Is now a good time to buy in Spain?

For a lucky few, including retired couples and businesspeople who are able to buy their dream holiday homes, now is a great time to pick up a bargain.

As always, research, preparation and an understanding of the system are key to success.

Is it true you don't need a lawyer?

The Spanish person buying from another Spaniard would not typically use a lawyer unless particularly complicated.

But if you take this approach as a foreign buyer, particularly if you don’t speak the language, you seriously increase the risk of getting into trouble.

Is the process the same as buying in England?

No. While it may appear to be similar it is actually very different. The golden rule is not to pay anything without signing and don't sign the documentation without it being checked by a qualified professional.

What's the best way to finance my purchase? You can release equity from your UK property and be a cash buyer in Spain. Alternatively you can borrow directly from a Spanish lender, with the loan secured against the Spanish property. Some clients do a bit of both. Again, you should talk to a qualified professional to talk through the advantages and disadvantages of both.

How much will it cost me all in with taxes?

Spain, as with most other continental countries, is a high tax economy. The equivalent of stamp duty ranges from between 8 to 10% depending on which region you’re buying in. In addition to purchase taxes, you need to budget for other expenses such as legal, notary and land registry expenses. Overall, you should budget for between 12 to 13% of the purchase price on top of what you agree to pay for the property.

How long will it take?

Typically the process will take a couple of months to complete. Often, buyers and sellers agree a longer timeframe. I’ve also dealt with matters where we've completed within a few days.

Do I need to be in Spain to sign the deeds?

Most clients give authority to trusted colleagues on the ground to sign the paperwork and fly out once the deal is completed.

Do I need a survey?

It is always advisable so you know what you're in for in terms of any repair cost. The extreme weather conditions in many parts of the country all take their toll on the fabric of the property.

Are there any other formalities? Quite a few more, including applying for a foreigner’s identification number (NIE), making local wills and taking out appropriate insurance cover.

What about ongoing costs and ownership responsibilities?

You will be liable to pay ongoing ownership taxes and rates.

It also makes sense to give some thought to minimising future inheritance tax liabilities. It’s important to do so before you complete your purchase. Even on a modestly priced property making the right decision as to who should own it can save you thousands in otherwise unnecessary taxes.