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How to buy a property in Spain Spain tops the list of favourite places to buy property time and time again. And with year-round sunshine, frequent flight connections from the UK, a relaxed and affordable lifestyle plus well-established expat communities, it’s easy to see why. DID YOU KNOW? The British bought over 125,000 properties in Spain between 2006 and 2018, and in 2018 alone, British buyers accounted for almost 2% of total purchases in Spain¹. But as with any major investment, buying property in Spain isn’t something to breeze into. The buying process is different to the UK, for example and if you want to find your dream home, it’s important you get it right every step of the way. To help you make a savvy decision and save money, time and stress, we’ve put together a useful buying process overview. Read on to discover how to purchase the right property for you and, most importantly of all, ensure peace of mind. LOCATION, LOCATION, LOCATION We’re all familiar with
this old chestnut and the same applies to buying property in Spain – it’s all about where it is. To help you pinpoint the ideal location for you, bear in mind the following: • Why are you buying a property? Depending on your reason – a holiday home, retirement, relocation, buy to holiday let or pure investment – different locations will tick different boxes. • Holiday home? Choose somewhere handy for an airport. Make sure the property is easy to maintain and lock-up-and-go. • Retirement? Pick a place with public transport and amenities on the doorstep. Decide if you’d like an expat community on the doorstep. • Relocation? Check out nearby schools and employment opportunities. Think about whether you’d like to be near fellow Brits. • Buy to holiday let? Choose a spot near an airport, tourist attractions and/or the beach. Check restrictions – there are strict regulations in the Balearic and Canary Islands as well as Barcelona and Madrid, for example. •
Pure investment? Research the local property market and check out current and future demand. DID YOU KNOW? The most popular places for Brits to buy property in 2018 were the Costa Blanca, Tenerife, Balearics, the Costa del Sol and the Costa Brava². TOP TIP – check out the location at different times of year. Some resorts are bustling in high season, but little more than ghost towns in the winter. 2 buyinspain@rationalfx.com | 0207 220 8167 SEARCH FOR YOUR PROPERTY Once you’ve decided on where, it’s time to find the property itself. Make Zoopla your first port of call and start browsing. To help you narrow down your selection, think about what type of property you’d like to own. This decision will probably depend on why you’re buying. TOP TIP – buying costs range between 10 and 12% of the purchase price so don’t forget to factor these into your budget. • Size – how many bedrooms and bathrooms do you need? • Off-plan or resale – can you wait for
construction to finish? • Fully refurbished or a fixer-upper – how much work are you prepared to have done? • Own garden/pool or shared – do you want responsibility for maintenance? CONTACT ESTATE AGENTS Use Zoopla to search for your ideal property in Spain. Simply select your preferred location, property type, price, number of bedrooms, add any important keywords such as “garden” and then click to see what could be your dream home. Zoopla lists tens of thousands of properties in Spain so be prepared for plenty of possibles to come up in your search. Save your favourites and then get in touch with the estate agents, the first professionals you’ll be dealing with in Spain. 3 TOP TIPS for choosing a reliable estate agent: • Choose an API registered agent (Agente de la Propiedad Inmobiliaria) – look for number on their website. • Choose an agency with a real office with a real address and a Spanish fiscal number. • Choose an agent who has been around for
a few years (say five) to give them a chance to establish a reputation and gain good local knowledge. • Read their ‘About Us’ section and ask yourself if it sounds professional. • Ask for recommendations from others and/or Google the name of the estate agent. • Beware of pressure on you to buy. A good estate agent will leave you to make the decision in your own time. buyinspain@rationalfx.com | 0207 220 8167 CONTACT A LAWYER Another key player when buying property in Spain is your lawyer – they check all legal aspects to ensure you buy with peace of mind. • Find an independent professional who will represent your interests and no one else’s. Ask around for recommendations or request testimonials. • Check the lawyer’s credentials – they must belong to the provincial bar association (known as the Colegio de Abogados). You can easily find out by putting their name and surname into the search boxes here https://www.
