Q. How much deposit should I expect to pay to secure the property?

A. The amount you will be required to pay as a deposit is not written in law. However, in most cases, the deposit would be between 10 and 15% of the agreed purchased price. Against the paying of this deposit, you will be asked to sign a purchase contract which should outline all the conditions of sale as agreed with the seller or their representative. You should not sign the contract prior to consulting with your solicitor, as deposits are not refundable. In all cases you may secure the property with a small amount. In the event of any problems with the property, all deposits may be refundable.

Q. What are the costs involved in registering a property in Spain

A. Following the purchase of any property in Spain, you will be required to register the property and pay taxes. The taxes vary depending on whether the purchase is a new or re-sale property. The Spanish equivalent of VAT (IVA) currently stands at 7% on new property and 6% on re-sales. There is an further duty on new property of 0.5%.

Additionally you will be expected to pay Notary fees, land registry fees and any legal fees. As a general guideline, the total of these expenses should be within 10% of the purchase price of the property. Fees may increase slightly if you take out a mortgage.

Q. Can I obtain finance for the purchase of my property?

A. Finance is readily available on new and resale properties through all the major high street banks. The mortgage rate is set by the European Bank, which makes it very similar to a UK mortgage.

If you are purchasing a new property, it is normal for a mortgage of around 70% to be automatically available to you. The mortgage is based on the property value and not on the status of the purchaser, therefore no proof of income or creditworthiness is required.

Resale properties may also carry an existing mortgage, which you will have the option to take over. A resale property without a mortgage can be financed following a valuation by the lender.

Q. Will I need a Spanish bank account?

A. Yes, we recommend that you open an account as soon as you are sure that you are going to proceed to purchase property in Spain. Your deposit payment will need to be in pesetas (euros from January 2002), and you will be expected to set up standing orders for electricity, telephone, community charges etc. Bank accounts, with debit and credit cards, are run very similarly to those in the UK, but you will find that there is a greater reliance in Spain on paying even quite large amounts of money in cash.

Q. Will I need a solicitor?

A. As in the UK, you are strongly advised to obtain proper legal guidance when purchasing a property in Spain. With Eurobrokers you have the option of using our legal services in your property transaction or appointing your own independent solicitor.



The Buying Process:

Selecting your ideal property is the first step in the following buying process:-

· Appoint a legal adviser and organise searches etc.
· Arrange any necessary finance and bank accounts
· Pay the required deposit and exchange contracts
· Finalise the sale at the Notary
· Arrange standing orders for services etc
· Take out necessary insurances
· Move in and light the barbecue!