Buying Your Dream Home in Spain: A Step-by-Step Guide for UK Buyers
Welcome to Casita Agency, where we specialize in helping international buyers find and purchase their dream homes in the beautiful country of Spain. If you’re from the UK and dreaming of a Mediterranean abode, you’ve come to the right place. Our friendly and professional team is here to guide you through the buying process in Spain, ensuring a seamless and enjoyable experience.
Why Spain?
Spain is renowned for its rich history, diverse culture, and stunning landscapes. Whether you're drawn to the charming villages of Andalusia, the beautiful coastline of Costa del Sol, or the luxurious lifestyle of Marbella and Ibiza, Spain offers an array of options for every taste. With its favorable climate, bustling expat communities, and high quality of life, Spain is a top choice for many UK citizens looking to buy a home abroad.
The Buying Process: Step-by-Step Guide
1. Define Your Budget and Preferences
Budget: Establish your budget, keeping in mind the associated fees and taxes. Consider whether you require financing and explore mortgage options with Spanish banks.
Preferences: Make a list of your preferences such as property type (villa, apartment, finca), preferred locations, number of bedrooms, proximity to amenities, and any specific requirements like a pool or garden.
2. Research and Engage a Real Estate Agent
Research: Conduct preliminary online research to familiarize yourself with the Spanish property market.
Find a Trusted Estate Agent: Partner with a reputable and trusted agency to help with your search. At Casita Agency we are able to act as a sole buying agent for our clients as we have access to the entire property market including a selection of exclusive off market listings. Not only are we specialists in properties, we'll also offer local expertise and will provide you with a personalized service tailored to your needs.
3. Property Viewing
Schedule Visits: Arrange visits to shortlisted properties. We can also facilitate virtual tours if you’re unable to travel immediately.
Evaluation: Assess the properties carefully. Consider factors like the condition, neighbourhood, potential for renovation, and future resale value.
4. Make an Offer
Negotiation: Once you find your desired property, we help you make an informed offer and will carry out all of the negotiations with the sellers side on your behalf.
Reservation Contract: After agreeing on a price, sign a reservation contract (Contrato de Reserva) and pay a reservation fee (usually approximately €6,000) to secure the property.
5. Legal Due Diligence
Appoint a Lawyer: Engage a Spanish lawyer who specializes in real estate to conduct thorough legal checks, ensuring the property is free from debts and encumbrances.
Due Diligence: Your lawyer will verify the property's legal status, title deeds, building permits, and ensure compliance with local regulations.
6. Sign the Purchase Contract
Private Purchase Contract: Sign the private purchase contract (Contrato de Compraventa) and pay the deposit (typically 10% of the purchase price).
Mortgage Arrangement: If you’re securing a mortgage, finalize the arrangements with your bank. Your lawyer and financial advisor will be there to assist with the paperwork.
7. Completion and Notary
Final Payment: Pay the remaining balance of the purchase price.
Notary Appointment: Attend a notary appointment to sign the public deed of sale (Escritura Pública de Compraventa) in the presence of a notary. This formalizes the transfer of ownership.
Registration: The notary will register the property in your name at the Land Registry.
Associated Fees and Taxes
You have found your dream home and you’ve made the offer. The ballpark figure to take into account is around 12% on the purchase price to cover all the extra costs.
Here is a quick run down on all the related fees involved in buying a home in Spain:
Property transfer tax
Known as Impuesto sobre transmisiones patrimoniales (ITP) in Spain, this is similar to the UK stamp duty however it only applies to the sale of second hand properties. The ITP is charged at between 7% and 10% depending on the purchase price.
Stamp Duty & IVA
When purchasing a new build property in Spain, you'll need to pay between 1.2-1.5% stamp duty depending on the area, plus VAT which is 10% of the final purchase price.
Local property taxes (IBI)
This tax is similar to the UK’s council tax. It is raised by the town hall (Ayuntamiento) of the area of residence and is calculated on the basis of the notional rental value (Valor Catastral) of the property. The amount charged is the rental value multiplied by the tax rate fixed in the locality.
Mortgage costs
Buyers opting for a mortgage will have to pay additional costs such as the cost of valuing the property (up to 500€) and the cost of the mortgage itself, which varies from lender to lender.
Legal fees
It is advisable to always use an independent lawyer to conduct the requisite checks. Legal fees usually cost around 1% (including VAT).
Notary expenses
The buyer always covers these expenses and you can expect to pay 0.5-1% of the purchase price declared in the deeds of sale.
Property registration
Expenses related to inscribing the sale with the land registry are also nearly always paid for by the buyer and are calculated in relation to the purchase price declared on the deeds of sale. To be safe you can calculate this to be 1% of the purchase price.
Necessary Documents
As a Briton buying property in Spain post-Brexit, you’ll need:
- NIE (Número de Identidad de Extranjero): A foreign identification number.
- Proof of Funds: Bank statements or financial documents.
- Passport: A valid UK passport.
- Power of Attorney: If you can’t be present for all procedures.
- Bank Account: A Spanish bank account for transactions.
The Golden Visa Scheme
One of the most enticing aspects of buying property in Spain is the Golden Visa scheme. By investing €500,000 or more in Spanish real estate, you can obtain residency in Spain. This visa:
- Exempts you from the 90-day rule, allowing for longer stays.
- Includes family members (spouse and children).
- Provides freedom to travel within the Schengen Zone.
Conclusion
Buying a property in Spain as a UK citizen is a straightforward process with the right guidance. At Casita Agency, we are committed to making your dream of owning a Mediterranean home a reality. Our dedicated team is here to support you every step of the way. Get in touch with us today to start your journey towards owning your dream home in Spain.
For more information or to start your property search, contact us today. We can’t wait to help you find your dream home under the Spanish sun!
