A Spanish home bought from the UK might be a holiday house, a future permanent move, or an investment. The legal steps are recognisable across those motives. The tax steps are not. How often you use the property, whether you let it, and whether you later become Spanish resident all change the picture.
The people you need
You need a lawyer who acts for you, in Spain, and who is independent of the agent and the seller. You may also use a buyer’s agent. You will deal with a notary at completion. If you are borrowing, the lender will have their own requirements and valuation.
A UK solicitor who does not practise Spanish property law is not a substitute, though they may still be useful for how the purchase sits with your UK affairs — a will, for example, or the source of the deposit.
Checks before you pay a deposit you cannot lose
- Who owns the property, and are there debts registered against it?
- Is the description in the land registry the property you think you are buying?
- Are there planning, community or tourist-licence issues?
- What does the community charge, and are there arrears?
- If it is new-build, what is the payment schedule and what happens if it is late?
Reservation fees are sometimes poorly worded. Know whether a payment is refundable, and in which circumstances, before you send it.
Price, tax and the exchange rate
The price you negotiate is not the cost of buying. Transfer taxes or VAT, notary and registry fees, and legal fees sit on top, and the rates depend on the property, the region and whether it is new. Your lawyer should give you a figure for the property in front of you, not a national average copied from a blog.
If your savings are in sterling, the euro price moves while you are under offer. Some buyers convert in stages. Some use a forward contract from a reputable firm. Either way, look at the rate you are actually given, not a mid-market rate on a news site, and leave time for the bank’s questions about source of funds.
After completion
You will have ongoing costs: community fees, local taxes, insurance, and utilities. If you let the property, you will have income to declare, very likely in Spain and possibly in the UK as well. If the home is empty for long periods, tell the insurer. A policy that assumes you live there may not respond.
Wills deserve a look. A UK will may not deal cleanly with Spanish property. This is a short conversation with a lawyer and a poor thing to leave until it is urgent.
WiT Access provides general information and comparison resources. Nothing on this website constitutes financial, tax, legal or investment advice. Always consider obtaining advice from an appropriately qualified professional.
