50 Essential property secrets to buying in Spain
We've put together the definitive guide to buying safely in Spain. You'll sail through the process with our experts' hints, tips and soundbites.
Content provided by Spanish Homes Magazine.
Keep an eye on the exchange rate
"A difference of even one percentage point can make a difference of thousands of pounds overall." The Horizon Property Group SL
"Exchange rates are shifting all the time, so if you are buying property in a foreign currency like the Euro, this can mean the price of your property will increase or decrease as the currency changes." Jon Green, Headlands International
Shop around for your currency
"Many specialist currency dealers offer better rates than the high street banks." Chris Mercer, Mercers Ltd
Learn Spanish
"Even basic language skills will enhance your enjoyment of the country and its people." Chris Mercer, Mercers Ltd
"Don't think you can understand certain phrases that sound like the English equivalent, because usually they mean something completely different. For example, ‘estoy constipado' means ‘I have a cold' and ‘estoy embarazado' does not mean ‘I am embarrassed' but ‘I am pregnant'. Useful to know these things when making polite conversation!" Val Hawdon, C & S Homes Overseas
Get your mortgage approved before you go to look at any property in Spain
"Whether you intend to borrow in the UK or abroad, it is a good idea to get at least a preliminary confirmation that you will be able to borrow what you need before you go looking at properties. You know how much you have to spend, and being an instant buyer can also give you a tactical advantage when bidding for, or negotiating the price of, the property." John Howell and Co Solicitors
Be absolutely sure that you can pay the balance on the agreed date
"The contract will normally contain a penalty clause that states that if the balance outstanding is not paid by the agreed date, the purchaser will lose the amount paid and the vendor is free to offer the property for sale again." Troy Holland, Spanish Property Guide
Engage a good, registered estate agent
"Looking for a property is hot and tiring work, so engage a good, registered estate agent to do the donkey work for you. When you get to the stage of buying, a good estate agent will help you transfer money from the UK, open bank accounts, arrange mortgages and apply for NIEs (no longer necessary for buying property here, though necessary for almost everything else) as well as give advice on transporting animals, equipping your new home, schools, etc. Do not feel you have to do this on your own: a good agent should offer this help up front." The Horizon Property Group SL
Ensure your estate agent offers what you need
"If you're buying a plot of land on which to construct a new villa, seek out an estate agent who offers a new build service, as not all do. If he is experienced in new construction he will almost certainly be able to introduce you to reputable architects and builders with whom he has worked in the past." Troy Holland, Spanish Property Guide
Hire a good lawyer
"The relatively low cost of good legal advice could potentially save you a lot more." Chris Mercer, Mercers Ltd
"Your British lawyer is almost certainly not qualified to practice in Spain. Ensure your lawyer is Spanish, but speaks English." Troy Holland, Spanish Property Guide
Use a lawyer who is independent of the builder
Even if the builders' lawyer is a nice person and even if he'd be working free of charge, always use a lawyer who's independent of the builders' office." Richard Davies, ACD Spanish Properties
Find out the truth first-hand
"We would recommend going on a viewing trip for at least three days so that you can ask questions from experienced staff who live there. If viewing trips don't appeal to you, at the very least take a cheap package holiday to that destination independently to find out if you really like it." Jon Green, Headlands International
Embrace the Mañana, mañana philosophy
"If you buy a property for renovation, it is a mistake to think that the work will be finished on time or that the builders and plumbers will turn up when they say they will.
"Even just shopping for a loaf of bread can take a lot longer than you are probably used to, as what we often consider a chore the Spanish appear to think of as a social event, taking ages to pay for purchases while chatting to other people in the queue.
