There
are many questions we receive about buying a property and living
in Spain. Below we have
listed some of the most common ones. If you have a question not
listed here, please do not hesitate to contact
us or fill out
our request form for an answer :-
What’s the main benefit of
buying a new property?
All new properties we sell have a 10-year building guarantee
- very similar to the NHBC guarantee in the UK. Although
this type of guarantee has been compulsory in many northern
European countries for some years now, it only became compulsory
in Spain within the last three years.
Will I have to pay a deposit?
When you have found your ideal property, a non-refundable
deposit of 3,000 € (approximately £2,000), in the
form of a bankers draft or credit card will be due, this will be payable to
Buena Vista Villas s.l. This will ensure that the property is
taken off the market as gazumping is illegal in Spain. The deposit
forms part of a legal contract, which fixes the price as agreed
at the time of paying the deposit, and guarantees you will not
be affected by any future price increases.
This sum will be held by ourselves, the lawyer or the developer.
The contract of sale will be drawn up for your agreement and
signature. If you wish, further transactions regarding the property
purchase can be completed in your absence by granting Power of
Attorney to your agent or legal representative.
Note: Please do bring a bankers draft on your inspection visit.
A personal cheque is generally not acceptable as a deposit by
all bona-fide overseas estate agents and developers. If you
do not find a property of your liking you simply return the
draft to your bank in England.
Could I pay less for my new home elsewhere?
No, just the opposite, Buena Vista Villas offer you your new home at the lowest
list price. Whether you go direct to the vendor, or even through
another agent, the price will not be any less, and in some cases
you will actually pay more, whilst being offered a vastly inferior
range of homes compared to those they can provide.
The prices are set by the builder, and all prices within our
literature are correct at the time of going to press. If you
see the same product cheaper elsewhere, we advise you to be very
cautious and talk to Buena Vista Villas before proceeding.
I’m buying a new property, will
I be able to inspect it before I complete?
Buena Vista Villas will be pleased to take photographs of your property during
construction and forward them onto you. They will also arrange
for you to inspect the property prior to completion at the notary.
Will the property we purchase be freehold?
Yes
Do you have resale properties I can view?
Yes. In fact, Buena Vista Villas can show you a wide selection while you are
in Spain. Although it should be noted that new build properties
are generally more popular. They are often built to much higher
standards than older properties and do not need any maintenance
or immediate financial outlay, as they have new kitchens, bathrooms
and so on.
Usually we recommend a resale if you are looking to move into
a property within a short period of time and are unable to wait
for a new property to be built.
When making an offer for a resale property in Spain, you have
to pay an initial 3,000 € reservation deposit followed by 10% of the total purchase price minus the 3,000 € within
14 days and be expected to complete the
sale within 30 days of making your offer. This means that the
whole process is extremely quick. Therefore, you need to have
the full amount available within 30 days to be in a position
to purchase a resale property. The same restraints do not apply
when purchasing a new property.
I have a house to sell before I can purchase, can we proceed?
If you have around 30% of the purchase price available, without
selling your home, you do have options available to you. You
can reserve a new property in Spain and secure the price in euros
and then sell your own property within the timescale agreed between
yourself and the developer. If your own property sells before
your new home is finished, you simply move out to Spain, rent
a property, and start to enjoy your new life in the sun! The
money you spend on renting a property in Spain is normally offset
by the increase in property value gained and, of course, the
lower living costs. You then get a brand new home to move into,
without any of the normal stresses and strains associated with
trying to sell and buy. Some people do arrange a short term re-mortgage
of their own home in England to enable them to do this.
If you do not want to re-mortgage or arrange bridging finance
(overdraft facilities) and you do not have 30% of the purchase
price available, you will need to sell your home before you can
purchase in Spain.
What other costs on top of the purchase price can I expect?
You should allow an additional 10% on top of the purchase
price for legal fees, notary fees, land registry, VAT (IVA) or
transfer tax and stamp duty. Your lawyer will give you a detailed
breakdown as part of his quotation. If you are considering taking
out a mortgage, the bank may charge an arrangement and survey
fee, as in the UK and other European countries. (Please also
look at our Customer Services, Legal and Financial section).
Are mortgages easily available in Spain?
