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10 Tips For Searching For Property In Spain
By Patrick Collins
January 2007
Spain is a uniquely attractive place to buy a vacation home, or even to move to permanently.  Economic factors are favorable, climactic conditions couldn’t be better and the quality of life is excellent.  Foreign homebuyers are attracted to this fresh, stimulating country by the promise of sunny coasts and a warm, fun-loving culture.  It's always a good idea, however, to exercise patience and discernment when looking for property in a foreign country.  Here are a few simple tips to make sure your search for a dream home doesn't take on any nightmarish characteristics.

1. Identify the area you want to buy property in.
Before even leaving your native country, you should identify what region of Spain you want to buy a house in, since property prices vary greatly in each province.  Take into account factors such as the kind of budget you're working with, lending possibilities that are open to you and whether or not property values in the area you're interested in are expected to rise.  If you're planning on living in Spain full-time try finding out what conditions are like throughout the year, since living somewhere in the winter can be a completely different experience than vacationing there in spring or summer.  Also keep in mind such factors as accessible shopping, good schools for your children and nearby employment opportunities. 

2. Talk to people from your country that own property in Spain.
Ask someone you know about their experience buying property in Spain.  Your friend, a friend of a friend, your cousin's friend's sister … surely you'll be able to find someone if you ask around enough, especially if you live in the UK or Germany.  Listening to actual experiences will give you a good idea of what the property market in Spain is like for someone with your cultural perspective and prepare you for the unavoidable difficulties you'll come across as you search for your Spanish home. 

3. Find a trustworthy estate agent.
Estate agents (called inmobiliarias in Spain) can provide you with helpful information and offer the convenience of a pre-selected portfolio of properties they'll take you to.  It's very important, however, to be careful when selecting one because strict requirements to becoming an estate agent don't exist in Spain and there are thousands of them to be found.  A single individual can set up an agency and provide a low level of service or even scam buyers by taking their money and never selling a single property.  Having said this, there are plenty of dependable agencies that can make your buying experience infinitely easier – you just have to exercise good judgment when choosing one.

4. Don't rush in.
When first visiting an attractive property it's easy to get carried away with excitement, but try being as objective, analytical and realistic as possible.  Take notes of what you want beforehand and compare them to what you observe on your visit.  Afterwards, sit down and see how the property measures up to your list, jotting down any questions that may arise.  Don't be too quick to discount what may seem like minor inconveniences at the time just because you really love a property – try to project a few years in advance and weigh long-term pros and cons.  To avoid succumbing to pushy sales tactics and making hasty decisions, it's best to make at least two visits and consider as many factors as possible before making an offer.  For example, if you're searching for an adorable villa in some remote location, keep in mind that you'll have problems selling or renting down the road if the need ever arises. 

5. Get professional legal advice.
If you've set your heart on a given property, it can be seriously disheartening to come across major problems at the last minute.  Illegally obtained building permissions, sellers who don't actually own the property, structural flaws or unpaid property debts are just a few things that could go wrong and cause you serious problems.  It's well worth the effort of hiring a lawyer to make sure everything's in order before getting too committed to a particular property – perhaps even before making a visit if you're buying from abroad.  A bit of legal advice in advance will help make sure things go smoothly as you get closer to making the purchase. 

6. Research off-plan properties.
Buying off-plan (properties that haven't been built yet) can be advantageous in many ways.  By paying 10% of the future property's price before the building process begins, you'll be able to get the house you want on the plot of land you want, often at a cheaper price.  But approached the wrong way, buying off-plan can be a risky endeavor.  Hire a lawyer that specializes in property law to make sure everything about the off-plan development is legitimate before getting committed.  Definitely avoid the mistake of deciding to invest in an off-plan project without physically visiting the construction site; a pretty brochure will never provide you with all the information you need to make an informed decision.  One simple visit will help avoid surprises such as overcrowded plots, nearby railway tracks or lack of access to shopping and other conveniences.

7. Preplan financial matters.
If you plan on getting a mortgage to cover a high percentage of your future home's cost, it's a good idea to talk to a bank before finding a property.  Get pre-approved to have the peace of mind that you won't be left high and dry by your bank later on.  You can get mortgages from banks in your home country or from Spanish banks, but be sure to spend some time and effort shopping around for the best deals.  There's a lot of money to be saved at this stage of the process and it's not worth simply going with the first place your estate agent recommends.  The same goes for exchanging currency.  Rather than using the first bank you run across, go to the extra effort of finding a company that specializes in currency exchange and offers good rates.

