Smokend Info Blog

Plenty of residents of the UK and Northern Europe are discovering that purchasing property overseas is an feasible and desirable goal. With a drop in the cost of air fares, interest rates in Europe becoming lower, and the property itself offering capital growth, countries like Spain have become more enticing to potential buyers. Spain offers short air travel time, excellent sunshine and plenty of potential growth. buying 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.
  Consider using a Spanish mortgage expert to guide you through the procedure.


• Before you sign any binding contracts, seek expert legal advice.
  


• Avoid overstretching yourself financially.
• Be ready in case deadlines are protracted.
  
• Do not commit yourself to a private purchase contract until you have the funding that you need.
  
• Be prepared for the Spanish purchase procedure, 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 overseas do not get the results they seek because they either asked the wrong questions or did not ask questions at all before hand. Before you sign a contract, you need to think about the next few questions, and others that you may have:

• Is the property’s land pastoral or urban? What are the implications of purchasing on land that turns out to be rustic?


• What costs will need to be taken into account, such as typical attorney’s fees and taxes?


• Are licenses already in place, for instance property contracts or first liens of residency?


• If the building is less than ten years old, is there a 10year building warranty in place?


• Is this a result of a foreclosure or direct sale?


• 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 lawyer costs and other legal fees will need to be paid?

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