Frequently asked questions about property, Spain and the market

Why should I buy property in Spain?

Well, there’s the obvious reasons, such as the Spanish climate, scenery and laid-back lifestyle but property in Spain can be a great investment too. Interest rates, labour costs and building costs are all low.Spanish property prices rose by 12.8% in 2005 and millions more foreigners are set to buy property in Spain over the next few years.

What types of Spanish property are there?

Apartments and villas are the best known property types in Spain. Fincas, small country properties, are also very much in demand. Off-plan properties, those which are not yet built, are another option. Land for development, country properties, ruins and conversions and golf properties are all to be found on the Spanish property market as well.

What are the costs of buying Spanish property?

Do not let the asking price fool you. There are always additional costs to buying property in Spain, such as taxes and professional services, and you should always budget 10-12% over the price of the property.

What is the process of buying property in Spain?

The process of buying property in Spain differs from the UK. Your lawyer must check the legal status of the Spanish property to ensure there are no problems with the purchase. A deposit will need to be paid to secure a Spanish home and then buyer and seller then sign the Escritura de Compraventa before paying the appropriate fees and taxes.

Can I buy Spanish property at auction?

Yes. Spanish property for sale at auction tends to be good value for money and the process is generally done on a sealed tender basis. Be wary of repossessions, however, as these properties will have debts attached to them that the bank will hope to recoup.

What are the pitfalls of buying property in Spain?

There are a number of issues which turned the dream sour for many overseas buyers of Spanish property. Ensure there are no debts recorded on the property before you commit to buying. The Valencia land-grab law has also caused heartbreak. If buying off-plan, ask for the exact specifications from the developer and whatever you do, always seek professional advice when buying Spanish property. Find out how to avoid these pitfalls here.

Should I use a Spanish Lawyer or stick with my UK solicitor?

A solicitor in the UK would still have to use the services of a Spanish lawyer which would require the payment of two legal bills. Many Spanish property lawyers are geared towards the overseas buyers market and will communicate in English. There are also UK specialists in international law.

Can I open a Spanish Bank Account?

Normally all that is needed to open a Spanish bank account is a passport and a small deposit to go into the account. Most banks have English speaking staff to help you.

Do I need to speak Spanish to live in Spain?

The answer to this question depends upon how much you want to get out of your Spanish experience. Many British ex-pats only know a few words after many years of being in Spain. In the tourist areas you can get by with very limited Spanish but anywhere else you would be expected to speak the language.

How do I move to Spain?

The cheapest way is to hire a van and drive there as you can then transport as much of your possessions as possible in one go. Another, less stressful method, is to find a removal firm to take your belongings. The process of moving to Spain (LINK)is something which must be thought about carefully.

Can I still claim my pension if I live in Spain?

UK Retirement Pensions or other benefits can be paid directly into your UK or Spanish Bank Account. There are several issues concerning income tax on pensions that you must be clear on. Details about these issues can be found here.

What is an NIE number?

This is an identification number for foreigners in Spain. It is used for tax and social security purposes and is needed to carry out official transactions in Spain.

Can I live and work in Spain?

EU citizens can live and work in Spain without needing any visas or work permits. You will need to obtain an NIE number (see above).