RESOURCE LINKS FOR SPAIN
Spain: Government & Country Information
Information in Spain about the country, weather, Governments and much more!
About Moving to Spain
A Concise List of Resources for Spain -  Our country profile of Spain is a  fairly concise sketch.
Spain: Art & Culture
Living in Spain Art & Culture.
Moving to the Balearic Islands
Our profile of the Balearic Islands.
Real Estate In Spain
Real Estate In Spain - Current real estate listings of properties in Spain.
Real Estate in Spain II
Real Estate in Spain, the Canary Islands & the Balearic Islands.
Articles on Living and Investing in Spain
Articles On Living & Investing In Spain - An Index of Articles  posted on This Website on Living in Europe.
Vacation Rentals In Spain
Vacation Rentals worldwide - including Spain
Vacation & Travel In Spain
EscapeArtist Travel - Our new section providing unique travel to unique locations
Embassies & Consulates for Spain
Embassy Resources for Spain - On our sister site EmbassyWorld.
Education Resources for Spain
Education & Schools in Spain.
Economy & Business for Spain
Including Banks.
Maps of Spain
Maps of Spain - Our own Embassy maps plus a large number of differing Spanish maps, also including city maps.
Links, links & more links
Including Search Engines.
Jobs in Spain
Find Jobs in Spain.
Hospitals in Spain
Hospitals Around The World by Region - Europe .
Newspapers & Media for Spain
Media & News Resources for Spain. Newspapers, magazines, online resources and news channels with current Spain information.
Banks in Spain
See our Banks in Spain in the Bank Europe Section in Escapeartist.
Travel & Tourism for Spain
Travel to Spain.
Previous articles on Spain:
Coming to Spain: Part 2 - As a U.S. citizen living in Spain, I can tell you that people here are just too social and friendly to let a chance at positive interaction pass by because of something as unimportant as someone's nationality.  This might not (actually I'm pretty sure it doesn't) hold true in all other European countries, but then again, you really can't compare Spain to any other country in the E.U.
Coming to Spain?
The first part in a series of short practical articles (very general in scope) for people who plan on visiting or living in Spain, written with the intention of pointing out aspects of Spanish life that may be challenging to foreigners.
Spanish Property Prices
For many years now, Spain has been one of the most popular places for those wanting to start a new life in a foreign country. By far one of the most popular reasons was that house owners could sell their existing property in their home country and purchase a property in Spain at a very good price - thus leaving a large amount of capital that could either be invested or help serve as income through the forthcoming years.
The Camino is different things to different people. 
How does one prepare for the spiritual journey of a lifetime?
8. Factor in taxes and other added costs.
The IVA (Spain's VAT) is a cost you should definitely take into account when shopping around for a home.  For new homes the VAT is around 7% and there's a 6% stamp duty for second-hand homes.  If you're buying a new home and plan on installing a swimming pool it's advisable to include it in the original plans and have it built at the same time as the house.  This way you'll only have to pay a 7% VAT, whereas if you wait until after the house is built, the pool will be considered a luxury item and you'll have to pay a 16% charge. Other expenses you should factor in are legal fees, property registration costs and – unless you speak good Spanish – translation costs. 

9. Be prepared for sellers to ask for black money as part of the sale price.
In second-hand home sales, it's quite common for black money to change hands between the buyer and seller.  An undeclared cash payment means that the total price on the sales contract reflects a lesser amount than the actual price of the property.  Buyers pay less tax on the purchase of the home and owners save on capital gains tax.  Keep in mind that although this type of practice is widespread, it's also illegal, and it could end up backfiring if you ever have to sell and your buyer wants to declare the full price of the home.  In this case, you'll make a larger capital gains tax payment that'll reflect any rise in your property's value plus the amount that went undeclared in your original purchase.

10. Apply for necessary documents in advance.
By law, all foreigners who plan on buying or selling in Spain need an NIE (Foreigner's Identification Number).  In Spain, you'll have to go to an office of the Policia Nacional and fill out an application in the Oficina de Extranjeros(Foreigner's Office).  If you live in the UK, you can apply for this document at one of the Spanish consulates.  Be sure to bring a passport-sized photo of yourself, your passport and a photocopy of your passport in either case.  Also consider opening a Spanish bank account, which will make money transfers and related activities easier and faster.  You might also want to find out beforehand what you'll have to do to change your fiscal address and save yourself a considerable amount of money in tax payments, although this will depend on how long you plan on staying in Spain. Finally, if you or anyone else involved in the future purchase won't be present in Spain, file for a power of attorney so that the process can move along smoothly once you find a property you like. 
 

Patrick Collins works for www.oppspain.com, a property consulting company specializing in new developments and off-plan properties in Spain
Costa Rican Spanish - Christopher Howard, the foremost expert in living and retiring in Costa Rica and author of the No.1 bestselling "New Golden Door to Retirement and Living in Costa Rica", has written a one-of-a-kind language book for people wanting to live in or just visit Costa Rica. It is the result of twenty years of experience, experimentation and research in the field of bilingual education. Tiresome grammar and tedious exercises have been eliminated to both accelerate and facilitate the learning process and make this book more enjoyable. Thus, people of all ages can benefit from it. 
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