Before you come to Spain to look for your ideal spanish property it is very important that you have your finances in place, simply because things move very quickly here.

Initially, to purchase any property here in Spain you need to place a deposit immediately to secure it.  This amount is USUALLY approx. 3000 Euros but can sometimes be up to 10% of the purchase price.  Most people bring an English cheque book or cash with them.  You can pay by credit card, but you must inform your credit company BEFORE you leave the UK, that you intend to draw a large sum whilst abroad.  This is for your security but it can cause problems if you haven’t let them know in advance.

All new builds villas, apartments, townhouses etc are paid for in stage payments but you will need approx 50% of the purchase price within 6-8 weeks.  If however you have chosen a resale spanish property you will need the full purchase price ready, because after your initial deposit things can move as quickly as you and the vendor agree on.  Vendors usually want things done fairly rapidly after the initial checks by your solicitor so you have to have your finances in place.

If you need a mortgage to purchase your villa, apartment, etc to top up your finances this can be easily obtained here with most of the Spanish banks, however be aware that they usually loan up to approx. 60% of the purchase price to non residents and that is normally released on the day of signing.  Therefore you will still need a substantial amount before that point to cover the stage payments.  The same applies to resale spanish properties except that you have no stage payments to be met.

On top of the purchase price of your villa on the costa blanca you must calculate another 10% approx. as this covers legal fees, taxes, notary fees etc.

SMART PROPERTIES always advise you to appoint a local solicitor to assist you through the process of buying spanish property.  Their charges are usually approx 1% of the purchase price, a small price to pay for peace of mind.  You will need to have an NIE number (foreigner’s identification number) and they also assist you in obtaining this.  Also, if it is difficult for you to return to Spain at certain times, for a small fee you could give power of attorney to the solicitor to act on your behalf so for whatever reason you won't have to come in person.

Whilst you are free to choose your own solicitor we recommend Rico Asesores with whom we work very closely.  All the staff are fluent in English and will assist you in any way they can.  You can contact them direct on info@mrico.e.telefonica.net as they are totally independent from SMART PROPERTIES.

Another point to be aware of is that the true purchase price of a spanish property is not necessarily declared on the deeds.  This is sometimes shown as significantly lower in order to save paying full Capital Gains Tax for the vendor and less tax for the buyer.  This is fairly standard practice when buying property in Spain so we wish to make you aware of it.

Having said all this, buying a property in Spain is probably one of the easiest and best moves you will ever make.  So don’t delay…… do it the SMART way!!!