Spain is an ideal place for a home, or second residence, and
it may now also be one of the best – not to mention the
easiest – places to obtain a mortgage. Spanish banks freely
lend to non-residents, and mortgage rates are generally lower
than most European countries. Mortgages can usually be arranged
within 48 hours, subject to the following information being supplied:
• A photocopy of your last income tax return or last three
months salary slips
•
Your last three bank statements
•
If self-employed, your statement of accounts for the last three
years
Please note that Spanish banks do not normally carry out credit
reference checks and Spanish (and UK) banks normally lend up
to a maximum of 70% of the property value. All this can be arranged
for you in the UK by experienced financial advisors.
Will I have to pay in stages?
If you are buying a new build property that is not completed,
or is in the process of being built, you will normally agree
to stage payments. These vary from development to development,
and builder to builder. However, before you enter into any contract,
you will be told the amounts that will be due at each date. Typically,
after the initial 3,000 € (approximately £2,000) holding
deposit, a payment of between 30-50% is required within eight
weeks, with the balance payable upon completion. If you are purchasing
a resale property, or a new property that is already built, it
is very different. After payment of the initial 3,000 € (approximately £2,000)
holding deposit, a balance of 10% will be required usually within 14 days and the remaining 90% payable
on completion.
For both new and resale properties, once your legal representative
has finished their searches and investigations, and all monies
are paid over, the title deeds (“Escritura”) are
finalised, and the property is all yours. All transfers of property
in Spain must be signed in the presence of a Notary Public (“Notario”),
whose job is not to give legal advice, but to witness the signature
of the title deeds (“Escritura”) on behalf of the
authorities.
What is Fiscal Representation?
A Fiscal Representative will take care of all of your taxes
payable, payment of rates to the town hall (“Ayuntamiento”),
and annual property tax. This is particularly important if you
are a non-resident property owner.
Buena Vista Villas will be pleased to put you in touch with a Fiscal Representative
on your trip, or at a later date, once you have decided to purchase.
Should I use a UK Solicitor?
This isn’t necessary, as your solicitor in the UK would
still have to use a local Spanish lawyer, and therefore you would
be liable for two legal bills! All communication from your Spanish
lawyer will be in English, so don’t worry about understanding
legal documents.
What if I change my mind before completion?
You are committed to the Private Purchase Contract but some
people do sell their property before completion and can benefit
from profits of up to 30% or more on the money they initially
invested.
Do I have to be here for each stage of the legal process?
No, you can instruct your lawyer to act on your behalf,
even for the final completion. Lawyers in Spain are responsible
for chasing up all information required by their clients. Any
information you require can be requested direct from the Spanish
estate agency office, the developer or from your appointed
legal representative.
Can you send us further details of properties that are in
your brochure?
Due to the sheer amount of enquiries we receive, we have tried
to make our property portfolio brochure as comprehensive as possible.
However, if you are particularly interested in a specific development
or property, please call us immediately. Of course, if you would
like more details about an individual property on your visit
to Spain, simply telephone or call into Buena Vista Villas office
and one of our team will be happy to help.
Please note that this web site is updated daily with new properties.
I have already made arrangements to
travel to Spain with a view to buying a property, and would like
to meet up – can
I do this?
If you contact Buena Vista Villas prior to your departure,
they will be pleased to arrange for a member of their team to collect
you from the address you will be staying at and show you a selection
of properties. their only request is that you allow them to show
you properties at the beginning of your visit.
As I am buying in euros and the exchange rate fluctuates,
how can I protect my capital?
If you’re buying a property overseas, one of the main
concerns may be the fact that you have to pay for the property
in a foreign currency. But with everything that has to be done
before you even get to this stage, it’s all too easy to
leave your currency exchange to the last minute and hope that
the exchange rates fall in your favour. This can put your capital
at risk, so it’s wise to plan ahead and take the necessary
precautions.
Once you know the price of your home, start to shop around for
the best rates by calling the bank or one of the specialist foreign
exchange companies. Although banks are traditionally the first
port of call, it certainly pays to talk to the commercial foreign
exchange companies as they usually offer better rates and sometimes
a superior service. In most cases, their dealers will watch the
markets for you and keep you informed of any significant changes.
The commercial foreign exchange companies are also able to offer
you a number of options for transferring your money:
• Spot Transactions are ideal for anyone who needs their
currency straight away as the currency is purchased today at
the current rate. However, if you have time to spare before your
payments are due, it may be wiser to consider a forward transaction.
• Forward Transactions allow you to secure a rate for
up to a year in advance to protect yourself against any movements
in the market. A small deposit holds the rate until the balance
becomes due when the contract matures.
• Limit Orders allow you to place an order in the market
for a desired exchange rate. Your request is entered into the
system which triggers an automatic currency purchase once the
market hits your specified rate.
