What type of spanish property are you looking for?

When first considering investing in a Spanish property think carefully about what type of property you are looking for, what its purpose is e.g. holiday home or permanent living, what specifications you need or would like and what facilities you require from the area. The choice available is vast and you will save yourselvestime and help your agent if you can narrow down the field of options. Draw up a checklist of necessities and desirables and use this to pick out suitable properties to view.

Set a Budget for your real estate purchase.

Set yourselves a realistic budget. Use the internet for research, it will give you a good idea of the type of properties available and the prices you can expect to pay. Watching old re runs of Places In The Sun only gives a false impression of the market as it is today and will only lead to disappointment if you arrive here andsee the reality.

Don't forget the spanish Property taxes

Remember when setting your budget that there are taxes to pay on property purchases here. Allow approximately 10 - 11 % extra on top of the selling price to cover these costs. If you are intending to apply for a Spanish mortgage allow an extra 2% in addition as the set up costs and taxes are more expensive here than in the UK.

Photographic Memory ?

Always take a camera or camcorder with you on viewing trips. You might think that you have a good memory but once you have viewed several properties the details of one will start to merge with another. Always go back for a second viewing before making a decision to buy.

Currency Exchange

Open an account with one of the currency exchange companies. If your money is in sterling fluctuations in exchange rates can drastically effect the final cost of your purchase. These companies give a commercial rate of exchange and for a small refundable fee you can pre book rates for months in advance. Choose one that guarantees no receiving fees for Spanish banks otherwise you will get charged when the money enters your Spanish account.

Spanish Bank Accounts

Open a Spanish bank account. Chose one that has a branch near to your chosen location and preferably one who employ staff who speak your language. Non residents in Spain have to pay their utility bills by direct debit. Ensure there are adequate funds in your account to cover your yearly out goings.

Identification

All purchasers of property in Spain need to obtain an N.I.E. number. (Numero de identidad de extranjero, foreigners identity number). This is a relatively simple process if you have the correct forms and can be done by the purchaser. If your agent or solicitor does it with you it will cost money as they charge for their time, petrol etc. If you can do it yourself you can save this money as it actually costs nothing to obtain.

Wealth and Income Tax

If you are buying a spanish holiday home and plan to stay as a non resident in Spain then you are, at this moment, required to pay a wealth and income tax. This is calculated on the value of your property and is due once a year. Most people find it easier to employ a fiscal representative to do this on their behalf. Most solicitors offer this service as an extra or there are independent advisors that you can hire. They can also prove useful in dealing with any problems you might encounter whilst out of the country