The most common questions we get asked about buying a property in Spain are related to the legal and financial aspects of ownership.
Buying a property in Spain is in many ways a lot easier than it is in the UK. The Spanish system is set up to protect both the buyer and seller providing certain simple steps are taken. We would however stress that this guide is intended only to help you understand the processes involved and is no substitute for proper professional legal advice.
English law does not apply in Spain, which makes makes the Spanish legal system very different to the UK system. We advise that people purchasing through Paloma Properties have legal representation in Spain. We can introduce you to reputable independent solicitors while you are in Spain that will help to protect your financial and legal interests throughout the purchase.
| ->Abogado- Spanish Solicitor | ||||||||||
| Your legal representative Abogado will make all the necessary investigations on the property to be purchased, once they are satisfied this is all in order, including the finance ,it is necessary for the Escritura (tittle deeds) to be signed before a Notary. You will then be advised by your solicitor when this is to be carried out. | ||||||||||
| ->The Escritura | ||||||||||
| The Escritura is the tittle deed containing a detailed description of the property and proof of ownership. If the property is a re-sale property then the Escritura will also contain the property’s recent history and previous details of ownership. | ||||||||||
| ->The Notary | ||||||||||
| The Notary is a public official who places on public record through the tittle deed the sale and ownership of a property. It must be signed in his/her presence and must be understood by both parties. When the Escritura is signed in front of the Notary the financial transactions are witnessed and proof of such payments are incorporated into the tittle deeds of the property. | ||||||||||
| ->Power of Attorney | ||||||||||
| The buyer usually attends the meeting with the Notary in person to complete the transaction, but if this is not possible, arrangements can be made for a power of attorney to be granted. It is usually the Solicitor who is given power of attorney to attend on behalf of the purchaser or vendor. | ||||||||||
| ->Land registry in Spain | ||||||||||
| After the Escritura (tittle deed) has been signed it will be sent to the local land registry office. It will be entered onto the register and the land registry fees will be paid. Your Solicitor will make payment of the fees and when the completed deeds are ready they will arrange to have them sent to you, sometimes this can take several months. | ||||||||||
| ->A Spanish will | ||||||||||
| Once you own a property in Spain, it is essential that you make a Spanish Will, if you wish the property to be handed down to your family. Remember English law has no revelance in Spain. The cost is very small and it is worth considering giving a member of your family an enduring Power of Attorney, this enables your representative to continue dealing with your affairs should you become incapacitated. | ||||||||||
| ->Investment Potential | ||||||||||
| As an investor you have two main options: buy to sell and buy to let. Many investors are already enjoying healthy returns on their investment through buy to sell, as this involves buying a property from a development plan during the construction phase. The increase in values is based on the demand for new properties. There has never been a better time to invest in Spanish property due to the strength of sterling and the overall higher standard of living. Returns in excess of approximately 15-20% have been achieved through this option, but please be aware that buy to sell investment returns cannot always be guaranteed. On the other hand very good returns can also be achieved with the buy to rent option. Below is an example of the kind of returns you can obtain. | ||||||||||
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