Purchasing a property in Spain
Apart from being warm and welcoming, these areas are vastly rich, diverse and beautiful parts of Spain in which to make a home.
Buying your own place in the sun is not only just a good move for holidays – it’s a great investment for the future too. Property prices in Spain are now cheap and you can buy at prices of 10 years ago, so now is the best time to find the holiday retreat you always promised yourself.
On the beautiful southern Spain property prices have been reducing just as in other areas of the world. With banks, currency, stocks & shares, even pensions suffering, investment in property has always been paramount, When demand increases prices rise.
We are a local company and offer an unrivalled choice of homes in this idyllic area of whitewash villages, cedar forests and picturesque fishing harbours.
Buying a property abroad is a big step. At Sell-2-Go we are committed to ensuring that the transaction is as straightforward and trouble-free as possible. Our staff will be available to help you at all stages before, during and after your purchase.
In addition, our after sales department will be happy to assist you with buying furniture, opening Spanish Bank accounts, installing telephone lines, arranging for payments of local rates, water and electricity and sorting out any other problems you may encounter.
The following information will give you an idea of property purchase procedures and costs of living in Spain. (This information is given only as guidance.)
A private Purchase Contract (“Contrato de Compra-Venta”) is made between the vendor and the buyer. Once the property is completed, the official Title Deed (“Escritura”) will be prepared by the Spanish Notary and signed by the vendor and the buyer.
This Contract is then sent to the Spanish Land Registry for registration; you will be given a temporary copy (“Copia Simple”). The original is then returned to the Notary who will pass it on to you.
Payment for new properties is made in stages and varies depending on the building company. A typical payment schedule for a new property is as follows:
- To reserve a property - 3,000 €
- One month later Between - 25% and 35%
- On completion Between - 65% and 75%
For A Resale Property as follows
- To reserve a property - 3,000 €
- On signing of the purchase contract 10/14 days later 5,000 €
- Balance on completion at Notary
Other expenses to be taken into account are the Legal Costs and other incidentals.
Administration and set-up fees will increase your purchase costs.
Typically, these can then reach about 15% of the purchase price when buying with a mortgage.
To obtain a Spanish mortgage you will need to have historical and regular employment or self employment or have acceptable pension or private income.
Income will require justifying by wage slips, annual accounts, proof documents as applicable, 6 months bank statements and credit report such as Experian.
Insurance & Currency
To protect your valuable new asset you will need property Insurance for buildings and contents.
If taking a mortgage then building insurance will be a requirement.
Let us arrange a quote for you. Banks offer insurance services in Spain but they are not always the cheapest, an alternative quote is always useful.
You should use a dedicated currency transfer company in order to change to euros and obtain the best rates without bank charges or added fees either on top of or through the rate given at transfer.
We always recommend the use of a dedicated Currency Transfer company such as Currencies Direct. THis company specialises in money transfer and normally offers better rates than the banks without extra charges.
We can advise you and put you in touch with their local agent as they have an office in the Costa Blanca.
It is prudent to have a Spanish will in place even if you already have one in your own country.
Spanish law differs in respect of beneficiaries and your lawyer will advise in respect to the owners of the property, person/s on the Escritura and your relations and how you want inheritance to work.