Some specialist exchange companies also offer the option of
regular pension and mortgage payment transfers at commercial
rates.
How do I open a bank account in Spain?
Opening an account in Spain is very easy and Buena Vista Villas will be happy
to help you on your first visit. At the early stages of your
purchase you will be introduced to a bank of your choice or if
you prefer, one recommended by them so that you can open an account.
With the internet you can access your account at all times from
the UK, check statements, transfer funds and generally keep an
eye on things - all without speaking a word in Spanish. If we
have copies of your passports we can even do this without you
being in Spain.
Can I still receive my pensions or benefits if I live in Spain?
Your UK Retirement Pension or other benefits can be paid directly
into your bank account at home or abroad. Further details are
available from the UK Benefits Agency, and their address is:
The Benefits Agency
Customer Service Unit
Department of Social Security
Pensions & Overseas Benefits Directorate
Room TC109
Newcastle Upon Tyne
NE98 1BA
Tel: 08459 154811
What about annual running costs?
As in the UK, this depends on the price of your property and
when you buy. As a guideline, annual running costs for an average
priced two/three bedroom property will be somewhere between 3,000 € (£2,000)
and 3,750 € (£2,500). This will include water, gas,
electricity, local rates, community fees and house and contents
insurance.
What are community fees?
These apply to properties that have the benefit of services
such as communal swimming pool, security, gardens and general
maintenance. Community fees are agreed by every owner within
the complex, and you are charged on a pro-rata basis, depending
on the size of your property, the plot size and so on. The charges
are overseen by a property manager/solicitor who ensures the
fairness of the fees and that there are no unnecessary increases.
Buena Vista Villas will ensure you have all of this information before you make
the final decision.
What is the cost of living like
in Spain?
The cost of living in Spain is dramatically lower than the
UK. A couple with no mortgage could easily live on 180 € (£120)
per week and still eat out regularly. This certainly makes any
pension or benefits you receive go further.
What if I want to become a Spanish
Resident?
Spanish regulations state that anyone who lives in Spain for
more than 183 days (around 6 months) should have official residency.
There is no advantage in full time residents not applying for
full residency, and this simple process can be done at the local
large police station, where they will also issue you with a NIF
number. This is also required by non-residents if they have any
connection with the Spanish tax system - for example owning a
property, or drawing interest from a bank.
Should we learn the language?
It is not essential, however, if you’re planning to
work in the Spanish community it is advisable. Spanish is regarded
as one of the easier languages to learn and many people get started
using a phrase book or basic cassette tape. For the more serious,
there are dozens of low cost language schools that cater for
students of all ages and abilities. Expatriate clubs also run
language classes. Buena Vista Villas recommend that you look in the local English
press when you are in Spain for your nearest class.
What is driving in Spain like?
Generally, it will only take a few days to get used to driving
on the right. Many of the road signs are the same as in the UK
and in our experience people adapt very quickly. After all, it
is just part and parcel of the adventure! The roads in Spain
are normally well maintained, and apart from coastal areas in
August, they are far less congested than in England. The motorways
are fantastic too and can be worth paying a few Euros’ tolls
for!
Can I drive my UK registered car over there?
Spanish residents cannot drive a car on foreign plates. If
the car you are driving is left hand drive you can transfer to
a Spanish plate. A person wishing to change a right hand drive
car can only do so if they are new residents and already own
their vehicle. If you are spending less than 183 days in Spain
each year then Spanish registration is not vital.
I have children – what are the
Spanish schools like?
The standard of education in Spain is generally very high,
and since entering the EU, it has become simple to transfer between
systems with full recognition of qualifications.
Schools and colleges are widely available, and if your children
are young it’s recommended that you put them into the local
school. State education is free, and most children are quick
to pick up the language. Alternatively, they can attend private
international schools where they study in English, the most famous
being the Lady Elizabeth College in the Jalon Valley.
Within 30 minutes drive of the Jalon Valley you have a choice of two more good international schools.
Further information about Spanish schools, both state and private,
can be obtained from the Spanish Embassy. Most British schools
in Spain belong to the National Association of British Schools
(NABS) whose members are visited and approved by British School
inspectors. (See also general information – Education Section)
Can I take my dog or cat to Spain?
Pets may be taken to Spain, although you will need a health
certificate from an authorised vet, issued within 15 days of
departure and a certificate of vaccination against rabies. You
will also need a certificate declaring that the animal has been
kept in an area free from animal diseases. All these certificates
must be stamped and legalised by the Spanish consulate. Your
pet must also have a microchip inserted. See section General information - pets.
