There are no restrictions on foreign property ownership in Spain. The property buying process in Spain is different to the UK, so it is vital to get professional legal help from a reputable English-speaking lawyer before you buy.
'On choosing a property your solicitor will check that the existing property is registered in the Registro de Propiedad,' says Bristow of www.newskys.co.uk' which denotes who owns the property, its exact size and if there are any mortgages outstanding on it.' 'Next, on the solicitor's recommendation that the reservation contract is in order, the buyer will lodge a 10 per cent deposit on a resale property, or on a new build he will sign a preliminary or reservation contract and provide a deposit of between 25- 40 per cent depending on the developer's purchase terms.
'With a new-build you should receive a deed of declaration of new construction, rateable value proof and occupancy permit. As building progresses, you will be asked for staged payments, generally in three stages - the final one falling due when building is complete. Then, on a new build property, when the construction is complete, you will sign a deed of sale, witnessed by a notary. Once agreed by both parties, and other proofs of purchase are presented, the contract is signed, and the ownership documents will be filed at the land registry office'.
'Similarly, on a resale property, assuming that both parties wish to proceed, the signing of the sales contract will be undertaken before an impartial public notary in the form of a public deed. You may give power of attorney to your solicitor to perform this role on your behalf should you wish'.
'Total costs including legal fees, stamp duty and property tax, will usually come to around 10 per cent of the purchase price. Mortgages are available from British and Spanish lenders. Set-up costs can reach £2,000, but interest rates may be lower than those offered by British banks. Generally, loans of up to 80% will be permitted, leaving you to find the 20% deposit required.'
Encouraging for foreign buyers was the Spanish government’s move at the start of 2008 to reduce the Capital Gains Tax it charges foreign sellers; CGT levied on EU citizens in Spain is now 18%, a 17 per cent drop from the 35 per cent that non-resident Brits used to pay. On a final note, Spain has new markets such as Bulgaria and Egypt nipping at its heals but when all is said and done, it carries less risk than emerging markets and has a hardy economy - the fifth largest in Europe. The things that first attracted holiday-home hunters to the beaches of the Costa del Sol, Costa Brava and Costa Blanca all those years ago - plentiful sunshine, a laid-back lifestyle, great food and easy access from Northern Europe - are still very much there.
The views represented in this article are those of the author and not of Channel 4. The purpose of the article is to provide general information only and does not constitute financial, investment, legal or other advice.You should not rely on any information provided in this article and you should always seek out independent professional advice relevant to your own particular circumstances.
You can now search for your very own dream overseas property on aplaceinthesun.com
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Amanda Lamb is on her travels finding you the ideal location for your new house
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