Do you long for a life in the sun when you retire or are you looking to purchase a holiday home in Spain?
You may dream of living abroad but have reservations about the whole purchasing experience. Buying a property in a foreign country can be quite a daunting challenge especially as so many horror stories have been spread over the media during the past couple of years. At Compare Currency we have compiled a quick guide of key considerations and possible traps that you should look out for when buying a property in Spain to ensure that your purchase goes to plan and you end up with your dream home in the sunshine!
- Don’t get conned by shifty Estate Agents that are here today and gone tomorrow.
When you find your dream home either advertised online or in an estate agents window check that the estate agent promoting the house is well established and has been around for many years. Unfortunately there is little estate agent regulation in Spain and some companies have opened for business taken client’s money and then closed their doors again leaving many in a horrible position. Using a reputable estate agent with a long lasting history in the housing market will offer you more piece of mind.
2. Open a Spanish Bank Account
If you are dead set on moving to Spain, we would recommend opening a Spanish Bank account as soon as possible, this will help speed up connecting to utilities and other such things you will require for your home in Spain. Many utility companies in Spain will only open accounts for you if you hold a Spanish bank account.
3. Find a reputable money transfer company in the UK
Don’t get ripped off by the bank when sending money abroad to pay for your house in Spain. Using a money transfer company can help you save thousands of pounds in transfer fees and will allow you to achieve more competitive exchange rates than obtainable from a high street bank. Foreign exchange brokers including TorFX and Currencies Direct can discuss purchasing forward contracts and other methods of removing uncertainty from the final cost of your Spanish property purchase. For more information how to transfer money abroad please read this money transfer guide.
4. Get an independent lawyer
Under no circumstances should you ever consider buying a property in Spain without a Lawyer. Make sure that all documents are translated into English for you. You would never buy a house in the UK if all the documents were in a foreign language so why do it abroad??
5. Go careful when buying off-plan
Unfortunately since the economic downturn many Spanish building firms have gone under leaving many new buildings unfinished. Until the Spanish housing market begins to recover buying off plan does come with considerable risk and should only be considered with extreme caution. Check that your builder has a well established history and has built other properties locally that can be verified.
6. Get a survey
Again just because you are buying in Spain it doesn’t mean that you must lose your senses! You wouldn’t buy a property in the UK before a survey had been completed, so why would you consider doing so in Spain.
7. Don’t pay the deposit until you are 100% happy
Spanish property deposits are non-refundable, therefore should not be paid unless you are 100% sure that this house is right for you. Typically property deposits are 10% of the total value.
8. Get your Lawyer to check for debts
Spanish law stipulates that a person’s debt is attached to their property and not the actual person. Get your lawyer to check that the vendor has paid off any outstanding obligations including, community fees, utility bills, taxes and mortgages.
9. Meet the locals
Before you buy in Spain it is really important to get a feeling for the local community to see if you will like living in Spain. Find out about the local expat community and local clubs and activities that you can participate in when you move to Spain.
10. Regular payments abroad
If you are planning to receive a regular income or pension from the UK or alternatively you need to transfer money to Spain on a regular basis to pay an outstanding mortgage, it is incredibly important to find a reputable money transfer provider that will help your money go the furthest. Many money transfer companies are happy to waiver international transfer fees if you plan to transfer regular money to Spain. Find out more about Money transfer providers here in the Compare Currency Money transfer Comparison table.
