Whether you are looking for a holiday home, an investment or a permanent residence, buying in Spain is an important decision that requires careful preparation. The process is different from that in your home country, so good preparation is essential to avoid disappointment and unexpected problems. Here are some useful steps to best prepare yourself for buying a property in Spain.
Do extensive research
Start by thoroughly researching the Spanish property market. Learn about the different regions, cities and towns in Spain and identify which area best suits your needs, lifestyle and expectations. Also research local property prices and market conditions to get a realistic idea of what to expect.
Set a budget
Determine your budget for buying in Spain and take into account all costs, including purchase costs, taxes, notary and registration fees. This will help you look targeted within your financial means and prevent you from making hasty or unfeasible decisions.
Here you can find more information on purchase costs in Andalusia, Catalonia, Costa Blanca, Murcia, Tenerife and Ibiza.
Consider financing for your purchase in Spain
You can obtain financing in Spain as a foreigner. The usual form of financing is a Spanish mortgage. Here, you can usually borrow 60 – 70%, and with a maximum monthly repayment of +/- 40% from your monthly income (criteria vary from bank to bank).
In addition, you can also borrow in Belgium for a second residence in Spain, provided you have collateral in Belgium. For example, consider (re)taking out mortgage loans on Belgian property or an investment portfolio.
Note: both Belgian and Spanish banks apply stricter conditions for the purchase of a newly built house. The own contribution will be higher.
Find more information on borrowing for property in Spain here.
Seek professional advice
Enlist professional help to guide you through the process. An experienced estate agent can help you find suitable properties and can give you a better idea about the expected rental return.
A lawyer or solicitor is also important. For example, we can advise you on the legal aspects and make sure the purchase goes smoothly and safely.
Find more information on purchase assistance here.
Check the legal status of the property
Have a thorough legal examination of the property to make sure there are no outstanding debts, mortgages or other legal disputes that could complicate your purchase. This will prevent future problems, disappointments and costs in the long run.
Note: a Spanish notary does not guarantee the safety of your purchase.
Learn more about the buying process in Spain here.
Understand taxes and fees
Familiarise yourself with the taxes and costs associated with owning a property in Spain. After all, there are a number of annual costs. Consider taxes and costs of the community of co-owners.
Find more information on annual fees here.
Schedule multiple viewings
Plan visits to different properties to get a good idea of what is available on the market. Take time to explore different neighbourhoods and pay attention to factors such as accessibility (airport), amenities and nearby services.
Negotiate smartly
Negotiating the price is common in the Spanish property market for property in resale. Work with an estate agent to make a reasonable offer based on market research and comparable properties. In practice, an offer in Spain is not binding.
Once the price and any other terms are agreed, the first step is a reservation contract. With this, you take an option on the property for a period of +/- 20 working days. Within this period, you can then start the inspections on the property. It is important that you do not sign a purchase agreement yet, because then you commit to purchase and pay 10% of the purchase price.
Find more information on the reservation contract here.
How do I prepare for a purchase in Spain
In short, buying in Spain requires thorough research, professional advice and careful planning. By following these steps, you can optimally prepare and enjoy a smooth and successful buying experience in this beautiful country.
Do you still have questions about buying a property in Spain? Then feel free to contact us.
