Introduction - on this page you will find links to
details of Spanish villas for sale, Spanish holiday rental accommodation and shared housing in
Spain. Think of Spain and most people imagine sun, sand, sangria,
flamenco, fiestas and siestas. But Spain is so much more than that. Made up of
17 autonomous ‘ provincias’, all with their own unique countryside, festivals,
folk lore and working environment, and with four official languages, the country
is a diverse group of communities. Seville, Barcelona, Valencia, Madrid are all
big cities with their own style and shopping malls. For those who want to chill
out, there are the southern Costas with their miles of beaches, bars and sports.
For countryside peace and quiet and small picturesque villages, it is hard to
beat Andalusia, Asturias, Murcia, Catalonia and the Extramadura. A
Mediterranean country, bordered by France, Andorra, Gibraltar, Portugal and
Morocco, Spain has a temperate climate, with sunshine some 330 days a year. It
has a population of 40,500,000 as at July 2007, has the euro as its currency,
and an inflation rate of 3.5% (2007). The main labour occupations are services,
industrial and agricultural.
The Spanish Property Market
- Spain has seen a big boom in property prices over the last 15 years, both for
holiday homes and investment properties. This has fuelled a large increase in
new build construction, mainly on the eastern and southern coastlines (Costa
Blanca, Costa del Sol and Costa Calida) over very recent years, leading to a
temporary over supply of new property. As a result growth in property values has
slowed down from the dizzy 20% p.a. rates of a few years ago to about 9% p.a.
However, the soft market may give good negotiating value to new purchasers, with
fluctuating prices, and the long term prospects continue to be extremely good,
with Spain continuing to offer value for money. With over 1 million UK
purchasers to date, the figures are set to rise by a further 0.5 million in the
next couple of years with many Northern Europeans becoming disillusioned with
their busy, unhealthy and hectic lifestyles back home, and seeking property
investment as an alternative to pension investment.
New build Spanish houses/apartments are typically concrete constructions, most
with balconies and tiled patios, and some access to communal facilities. Some
developments have communal swimming pools available to designated owners.
Normally air conditioning is an ‘add-on’ – which is essential in the hot Summers
where the temperature can reach into the 40s. Older property can be more
picturesque (the cobbled streets of Mijas are an example) but bear in mind that
the Spanish building industry upped its quality standards over the past few
years and not all old properties may meet safety standards. If you are tempted
by a ‘finca’ (old farm style property) bear in mind that this may well be
isolated from villages and lack electricity, running water, so major works may
be required, and check that you can develop the property into a larger building.
Many UK investors buy Spanish property to rent out, either long term or as
holiday lets. When calculating the income you can expect to achieve, remember
that the main renting period is June – September, and that the winter period may
be slack (despite the mild, dry weather that often exists in Spain). Long term renting (often to local Spanish) may be an alternative, but rents canl be
substantially lower. However, the advantage is that the rental agreement will be
for a fixed 6 or 12 month period. Always use a local estate agent to manage the
property for you if you do not live in Spain – they can then check regularly
that the property is kept in order, arrange cleaning in between rentals and
ensure that rents are paid. Expect to pay about 10% - 20% of the rental income
to the agent.
How to Buy a Property for Sale in
Spain - Like all big decisions in life, and particularly property
investments, it is important to do your research first. The legal formalities
are different in Spain to those in the UK so it is vital that you understand
what the process is, and that you get proper professional advice. Check local
building plans at the council – the beautiful field or agricultural land
opposite your ideal site may be scheduled for further building in the near
future. This may not matter to you, but you need to establish the true position.
In Spain, developers have an obligation to put in the infrastructure first i.e.
link roads, electricity, water and a designated area for children’s play area,
which is an improvement over the UK building industry, but you must ensure that
the developer has all the required planning permissions and an insurance policy
or bank guarantee to protect your payments should the project not be completed.
It is essential to use an English speaking lawyer to advise you during the whole
process.
When you make an offer for a property in Spain, how much you pay as a deposit
depends on what sort of property you are buying. If it is an existing property
you will be required to pay 10% up front as a deposit. The price is then fixed,
and the property withdrawn from the market. However, if you do not then
complete, you will lose your deposit. If the vendor does not complete, then he
is required to pay you twice the deposit.
