Why UK agents are missing out with property in Spain.

UK estate agents can benefit from entering the overseas property market by offering Spanish homes for sale. Despite the global financial crisis Spain is still high on the agenda as place to move abroad for thousands of British buyers. The main thing that has now changed is that buyers have become realistic about the returns they will receive and much low property prices. Spain proximity to the UK , lifestyle and expat communities is still a good reason to buy in Spain .

Agents commission rates in Spain are more impressive than UK average Spanish real estate agent commissions are between 7 and 10% and sometimes more with new builds!

A report from Rightmove (Jan 2014 ) demonstrates how popular Spain is to the British who can’t resist a bit of Spanish sun.

Top Places to Buy Abroad For British Buyers 

  1. Spain
  2. France
  3. USA
  4. Italy
  5. Cyprus
  6. USA
  7. Portugal
  8. Turkey
  9. Greece
  10. Cyprus

There are no restrictions to foreigners buying property in Spain. You may buy property in Spain even if you are a non-resident and not an EU national. Residency cards are no longer compulsory for all, with the exception of some specific cases. You should seek advice on your circumstances before purchasing a property in Spain.

How to buy a property in Spain

Before beginning the purchase process you will need to obtain a fiscal number or ‘numero de identification de extranjeros’. You should also secure the services of a lawyer fluent in both English and Spanish.

There are two types of property sale in Spain: ‘off-plan’ and ‘re-sale’.

 The steps are typically as follows:

  1. Investigate mortgage options thoroughly – Spanish banks are offering generous finance packages in an attempt to shift the remaining discounted re-possessed properties on their books.
  2. For ‘off-plan’:
  • Upon acceptance of an offer a Reservation Contract is signed and a small fee is payable.
  • The property is then taken off the market for 30 days while the necessary checks are carried out and a contract of sale is drawn up, ‘escritura de compravente’.
  • At this point the first of the ‘stage payments’ is due (to be paid at agreed stages of property construction) – this first payment is non-refundable and is normally 10% of the sale price.
  1. For ‘re-sale’
    • Upon acceptance of an offer a small deposit is paid.
    • The lawyer will then carry out the necessary legal investigations.
    • A contract of sale is signed by both parties which states the sale price, the deposit amount and date of payment, and the date of completion.
  2. Upon completion various fees and taxes are payable (allow 10-14% of the agreed sale price for fees and taxes) and the property is then registered at the Land Registry.
  3. Spanish tax regulations are complex and it is advised to seek professional financial advice specific to your circumstances.

Really useful guides can be found at Just Landed.com

 

created by Europeanproperty.com

 

You May Also Enjoy

Estate Agent Talk

Matching Your Needs: Choosing The Ideal Residential Property Management Services

Owning residential properties can be an excellent investment, but managing them can quickly become hard. From handling tenant issues to maintenance and rent collection, it’s a time-consuming task. Fortunately, there is a solution—property management services. They can handle these tasks for you, freeing you to focus on other priorities. However, with so many options available,…
Read More
Breaking News

Third of Private Renters Are Struggling to Afford Their Rents Says New Research

Over a third of all private renters are finding it difficult to afford their rent according to new research out today. Whilst overall 35 per cent of renters said they were finding it difficult or very difficult to afford their rent, this proportion increased to 56 per cent for those not in work due to…
Read More
Home and Living

Why Select High-Quality Shower Drains for Stunning Wet Room Design

A wet room is a fully waterproofed bathroom with an open shower area, where the floors and walls are designed to handle water exposure. One of the most important aspects to consider when designing a wet room is your shower drain. With a great range of available designs, homeowners and those in the construction industry…
Read More
Breaking News

Bank of England’s decision to hold the Base Rate – Industry Reaction

The Bank of England held interest rates at 5.25% for the seventh time in a row. The decision comes despite official figures yesterday which revealed inflation had fallen to the Bank’s target of 2% for the first time in nearly three years. Here are some thoughts from the property industry.   Rightmove’s mortgage expert Matt…
Read More
Breaking News

Breaking Property News – 20/06/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   OpenBrix, Home, & TDS unite to digitally upgrade the tenant user experience Full disclosure Adam Pigott and the team at Openbrix are one of my original and long serving clients in my day job of getting proptechs from MVP to exit (Proptech-PR). But as…
Read More
Breaking News

Rental Reform Undermined by Lack of Choice for Tenants

A lack of choice for private renters about where they can live will undermine plans set out by many of the UK’s major political parties to reform the rental market. That’s the warning from the National Residential Landlords Association (NRLA) as the Conservatives, Labour, Liberal Democrats and Green Party all propose ending section 21 ‘no…
Read More