2. Flights

3. Activities

4. Travel Advice

5. Cheap Overseas Phone Calls

6. Golf

From our experience of buying a property in Spain it is imperative that you have someone to help you, particularly if it is your first purchase and you do not speak the local language. You will at least need a good Solicitor.

                                      Expertise and Experience is Essential.

First steps to buying

Finding your property. You can use one of the many companies that advertise inspection trips, but expect to get the pressured sales treatment to encourage you to buy the first property you see as it is at a bargain price!! Remember, do they have your interests at heart or are they just after a sale. Use them by all means, if only to see some property but remember you will most probably pay top price for your property. There is no reason why you cannot book your own cheap flights and explore different parts of Spain and visit the local real estate agencies and start bargaining. Or contact us an we will put you in touch with John and Elaine Collins, who are residents of Spain and helped us from beginning to end with the purchase of our property [email protected]

Location. Spain is a large country and has several different regions.  If you are moving home, first and foremost, you need to decide on what type of lifestyle you are looking for and if you can achieve it in your chosen area.  Researching the area you are interested in is vital to gauge what it is like in different seasons, what facilities are available and how easy it is to get there.

If it is for investment purposes, the location will be the most important factor.  You will need to buy in an area that will maximise your chances of achieving high rental yields and a good occupancy volume.

If you want as much SUN as possible during the winter, then make sure the property faces south!

Type of Property.  You will need to decide what type of property you are looking for.  How many bedrooms, apartment or villa, private or communal pool, any land attached and the closer you get to knowing exactly what it is you are truly looking for, the easier it will be to find. Also, if buying a new property find out what is included. Are any fixtures and fittings included, security bars on windows and doors are obligatory for insurance purposes and all this may add to your costs.

                                     Purchase Process Paperwork

NIE number. In order to buy a home in Spain, you need to have an NIE number. This is a national identity number and you will need it before you can make a property purchase. Also, plan ahead as it can take a number of weeks to obtain this.

Escritura Publica & Nota Simple. The Escritura Publica is the registered title deed of the property. It is entered in the 'Registro de la Propiedad', the Property Registry, and is the only guarantee of title in Spain.

This contains a property description, the owners’ details and any mortgages or legal claims that already exist on the property.  A nota simple contains details of any mortgages or charges held against the property and is vital to ensure you, as a new owner, do not inherit any debts attached to the property.

IBI. Prior to purchasing a resale (previously owned property), you will need to see the “Impuesto sobre Bienes Inmuebles”, IBI, which is the municipal property tax.  The liability period for unpaid taxes is 5 years so you will be able to review 5 years worth of IBI receipts.  The tax is attached to the property not the owner.

 A new property will not have previous IBI taxes as it has never been owned.  It will be your responsibility to register the property for this tax.

Referencia Catastral. Each property sale must quote the “Referencia Catastral” of the property in question.  This is another form of property registration in Spain which concentrates on the location, physical description and boundaries of the property.  The difference between the Catastral and the property registration is that the registration focuses on ownership and title and the Catastral on property valuation.

These two systems often contradict one another as the two departments do not communicate.  It is a good idea to request the actual certificate from the Catastral which will come in two parts, one being a description of the property and the other a plan or aerial photograph.

Community fees. This is similar to a council tax in the UK except that it only applies to your local urbanisation or property.  The community of property owners has control over the maintenance of the common areas including gardens, lifts, stairways and pool.  The cost of running the urbanisation is split equally between all property owners.  This community fee is usually payable on a monthly basis and is payable by law.
 

Escritura de Compraventa. Providing that the contract is correct and that you secure funds to complete the purchase transaction, the sale is then completed by signing the Escritura de Compraventa in the presence of the Notary.  This does not guarantee the title to the property until it is registered at the property registry which then makes the Escritura public. 

The document, once registered, is returned to the Notary where it is kept on file.  If you need a copy, you can request from the Notary and they will send you an authorised copy.  The deed should be registered within a few months.

Do not mistake the Notary with a lawyer.  You will still need to instruct your lawyer to check all of the paperwork and to ensure all statements made in the contract are correct.  The Notary is an official of the state who ensures that the contracts are legal but does not check the details contained within the contract.

Purchase costs in Spain. Typically, purchasing property in Spain will cost in the region of 10% of the purchase price depending on the complexity of the purchase process and the area of Spain in which you choose to buy.

Notary costs (EUR 300 to EUR 600)
The charges from the Notary are standardised and vary according to the size of land, size of property and the declared purchase value.

Registry Fee  (EUR 300 to EUR 600). The registration of your name in the official property register as owner.

Transfer tax (6% - 7% of the declared purchase value). This is called the Transmisiones Patrimoniales in Spanish.  Normally it is 6-7% of the value declared in the contract.

Document fee (½ - 1% of the declared property value). This is equivalent to stamp duty and is currently ½ - 1% of the declared property value.

