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Three pitfalls to watch for when buying property in Spain
Be aware of these three things before you start looking to buy a house in Spain
Image: Hoyoun Lee / Unsplash
Spain is one of the most popular destinations for Britons looking to buy property abroad. With its mix of sunshine, low prices, welcoming locals, and fantastic food, it is the perfect place to move to. Of course, buying property in any country doesn't come without its complications and Spain is no different. Here are three common pitfalls or issues that buyers may encounter when looking for their dream property on the Iberian Peninsula.
Understanding the legalities
It will come as no surprise that buying a house in the UK and Spain differs in terms of legality. Conveyancing in the UK can be relatively straightforward and handled by legal professionals. Solicitors can be hired privately or there are online estate agents who can help you with the sales process. They deliver a service that covers multiple aspects of the buying process, like viewings and sourcing qualified buyers. However, conveyancing in Spain is done by a notary, a public official who ensures the legality of the transaction. Notaries also witness the signing of important documents like the title deed. Furthermore, checks about the registration of the property should be carried out by the buyer as well as other due diligence which differs from the UK.
Property surveys
In the UK, a detailed survey is carried out of the property before purchase. It looks at potential issues that may arise with the building; however, this isn't always necessarily conducted in Spain. Once again, it is the buyer's responsibility to carry out a check that in the UK is part of the norm. If buyers want to avoid any problems with the house, such as structural issues, it is advised to hire an independent party to carry out a detailed inspection. Inspections are carried out to facilitate the mortgage; however, this isn't as detailed as buyers would wish.
Taxation and other costs
Tax is something that can confuse and frustrate in equal measure regardless of the country, and even more issues arise when buyers are so used to one system of tax and then have to begin thinking about the intricacies of another. Stamp duty in the UK has thresholds of varying levels, the equivalent in Spain can vary given the region. Buyers will usually have to pay VAT on top of that, something that doesn't apply in the UK. Of course, buyers will also have to worry about council tax and other community fees that may be forgotten in the rush to buy the property but which also vary depending on circumstance.
Image: Johan Mouchet / Unsplash
Buying somewhere in Spain won't be without its hiccups. However, having read this article, you should have a better idea about some potential bumps that may be coming down the line. It's important when purchasing a property to be aware of the domestic regulations and the differences that can exist between Spain and the UK. It's advisable to do as much research as possible before making a purchase while also enlisting the help of experts. With all that help, hopefully the perfect place awaits without too much trouble in the process.
