. The hugeBuying a home in Spain
Case Study: Michael Sinisgalli
bought a home in Estepona last year
I hadn’t been to the Costa del Sol for 20 years, until we
(my wife and two children, aged 10 and 12) were invited
to a family event here. I wasn’t looking forward to it
as I remembered the area as being a little tacky. But
we went and they had built up the boardwalk and it
looked great and I said to my wife, “wow this has really
changed, maybe this is something we should look at.”
It seemed a little bit crazy at the time but when we
started looking at the market, we said yeah, maybe
this is a good time to buy.
We did online research for two months, just looking at
properties and getting an idea of things. We narrowed
it down to two areas; Cala de Mijas (close to the airport and with a nice
beach/boardwalk, but rather a lot of holidaymakers) or Estepona. We really
wanted somewhere more authentic and Spanish, and in the particular
urbanisation we liked in Estepona many of the people live there full time,
both Spanish and foreigners. That was important to us.
Secondly, we set a budget and said “this is what we have, we can’t go above
that.” Thirdly, we had specific requirements; something directly on the water
with nothing coming between our property and the water, and that’s quite
hard to find along the Costa del Sol. We did manage to find something directly
on the water, and in our budget. 21
Finding an estate agent, I spent a long time searching around on the internet
and went to all of their websites and their Facebook pages, if they had them,
and decided on two different agents. When I asked them to provide a reference
I could contact they did that, and that worked out.
For the lawyer, I found Raquel Perez. I saw several YouTube interviews with
her and I read the e-publication she had and I was just so impressed with
her, and liked that she was Spanish. That’s another tip, I spent so much time
worrying about picking the right agent but at the end of the day what’s
more important is to pick the right lawyer. I felt that she had my back.
If you have a good lawyer all of those fears fall away.
One step at a time
As Michael’s experience shows, buying a property in Spain is a
simple matter of putting one foot in front of the other. But you do
need to ensure that you are on a firm footing by having a team of
professionals behind you.
At Property Guides we call the perfect team our Golden Three:
estate agent, lawyer and currency specialist. Call our Resource
Centre on 020 7898 0549 to be introduced to your Golden Three.Buying a home in Spain
Doñana national park is in the middle of the too hot or too cold. Buy here and you can get
region – you could see the lynx, Europe’s only four seasons of enjoyment (or rental). They
big cat there. Property is more affordable are made up of seven islands of varying
than in the neighbouring Costa del Sol and size and geography: Tenerife, Lanzarote,
Portuguese Algarve, despite it being unspoilt Fuerteventura, Gran Canaria, La Palma,
by development. La Gomera and El Hierro. Each is different;
some sandy, others with deep gorges,
It includes the city of Seville, a little inland,
tropical forests, banana plantations and
Andalusia’s largest city and one that has
snow-capped mountain, others with vibrant
proven popular with long weekenders as a
nightlife and cheap holiday apartments,
(whisper it), classier alternative to the likes
others more genteel and laid back.
of Marbella. Seville is famous for its festival,
the Feria de Abril, sherry (drunk dry and ice Tenerife is the largest island, with 900,000
cold), tapas and its Moorish feel. The art, people, then Gran Canaria with just a few
culture, food and wine is a rich combination fewer. Lanzarote has 140,000 and then down
of North Africa and Spain, with a distinct to Fuerteventura, La Palma, La Gomera
taste of the exotic in cities like Cadiz. and finally El Hierro with 11,000. Discovering
which island you like the most is part of the
The eastern Costa de la Luz is famous for
fun, and with no shortage of year-round
windsurfing and the party lifestyle that
flights and a flight time of around four hours,
windsurfers love so much. The beautiful
with no jetlag, the Canaries are a great
seaside city of Cadiz is here too. The western
option for winter sun.
side is “Spain’s Algarve”, with large-scale
resorts such as Isla Cristina. Inland are All the islands have great opportunities for a
historic towns like Jerez and Medina Sidonia. healthy active retirement or fun for the kids.
