FREQUENTLY ASKED QUESTIONS
Not surprisingly buying a Spanish property creates a lot of questions for the purchaser. Here is a selection, but please do not hesitate to contact us on (00 34) 950 091 137.
How does the purchase process work?
Upon finding the right property a deposit normally between 3,000-6,000 Euros will be required to reserve and take the property off the market. Within 4-6 weeks 15-30% of the purchase price of the property becomes due (less the deposit paid). The price of the property is then fixed in Euros and will remain the same until completion.
The final 70-85% payment becomes due on completion of the property. (This is available on a Spanish Mortgage)
*On resale property the first stage payment after the reservation is usually 10% with the balance paid on completion
What additional costs are there?
We advise clients to budget for 10% on top of the asking price. This is to cover 7% sales tax and an additional 3% for legal costs.
Will I need a Spanish Bank Account?
When you have purchased you will need to open a Spanish bank account. This is required as you will need it for the purchase. You will also need this account in order to set up direct debits to pay your water and electricity etc.
Do British Banks have branches in Spain?
Some of the UK high street banks do have branches in the main towns and cities, especially Barclays and HSBC. Smaller towns have only Spanish domestic banks, but with English speaking staff. Most UK banks have tie ups with these and should be able to point you in the right direction.
Can I receive my UK pension if I live in Spain?
Many residents already receive their UK pension in their Spanish bank accounts.
Do I need residency to buy in Spain?
No, but it is necessary to be registered for tax by acquiring an NIE certificate before going to completion. We would be more than happy to help you organise this.
If I need a mortgage how do I arrange this?
Should you require a mortgage to help your purchase we can provide assistance. You may decide that a Spanish Mortgage is best for you. Again, we can help through a major Spanish bank with whom we have had a long and close working relationship. Should you decide on this route we would advise clients to budget an extra 3% to cover bank charges.
How much can I borrow in relation to the value of the property I am purchasing?
It is generally the case that the banks will lend 80% of the purchase price of the property for a non-resident. For further information, have a look at our Legal and Financial section.
I am buying a new build property in Spain that will not be completed for 18 months. Can I arrange a mortgage in Spain now?
The Spanish banks will only release mortgage funds when the property is completed. By releasing equity in your UK property, however, you can pay for your Spanish home as required, and then arrange a Spanish mortgage approximately one month before completion.
Can you arrange an English Speaking solicitor to act on our behalf?
We can introduce you to an English speaking solicitor who will ensure all legal matters concerned with the sale are covered. They will also discuss with you any matters concerning local taxation, water and electricity contracts etc.
Are all the properties freehold?
All the properties that we sell are freehold. We ensure that all the title deeds (escrituras) are checked by our legal team before any property goes on the market.
What is the healthcare system like in Spain?
In general terms, the Spanish healthcare system is excellent. There are reciprocal arrangements for permanent residents but it is advisable to check with your GP regarding your own specific situation.
If we are coming to live here with children, what is the Spanish education system like?
Spain’s education system is of a very high standard in general. Other than free, state schools there are also English speaking schools should you require them.
Why should I use an agent instead of going directly to the developer when purchasing a new build?
The prices are fixed by the developers and are exactly the same as what are offered by an agent. The benefits of using an independent agent are they are impartial to what they show you, and they offer a full after-sales service.
We would like to buy a holiday home in Spain to let out – is this possible?
Yes, there is no problem purchasing a property to let out, even if a mortgage is required. We can advise you on Property Management companies in the area.
Can I drive my UK registered car over there?
Yes, but only if you are spending less than 183 days in Spain each year - the police may require proof of this if you are stopped. It is possible to transfer a car to a Spanish plate, but the car must first pass the Spanish ITV (the equivalent of the British MOT) regardless of its age.
Can I bring my pet to Spain?
Thanks to The Pet Travel Scheme (PETS), cats and dogs resident in the UK are allowed to visit Spain and return to the UK, without quarantine, provided that certain conditions are met.
There's quite a lot of preparation to do so it's best to discuss your plans with your vet as early as possible and allow at least seven months before your departure date. Also remember that only certain sea, air and rail routes are included in the scheme and you should check with the operator before booking.