Written by Christopher Nye,
Last Modified: 11th January 2018

If you missed Spain Property Guide’s webinar, explaining precisely how to buy a home in Spain, this is your chance to get answers to your most urgent questions.

If buying property in the UK wasn’t daunting enough, doing it in another country such as Spain adds a language barrier and a new set of rules and regulations. But don’t be discouraged, many British people are living exciting lives in the sunshine and they all needed these questions answering at some point. Spain Buying Guide recently hosted a webinar specifically for folk who are ready and raring to go with their purchase.

Here we answer the top ten questions from the webinar, covering every stage of the process from viewing trips to inheritance tax.

You can watch the entire webinar on demand. It lasts one hour but could save you a lot of money

Find homes in Spain via our property portal.

My viewing trip is booked for September, should I be booking viewings with agents now?

Definitely! You should be actively talking to an agent to get dates in the diary. This will afford the agency enough time to allocate a sales agent for your visit and look out for your ideal property from their extended network.

What is the minimum deposit required for buying a property in Spain?

It is normal for an immediate down payment of a few thousand euros to secure the property. Then you can either enter an initial contract where 10% is paid, or you can go straight to completion.


Arm yourself with all the information you need to make your property purchase in Spain a success.


What are the additional costs involved in buying a Spanish property?

Before this question can be answered you need to establish whether the property is a new-build or a resale, the purchase price and if it is being financed using a mortgage. The costs involved in buying a property in Spain will vary depending on such details.

It’s advisable to allow for 11-14% of the purchase price to cover taxes and fees.

These costs include:

• A transfer tax (ITP) must be paid on a resale property, ranging from 6.5-10% depending on the region
• Notary fees range from €300-€1,200
• Land Registry fees range from €400-€600, or 0.4% of the purchase price.
• Independent solicitors fees range from €1,000-€2,000
• Legal fees are generally 1% of the purchase price plus VAT– but with a minimum fee.
• VAT of 10% on new-builds, instead of ITP
• Stamp duty for a new-build is 1.5% of the purchase price

How much money should I set aside to cover taxes and fees?

It’s advisable to allow for 11-14% of the purchase price to cover taxes and fees. Bear in mind that this amount will vary slightly depending on the type of property and the region in Spain it is located in.

Are there hidden costs when purchasing apartments built on a complex?

There shouldn’t be any hidden costs when buying an apartment, just a couple of things which you need to take into account: communal fees, council taxes and basura (refuse removal).

Are there any potential issues regarding planning permission for older properties?

A good agent will ensure all properties are sold with the correct permissions and paperwork. It is also essential to have a lawyer working on your behalf, who can verify the situation with the local planning authorities. If there are discrepancies, then this can be discussed with the vendor.

If I buy a rental property in Spain, and remain a foreign owner, do I have to file my global income there?

If you become resident in Spain for tax reason, you will be taxed worldwide for all your assets held in Spain and abroad. Independently of this, you will need to file a non-resident tax declaration in the UK if there is any remainder income, bank account, property, funds etc.


What are the inheritance tax implications of buying a property in Spain?

This depends on the region the property is located in. There is an exemption of €175,000 per legitimate inheritor (spouse and children) but the distribution of assets should be reflected in a Spanish will, prepared by your Spanish lawyer and signed in the presence of a Spanish Notary Public – depending on the total value of the assets at the time of death. Currently the tax band is set between 7%-34%, again depending on the total value of the assets at the time of death.

What would you currently use as a budget figure for exchanging sterling into euros?

Budgeting at the moment is very difficult due to market volatility reducing the strength of the pound. We recommend registering with Smart Currency Exchange, who will assign you with a specialist trader who can provide guidance around the ups and downs of the currency markets.

Smart Currency Exchange will assign you with a specialist trader who can provide guidance around the ups and downs of the currency markets.

Are there any purchase tax issues when buying a property in Spain?

The vendor must pay capital gains tax on the difference between the purchase price and the selling price of the property. They will be committing tax evasion if they try to reduce the capital gains tax by insisting upon part of the price being paid in cash. You will be guilty of assisting tax evasion if you agree to make a cash payment.

Contributors: We would like to thank the following for contributing to the webinar. If you are ready to purchase in Spain in the next few months, call Property Guides on 020 7898 0549 or email [email protected] to be put in touch.

Stewart Banks: Vincent Real Estate
Chloe Williams: The Spanish Estate Agent
David Comber: Smart Currency Exchange
Raquel Perez: Perez Legal Group

Spain Buying Guide cover

The Spain Buying Guide is a free, independent resource to help anyone who is looking to buy property in or move to Spain through each critical stage of their property buying journey.

Set up to help our readers avoid the many complexities and pitfalls of buying property in Spain, the guide takes you through each stage of the property buying process, with practical recommendations from our experts who have been through the process themselves.


  Understand Brexit
  Find your property
  Ask the right questions
  Avoid losing money
  Avoid the legal pitfalls
  Move in successfully

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