You’ll find reasonably priced country Anything water-based is well catered for,
22 properties inland too. from deep-sea fishing to whale watching
and windsurfing. There are some world-
Four airports in the region have flights from
class golf courses too.
the UK – Gibraltar, Seville, Jerez and Faro,
over the border in Portugal. The architecture includes cheap and
cheerful apartment blocks overlooking the
towns and beaches, villas further out of
The Canary Islands town, but also some lovely South American
The Canaries, sitting off the coast of style villages, and colonial-style houses with
Morocco, are warm all year but rarely either wooden balconies and leafy patios.
“The Canary Islands, sitting off the coast
of Morocco, are warm all year but rarely
either too hot or too cold. Buy a home
here and you can have four seasons of
enjoyment (or rental income) ”Buying a home in Spain
23Buying a home in Spain
24
How to buyBuying a home in Spain
How to pay for your house in Spain
You need to know exactly how much overseas into another scheme, such as a
money you can spend, and what your self-invested personal pension (SIPP) or a
financial sources are: savings, the sale Qualifying Recognised Overseas Pension
or re-mortgage of your UK property, etc. Scheme (QROPS). Conditions do apply, but
It’s also important to think about the typically you could gain greater control over
costs involved in buying a property. your pension and reduce your tax bill. Please
note: the UK authorities will only allow you
The key financial points to transfer your pension into one of these
schemes if you meet certain criteria: you need
to consider are: to be living, or going to live, abroad and you
must remain living abroad. It’s important to
Funds available: remember that it takes ten years of being
Work out the total amount of money you a non-resident and moving the pension for
have available to purchase a property. It a QROPS to show real benefits, making it
could include cash, savings, items you can really important to consider your options
sell, pension drawdown, investments you now rather than later.
can cash in. Consider buying with friends
or family read our guide, Buying Abroad
With Family.
Additional finance:
Can you buy with a mortgage? Speak to an
estate agent, independent financial advisor,
bank or other lender to assess your options. If Getting a mortgage
so, how much deposit willyou need, and how With interest rates so low, it’s no wonder 25
will you service the monthly repayments? that many buyers are choosing to borrow
What would you do in an emergency, such to invest in Spain’s affordable but rising
as unemployment or illness? market. To apply, have the following
Do you have a property in the UK from documentation ready:
which you can release funds, either by • Income tax declaration for the past two
remortgaging or by equity release? years
Our Resource Centre can recommend • Bank statements from the past year
mortgage advisors and equity release
specialists. Email spain@propertyguides. • Payroll or other proof of income for the
com or call us on 020 7898 0549. past six months
• A list of mortgage loans already held
Ongoing finance:
• A statement of your assets and liabilities,
There are costs that will come after you have confirmed by an accountant.
bought the property, including local property
taxes, maintenance and traveling expenses • A copy of your passport.
to get there. How will you cover these? Don’t Just like in the UK with pensions, Spain
forget too, that exchange rates can change, has had its scandals concerning the mis-
and a pension or investments paid in pounds selling of mortgages. Your lawyer should
will not guarantee an income in euros. ensure that your mortgage takes into
(Although, see Managing Your Currency account consumer protection legislation.
Risk on the next page, for Regular Payment The contract of sale and signing of the
Plans where you can lock in a rate). mortgage will normally happen altogether,
with a staff member from the bank present
Investments: at the signing of the deeds in the notary’s
If you’re moving to Spain for good, you office, forwarding the money to the seller.
could benefit from moving your pensionBuying a home in Spain
Managing your Currency Risk We recommend getting in contact with our
trusted partners, Smart Currency Exchange,
Exchange rates are the great unknowns
as early as possible in your process.
when buying property abroad. The risk of
currencies moving is often overlooked in the Smart Currency Exchange has been one of the
excitement of buying, despite the fact that UK’s most highly regarded currency exchange
the price of your property will be changing experts, dedicated to the overseas property
by the minute. As a ‘live’ market, the cost of market, since 2004. Smart has an “Excellent”
buying euros in the morning will be different rating from the thousands of its clients on the
to that in the afternoon. Over the course of independent ratings service Trustpilot, and is
days, weeks and months that fluctuation the trusted currency partner of Rightmove.
can be dramatic.
