Buying A Costa Blanca Property

You have some spare cash and you are thinking of investing in a holiday home in the sun. Here is your essential guide to buying a Costa Blanca property, including setting your budget, choosing the location and property type, appointing a solicitor and signing and taking possession of your property.

1. Setting Your Budget A very important decision when buying a Costa Blanca property is deciding on your budget. This will of course be determined by what spare cash you have available and when you reach a final decision on your budget you should stand firm and not be swayed from it.

2. Choosing a Location Very important when deciding on a Costa Blanca property is the area. As with anywhere there are good areas and bad areas, take your time and have a good look around, read local newspapers and ask people you meet, a chat with a local can give you important information on an area.

3. New or Resale? The choice of new or resale when buying Costa Blanca property is another important consideration. Many estate agents will push you towards new property, mostly because they get fewer problems with new property and make larger commissions. Don't be swayed by their fancy talk or by their rubbishing resale property, there are pros and cons for both property types, take a look at everything that is available and then make the choice that best suits your requirements.

4. Property Type The next thing to consider is the type of property, ie. House, apartment, bungalow or villa. These choices can be broken down further into detached, semi, duplex, townhouse, quad, apartment block etc. Costa Blanca property comes in all shapes and sizes but you won't need to be exact about this at the beginning though your budget will probably affect your choice there is obviously no point looking at detached villas if your budget will only stretch to a 2 bedroom apartment. You would be amazed at how many people make this mistake and get themselves into problems by going over their original budget.

5. Choosing Your Property Well you've carefully made all your preparations and considered all your options, now comes the enjoyable part looking for your perfect Costa Blanca property. Take your time and try not to look at too many properties in one day, it is easy to be confused by the pros and cons of each one you look at. Take lots of photographs and keep notes, a video diary is also a great idea you can review it at the end of the day and make a short list from what you have seen. When you have your final short list, go back and look at those properties again, if you can't come to a decision, start again.

6. Paying a Deposit When you have made your decision and chosen your dream Costa Blanca property the next step will be to pay a deposit. The standard deposit in Spain is 3,000 euros, after payment of which, the property will be taken off the market. The next step will depend on whether you are buying a new property or a resale property. If it is new then in around 30 days you will be required to pay perhaps 30% of the final price, followed possibly by stage payments during building, but more likely payment of the balance on completion. If you are buying resale property then it should be just the deposit, with the final balance due on completion (signing at the Notary).

7. Picking a Solicitor Your next job is to appoint a Spanish property solicitor, try to get one who speaks good English and who explains everything to you in a way that you understand. He (or she) will help you throughout the buying process and answer any questions you might have regarding the purchase. He will check that there is no debt remaining on the property, and be there at the Notary office to explain everything you need to know before signing. He should also help you after the signing, to change the name on contracts and bills (ie. Community fees, SUMA, water and electricity), and for a relatively small annual fee he will also make your Spanish tax returns for you.

8. Taxes and Costs These amount in total to about 10%-12% of the purchase price of your chosen Costa Blanca property, be sure to allow for this in your budget. These costs include IVA (property Transfer Tax) which comes to 6% on new property puchase and 7% if you are buying a resale property, Plusvalia Tax, which is normally paid by the buyer and represents the appreciative value of the land that the property stands on, solicitors fees, Notary fees and mortgage fees (if you need a mortgage to buy the property). After signing and taking possession of your property you will become liable to pay Wealth Tax (non-residents), SUMA (local council tax for collecting rubbish, cleaning roads etc), community charges and solicitors fees for dealing with your tax affairs in Spain.

9. Signing the Deeds - The property deed is known as the Escritura in Spain and the signing of this and the final payment for the property is done at the notary office (the notary is an official government representative). You may be present along with your solicitor for the signing or your solicitor can do this in your absence if you have previously given him power of attorney (a common practice in Spain). Before you can sign the deeds you will need to obtain an N.I.E number (foreigners identification number), this can be obtained at any national police station but make sure you ask your solicitor about this long before the signing and he will advise you how to obtain one. Also make sure that you have your original passport with you before going to the notary, also the passport of anyone who is to appear on the deeds.

10. Taking Possession of the Property Once you have signed for the property you will receive a set of keys, if you have purchased a new property you will want to go over it thoroughly to check for any problems. Write out a snagging list of defects and hand this to your agent and builder, pester them until everything is to your satisfaction. A good security measure is to change the locks on the front and the back door you don't know who has previously had keys. If the property doesn't have alarms and security grills, get these fitted as soon as you can. Change electricity and water bills over into your name and get some decent house insurance. If the property is in an urbanization you may find it useful to make yourself known to the president of the community.

11. Congratulations - You are now the proud owner of a property in Spain, may the sun shine on you and the value of your property rise, that tiny one bedroom apartment may one day turn into a seafront villa! Relax and enjoy.