You have watched the TV, read articles in magazines, and even browsed the internet for your dream home in the sun. You are now ready to take the plunge and buy a property in Spain. Will it be a permanent new home or resale; for holidays or for investment?
It is a big step for anyone to purchase a property abroad and there are many factors to take into consideration.

Keep Focused
First make a list of what you want. Make sure you have this with you at all times and keep referring to it. Once you fly out to Spain with the 'Sun, Sand and Sea', and the laid back atmosphere, it is easy to go astray and there are many that will take advantage - so keep focused!

Have you decided where you want to be?
What part of Spain? - This is a big country.
Do you have a budget?
Are you able to get a mortgage?
Are you after beach, inland, finca, townhouse or urbanisation?
Do you want to restore or buy from new?
Are you going to rent or do B&B?
Why are you moving out here?
Are you retiring or do you intend to work?
If you are confident that you can answer the questions above, you are ready to move onto the next step.


You've found your property - what next?
The most important thing is to obtain legal advice. Do not sign anything or hand over any money. If there is any mention of Black money, walk away. Would you give anyone 20,000 - 50,000 euros under the table with no questions asked? I would hope not. Unfortunately, it still goes on in Spain, but tax inspectors are now investigating. So do be careful.

You have reached the stage where you have decided that you want the property - well great - but don't leave your brains behind. If any alarm bells start to ring take a step back and reconsider.

Seek professional advice; ask around for a good lawyer (Abogado), and architect, if necessary. Your Estate agent may recommend one, but it is probably wiser to use one recommended by another source (e.g. a bank). Check out the Estate Agent too; do they have a CIF number? Are they legal in Spain? What happens if anything goes wrong? We know several people (as does everyone) who have lost thousands, either because unscrupulous estate agents are working together with a dishonest Abogado or builder (illegal building of a house).

View the property several times and check that services (mains water, electricity, sewage and telephone) are (or can be) connected. This is especially important for isolated rural properties as it may not be possible to obtain these facilities or be very expensive to do so.

Get the property surveyed for structural defects by instructing your bank to do this for you or use another Qualified Surveyor.

In addition, ask to see the 'Nota Simple.' There is no reason why you shouldn't - a Spanish person would insist on seeing this before buying. It will show if there are any debts on the property (such as mortgage)s and confirms who the current owner is. Ask your lawyer to check for outstanding debts, as unless these are paid off prior to purchasing the property, they become your debts.

Buying the property
Have a contract drawn up by your Abogado in English and Spanish and unless the Abogado can speak English, take along an interpreter. A time and place will need to be arranged with both the parties concerned, as you will need to sign the document and hand over a non-refundable deposit if you pull out. This private purchase contract will state the terms of the contract, such as deposit payable, price of property, percentage to pay to Estate agent and whether or not any furniture is included.

Also, ensure that you have a clause in the contract that says if the seller pulls out at the last minute you will receive back twice your deposit.
The Abogado, seller and you will then arrange a time to sign at the Notary's Office (usually a few weeks later) whereupon you will receive a copy of the 'Official Escritura' and the keys to the property.

You will definitely need an interpreter if you don't speak Spanish, as the notary will go through the signing of the document and will want you to understand what is going on. The official escritura will be returned to you once it has been checked and registered at the Property register, which is usually 3 months later. This may be returned to your bank or you may have to collect it yourself.

After signing you will need to pay the Notary and property registry fees, amounting to approximately 1% of the value on the Escritura. The Notary office will usually have an area where this can be paid.

The Capital Transfer Tax, which is 7% of the value on the new escritura, must be paid within 30 days. Again, when determining the amount to be declared on the escritura, do not under declare. The tax office has laid down guide lines for the minimum value which they would accept, otherwise they may reassess the property and send a demand for the additional tax due at a higher 'Gift Tax' rate. This procedure can be complicated and it is always advisable to appoint an Abogado or Gestor to act on your behalf. Good Luck!