Articles

A guide to buying property in Spain using a mortgage

Please note that while the process remains the same, there have been some changes in relation to the cost of a Spanish mortgage. For further information, please see our article highlighting this change here.

While it is certainly fortunate to be able to purchase a primary or secondary residence with funds that you already have in your bank account, many people who are able to do so opt to finance the purchase in part by borrowing from a lending institution, often a bank, secured against the property that they are purchasing. Applying for a mortgage in the UK is relatively straightforward. Many of us have done so at least once, if not multiple times. Apart from being advised by your solicitor as to the potential effect of a mortgage, that is about all that you need to know.

In Spain the system is slightly more involved and considerably more costly.

Who's who in your Spanish property purchase?

It is only natural that first time buyers of property in Spain are uncertain of the route to completion of the transaction. Spanish laws and business practices are often a long way from what one would expect in the UK, although when analysed carefully it becomes clear that with a few notable exceptions the actors involved in a Spanish property transaction are not entirely dissimilar from those one would expect to encounter in one’s home country. Here we provide you with a brief guide to who’s who in your Spanish property purchase.

Buying property in Spain with friends and family

Home is where the heart is, and what better way to create a home in Spain than by buying property in Spain with friends and family and sharing the property from the outset? For this reason, it is not uncommon for a number of family members or a group of friends to buy property in Spain together. For most people this is an arrangement that works well for all involved, but there are risks involved and for that reason, it is important to consider the options before you proceed.

Navigating the planning rules in Spain

We Brits often have a love hate relationship with the Mediterranean climate. We love the sun, but we are often not so keen on the heat. Blue skies cheer us up, but the antidote to the warm side effect of the blazing sun is a lovely blue pool to dive into when the thermometer seems as if it is about to burst. In fact, a pool is almost always an essential requirement of anyone buying a property on or near the Spanish coast.

If you buy on a development then there will always be a communal pool, but if you are considering purchasing a detached house on a plot, then you will be broadening your options if you consider building your own pool, whether because no pool has been built at a house that you fancy, or because the pool already built there is not exactly what you were after. While building a whole house from scratch is a bit of a task in Spain, even for a native Spaniard, building a pool is not quite as onerous and is far less likely to go wrong.

New inheritance and gift tax rules in Andalucia

From 2018 the inheritance tax rules in Andalucía will undergo radical changes as the new regulation on inheritance and gift tax comes into force. The new rules will, effectively, exempt many estates from Spanish inheritance tax as well as meaning that, in certain circumstances, gifts from parents to children are not taxable.

>> Download your free guide to Inheritance in Spain

Communities of Property Owners - all you need to know

When buying an apartment in Spain, or a house which forms part of a development, you will often hear talk of a “Comunidad de Propietarios” or “Community of Property Owners” and the service charges that can form part of the running costs of owning a property in Spain. What is this mysterious “community”? And how does it impact upon you as a property owner in Spain? Here we set out the obligations of the community, and your rights as a property owner.

How to avoid Spanish tax nightmares

It is natural for anyone to want to pay less tax. This is so whether in relation to income, capital gains, inheritance, or any other taxable amount. At home in the UK we tend to take the advice of qualified accountants, or tax lawyers, who guide us as to the most effective method of calculating our dues without paying more than we are obliged to pay.

Outside of the UK we may be tempted to throw caution to the wind and take whatever route appears to be the cheapest, if at least someone who seems to know what they are talking about, suggests it to us. In Spain, that is certainly something that happens all too frequently.

Why an independent Spanish lawyer is important

Almost anyone who purchases a property in England or Wales will entrust the legal aspects of the transaction to a solicitor, either a specialist conveyancer, or a general practitioner, but in any event a qualified independent legal adviser protecting the interests of the purchaser. Only people with previous experience of property purchases and considerable knowledge of property law ought to contemplate handling their own transactions and even then it makes little sense to do. That is because by engaging a solicitor not only should you be guaranteed that the purchase will be handled competently, but if a professional adviser makes an error that causes the purchaser damages, there ought to be a professional indemnity insurance policy to cover the loss.

The same principle applies to buying a property in Spain. Before you make any payment either to a seller or to an estate agent you need to engage an independent Spanish lawyer to advise and assist you in respect of the purchase.

The true cost of being a homeowner in Spain

The costs of buying a property in Spain have been well documented. What many people fail to consider in the excitement of buying their dream home in the sun are the costs of being a property owner. The key to avoiding surprises is to make sure that your independent Spanish lawyer advises you of the estimated running costs before you commit to purchasing a property.

Here, we guide you through the costs of owning a property in Spain, and the expenses you can expect to encounter in running your Spanish home.

Living in Spain after Brexit

Spanish immigration rules currently provide for people from countries outside of the EU to apply for permission to reside in Spain for one of a number of reasons. As the transition period has now ended, UK nationals continue to be able to to spend short or extended periods in Spain provided they comply with the rules.