abogacia.es/servicios-abogacia/censo-de-letrados • Choose a lawyer with experience in property and planning laws and who speaks good English. TOP TIP - don’t sign anything or hand over any money until you have met with your lawyer to discuss the purchase. PICK YOUR PROPERTY Now you have your estate agent and lawyer in place, it’s time to see the properties. While you’re viewing, schedule a meeting with your lawyer to brief you on the buying process. Once you’ve chosen your dream home, your lawyer will start checking the legal paperwork and you need to get the money in place. 4 buyinspain@rationalfx.com | 0207 220 8167 REGISTER WITH A FOREIGN EXCHANGE COMPANY Most Spanish property transactions are in euros so getting the best sterling/euro exchange is essential. For competitive rates, using a bank may not necessarily be the most cost-effective option for you. International payment providers, such as RationalFX, provide solutions for individuals looking to purchase a
property abroad without wanting to pay out on high currency exchange fees. RationalFX have competitive rates and no hidden fees, allowing your pound to euro money transfer to be seamless and hassle-free, whilst saving you money in the process. A dedicated account manager will be at hand to answer any questions you may have along the way and guide you through the process. RationalFX vs Banks 2019 EUR USD USD Rate 1.11508 1.23381 1.81616 Value €111,508 $123,381 $181,616 Rate 1.0781 1.1907 1.7134 Value €107,810 $119,070 $171,340 Rate 1.1027 1.2199 1.7814 Value €110,270 $121,990 $178,140 Rate 1.0959 1.2109 Value €109,590 $121,090 A comparison of exchange rates on £100,000 RationalFX *Currency rates from RationalFX 19/09/2019 HSBC *Currency rates from HSBC 19/09/2019 Natwest *Currency rates from Natwest 18/09/2019 Barclays *Currency rates from Barclays Premier Bank Account 18/09/2019 Overseas Property Investments and Currency Fluctuations
Explained In July 2018, Clare wanted to invest £190K on a property in Spain. The cost of a Spanish property was €215K. H ere is how currency fluctuations will affect her: 13 JULY 2018 20 JULY 2018 28 AUG 2018 1 OCT 2018 GBP/EUR Interbank rate = 1.12983, meaning €215K would cost around £190K. GBP/EUR Interbank rate = 1.11734, cost has increased to £192,421. GBP/EUR Interbank rate = 1.10384, costing £194,775. GBP/EUR Interbank rate = 1.10384, costing £191,373. What are you waiting for? Create an account with RationalFX today and a member of the team will be in touch to discuss your requirements! Alternatively, give RationalFX a call on 0207 220 8167 or email buyinspain@rationalfx.com 5 buyinspain@rationalfx.com | 0207 220 8167 TOP TIP – Choosing RationalFX will allow you to fix an exchange rate so that you can budget with exact figures. GET YOUR NIE NUMBER To buy a property in Spain you need an identification number, known as a número de identificación de
extranjeros (NIE). You can apply for this in Spain at a police station or at a Spanish consulate. Ask your lawyer for advice on the best and quickest way for you to apply. You can find more information about the NIE here. OPEN A SPANISH BANK ACCOUNT Once you have your NIE number, you need to open a bank account. Most banks in Spain allow you to open an account online, but you must go in person to your nearest branch to show proof of identity and sign the paperwork. DID YOU KNOW? – Spanish banks are notorious for high charges, especially for international transfers, which is why using a foreign exchange for overseas payments is key! 6 TOP TIPS for choosing a bank: Lots of banks operate in Spain, but narrow down your choice by asking these questions: • • • • Does the bank speak English (staff at branches and telephone and online banking)? Do they have a good range of branches and ATMs? Can you bank online and preferably via an app? What do they charge for accounts and
