Property buying guide for Spain

Few countries around the world are as diverse as Spain - a land that has lush green mountains in the north and a hint of Moroccan landscapes in the south. A rich heritage, unique culture, language, and stunning beaches are the first few things that come to mind when someone mentions “Spain.” In addition, the balmy weather is the cherry on the cake.

It’s no wonder that a large number of expats from across the world have made Spain their home. The country has a low cost of living relative to the rest of Europe, and has a reputation of having a laid-back and relaxed lifestyle. This European Union (EU) member is fast becoming a popular choice for those looking to buy a property to rent out, or to live in and enjoy the Spanish sunshine.

Prospective buyers will find apartments and villas across Spain for the purpose of investment. It is highly recommended that you visit the areas you want to buy a property in and you will find many interesting and amazing properties for sale across the country, which are affordable and will cater to all buyers and budgets.

In addition to country houses and villas, there are many well-known companies that are offering gated community housing and new luxury properties built next to golf courses that offer true exclusivity.

In the last 30 years, a significant number of foreign nationals have invested in the Spanish real estate market, and even across Europe, Spain has always been the top investment attraction. Heavy foreign investment from overseas buyers in property ownership has been witnessed since the monarchy was restored in Spain. In recent years, there has been a slight slowdown in the market but it is showing strong signs of an early recovery.

Many foreigners have also invested in single-family homes in Spain, which are primarily used as a second home for vacationing in Spain. Such houses have always been in demand in urban areas, but now the rural market is also gaining popularity. A number of people, including foreign investors, find owning a home in rural areas to be very cost effective, in addition to the pleasant appeal of a country home. Very often, these purchases are made in smaller communities to escape the humdrum of the cities.

Large cities like Madrid and Barcelona, and coastal resort towns have seen a booming apartment market for about the past two decades, and overseas buyers have delved in it with great enthusiasm. Industry experts estimate that close to a quarter of such purchases involve foreign buyers or sellers. A lot of these buyers are making purchases primarily for retirement. The moderate weather attracts buyers from different European countries, as also from the rest of the world. As Spain is also the leading economic region within the EU, many business professionals from across the EU tend to spend a good part of the year here, hence an apartment serves as a second home. Additionally, the holiday home market has always been vibrant.

Things to remember when planning a property purchase in Spain:

1. This is a big, warm, and friendly country. Take your time to narrow down to a specific region where you would want to live. Choose a city, town, village, or hillside. Conduct research on the prices and meet estate agents to get a general idea.
2. What type of property would you want? Is it a villa or a country home? Or, is it going to be an apartment. Think about the area of the property, size, and number of rooms. Look at a variety of options to build your knowledge about the market and make an informed decision.
3. Find a real estate agent, and seek for and research as many properties as you can. If you are going to rent out the property, you may want it in a commercial, busy area, but if you are moving in yourself, you may like some quieter place.
4. It is very important that you research all the legalities and costs involved in a Spanish property deal. Hire an Abogado (solicitor) who can advise and assist you in the legal processes.
5. When you make a contractual offer to buy, make sure that you include the offer price, the amount of deposit paid upfront, and the payment schedule. You may also want to include the fixtures and fittings that are included in the offer price.
6. The solicitor will assume the responsibility to check the land registry and will then prepare a binding private contract for both parties. At this point, you may have to pay the agreed deposit amount to officially take the property off the market. The solicitor may then prepare the Escritura de Compraventa, which is a public deed needed to be signed in the presence of a Spanish notary.
7. Once this process is complete, the notary will send the details of the title deed to the local land register to intimate the identity of the new owner of the property in question. This is important to prevent the property being sold twice, and the local land register and the notary work in tandem to protect your interests. Transferring your name to utilities and services like electricity and water connections can also be arranged by your solicitor.

These are only a few pointers to a painless and hassle-free purchase experience. You should certainly do your research through as many avenues as you can. Purchasing a property in Spain is a big decision, especially for a foreigner. When you finally decide to take the plunge, ensure that your family agrees. On the financial front, take all the costs into account. There may be many that you may not have accounted for in your calculations, like expenses related to moving, among others.

Do not (under any circumstances) make a rushed decision, or be pressurized by real estate agents. And, definitely don’t sign any piece of paper unless you are completely ready. Even when you do sign it, be sure to read all the fine print.

One needs to stay committed in the face of bureaucracy and red tape, but the fruits in the end are sweet and really worth the effort. Property purchases in Spain are complicated but completely painless if you go prepared – and the end result is well worth the efforts!