Many UK and North European citizens are finding the idea of purchasing abroad more attractive and achievable. Because these properties offer a good level of capital growth, lower airfares and low European interest rates have made buying in countries like Spain more attractive. The country of Spain provides the advantage of brief air travel, plentiful sunshine and a thriving economy. Although purchasing property in Spain has received a bad rap, you can get a great deal if you follow a few underlying guidelines. The following is a fundamental guide for those interested in purchasing real estate in Spain:

• A good rule of thumb is to make sure to have your finances arranged first when buying real estate in Spain.
  An spanish mortgage can steer you through the complex process


• Take expert legal advice before you sign on any dotted lines.
  


• Avoid overstretching yourself financially.
• Be ready in case deadlines are stretched.
  
• Don’t trap yourself into a contract until you have money ready.
  
• Be aware that the procedure for purchasing in Spain has its own idiosyncrasies and don’t assume that it will be the same as it is in other markets.
• Fully realize the way taxes are accrued based on the specific ownership structure that you choose.

Before making any purchases in Spain, it would be advisable to first approach your lawyer with a series of questions to be answered. There have been many instances where international buyers have been unable to get the results they seek because they didn’t know what questions to ask. Before you sign a contract, you need to think about the next few questions, and others that you may have:

• Is the property’s land pastoral or urban? What are the implications of purchasing on land that turns out to be rustic?


• What costs will need to be taken into account, such as typical attorney’s fees and taxes?


• Are licenses already in place, for instance property contracts or first liens of residency?




• Is this purchase being bought direct or as part of a cessation of contract?


• In this specific purchase, will any be under declaration?


• Be sure to ask what extra costs you might be liable for, such as taxes on capital gains, inheritance taxes or income tax.


• Do any deposits need to be paid? At which stage of the transaction are they deemed nonrefundable?


• What other attorney fees and additional legal expenses will be incurred?

This entry was posted on Monday, August 31st, 2009 at 10:54 am and is filed under Counsel, Real Estate Tips, Regional. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.