Buying Property in Spain

Buying property in Spain has many advantages for investors or those merely seeking an exotic retreat. An increase in property value for the past several years has brought attention to Spanish real estate and the country in general. Those expecting a warm, sunny climate in Spain will find that and so much more. In fact, its health care system and modern amenities are but a few other reasons that many are clamoring to buy property in Spain.

Buying Spanish real estate is fairly simple, although one should become as familiar with the countrys customs as possible before taking the plunge. That is because buying property in Spain is very different than doing so in other countries. English speaking investors may also wish to hire a translator when making business deals in the country. That will ensure the buyers confidence when speaking to local associates, such as bankers and real estate agents.

The first step in buying property in Spain is to travel to the country and visit the sites in person. There are many local real estate agencies that can provide a guide to various properties for sale. Real estate agents can be very pushy and in the Spanish sun, surrounded by natural beauty, it is easy to be influenced. However, one should always visit a site more than once before deciding to purchase it. Taking notes and comparing the property to others will give an investor more perspective.

When an investor becomes interested in purchasing some real estate, he/she should then find a bank to arrange a mortgage with. It is best to go to a local Spanish bank, rather than going through a bank in ones home country. This will cut out a lot of red tape and hassle for everyone involved. Also, it will net the buyer a better deal in the long run. Some even opt to hire a lawyer when making large business deals as a means to protect his/her rights as a buyer.

Although much of a Spanish properties cost can be escrowed into a mortgage, there are initial costs that must be paid up front. One should assume approximately 10% of the purchase cost will be paid when signing the deal. This money will cover the following:

  • Transfer Tax (IVA)
  • Stamp Duty
  • Notary Public
  • Name Change on Deed

Spanish real estate is bought in Euros and the average mortgage loan covers up to 80% over 20 years. Many people will find the interest rates to be excellent when compared their own countries average. This is one of the biggest advantages of buying Spanish property. Although the purchase of Spanish real estate is fairly similar to that of other lands, one should be very careful in making sure that all the right paperwork is filed and all the costs are covered. After that, one can relax and enjoy their investment/dream home.

Written by Amy Cottrell for OverseasPropertyNet.com



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