If you are purchasing a property off-plan then you will be expected to pay round
about 30%, with the remainder in stages. Never ever pay any deposit greater than
40% - this should ring warning bells about the developer. Ensure that if you
change your mind about purchasing your property before you are due to complete,
you are allowed to sell on your property – not all contracts allow this. Allow
7% for IVA (property VAT) and about 3% for legal/notary fees, plus 1% Stamp
Duty. You will also need to obtain a NIE number (foreigner’s identity number) in
order to complete, and these are issued at your local police station. Often the
lawyer/gestoria/estate agent you use can help you in this. Once you have
completed, and the taxes paid, the deeds (escritura) are delivered for
registration with the Spanish authorities and this is a vital part of the
transaction, establishing your legal title.
Most people will need some finance for their property. Non-residents in Spain
are only normally allowed to borrow 70% of the purchase price. However, you can
mix a 70% European mortgage with 30% re-mortgage of your UK house, but care
should be taken not to stretch finances too far and assume that property prices/
interest rates will continue at the current rates. It is sensible to ensure that
you use specialist advice to get the right sort of mortgage to meet your own
needs. Professionals can advise you whether you should be getting a pound
sterling mortgage or one in the local currency in your own circumstances. Use
specialist websites to help you. Depending on whether you buy ‘off-plan’ i.e. at
the building planning stage you may need to raise finance at different times.
Certain taxes are payable on your Spanish property. IBI is the local ‘wealth’
tax and is payable annually based on the rateable value of the land, and in
addition, you will need to pay council tax. If your property is in a
‘urbanization’ – a new estate – you will need to contribute to community
charges, which cover maintaining the common areas. The charge varies according
to the size of your property.
It is essential that you complete a Spanish Will through a notary identifying
who the property should go to in the event of your death – your wishes as stated
in a British Will are not valid in Spain. Your Will is then filed with the Court
authorities in Madrid.
Once you have got your property it is vital to insure it. Bear in mind that if
you are buying it as a holiday home, it will unoccupied for a significant part
of the year, so it is important to get the right sort of insurance cover.
Spain continues to have low interest rates, and is still a favourite investment
location for UK investors, who see property purchase as an ideal long term
alternative to pension investment, with safe rental yields, particularly in the
coastal areas. There is plenty of expert advice around for new investors.
History and Culture - A rich, multi-cultural mix, the country is a
wonderful conglomeration of old and new. Spain has 13 UNESCO World Heritage
Cities. Over the centuries many different religions have influenced the
buildings and way of life, from the Phoenicians, Greeks, Romans, Carthaginians,
to Moors and Christians. So when you travel through Spain you will find an
impressive mixture of Roman ruins, Islamic palaces, ornate Catholic cathedrals
all rubbing shoulders together with modern day cutting edge architecture.
Spain’s different religions over the ages form the basis of many of the big
festivals, - for example re-enacting the centuries-old fights between the
invading Moors and the Spanish Christians. Nowadays of course, the fights are
enacted with great humour and good will. No one can party like the Spanish - if
you are attending a fiesta, be prepared to be up until at least two in the
morning!
Population Demographics –
Today about 95% of the population are Catholics, but recent immigration changes
have meant that there are now over a million Muslims living in Spain, with many
newcomers from nearby Morocco and North Africa. East Europeans and British
people are also now present in large numbers – which has meant that many local
councils provide free language lessons weekly for their new residents.
Spain is now a democracy, following the death in 1975 of the dictator General
Francisco Franco, who ruled from 1939. In 1978 a new Constitution was passed,
establishing a parliamentary monarchy, and today the Government and members of
the Spanish parliament are elected every four years with two main ‘centre’
parties contesting the seats. The Basque area continues to be controversial in
its desire to be separate and this sometimes results in some small terrorist
activity, but does not normally affect tourist areas.
In 2005 a law was passed legalising gay marriages, and views are liberal on
adoption, birth control and divorce, surprisingly perhaps since the majority of
Spain’s inhabitants are Catholic. Or perhaps it is the natural Spanish
pragmatism that wants to see its local communities strong and united!
