Real estate Spain. Financial and legal information for buying properties in Spain
Anyone who has bought properties in Spain will tell you there is a large bank of financial and legal factors to the process. Spainīs real estate sector is, unfortunately, home to a few unscrupulous individuals. This section aims to provide you with information to avoid such traps, whether your purchase in Spain is a residential or investment property.
Financing the purchase of properties in Spain
Ideally we would all like to be so rich we could view several properties in Spain then choose one to buy with the change in our pocket. That is not the case for most of us, however, and so you must look at other ways of financing your purchase.
Among the options are a Spanish mortgage, secured on property, or properties, in Spain, or a UK and international mortgage secured on property at home. If the properties in Spain you are looking at buying are not to be your home, or main home, you may consider a Spanish buy to let mortgage. This last option may be your best bet if you are looking for an investment property. Spain differs slightly from the UK in the way mortgages work so it is important you are aware of these variations.
Legal process for buying properties in Spain
Do you know what a gestor is? You should if you hope to enter the world of Spanish real estate. Spain is unique in having a paperwork specialist who is employed to assist you with legal documents.
His is just one of the many legal services you must engage when venturing in to real estate in Spain. Investment property can be very profitable but it is also not without risks. Professional advice is always best to help you avoid problems caused by inheritance tax and currency issues.
Both of these factors can cost you a great deal of money and this is not always understood by newcomers to Spainīs real estate market. Properties in Spain are under the jurisdiction of a unique tax system and paid for in euros and you must remember this at all times.
What else do I need to know about properties in Spain
Some knowledge of planning permission rules and property tax and registration is essential. If you are looking at renovating a building for resale you must ensure you do not fall foul of the former and risk your investment property. Spain can be incredibly bureaucratic and so it is advisable to keep on top of these procedures at all times.
Protecting your pension in Spain
If you are to be receiving a pension in Spain there is action you can take to optimise this income and dramatically reduce the amount liable to tax by up to 80%.
Taking professional advice is the best way to keep yourself right at all stages when investing in properties in Spain. Real estate can be an exciting and profitable sector but it can also be dangerous.