During 2017 your British pound would have
got you anywhere from €1.20 to €1.08. If you What our readers said about
had agreed to buy a €200,000 property in currency:
June, when the pound was at €1.15 it would “I cannot speak highly enough of the
have cost you just under £174,000 (at the professional and friendly service we
“interbank” rate). But if you were completing received from Smart Currency Exchange
on it just two months later when the pound during our house purchase in Spain. At all
had fallen after the General Election, that times we were kept fully informed by our
same property would cost over £185,000 trader Dalvinder (and, on other occasions,
and you would have to find another £11,000. David) and the whole process was
If you couldn’t find it, you might have lost the streamlined, simple and efficient.
property and your deposit. Highly recommended.”
Stephen Vallely
Such variations (known as “volatility”)
26 over the course of the buying process are “We have recently bought a house in Spain
perfectly normal; indeed they can be much and involved Smart Currency from the start.
worse. So while it is perfectly natural to want David Comber and everyone else we have
to buy in Spain when the pound is looking spoken to were straightforward to deal
strong, unless you lock in your currency with with. No jargon, no fuss and with a network
a Forward Contract you are taking a huge of relevant experts at their fingertips (e.g.
gamble. lawyers). Of course we had concerns about
handing a large amount of money over to
What many people don’t realise is that you strangers but it’s all been absolutely fine.
can lock in an exchange rate today for a Involve them before you go house hunting
purchase later – securing the price of the and you will be ahead of other purchasers.”
property in pounds having already agreed David Browning
the price in euros.
Don’t leave yourself exposed to currency risk
1.16
In just two months the price of a €200,000 1.15
property has leapt by nearly £11,272. If you 1.14
can’t find the extra money, you will lose the 1.13
GBP/EUR Interbank rate
Deposit paid property and maybe your deposit too.
in June 2017 1.12
£ 1 = € 1.15 1.11
Cost of €200,000
property is 1.10
£173,913 Completion 1.09
in August 2017
1.08
£ 1 = € 1.08
Cost of €200,000 1.07
property is
1.06
£185,185
1.05
1.04
May 2017 June 2017 July 2017 August 2017Buying a home in Spain
Buying Costs The Estate Agent
The costs involved in buying a property in A good estate agent will be the most
Spain will vary depending on whether the important ingredient to successfully finding
property is a new-build or a resale, the a property in Spain. You need one that
actual purchase price itself, and whether is legal, reliable and, most importantly,
you are buying with a mortgage. understands the type of property you want.
As a general rule of thumb, you should allow
10-12% of the purchase price to cover all A good agent:
taxes and fees. These include:
Operates legally and ethically
• For a resale property, transfer tax (ITP)
will need to be paid. This is levied at Spain has several professional organisations
8% across most of Spain (including the for estate agents that require training and
islands), but in some areas it is 10%. therefore offer a degree of protection for
buyers. The best known are the API (Agentes
• Notary fees – These are normally split de la Propiedad Inmobiliaria) or GIPE
between the buyer and seller, with the (Gestores Intermediario en Promociones
buyer paying for the issuing of the deeds. de Edificaciones).
Rates are set by law. Allow for 0.5 to 1%
of the purchase price. Check that the agent is still a member
by looking at the organisation’s website.
• Land Registry fees – Allow for 1% of the
purchase price. Is proactive and offers a good service
• Independent lawyer fees – this varies, If you ask a question, you want an agent
but allow for €1,500 to €3,000. If the who calls you back. If you have a problem,
purchase is particularly complicated you want someone who takes action to get 27
the fees can be higher. it resolved. Determining up front if an agent
• If you are buying with a mortgage, add is helpful will give you a better chance of
valuation fees of around €350, stamp getting things done properly. Send them
duty (1.5% of the mortgage deeds) and a brief or an email before you go to Spain,
a lender’s commission (typically 1% of the asking them a question and see how long
capital loans)
• VAT of 10%, instead of ITP if the property
is newly built.
