Without a doubt, Spain is an extremely a popular destination for expats looking for a high standard of living and pleasant climate. Whether you are thinking of buying a property in one of the cities such as Barcelona, Valencia or Madrid, or you are looking to retire at the Spanish coast, you can always find a property that meets your desires. While renting in Spain is always an option for most people, most foreigners choose to buy property. See more on that here. Although there are numerous options to choose from, buying a property in Spain may be a daunting task. In this guide, we take a dive at what you need to know before buying a property in Spain as an investment.
What is the property like in Spain?
In 2008, the Spanish market was hit by a global economic crisis. In the previous years before the crisis, housing prices in Spain were among the highest in Europe. In fact, the Spanish coastal region saw the surging prices, as many people bought the house. During the economic crisis period, the housing market went down and property prices on average went down by almost 40% between 2007 and 2015. The decline in property prices began to grow in 2013, and the demand is now growing again. In the first quarter of 2016, Spain’s housing market returned to positive.
How to find a property in Spain
There are different avenues you can pick to find a property in Spain.
-Through an agent.
-Through online search. This puts both the property owner and the prospective buyer in direct contact.
-Via adverts
Although there are different ways of finding a property in Spain, getting one through an estate agent is most ideal. If it is your first time to buy a property in Spain, then specialist broker or agent might offer helpful insights and advice into the local market. Nonetheless, there will be a fee to pay for this service.
How to avoid pitfalls and Scams
To avoid scams and pitfalls, ask for local recommendation and advice. Even more, you can look for membership of a professional body like API. This is an association for of Spanish realtors. Choosing an agent who is a member of this group would save you from scammers.
How to choose the right property
Spain has a well-established real estate sector. Therefore, you will have a wide choice of house, apartments or even land to put up your dream investment. Typically, you will find more flats available in on built cities and areas.
When carrying out a search, it is critical to check on the condition of the property. Thus, it is a smart idea to involve a surveyor before you commit to buying it.
Legal requirements for buying a property in Spain
The notary has a critical role in house sales in Spain. They prepare all the contractual documents to ensure they comply with local laws before they enter the transfer onto the Registro de las Propiedad (Land register). Apart from the notary, you will require a lawyer to help with the other aspects of the sale, for instance, a lawyer will ensure that the property has no debts listed against it.
Type of fees you are likely to pay
-Property transfer tax which is estimated to be 6-10% of the property purchase price.
-Registration fee usually 0.02-185
-Notary fees usually 0.03-0.45%
-Estate agent fee.
Buying a property is always an exciting step, however, navigating the system in a new country can be a daunting task. Luckily, buying your dream property in Spain should be straightforward if you follow the above steps.