transactions? buyinspain@rationalfx.com | 0207 220 8167 BUYING PROCEDURE Once you’ve chosen your property and agreed a price with the owner, the buying procedure starts. Bear in mind that buying a property in Spain is very different to the UK. These are the main steps: Your lawyer carries full legal checks such as ownership, planning status, registry details and information about any charges on the property. 1 2 Your lawyer completes the legal checks and arranges the signing of the title deeds at a notary public. 3 4 Your lawyer sets up utility transfers and direct debits. Your lawyer drafts a pre-purchase contract including all the conditions of the sale (e.g price, furniture included, timescale, etc). You pay a deposit (usually 10% of the price) and you and the seller sign the contract. The deposit is usually nonrefundable unless you’re unable to meet one of the clauses (such as get a mortgage) or the seller fails to comply with the contract. Completion takes place
– timelines vary, but usual practice is between 1 and 2 months after signing the pre-purchase contract. Both parties sign the title deeds in the presence of the notary, you pay the outstanding amount and get the keys to your dream home. Your lawyer organises payment of all fees and taxes (allow 10 to 12% of the purchase price for this). 5 6 You start any refurbishment, furnish the property and then start enjoying your new home for holidays, retirement or permanent base. If you wish to let the property for holidays, you need to apply for a letting license – your lawyer will give you advice on this step. Find your dream home in Spain now » 7 buyinspain@rationalfx.com | 0207 220 8167 LOOKING FORWARD TO THE FUTURE Buying your dream home in Spain is only the first step towards a new chapter in your life. Once your property has been purchased, you may wish to redecorate or renovate it. RationalFX can provide you with a tailored regular payment plan at a fixed rate to help save
you money in the long run. Should the time come when you want to sell your property in Spain, you’ll need a cost-effective way of transferring your sale proceeds back to the UK. RationalFX offer secure, simple and reliable repatriation services to help you minimise international money transfer costs and maximize your profit. CONTACT US T: +44 (0) 20 7220 8167 | E: buyinspain@rationalfx.com | W: wwwrationalfxcom OUR OFFICES Follow us Level 32 679 Avenue de la Cc La Colonia. /rationalfx One Canada Square République Avda Virgen del Rocio, s/n. @rationalfx Canary Wharf, London 59 000 San Pedro de Alcantara /company/rationalfx E14 5AB Lille 29670 /rationalfx UK France Spain 8 buyinspain@rationalfx.com | 0207 220 8167
this old chestnut and the same applies to buying property in Spain – it’s all about where it is. To help you pinpoint the ideal location for you, bear in mind the following: • Why are you buying a property? Depending on your reason – a holiday home, retirement, relocation, buy to holiday let or pure investment – different locations will tick different boxes. • Holiday home? Choose somewhere handy for an airport. Make sure the property is easy to maintain and lock-up-and-go. • Retirement? Pick a place with public transport and amenities on the doorstep. Decide if you’d like an expat community on the doorstep. • Relocation? Check out nearby schools and employment opportunities. Think about whether you’d like to be near fellow Brits. • Buy to holiday let? Choose a spot near an airport, tourist attractions and/or the beach. Check restrictions – there are strict regulations in the Balearic and Canary Islands as well as Barcelona and Madrid, for example. •
Pure investment? Research the local property market and check out current and future demand. DID YOU KNOW? The most popular places for Brits to buy property in 2018 were the Costa Blanca, Tenerife, Balearics, the Costa del Sol and the Costa Brava². TOP TIP – check out the location at different times of year. Some resorts are bustling in high season, but little more than ghost towns in the winter. 2 buyinspain@rationalfx.com | 0207 220 8167 SEARCH FOR YOUR PROPERTY Once you’ve decided on where, it’s time to find the property itself. Make Zoopla your first port of call and start browsing. To help you narrow down your selection, think about what type of property you’d like to own. This decision will probably depend on why you’re buying. TOP TIP – buying costs range between 10 and 12% of the purchase price so don’t forget to factor these into your budget. • Size – how many bedrooms and bathrooms do you need? • Off-plan or resale – can you wait for