• Stamp duty for a new-build adds around
1% of the purchase price but varies
between regions. It is not applied to
resale property sales. In its FREE report, The Property
Buyer’s Guide to Currency, David
• In addition to these extra costs, as a non-
Comber, Senior Trader at Smart
resident you will need a tax identification
Currency Exchange, shares his top tips
number (NIE) to buy property. This is
for a successful property purchase.
issued by the General Directorate of the
He explains why currency market
Police, and must be used on all tax returns
movements make such a big difference
and communications addressed to the tax
and how to protect your budget from
authorities. This NIE should be processed
currency risks.
before completion and you cannot buy
a property in Spain without an NIE. The For Smart Currency’s free guide:
NIE is also required if you wish to claim The Property Buyer’s Guide to
residency and protect your EU rights. Currency, and the latest currency
See Protecting Your EU rights on page 11. forecasts for 2018, Call our Resource
Centre on 020 7898 0549.Buying a home in Spain
they take to get back to you – and how The Viewing Trip
enthusiastic they are about helping you.
Five tips for a successful viewing trip:
You could fill in our checklist on page 14,
photograph or scan it and send it to a few 1. Avoid peak time. Even apart from the
agents. obvious downsides of expensive flights,
hotels and tourist crowds, many of the
Has experience working with UK buyers best rental properties will have guests
inside them. If looking off-season, do some
You want an agent who speaks your
research into how different the resort is in
language, knows the popular areas for
the height of the season.
British buyers, understands the market and
knows the politics and planning involved to 2. Use technology. There’s nothing more
make things happen. In Spain, agents will frustrating than driving miles to a property
typically focus on a particular patch – so which you hate as soon as you lay eyes on
make sure you get one that knows your it! Use Google Streetview to weed out those
favourite patch well. properties that lack kerb appeal before you
even get to Spain. Once you’re back home,
Stays with you until the end you won’t be able to pop back for another
look, as you would if you were buying
Any agent should help you get your NIE
somewhere in the UK, so use your smart
number, as earning their commission
phones to take photos and video clips of
depends on it. They may also help you open
properties.
a bank account too, and find a surveyor,
builder, notary and anyone else to smooth 3. Don’t be too polite. Avoid any estate agent
the sales process. that tries to control or take over your time or
schedule while there. A good agent might
A really good agent will help you further than
28 offer to find you a hotel, drive you around,
just the final contract, however, suggesting
even take you to dinner, but equally they will
a good local doctor, school and whatever
be happy to leave you to your own devices.
else you need. You can find out if your
prospective agent does this by asking for 4. Engage the imagination. Sure, it looks
past-buyer feedback. Most estate agents a bit rough around the edges now, but
working in the British buying market stay in picture it with a John Lewis kitchen and coat
contact with happy buyers and will be only of Farrow & Ball...! Even the most sparkling
too pleased to introduce you. pool can look like a little swampy after a
month or two of neglect. Do consider that
Gestor ugly duckling property – it might be tens
of thousands of euros cheaper but cost
If you are buying off the beaten track in rural
just hundreds to turn into a gleaming white
Spain, you may find yourself working with a
beauty of a home for generations to come.
gestor. In the days when many people were
illiterate, they needed a representative to 5. Be ready with a deposit. Be prepared
deal with bureaucracy. The gestor role still to come up with a few thousand to secure
exists even if illiteracy doesn’t, and they can a property via a reservation deposit. You
be helpful in dealing with bureaucracy and should have registered with Smart Currency
organising the connection of utilities when Exchange already when planning your
you have bought the property. They should budget, but you certainly should by the
not replace your lawyer, however. time you leave for your viewing trip.
Estate agents Viewing Trips
If you would like help finding the For more information about viewing
right estate agent in Spain, Call our trips, Call 020 7898 0549 for our free
Resource Centre on 020 7898 0549. Viewing Trip guideBuying a home in Spain
29Buying a home in Spain
30
Making An OfferBuying a home in Spain
How to bargain
Once you’ve had a viewing trip or two, at an advantage. You can walk away at any
narrowed down your property search to minute and buy something else; the seller
a handful of options, and know how you needs to sell that property.
are going to pay for it, it’s time to start
making offers. Your agent should be able 5. Counter offer quickly
to let you know what an acceptable offer
is, and make recommendations. Any delay in responding leaves room for a
seller to consider other offers. Make sure you
Remember, though, that the agent is are prepared for what you are willing to pay
working for the seller, and paid a higher before entering negotiations and respond
commission the higher the price. It can be quickly and confidently to any counter-
hard to gauge what is a fair price when offers.