Municipal tax  (10% to 40% of the increase in value of the property). This is a municipal tax and is based on the increase in the value of the property since its last sale.  It can vary from 10-40% of the annual increase, dependent on the period of time between sales and the location of the property.  This could possibly be a large fee so prior to buying, you need to find out how much it will be.

Lawyers Fees (approximately 1- 1.5% of the property value). Lawyers charge anything from 1 -1.5% of the property value for their services providing there are no complications which lengthen the purchase process.

Tax deposit  (5% of the declared purchase value). If you are buying from someone not resident in Spain, you will deposit 5% of the total purchase price at the town hall in the seller's name as a guarantee against his future tax liabilities. You pay the seller 95% of the price, and pay the other 5% directly to the town hall. This serves as a guarantee against the non-resident seller's various Spanish tax liabilities.

Taxes – Who pays?. As there is no law governing which party pays which tax during a purchase, the buyer and seller usually come to some sort of agreement as to who pay which tax.

Usually the seller is responsible for the notary and municipal tax fees and the buyer pays the transfer tax and registry fee.

Declared property value. Until recently the common practice in Spain was to declare a lower value for property to minimise transfer tax.  Presently, lawyers are advising both parties to declare a realistic market value mainly due to the Spanish tax agency levying fines if they discover that the property was heavily under valued.  The most secure way to attach a value is to ask the nearest tax agency office what value they would fix to the property in question.

You need to remember that when you want to resell, you will be liable for Spanish capital gains tax on the profit made.  It may be tempting to declare a low value at the beginning of a purchase but that will make you liable for a higher tax when reselling due to declaring a bigger profit on the resale.
 

Off – plan financing from the developer. When buying an “off – plan” property, the developer will usually have very attractive financing options on offer. 

You will need to check the paperwork and ensure that the contract shows the initial payment, the number of subsequent payments and the end date.  When you calculate the payments, it will be clear what the cost of the developer’s financing is and you can compare this to other options.  Check what the terms are for missing payments and for paying off the remainder of the contract at any time - which you should be able to do without incurring the total remaining interest.

The best terms are usually offered to the purchasers who begin their payments before the building work is completed.  This works very well but you must ensure that the developer is reliable and be confident that they can finish the project.  A bank guarantee is essential as this ensures the return of your total investment if the project fails or is delayed indefinitely.

Bank Loans and Mortgages. In theory, the introduction of the euro and the lifting of virtually all exchange control means that non-residents can now benefit from loans and mortgages against Spanish property using any bank from anywhere in the world. 

The major banks such as HSBC, Barclays and Abbey National all offer mortgages and euro mortgages to UK based purchasers looking to buy abroad.

A euro mortgage is basically the same as a UK one except it is denominated in euros rather than pounds, and its rate will be allied to the interest rate set by the European Central Bank.

One reason you may be attracted to a euro mortgage is that the ECB's rate is currently lower than the Bank of England's base rate.

You must be careful as currency markets can be fairly volatile. Buying a property valued in one currency, but borrowing in another, could be very risky if the currency moves against you.

Also, there will most probably be a lending fee and the bank may well want Property and Life insurance arranged. Also, it may be prudent to ask a solicitor about including your property in a will. (a UK solicitor may be able to do this).

Rules, Regulations and Laws are constantly changing so we cannot accept responsibility for the accuracy (including text) of the above. They are merely for your guidance as to what you can expect to come across during your purchase. Take professional legal advice -use a solicitor

Irrespective of which airport you use there is most probably more than one low cost airline that operates short hall flights to Spain. It really is a case of checking each of them to get the best deal for the dates you want to fly. REMEMBER though, there is no reason why you cannot fly out with one airline and return on a different one - it may give you an even better deal!

Although we cannot recommend any airlines, these links will get you started with some of the main operators to Spain.

 

 

You have plenty of activities to choose from, either stay at Casa Chis and relax with an occasional dip in the community swimming pool or stroll into Guardamar and enjoy the shops, restaurants, parks, sports facilities and 'blue flag' seafront and bars.

If you are up for something different or you have children to entertain then have a look at these following links. If you need transport to get to some of these and don't have access to a car there is a main bus station in Guardamar. Alternatively, you might consider trying one of the travel agents in town who may be able to book your activity to include travel!

