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Things To Know Before Buying Real Estate In Spain

Posted on: 16-Oct-2012

First of all, if you are from a different country and are buying real estate in Spain to live in year round or to vacation in, you need to make sure that you work with reputable real estate agents, attorneys, sales people, consultants, etc.  There are so many ways that people can find themselves in a seriously bad situation when they are purchasing real estate in their own country in a language they know very well and it is just a multiplied situation when you are working with foreign tax laws, your own country’s tax laws, and all business is conducted in a different language that is being translated for you.  

That does not mean you cannot make a successful real estate investment or transaction, you just need to be extra careful that you take the time to find out exactly what you are expected to pay, to do, to sign, to understand and that you do all of those things exactly the way you are told to.  You do not want to spend a great deal of money buying a property only to find out that you wasted money or failed to do something correctly and thus get punished or fined.  And with the financial situation being as volatile as it is right now, the tax situation dealing with real estate in Spain may change from day to day and it is important that you work with a company who will help you understand your obligation now and what it will be in the future.
You also need to understand the location where you are buying your real estate in Spain.  There are just as many differences between various parts of the Spanish country and city real estate markets as there are in any other country.  This means the price of a home in the middle of Madrid will be vastly different than if that exact house was picked up and plopped near the coast.  But as a stranger to the market you may not know whether that coastal property should be more or less than that in the middle of the city and what if rather than along the coast, you were looking for something in Seville?  

Would the house be worth more or less there?  This is why working with a reputable home seller is very important. If you do not work with someone that has a very good understanding of the Spanish housing market, you may wind up paying too much and in this sort of a financial situation where property values are already very low and may possibly drop even further, you need to make sure that you are paying a realistic price for the property no matter where it is.

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