Pets Helpline
Tel: 08702 411710
What about healthcare?
The healthcare in Spain is extremely efficient and available
to all EU residents. The E1-11 form is required and this is
easily obtained from your local post office. It explains exactly
what cover you are entitled to. In addition, all British citizens
of retirement age benefit from free healthcare under the reciprocal
arrangements. You can also take out private health insurance
at a reasonable cost in Spain or in the UK. (See also general
information – Health Care section)
Can I get a job there?
Anyone from the UK who has obtained a NIF number has the right
to work in Spain without a permit, providing they have a valid
passport. UK nationals are entitled to the same treatment as
Spanish citizens in matters of pay, working conditions, vocational
training, social security and trade union rights. The single
European Act which came into effect on 1st January 1993 created
a single market with a more favourable environment for stimulating
enterprise, competition and trade and made it easier for EU nationals
to work in other EU countries.
How do I go about finding a job?
There are several options open to you …
In the Press:
Obtain copies of the following newspapers and specialist publications
all of which contain situations vacant:
Benns Media Directory Europe
International Herald Tribune
Wall Street Journal Europe
Overseas Job Express
Costa Blanca News
Round Town News
CB Friday
Or you can place an advertisement in the numerous expatriate
and Spanish press publications containing situations vacant and
situations wanted (“trabajo vacante”, “ofertas
de empleo & demanda”).
Publicatas Ltd can help you place an advertisement in Spanish
publications, and has offices in many countries. Publicatas Ltd,
517-523 Fulham Road, London SW6 1HD.
Tel: 0207 385 7723.
Visit INEM, a local state run National Employment Institute
(“Instituto Nacional de Empleo”), offices in Spain.
Jobs on offer are mainly non-professional semi-skilled and unskilled
jobs, particularly in industry, retailing and catering.
Through recruitment agencies:
Apply to international recruitment agencies acting for Spanish
companies. These companies mainly recruit executives and key
personnel, and many have offices worldwide including major
Spanish cities.
On the Internet:
The Internet has hundreds of sites for job seekers including
corporate websites, recruitment companies and newspaper job
advertisements (you can use a search engine to find them).
Can I rent out my property?
Most certainly, Buena Vista Villas can introduce you to reputable rental agents
whilst on your trip or nearer to completion. As in the UK it
is normally better to go to the rental agent closest to the property
you have purchased. You will also find that some of the major
developments offer their own property management service.
Spanish rental agents normally offer a key holding/management
service which will cost around 225 € ( £150) per year. They
can also find tenants for you and will agree prior to the booking
the net amount you will receive after they have deducted all
of their charges.
Alternatively local cleaners would charge 37€ - 75€ (£25-£50) to clean a 3 bedroom villa including a linen and towel change.
When booking your Buena Vista Villas inspection trip, tell them that you are mainly
interested in buying an investment type of property, and they can
then allow time to discuss this aspect of the purchase with you.
But remember you should declare any income to the Inland Revenue
that you bring back into the UK. The Inland Revenue will be able
to answer any specific questions you may have.
Can I take my existing furniture out to Spain?
The short answer is “yes”. Should you be moving
on a permanent basis, you may well want to take some or all of
your existing furniture, as well as your prized possessions.
After all, you may have spent a long time accumulating what you
have and it will make the transition easier. The best option
is to use a property removal expert who will ensure all items
are packed safely, fully insured whilst in their possession and
transported to your new home with a minimum of fuss.
Can I use my UK electrical appliances in Spain?
The electricity supply in most of Spain is 220 volts AC, with
a frequency of 50Hz. If you are bringing any electrical appliances from
the UK, you will need new plugs or adaptors. However, it is probably
cheaper, and easier, for you to buy these goods in Spain.
What about furnishing my Spanish property?
“Where can I go to get furniture?” and “Could
my property be supplied furnished?” are two questions we
are frequently asked. If you are already familiar with Spain
and its wide range of furniture stores … then you will
probably have this already in hand. That’s assuming you
have the time to make the arrangements.
The team at Buena Vista Villas would be pleased to spend a day showing you around the
various stores we feel are the best value for money.
How do the Spanish treat foreigners who live there?
You will undoubtedly find your local hosts to be very tolerant,
family orientated and friendly. Spain’s recent economic
prosperity means that the Spanish are enjoying life to the full,
particularly in this area where new foreign arrivals are seen
to be contributing to the financial growth of the region.
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