you’re buying abroad, in a country you’re
new to, so here are seven simple tips to
staying in control during the negotiation 6. Don’t stress if it falls through
process: Stay rational and if a deal falls through, don’t
worry. In many cases buyers look back on
1. Know what you are deals that didn’t happen with relief, finding
the ideal property later down the road.
talking about
By conducting the market research and 7. Contact Smart Currency
reviewing recent local sales you will be
confident in asking for a fair price. Being Exchange
well-informed and asking educated Do this before you make an offer
questions will show you mean business. on a property in Spain. Otherwise
you could make an offer and then
31
2. Get your game face one find that the exchange rate has
moved against you before the
Don’t come across too keen, nor too blasé. other side has even responded.
Be polite yet serious, let the selling team
know you’ve viewed a lot of houses and
know your stuff. Just like a poker player,
read your seller’s emotions: with some
sellers you might want to show how much
you love the property, with others you
want to play it cool.
3. Charm
You are buying something that someone
loves. Being too aggressive in your attitude
or pricing will kill off all your good work.
You should normally negotiate via the
agent but writing a letter to the seller
introducing yourself and explaining why
you’re interested in their property can
help you stand out from competition.
4. Take control of the
negotiations Read more about how to bag
yourself a great deal by reading our
You are the one making the offer. guide, How to Negotiate Abroad.
The seller wants to make a sale and
understanding their vulnerability puts youBuying a home in Spain
32
The Legal ProcessBuying a home in Spain
Spain’s buying system
The British have the same right to buy availability on the property and a building
in Spain as the Spanish do, but the legal survey, the deposit should be returned if
processes will not be like those you are there are problems.
sed to in the UK.
Most legal documents will be in Spanish
It is highly advisable to invest in the services so a translation must be given and both
of an independent, English-speaking Spanish signed by the owner and the buyer or
solicitor, who specialises in property law. their representatives.
They will not only oversee and organise the
whole purchase process, but will often advise 2. Getting your NIE number
you on tax and inheritance issues too. This
is even more important if you aren’t a fluent Each person buying the property will
Spanish speaker, as they will be able to guide need to get their número de identificación de
you through the details of the transaction, so extranjero. It is essential for opening a bank
that you fully understand the contract and account, buying property, mortgages and
supporting documentation. It is important getting utilities connected. It’s easy to get an
to establish in whose names the property NIE but it can take from one day to six weeks,
will be put and who will inherit it (especially so it is often the first thing you do after
for unmarried couples with children from agreeing on a property. Your estate agent
previous relationships), among many will normally help, since their commission
other vital issues. depends on it, taking you down to the
immigration or tax office and ensuring
To be introduced to a recommended you have all the correct documentation.
and trusted Anglo-Spanish law firm,
email spain@propertyguides.com or call
our Resources Centre on 020 7898 0549.
33
As buyer, you will have the choice of notary
(Notario). Don’t confuse a lawyer, employed
by you alone to protect your interests, with
a notary. While Spanish notaries are legally
trained and mandatory for any property What will your
transaction in Spain, they are employed by
the government and so officially do not act lawyer check?
for either the buyer or vendor. The role of a Before you pay any money other than
notary is to oversee and rubber-stamp the a reservation deposit, your lawyer will
paperwork in a property transaction, check get the following information from the
all necessary taxes are paid and register the Land Registry.
property with the Spanish Land Registry.
• Who owns the property and has
the right to sell it.
1. Reservation agreement.
• If there are debts against it. For
When you have found the property you wish example, a mortgage or court
to buy and have agreed a price, the agent judgement. Also, if the seller is
will usually ask you to sign a reservation up-to-date with the community
agreement to take the property off the fees and property taxes.
market at the agreed price for, usually, 15-30
days. You will normally pay at least €3,000 • If there are sitting tenants in the
but it could be as high as €10,000 or more, property.
depending on the price of the property. • If it is subject to any special rules
Sometimes the deposit will be returnable if such as subsidised housing.
you change your mind at this early stage,
but sometimes it won’t; it depends on the • For new homes, if insurance is in
terms. By making the agreement subject to place to cover structural defects.
preliminary legal checks, mortgage loanYou can also read