	Terra Mitica The largest amusement park on the Costa Blanca. The park has everything an amusement park should have, and maybe even more! More info - Click on image.
	El Arca El Arca is an animal park in Guadalest. Animals that have lived there life in captivity come here to live out the rest of their time in peace and quite. The price of admission to the park finances the food and medicine for the residents.
	Aqualandia is an Aqua Park in Benidorm. Here you can spend the whole day without getting bored! Special adventures for the younger children, water slides and jumps, sea lions and much more can keep you busy and happy for hours More info - Click on image.
	Les Fonts De L'Algar This is natures answer to the above water park and if you visit both you will probably agree that you cannot improve on nature. Paths take you alongside the falls and there are natural swimming pools fed by these to cool down in the crystal clear waters. The paths are flanked by bamboo and oleander and one of the paths leads up to an aromatic herb garden where there is a museum of the environment.
	Terra Natura This is a new theme park and is located near to Terra Mitica. The park is built up like a miniature world, with many continents and lands. You will see over 1500 animals, swim with sharks and stingrays and plunge down over 700 metres of winding slides. More info - click on image.
	Mundomar Here you can see many of the oceans most colourful residents and even watch a fantastic dolphin show as well. Mundomar is well worth a visit for the whole family. More info - click on image.
	Rio Safari Elche This is a unique safari where you can experience many different types of animals including lions, tigers, hippos, panthers, monkeys, giraffes, crocodiles, exotic birds and dolphins. There are also pony and camel rides. More info - click on image.
	Cuevas del Canalobre is a single huge chamber with a length of 150m. It contains many dripstones, some of them looking like a candelabra, which gave the cave its name. The huge chamber has a good sound, so it is used for concerts and folk festivals. The cave contains a large stage for such events. The entrance is located high on the slopes of the Cabezón de Oro (Golden Head) in a dry and hot bare karst region, and the visitor has a beautiful view onto the region of Alicante and the Mediterranean Sea. Several paths in the area allow very nice walking tours.
	Guardamar Del Segura   Guardamar City Council web site   More info - click on image.
	4. Travel Advice A. Don't forget your travel insurance. It may be that if you pay for your travel by credit card that your bank provides some travel insurance, but check this out and the level of cover. If you need 'airlifting' home this can be very expensive! There are a number of web sites where you can buy competitive cover but again, make sure you get the cover you need and disclose any medical conditions. B. Do you have one of these?         If not, you need to apply for one. It is the European Health Insurance Card and is available to all EEC / EEA citizens and replaces the old E-111 form. This card gives you the right to visit doctors and hospitals, which are state run (i.e not private) and covers the cost of your visit and your medicine in the same manner as for an inhabitant in the EEC / EEA country you visit. You can apply for your card online by clicking on the image. 5. Cheap Overseas Phone Calls If this sounds to good to be true read on. A. If you want to make cheap overseas calls have a quick look at these sites first...........           B. If you are planning on using your mobile abroad consider buying a sim card for that country. Have a look at this site if you want to buy one before you travel to the country.     6. Golf Although we are not into Golf  (not yet anyway) here is some information on a few of the local courses. Unknown to many visitors is the easy access to at least five 18 hole golf courses in the Murcia region, in addition to the three courses at La Manga Club. They are all very well maintained and definitely worth visiting if, of course, your are golfer! And, not forgetting considerably less expensive than playing the La Manga Club courses.                                       A paradise for golfers with three 18 hole courses in 500 metres distance where the Real Club de Golf Campoamor stands out. The Real Club de Colf Campoamor, covered in lush grass, grows surrounded by beautiful pine woods and orange trees and overlooking the littoral from Torrevieja to La Manga del Mar Menor.The colour and scents provided by the pines, cypresses, palm trees, ficus, olive trees, roses and jasmines, together with the blue of the sea and the mediterranean breeze, turn the playing of golf in this course into an unequalled pleasure. More info - click on image                             La Marquesa, Rojales is a 18 hole course which opened in 1989. It has driving range and practise facilities and was designed by John Putman. La Marquesa is a straightforward course with few complications and ideal for beginners and is situated in a flat valley between two mountains. More info - click on image El PLATIO is the only golf club on the Costa Blanca with two courses, one of 18 holes par 72 and one of 9 holes. Uniquely, this course has no holiday housing around it and gives a feeling of total peace and tranquility. The par 72 has a new and daring design that challenges all players, regardless of their handicap, and a par 3 that will delight most players and help them to improve their short game.     LAS RAMBLAS This 18-holer is on mountainous ground which makes the course very interesting for players who like to take a few risks. As it is very mountainous, it calls for difficult strokes. It is worth mentioning the many trees that surround the course, and the water hazards. There are slopes all along the course and although some of them are very difficult, they make the game more attractive and interesting. More info - click on image VILLA MARTIN This course is as old as the North and South Courses at La Manga Club, inaugurated in 1972. Another Par 72 and 6,132 metres in length Villa Martin is internationally known and situated on the outskirts of Torrevieja. If you have the time it is worth playing to compare against the rest and because of the name! More info - click on image. ALTORREAL A challenging 6,200m 18 hole course situated only a few kilometres north west of the city of Murcia.The Course was designed by Dave Thomas, who designed the West Course at La Manga Club. The Course covers an area of two 9 hole courses which both begin and end at the same point. It is a Par 72 Course with 6 lake areas and many sand traps in a natural environment with more than 20,000 trees including olive, pine and carob trees. The Club has a very pleasantly appointed Club House with Café Bar Restaurant to offer you that all important post round refreshment. More info - click on image.
We will add more info to	these so please re-visit from time to time.

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