Accommodation in Spain
Expats will discover that finding good quality, reasonably priced accommodation in Spain is now relatively easy. The Spanish property crash of 2007 has greatly simplified the formerly challenging house hunting process, and there is now a surplus of property for sale and rent in most areas.
Of course, prices vary enormously depending upon where you want to live, with the best parts of major cities still expensive.
Britons and other aspiring homeowners looking to buy property in Spain should make sure they realise the difference between “bargain-priced property” and a long-term sound purchase that may come with a slightly higher price. If it looks too good to be true then it may well be. Needless to say, the Spanish banks are still wary about lending money, so be aware that large mortgages can be difficult to obtain.
Renting property in Spain
Most expats will probably opt for renting property in Spain. Expats – and particularly those wishing to rent in Barcelona, Madrid or Seville – will find that their options are limited to furnished or unfurnished flats in the downtown areas, and a few maisonettes and chalets in the suburbs. The rule of thumb is that the closer to the CBD an expat lives, the higher the rent becomes. So, it is strongly advised that expats look to secure some kind of accommodation stipend in their employment contracts. It is not uncommon for housing costs to account for a significant percentage of total monthly expenditure if the salary is based upon Spanish levels of pay.
Unsurprisingly, house-sharing – that is, renting an individual room in a larger house shared by other people – is a popular option for expats relocating to Spain. Expats are encouraged to conduct online searches and to check local newspapers for listings of this kind. Expats should be aware that leases in Spain are generally signed on a year-long basis, and are secured with a 'down payment' (between two and six month's rent).The standard of accommodation in Spain is generally good although flats can sometimes be relatively small. Curiously, this is more often true of new flats than of older flats. The latter can be surprisingly large and offer plenty of space, with some flats having an outside terrace (usually when they are on the ground or first floor).
While shipping to Spain – particularly from within the EU – is a viable option, expats can also rest assured that they won't find much difficulty in buying furniture to suit their new home after arriving in the country. Most Spanish cities boast a large range of second-hand and antique stores, while modern superstores such as IKEA can also be found.
Home security will not be a critical issue for expats relocating to Spain. Although petty theft and minor break-ins do occur in some neighbourhoods, these crimes are rarely violent – and expats have reported time and again that they feel safe in their homes in Spain.
Buying property in Spain
Buying property in Spain has, historically, been a popular option for expats, especially for retirees looking to live out their days on one of the Costas or, less often, within inland villages.
In 2011 the purchasing of a home in Spain is now an attractive proposition, as the Spanish housing market has gone into crisis. Sales volumes have plummeted dramatically since the start of the 2007 economic recession, and property prices have dropped by 30 percent to 40 percent in many areas. This has made Spain affordable once more, and has placed a vast number of widely varied properties on the market.
However, expats have to be careful if buying property in Spain. There have been many scandals surrounding the building and sale of illegal properties, along with the imposed costs of very expensive state infrastructure works.
These setbacks are sufficient to turn any dream home into a nightmare, and they mean that any buyer should exercise real care when buying a property in Spain. Sound, good value properties can be bought safely in Spain, if guidelines are followed, in which case buyers can find themselves with a blissful home within a spectacular country.
The key to buying a property in Spain is: knowledge combined with caution. It is essential that buyers know how things work in Spain, the pitfalls and how to avoid them. This is not ‘rocket science’, but it does require research before looking for properties - backed up by very sound legal support (an excellent lawyer) and a competent and independent building surveyor.
Recently, in an effort to reinvigorate the foreign property investment market, the Spanish government has temporarily reduced the purchase tax on new homes from 8 percent to 4 percent. However, this should not blind a buyer to the fact that re-sale houses can still often be better value than new builds.
Buyers of Spanish property are advised always (and without exception) to use an independent, fully insured, specialist, conveyancing lawyer who speaks their own language fluently. They should also not sign any document that has not been translated into their own language (whether from a seller or estate agent) that has not been first inspected by their own lawyer.
There are a number of routes to buying Spanish property, a process which can be done very quickly (within a couple of days) or that can take a more measured time period.
It’s recommended that expat buyers should escalate their level of risk, and always provide their lawyer (and building surveyor) with ample time to investigate the legalities of a Spanish property properly. A wise buyer should never be rushed, and should always appreciate that it is better to miss a wonderful and desirable bargain - than buy into a defective property.
Process of Buying Property in Spain
- Find a suitable, fully qualified, independent lawyer and building surveyor.
- Find a property that is suitable and make an oral agreement, in principle, with the seller either in person or through an estate agent.
- The buyer should advise his lawyer of the agreement, together with the address of the property concerned and the details of the seller, any agent and the seller’s lawyer (if any).
- The buyer’s lawyer should undertake basic research to investigate the ownership and legalities of the property before drawing up a private contract between the buyer and seller to remove the property from the market for a fixed time period (normally around ten days to one month). The contract will usually stipulate that a small deposit (often somewhere between 500 to 3,000 Euros) will be payable by the buyer to the seller. If the buyer does not proceed with the sale, then he will lose his deposit unless there is a serious ‘structural’ (in the legal sense) problem with the property. If the seller reneges on his agreement to sell the property to the buyer then he must pay twice the amount of the deposit provided by the buyer - to the buyer.
- The buyer’s lawyer will fully and extensively investigate the property and, if all is well, draw up a further private contract between the buyer and seller. This contract will often provide for the payment of a 10% (on the purchase price) deposit to be paid by the buyer to the seller. It will also stipulate a date for the signing of the Deeds (Escritura), at which time full possession of the property will pass to the buyer.
- The signing of the Deeds (Escritura) will then be done at the offices of a Notario (this must always be done in front of a Notario!) at which time the buyer will pay to the seller all the remaining money due to complete full payment of the property concerned. In turn, the seller will pass all the keys to the seller and provide absolute access to the property concerned to the buyer, as from the moment of signing the Escritura.
- The buyer’s lawyer will register the Deeds (Escritura) with the Spanish Land Registry.
