Spanish Property Buyers Guide

What we don’t know about Spain isn’t worth knowing

Prime Spanish Properties are experts in all aspects of buying properties in Spain, especially in the rightly popular Costa Blanca, Costa Calida and Costa Almeria. We will guide you through every step of the buying process, ensuring that it goes as smoothly as possible. Buying a property in Spain can be tricky due to certain legal and financial obligations different to those people expect when buying property in the UK. Then there is the language barrier – how well can you speak Spanish and how well can the developers and officials you may encounter speak English? Prime Spanish Properties will introduce you to a local, Spanish-speaking legal expert as just one of our services to ease the buying process.

Are you thinking of buying an investment property in Spain?

If you are looking for the ideal investment property in south-eastern Spain, Prime Spanish Properties are the people to talk to. As specialists in purchasing off-plan – ie before the property has been built – we can guide you smoothly through the buying process.

Buying property in Spain off-plan is the best investment. The purchaser can secure the Spanish property at a discounted price, well below the market rate – and as the property is built, its value increases. Its value will often also increase after it has been built. It will be worth more money as the properties and amenities around it are developed – the more attractive to the buyer the area becomes the greater the value of the property you bought early on.

As with all investments, timing is important. Identifying the best units, in the earliest phases of development and in the right locations is key to making a sound investment. Our expertise will ensure you make the right choice.

Or do you want to move to Spain now?

For those clients who don’t want to wait we have newly built properties and a large selection of resales, all of which are ready to move into now. Up-to-date availability on these properties can be obtained here. Or please call our UK office for more information on 0151 531 0706.

Our quick guide to buying a newly built property in Spain

Prime Spanish Properties will guide you through every stage of the buying process, but below is a quick overview.
A newly built property in Spain can usually be bought with an initial deposit of €3,000. The payment structure can vary, depending on which builder or developer is selling the property but a typical payment structure is as follows:

1. Initial deposit €3,000
2. 30% - 50% of purchase price within 4 to 6 weeks
3. Remaining balance paid on completion (Please note, in addition to the purchase price of the property you must add 10% to cover VAT and legal fees.)

Because of our long-established relationships with many builders and developers, it is sometimes possible for us to negotiate favourable payment schedules on your behalf.
We also offer advice across the whole of the market to find you the best deal for raising the capital to buy your Spanish property.
Once you have found your ideal property, we will introduce you to an independent English-speaking Spanish solicitor who will deal with all your legal requirements.

Amount borrowed		Monthly repayments
£20,000	€29,000	£191	€ 172
£40,000	€58,000	£237	€ 344
£60,000	€87,000	£356	€ 516
£80,000	€116,000	£474	€ 688
£100,000	€145,000	£593	€ 860
All figures based on €1.45 to £1		Example shows Interest rates at 3.75% over a term of 20 years

Annual Running Costs

Standard Charge for Water & Electricity	£120
Local Rates & Rubbish Collection	£60
Urbanisation Community Charges	£230
House & Contents Insurance	£150
Property Tax	£200
Spanish Fiscal Representative	£120
TOTAL	£880

Fiscal Representation

It is compulsory under Spanish law for all non-resident property owners to appoint a Spanish Fiscal representative. They will take care of all your fiscal responsibilities, such as:

• Annual Wealth tax declarations (where applicable)
• Arranging your Fiscal number
• All other Fiscal obligations

We will, of course, be happy to assist you in your selection of Fiscal representative.

Mortgages

At present mortgage rates in Spain are among the lowest in Europe. Mortgages can be easily arranged and can be released for up to 70% of the Spanish property value. A simple application form, copy of your passport, P60, and last three wage slips are all the paperwork needed. For the self-employed, a copy of your tax return is required and for the retired, proof of income, such as a pension would suffice.

Weekly Letting Potential

	Season
PROPERTY TYPE	Low (Oct – Feb)	Mid (Mar-May)	High (Jun-Sept)
2 Bedroom Bungalow/Apartment	£150 - £300	£300 - £400	£400 - £500
2/3 Bedroom Bungalow/Apartment	£250 - £350	£350 - £500	£500 - £650
2/3 Bedroom Villa with Pool	£300 - £500	£500 - £700	£700 - £950

The table shown is for guidance only and rental returns will depend on location, property size and time of year.
Remember properties can be let all year long on the sunny Costa Blanca, Costa Calida and Costa Almeria, areas that enjoy 320 days of sunshine a year. Winter daytime temperatures can reach 70°F and the winter evenings are only chilly enough to merit a light jacket.

Prime Spanish Properties Ltd acts solely as selling agents for the developers and builders. Contracts are made directly with the developer/builder. Literature is for guidance only and does not form the basis of any offer or contract. Prospective purchasers must satisfy themselves on all matters of a legal nature.