Brexit or no Brexit Spain maintains its spot as one of the most popular countries to buy a property and it´s not difficult to see why. Low-cost flights, great climate, many new developments and resales properties to choose from, the list is endless. Since leaving the EU there has been no change in the cost or process of buying abroad, the only difference is how long you can stay, unless you have a Golden Visa or residency you can only stay 90 days of every 180.

STEPS TO TAKE BEFORE BUYING A PROPERTY

NIE
First of all, you will need an NIE (Numero de identificacion del extranjero) you cannot buy a property without an NIE. This can be obtained with the help of a lawyer or you can do it.

Bank Account
You should also consider opening a bank account, this is not a requirement but can make the process quicker and less complicated.

Mortgage
There are many different types of mortgages and deals, here are some examples;

· Construction mortgages are typical if you wish to buy land and build your own property, in this case you can normally borrow 60-70% of the land and construction cost combined.
· Non resident mortgages can be obtained if you are resident in another country but own a property in Spain and in this case, you can normally borrow up to 70% of the value of the property.
·Fiscal residents, who pay taxes in Spain can normally borrow up to 80% of the property value.
·Commercial mortgages, if you plan to buy a commercial unit you can normally borrow up to 50% of the value.

Sometimes banks will insist that you take out other products with them such as house insurance, bank accounts, so speak to a mortgage broker to find the best deal for you.
Mortgages can take between 6 to 8 weeks to secure therefore you may need to appoint someone ´Power of attorney this can be a lawyer and you can limit their power.

Money Transfer
We can recommend specialists in this area as using a reliable company can save up to 3.5% on your transactions. Many companies will give a better exchange rate and their fees are often lower than the banks.
Make sure you always use someone authorised by FCA (Financial Conduct Authority) and a company that has been trading for a while, always check or ask for reviews.

WHY THE COSTA DEL SOL?

Marbella is bouncing back with new developments and the Golden Mile is stretching towards Duquesa/Manilva.

Plus 320+ days of sunshine, shopping centres, golf courses, beautiful marinas and exquisite restauarants. Combine this with a high standard of medical facilities and public schools and there really is not much you could ask for!

The Golden Triangle of Costa Del Sol consists of Benahavis, Estepona and Marbella and within this area you can purchase a resale property from around €130,000 to €30,000,000+ however your money will go further in areas such as Benalmadena, Duquesa and areas further from the coast.

TAXES
This is an estimation of the taxes you will pay, prices and percentages may vary
· Lawyer 1%
· Mortgage add 2-4%
· Resales – Transfer tax (stamp duty) 6-10%
· New developments – 10% IVA (VAT) + 1.2 – 1.5% Transfer tax

Capital gains tax will be paid by the seller and is set on the difference between the price they bought and sold the property.

PROCESS OF BUYING A PROPERTY

First you need to decide why you are buying in Spain, is it as a home for yourself or an investment? Once you know the reason behind your purchase you can start to create a profile for the best location and type of property.
· A permanent home?
· Holiday home?
· Investment?
· Future retirement home?

For example,

If it is a rental investment you need to know areas most popular with tourist i.e. close to golf or the beach, public transport, close to amenities and check you will be able to acquire a tourist code.

If it is for yourself, do you want to buy a property you can just move into or renovate? If you have children, you will need to consider local schools. Job possibilities are also another factor to consider.

Do you want a villa? or an apartment that you can just shut the door when you are not there and not worry about? Maintained communities? Property management?

OLD OR NEW?
With a resale property you can see the final product, how and when the sun hits the terrace, views from the windows, many of the best locations have already been built on so you can see whether you are overlooked etc. Also, with resale properties you can negotiate the price.

With New Developments you can usually choose your fittings, there are often improved building controls and standards i.e. eco-friendly, and the property will come with a warranty so less need to budget for repairs, however quite often the bedrooms are small to allow more living space. Completion will take longer than resales and payments are split over stages of the build. The developer should provide bank guarantees against each payment.

URBANISATION OR NOT?
Urbanisations tend to bring a sense of security and community but if badly managed can look run down and you have little control over the expenses. If you plan to rent your property, check your community allows short term rentals.
Every urbanisation has a monthly charge to maintain the shared areas, such as a communal pool and green area. Before buying ask the community if any large projects are planned in the immediate future as this could significantly raise the monthly charge. Communities will hold regular meetings to discuss problems and ideas, make sure you attend as all votes count.

Once you have decided on your profile your chosen agent can help you find your perfect property.

Most agents along the coast share their properties, this allows you to deal with just one or a few agents instead of being overwhelmed.

Ask your agent to send you a portfolio of available properties based on your profile and short list the ones you wish to view.

Once you have found your ideal property your agent will make an offer on your behalf and negotiate until you agree a price with the sellers.

When a price has been agreed, you will be asked to place a reservation deposit with the lawyer, this is usually between €6000 and €10,000, this will freeze the price and remove the property from the market for a minimum of 30 days. Within 10 days of the reservation deposit being received the full private purchase contract (Contrato de arras) should be signed between buyer and seller, this is similar to the exchange of contracts in the UK, during this time your lawyer will complete necessary checks. The buyer will then be asked to pay a deposit between 10% and 20% of the purchase price. If the seller then fails to complete the sale he must pay the buyer double the amount originally paid, if the buyer fails to complete, he/she will forfeit the deposit.

The sale is formally completed when the title deed is signed in the Notary, here the final amount will be paid along with all relevant purchase fees and taxes. Final registration can take several more months.

Please take a look at my Featured Sales, these are just a select few of the properties available. Alternatively you can contact me on +34 711 052 446 7 info@sol-homes.com