This isn't small print, far from it, but it is the truth and it is something that a prospective purchaser of ANY overseas property should be made aware. They may be things you have already thought of, but then again, they may be not. So put the kettle on, read, digest, then browse.
Exchange Rates – All prices quoted are in Euro. To convert Euro to £'s Sterling use the Currency Conversion link in the right column.
Prices – All Prices EXCLUDE Spanish VAT (IVA).
Spanish VAT – Is calculated according to the value of the real estate, which is normally about 7% of the purchase price. The Rate of VAT for a new building is 7%, and the Rate of VAT for a resale/old building is 7% Property Tax.
Payment Conditions – New Property to Be Constructed, requires a deposit upon reservation, stage payments are arranged to a mutually convenient timetable and contracts are exchanged.
Solicitors – Well, we all need them. All our transactions are conducted by our solicitors who are bi lingual. They can act for all your legal requirements, from start to finish and ongoing fiscal representation.
Annual Running Costs and Hints and Tips:
The actual costs of running a home in Spain are currently considerably cheaper than that of the UK. The following is based on a 2 bedroom property worth around £60,000.
| Standing Charge for Electricity and Water | £100 |
| Local Rates | £100 |
| Community Charges | £160 |
| Building and Contents Insurance | £60 |
| Property Tax | £300 |
| Spanish Fiscal Representative | £60 |
| Total | £680 |
Payable monthly, that's around £65 per month.
Tips and Useful Information
All properties in Spain are Freehold.
- Due to the current economic crisis, a minimum of 30% deposit is now required. Banks are now not giving out large mortgages and are covering themselves from potential risk.
- The interest rates in Spain are usually lower than the UK (Please ask for current rates).
- Compared to some areas of the UK, Spanish property prices are considerably lower.
- Over the past few years, property prices in the southern Costa Blanca area have increased substantially, however prices have fallen dramatically over the past year due to the so called “credit crunch".
- ** If you raise finance in Spain to purchase a property, you must allow another 2% of the purchase price in your budget for legal fees, taking the total to around 12%.
- Daily Flights are available from most UK airports.
- When booking a trip to Spain, or if you are staying longer It is advisable to arrange medical cover. This can be obtained free of charge, by completing an E111 form, from your local post office. Form E111 does not cover you if you decide to reside in Spain See booklet for more information.
- All deposits are payable direct to the developer or builder.
- Check with the Builder or Developer to find out EXACTLY what's included in your property. Worst case scenario is that you go to switch on a light and nothing happens, Why? (scroll down)
- Because you forgot to ask whether light fittings were included in the price … You can't take for granted what is normal inthe UK that it is going to be provided in Spain.