By now, people are beginning to grow a little tired of the economic downturn. Happily, however, some brighter signs are just starting to appear; for example, the notoriously conservative Bank of Spain recently made (very) cautious noises about small signs of revival in the Spanish economy; perhaps there is a light at the end of the tunnel after all.

A few green shoots are beginning to appear in the form of interest in property purchases emanating from northern Europe, due in part to a large drop in prices. Bellapart Solicitors have been noting significant price reductions in properties for sale; from 25 percent to 50 percent, ranging from small holiday apartments to villas and estates valued at one to four million euros.

As a consequence of financial turmoil, many banks have ended up as players in the property market and are currently offering properties for sale at excellent prices with 100 percent financing. As a result, this could prove to be an advantageous moment to acquire a holiday or retirement home in Spain for a good price and under favourable conditions. In the following article, Bellapart Solicitors offer some practical guidelines about buying in Spain.

Always remember that formalities are not identical in all countries and that language, specifically language barriers, is a major component throughout any business affair. The best advice is to seek out a respected local person to represent you before doing anything else, and if language is a possible issue, it is a lot safer – and, in the long run, probably cheaper – to engage an experienced interpreter.

You will need to discuss the relative fiscal advantages of purchasing as an individual or through a Spanish or foreign company, taking into account the fact that the question of inheritance will probably be arising at some point down the line. Keep in mind that there really is more than one ‘dream home’ out there so, should preliminary investigations bring to light any problems, it can be best to simply move on and find another, happier place in the sun. Inheriting lingering property issues will only make the process traumatic and time-consuming. It’s well worth maintaining a clear head and some flexibility of outlook.

Shop around
A good idea is to sample a few different areas, towns and cities before focusing on the actual properties; what can be heaven for a holiday might be less of a paradise on a permanent or semi-permanent living basis.

Seriously important is to make a realistic study of your financial situation in the short, medium and long terms, to be sure that you stay comfortably within your means. For every purchase, you should reserve additional funds equal to some 10 percent of the price; additional costs can include taxes, land registry, notary and solicitor fees, municipal plus valia tax; occasionally a land survey might be required.

Armed with all this preparation and ground-work, and with a prospect in view, before any kind of agreement or contract can be contemplated your representative should
make a thoroughly detailed investigation in the local Land Registry and town council to ascertain a series of facts about the property and its title; whether taxation is up to date and the like. Negotiations about price and conditions will follow, and it is usual in Spain
for a private option contract to be signed against a deposit, which is binding on both parties. If dealing with a bank as vendor, they will require all kinds of verification of your
ability to maintain mortgage payments in the long term, so be prepared to exhibit your tax returns and other such documents relating to your solvency.