Spain is part of the EU and warmly embraces its principles. The country has a
national health system which offers free or low cost health care for those
contributing to the Spanish social security system. Free care is also available
for other EU temporary visitors. In the main areas where there are large
communities of English speaking residents, hospitals offer multi-lingual staff.
Other inland less populated areas may not have good support however, and it is
important to be aware that there are very few residential care and nursing homes
for the elderly – Spanish tradition is that the family care for their own. A
very good private health care system runs alongside the public one, and offers
good value for money. The Spanish are one of the healthiest of all the EU
countries, and an average mortality rate for females being 80, and for men 74.
Schooling in Spain is comprehensive, with four options, state, private,
international and special needs. The State school system is co-educational and
free. Nursery education starts at three years old, primary at six, and secondary
from twelve to sixteen. Additional language classes are provided for ex-pat
children in their first weeks to help with learning the language. About one
third of children are educated in private schools, and fees and standards vary.
The third option are the foreign language international schools, but be aware
that learning only in your mother tongue may be disadvantageous for your child
in not allowing them to integrate seamlessly into Spanish culture and language.
If your child has special needs, then Spanish law requires that special needs
and disabled facilities are provided within mainstream schools wherever
possible, and you will need to provide written documentation (in Spanish) of
your child’s requirements.
Tourism and Entertainment – But Spain is not all work and no play! Spain
has an impressive fiesta calendar – in particular the ‘Santa Semana’ which is
Holy Week at Easter. All across the country each town/village organises
spectacular processions, concerts and activities. Other events include local
paella making competitions, the fire lighting spectacular of ‘Las Fallas’ in
March, and of course there is the famous (or infamous) bull-fighting and the
‘Running of the Bulls’ in July. And if you really want to do something wacky,
try the August tomato flinging chaos of ‘La Tomatina’ near Valencia.
There are thirteen national parks (nature reserves) which offer an impressive
range of flora, fauna, mountains, and sand dunes. The Spanish are currently
putting significant amounts of money into protecting their environment, and
Spanish people have an inherent pride in their communities. The new desalination
plant at El Mojon near San Pedro del Pinatar in Murcia is the one of the largest
in Spain, with an investment of some 2million providing water for people in
Murcia, Alicante and Albacete from sea water.
For shopping it would be hard to beat the trendy designer shops in Barcelona,
Madrid and Seville. For every day fun, try the local markets which travel from
town to town throughout the week. Here you will find fruit and vegetables, meat,
clothes, shoes, jewellery, freshly baked bread, cosmetics and the wonderful
aroma of garlic chickens roasted on a spit. Markets in Spain are quite a social
event and many local people end their shop with a coffee or glass of wine, and
catch up with the gossip. Local free papers give details of market days.
Spain abounds in Moorish palaces and castles, ornate churches and cathedrals,
museums and the main cities have really good art galleries. Football is big in
Spain – as is golf among the ex-pats – and water sports, rambling and beach life
are popular. The UK ex pat community has developed many social groups offering
friendship, activities and charity fund-raising throughout Spain. Whatever your
hobby or interest, you are sure to find something to do.
How to Get There - travel to Spain is fast and
cost-effective. From the UK, the average flight time is only just 2 to 2˝ hours.
Low cost airlines such as Easyjet, Ryanair, Monarch and Flybe all have regular
routes from British regional airports. The main scheduled airlines such as
British Airways, Iberia and Lufthansa offer flights from Gatwick and Heathrow,
and some of the travel companies like ThomsonFly offer seat only schedules to
the main beach destinations. There are 32 main airports in Spain, including
Alicante, Murcia (San Javier), Valencia, Madrid, Granada, Seville, Palma de
Mallorca and Ibiza. All offer good in-terminal car hire facilities, with often
the option to pick up and drop off at different locations. Don’t like flying?
Then you can cross from the UK to Spain by ferry from Portsmouth to Bilbao, or
Plymouth to Santander. Journeys take an average 19 hours to Santander and 29 to
Bilbao. Or by rail, Eurostar can take you from London via Paris to all the
major cities in Spain.
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