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
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:
- 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.
- 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.
- 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.
- 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.
- 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