"If you are prepared for delays, then you will not be disappointed. It is important to be patient and generally adopt the same pace of life as the Spanish have lived for thousands of years." Val Hawdon, C & S Homes
Be aware of the differences
"Be aware that the buying system in Spain doesn't work like ours and be sure to do your homework well in advance." Bishop's Move
Insert a penalty clause into the contract
"It is a good idea to have a further penalty clause inserted in the contract stating that if for any reason the vendor does not complete on the contract and wishes to withdraw, he must pay the purchaser an indemnity of double the amount paid as a deposit for the purchase of the property." Troy Holland, Spanish Property Guide
Think about what you really want from your new property
"If you're buying a property for your own pleasure and a rural retreat is your thing, fine. However, if investment is your main aim, you need to consider your target audience and look at whether the property has easy access to shops, bars, beaches - things that are all crucial when appealing to holidaymakers." Nigel Harvey, Seekers Spain
"If you are relocating to Spain, how is it going to feel in three years to be living full-time on a complex with part-time residents always coming and going, and holidaymakers splashing in the pool every day? Think with your head, not your heart, and don't get carried away." The Horizon Property Group SL
Look at the developer's previous work
"Look at the quality of developments built previously by the same developer if possible. Has the development matured well and stood the test of time?" Andrew Spence, Bendinat Group
Consider downsizing
"We have found over the years that clients come to Spain looking for a detached villa and in some instances, it could well be worth also looking at townhouses or low-rise apartments with gardens as these types of property very often offer easy access to restaurants and supermarkets. While people are often looking for property similar to what they have in Britain, if you're moving to Spain on a permanent basis, this is a good time to reappraise your accommodation needs. A smaller home with lower maintenance costs and less day-to-day upkeep may actually suit you more." Allan Sapsed, Blue Sky Homes
Plan your design
"Most architects will have ‘drawing board' designs of standard villas. They may be able to show you ready-built villas conforming to their standard designs, so you can then see in advance what you are likely to get. If you have specific ideas on design, you will be able to liaise with the architect and design a purpose-built property." Troy Holland, Spanish Property Guide
Be aware that many debts in Spain are on the property, not the person
"Your lawyer should have obtained proof that any outstanding debts and all community fees, electricity, water, telephone bills and rates are paid to date. These items are the responsibility of the vendor up until the day of the signing of the escritura by the new purchaser." Troy Holland, Spanish Property Guide
Find out where the local council offices are
"Confusion can arise from the fact that most public buildings are labelled Ayuntamiento, including places like libraries." Val Hawdon,
C & S Homes Overseas
Know your taxes
"You will need to know what taxes will be imposed, how much they will be and how you go about paying for them. The rates on your property, though very much lower than the British Community Charge, must be paid annually, along with a small charge for rubbish collection. This money, together with amounts for electricity, telephone and water, is usually taken straight out of your bank account at the appropriate times. It pays to check on this, though, because if your rates are not paid within a certain time, you can be charged as much as half the amount again on top." Val Hawdon, C & S Homes Overseas
Be aware of additional costs
"On top of any property price there will be certain costs, ranging from around 8.5 to 10.5 per cent. These charges incorporate taxes, notary fees and land registry costs, and must be paid at the time of purchase. All legal documents should be translated for you, so that you know exactly what you are paying for and what documents you are signing."
The Horizon Property Group SL
Buying in the countryside involves other considerations
"If there is already an existing old farmhouse or cottage on the land and it is your intention to refurbish it rather than build a brand new home, there will almost certainly be restrictions on what you can do. If the plot is isolated, the cost of putting in services such as water and electricity may be prohibitive." Troy Holland, Spanish Property Guide
Find out what community costs include
"Basics are pool maintenance, garden maintenance, a five per cent reserve fund for repainting or other major works that might be needed in future and buildings insurance." Andrew Spence, Bendinat Group
Open a Spanish bank account
"Open an account with a Spanish bank as soon as convenient. You will need this account for the payment of your standing orders for electricity, telephone, community fees and so on. Our offices will be able to recommend suitable local banks with English-speaking staff."
Bill Cleaver, Homes In Spain
Rent a home before you buy
"If you have the luxury of time, consider renting in an area you think you like so you can get to know if you really do like it before you buy." Bishop's Move
Know what you can build
"To ensure that you will be able to build on the land you are buying, your lawyer should obtain a document called an Informe from the local Town Hall. This tells you exactly what the planning authorities will allow you to build, the total square metres that can be built and the maximum height of the building." Troy Holland, Spanish Property Guide
Visit out of season
"We all know Spain is hot and sunny most of the time, but what is it like in November or February? Will you still like it?" Chris Mercer, Mercers Ltd
Avoid buying in the tourist season
"Don't try to buy in the summer tourist season, choose springtime. There'll be fewer people around and the weather will be milder." Bishop's Move
Save money by moving inland
"At the moment many small Spanish towns 15 minutes inland are extremely popular as the coast is becoming crowded. These country towns are recognising their popularity and are putting into place plans for the future." Nigel Harvey, Seekers Spain
Find out how much the property appeals through the day
"Just like at home, look at the property at different times of the day." Bishop's Move