construction to finish? • Fully refurbished or a fixer-upper – how much work are you prepared to have done? • Own garden/pool or shared – do you want responsibility for maintenance? CONTACT ESTATE AGENTS Use Zoopla to search for your ideal property in Spain. Simply select your preferred location, property type, price, number of bedrooms, add any important keywords such as “garden” and then click to see what could be your dream home. Zoopla lists tens of thousands of properties in Spain so be prepared for plenty of possibles to come up in your search. Save your favourites and then get in touch with the estate agents, the first professionals you’ll be dealing with in Spain. 3 TOP TIPS for choosing a reliable estate agent: • Choose an API registered agent (Agente de la Propiedad Inmobiliaria) – look for number on their website. • Choose an agency with a real office with a real address and a Spanish fiscal number. • Choose an agent who has been around for
a few years (say five) to give them a chance to establish a reputation and gain good local knowledge. • Read their ‘About Us’ section and ask yourself if it sounds professional. • Ask for recommendations from others and/or Google the name of the estate agent. • Beware of pressure on you to buy. A good estate agent will leave you to make the decision in your own time. buyinspain@rationalfx.com | 0207 220 8167 CONTACT A LAWYER Another key player when buying property in Spain is your lawyer – they check all legal aspects to ensure you buy with peace of mind. • Find an independent professional who will represent your interests and no one else’s. Ask around for recommendations or request testimonials. • Check the lawyer’s credentials – they must belong to the provincial bar association (known as the Colegio de Abogados). You can easily find out by putting their name and surname into the search boxes here https://www.
abogacia.es/servicios-abogacia/censo-de-letrados • Choose a lawyer with experience in property and planning laws and who speaks good English. TOP TIP - don’t sign anything or hand over any money until you have met with your lawyer to discuss the purchase. PICK YOUR PROPERTY Now you have your estate agent and lawyer in place, it’s time to see the properties. While you’re viewing, schedule a meeting with your lawyer to brief you on the buying process. Once you’ve chosen your dream home, your lawyer will start checking the legal paperwork and you need to get the money in place. 4 buyinspain@rationalfx.com | 0207 220 8167 REGISTER WITH A FOREIGN EXCHANGE COMPANY Most Spanish property transactions are in euros so getting the best sterling/euro exchange is essential. For competitive rates, using a bank may not necessarily be the most cost-effective option for you. International payment providers, such as RationalFX, provide solutions for individuals looking to purchase a
property abroad without wanting to pay out on high currency exchange fees. RationalFX have competitive rates and no hidden fees, allowing your pound to euro money transfer to be seamless and hassle-free, whilst saving you money in the process. A dedicated account manager will be at hand to answer any questions you may have along the way and guide you through the process. RationalFX vs Banks 2019 EUR USD USD Rate 1.11508 1.23381 1.81616 Value €111,508 $123,381 $181,616 Rate 1.0781 1.1907 1.7134 Value €107,810 $119,070 $171,340 Rate 1.1027 1.2199 1.7814 Value €110,270 $121,990 $178,140 Rate 1.0959 1.2109 Value €109,590 $121,090 A comparison of exchange rates on £100,000 RationalFX *Currency rates from RationalFX 19/09/2019 HSBC *Currency rates from HSBC 19/09/2019 Natwest *Currency rates from Natwest 18/09/2019 Barclays *Currency rates from Barclays Premier Bank Account 18/09/2019 Overseas Property Investments and Currency Fluctuations
Explained In July 2018, Clare wanted to invest £190K on a property in Spain. The cost of a Spanish property was €215K. H ere is how currency fluctuations will affect her: 13 JULY 2018 20 JULY 2018 28 AUG 2018 1 OCT 2018 GBP/EUR Interbank rate = 1.12983, meaning €215K would cost around £190K. GBP/EUR Interbank rate = 1.11734, cost has increased to £192,421. GBP/EUR Interbank rate = 1.10384, costing £194,775. GBP/EUR Interbank rate = 1.10384, costing £191,373. What are you waiting for? Create an account with RationalFX today and a member of the team will be in touch to discuss your requirements! Alternatively, give RationalFX a call on 0207 220 8167 or email buyinspain@rationalfx.com 5 buyinspain@rationalfx.com | 0207 220 8167 TOP TIP – Choosing RationalFX will allow you to fix an exchange rate so that you can budget with exact figures. GET YOUR NIE NUMBER To buy a property in Spain you need an identification number, known as a número de identificación de
