As the Spanish economy continues to show encouraging signs of growth following on from recession, there has never been a better time to invest in property in the country.  With low purchase prices and the promise of increased future returns, Spain boasts some attractive real estate investment opportunities.

If you are intending either to make a business investment in Spanish real estate, or to sell your investment, it will be essential to seek independent Spanish legal advice to ensure that your interests are protected and that you minimise your risks, whether relating directly to the assets or to your tax liability.

With offices in Spain, Nova Lawyers in Spain has the necessary expert knowledge and experience to make certain that your business interests are protected in respect of any property transaction.

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What do I need to know?

 

Buying property in Spain is an exciting prospect for many British residents, but it is important to understand the process and the legal requirements before taking the plunge. There are a few key things that a British resident should know before buying property in Spain.

 

First, it is important to understand the Spanish legal system. The Spanish legal system is based on civil law, which is different from the common law system used in the UK. This means that the laws governing property transactions in Spain are different from those in the UK. It is important to understand the legal requirements for buying property in Spain, such as the need for a notary to certify the sale, the need for a Spanish bank account, and the need for a Spanish tax number.

 

Second, it is important to understand the Spanish property market. The Spanish property market is highly competitive and prices can vary significantly depending on the location and type of property. It is important to research the local market to find the best deal and to understand the different types of property available. A typical Spanish property purchase may take six to eight weeks to complete from the time a property has been identified, unless you are purchasing an off plan property, in which case the time to completion will depend upon the speed at which the property in built.

 

Third, it is important to understand the taxation requirements for buying property in Spain. The Spanish government levies taxes on property purchases, including a stamp duty, capital gains tax, and inheritance tax. It is important to understand the taxation requirements and to ensure that all taxes are paid in full before the purchase is completed.

 

Fourth, it is important to understand the costs and the financing options available for buying property in Spain. There is a range of financing options for property purchases, including mortgages and loans. It is important to understand the different financing options available and to ensure that the financing is suitable for the purchase. The typical expenses in relation to the purchase of a Spanish property other than any purchase tax, stamp duty, or value added tax payable, which will vary depending on the Spanish autonomous community in which the property is located, are as follows:

• Spanish Notary's fee - approximately €950 to €1,000
• Spanish property registry fee - approximately €500 to €550
• Miscellaneous costs - approximately €300 to €400
• Purchase tax costs- about 10% of the cost of the property

 

Finally, it is important to understand the residency requirements for buying property in Spain. The Spanish government requires that all foreign buyers of property in Spain become residents of the country. This means that the buyer must obtain a Spanish residency card and must comply with all residency requirements. By understanding the legal, financial, and residency requirements for buying property in Spain, British residents can ensure that they are well-prepared for the process and can make an informed decision when it comes to buying property in Spain.