Trust your instincts
"Unbelievable deals usually are." Richard Davies,
ACD Properties
Draw up an inventory
"If the property is being sold furnished - which you'll find is often the case when you buy a resale property in Spain - a complete inventory of the contents should be drawn up and signed by both parties." Troy Holland, Spanish Property Guide
Draw up a builder's contract
"Your lawyer will draw up a builder's contract, which will give a complete specification, reflecting the cost per square metre for tiles, the models and types of sanitary fittings, taps, doors, windows and so on, and a completion date should be fixed with a penalty clause for late completion." Troy Holland, Spanish Property Guide
Take your time
"You take more than 48 hours to make up your mind in Britain, so why jump in without really seeing what is available?" Richard Davies, ACD Spanish Properties
"However tempting it may be, don't buy the first property you see! Once you think you've found the property for you, go back to it at least three or four time before you make your final decision." Bishop's Move
See it for yourself
"Reputable agents will show you the builders' price lists as you visit various developments and you will be able to see the properties for yourself." Spanish Property Network
"Get about on the ground with your consultant or agent. Photographs are only a guide to the real thing." Richard Davies, ACD Spanish Properties
Check that the building is legal
"If the property was built within the last six years your lawyer should ask to see proof that a building licence was obtained and that a certificate of the termination of the building (Certificado de Fin de Obra) and the licence of the first occupation (Licencia de Primer Ocupation) have been issued." Troy Holland, Spanish Property Guide
Be wary of touts in bars
"Be very wary about striking up casual conversations with (very plausible) touts who hang around hotels, bars and restaurants ready to chat you up and tell you how and where you can save money on a purchase. Such people are often very skilled in the art and you can end up losing, not saving, money." Spanish Property Network
Insist on seeing the estate agent's office
"If you are on a viewing trip, make sure you go to the offices of whomever you are dealing with. Ask to speak with their aftersales department. A reputable company will have no problem with this and that way you can become acquainted with the people who will look after you and your property while the purchase is going through. This will also give you a name to contact and peace of mind.
Be very wary of anyone who won't take you to their office. Many estate agents work off a kitchen table and once you have parted with your cash you won't see them for dust!" Nigel Harvey, Seekers Spain
Look at the estate agent's track record
"A good estate agent will be registered and have a good reputation - and they'll also have lots of properties to show you, one of which will probably be your ideal home." The Horizon Property Group SL
Check where the estate agency is based
"Use an agent with offices in the UK and Spain." Chris Mercer, Mercers Ltd
Find out what the agency's interests are
"Has the agent invested in what they are selling? Usually a good sign." Chris Mercer, Mercers Ltd
Make sure you know who the current owners are
"The Escritura (title deeds) confirm that the people who claim to be the owners really are." Troy Holland, Spanish Property Guide
Check the Nota Simple
"This document from the Land Registry office shows who the legally registered owner of the property is. It also shows if there are any mortgages or other encumbrances registered against the same. The names on the Nota Simple should match those on the Escritura." Troy Holland, Spanish Property Guide
Pay attention to the exterior
"Ensure that the architecture, pools and gardens are all of a very high standard. Most people tend to focus on kitchens and bathrooms which, although important, do not stand the test of time." Andrew Spence, Bendinat Group.
Check your boundaries
"Most country plots will be sub-divided farmland and the borders may not be clearly marked. A topographical survey should clearly delineate borders and state exactly the total square metres of the plot. If the land is not already fenced, then a new purchaser may consider fencing off the plot (according to his survey) to avoid possible future disputes." Troy Holland, Spanish Property Guide
Consider the gardens
"If you're buying a ground floor apartment, make sure there is provision for the maintenance company to look after your garden. Apart from the convenience, if private gardens are left to individual owners to care for, you may find some gardens looking beautiful while others are full of weeds. Being such visible elements, shabbily-maintained private gardens could bring down the standard of the development as a whole." Andrew Spence, Bendinat Group
Read the contract
"The contract should include the purchase price and conditions of payment, a complete description of the property, a section headed Cargas (Charges), which should read ‘Free of Charges and Encumbrances', and a clause concerning vacant possession on completion, which should read ‘Free of Sitting Tenants'. Troy Holland, Spanish Property Guide
Consider the resale potential of the property
"Once you are happy about all other aspects of the purchase, take a good look around you and ask yourself ‘if I buy this property, am I sure that I can sell it again if the need should arise?' Think about it even if you do not intend to sell the property. If the answer is ‘yes,' then it is probably okay to proceed with the transaction." Spanish Property Network
Look beyond the rubble
"If you're buying off plan, remember that ground floor apartments can produce the highest returns in future. The reason is that they tend to sell a little bit slower off plan, because there is usually a lot of builders' material where the view and the garden should be. Penthouses and flats on upper floors are quicker to sell, but in future when you come to resell, and the private garden area is established and attractively planted, they can attract a much higher premium and demand than other units." Andrew Spence, Bendinat Group
Make the most of the weather
"When moving to sunnier climates, remember that the most used room in the house is often the covered or open terrace, which will enable you to enjoy the beautiful weather that you've moved for." Allan Sapsed, Blue Sky Homes
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