extranjeros (NIE). You can apply for this in Spain at a police station or at a Spanish consulate. Ask your lawyer for advice on the best and quickest way for you to apply. You can find more information about the NIE here. OPEN A SPANISH BANK ACCOUNT Once you have your NIE number, you need to open a bank account. Most banks in Spain allow you to open an account online, but you must go in person to your nearest branch to show proof of identity and sign the paperwork. DID YOU KNOW? – Spanish banks are notorious for high charges, especially for international transfers, which is why using a foreign exchange for overseas payments is key! 6 TOP TIPS for choosing a bank: Lots of banks operate in Spain, but narrow down your choice by asking these questions: • • • • Does the bank speak English (staff at branches and telephone and online banking)? Do they have a good range of branches and ATMs? Can you bank online and preferably via an app? What do they charge for accounts and
transactions? buyinspain@rationalfx.com | 0207 220 8167 BUYING PROCEDURE Once you’ve chosen your property and agreed a price with the owner, the buying procedure starts. Bear in mind that buying a property in Spain is very different to the UK. These are the main steps: Your lawyer carries full legal checks such as ownership, planning status, registry details and information about any charges on the property. 1 2 Your lawyer completes the legal checks and arranges the signing of the title deeds at a notary public. 3 4 Your lawyer sets up utility transfers and direct debits. Your lawyer drafts a pre-purchase contract including all the conditions of the sale (e.g price, furniture included, timescale, etc). You pay a deposit (usually 10% of the price) and you and the seller sign the contract. The deposit is usually nonrefundable unless you’re unable to meet one of the clauses (such as get a mortgage) or the seller fails to comply with the contract. Completion takes place
– timelines vary, but usual practice is between 1 and 2 months after signing the pre-purchase contract. Both parties sign the title deeds in the presence of the notary, you pay the outstanding amount and get the keys to your dream home. Your lawyer organises payment of all fees and taxes (allow 10 to 12% of the purchase price for this). 5 6 You start any refurbishment, furnish the property and then start enjoying your new home for holidays, retirement or permanent base. If you wish to let the property for holidays, you need to apply for a letting license – your lawyer will give you advice on this step. Find your dream home in Spain now » 7 buyinspain@rationalfx.com | 0207 220 8167 LOOKING FORWARD TO THE FUTURE Buying your dream home in Spain is only the first step towards a new chapter in your life. Once your property has been purchased, you may wish to redecorate or renovate it. RationalFX can provide you with a tailored regular payment plan at a fixed rate to help save
you money in the long run. Should the time come when you want to sell your property in Spain, you’ll need a cost-effective way of transferring your sale proceeds back to the UK. RationalFX offer secure, simple and reliable repatriation services to help you minimise international money transfer costs and maximize your profit. CONTACT US T: +44 (0) 20 7220 8167 | E: buyinspain@rationalfx.com | W: wwwrationalfxcom OUR OFFICES Follow us Level 32 679 Avenue de la Cc La Colonia. /rationalfx One Canada Square République Avda Virgen del Rocio, s/n. @rationalfx Canary Wharf, London 59 000 San Pedro de Alcantara /company/rationalfx E14 5AB Lille 29670 /rationalfx UK France Spain 8 buyinspain@rationalfx.com | 0207 220 8167
When reading, most of us just let a story wash over us, getting lost in the world of the book rather than paying attention to the individual elements of the plot or writing. However, in English class, our teachers ask us to look at the mechanics of the writing.
