Calculate your budget
When calculating your budget allow at least 10% for costs over and above the purchase price. You can see the approximate costs involved in all purchases of Spanish property on our costs page.
If you are going to require a mortgage for your Spanish property, there wil
be additional costs involved such as property valuation and mortgage application
fees. See our mortgages page for
advice on this aspect.
You will also need to make an allowance for furnishing your new property or transporting existing furniture, either of which will be expensive. Remember also to allow for inspection visit costs and subsequent visits to complete documents.
Get the finance in place before proceeding.
In the UK it is common practice to put an offer on a property subject to your own property being sold. This does not normally happen in Spain. When you place an offer which is accepted, you will normally have to pay a non-refundable deposit. If you are unable to complete you will lose that deposit. If you intend to pay in full for your new property using the proceeds from the sale of your existing property, it is probably best to sell up and have the money in the bank before committing yourself to purchasing in Spain. Doing this has the added advantage that you will know exactly how much you have to spend (beware of currency exchage factors which can affect your overall budget. See our exchange page for more details) .
If you will be using a mortgage to finance or part-finance your purchase, make sure you have agreement in principle before proceeding. But remember that agreement in principle is just that - the lender may refuse the application when it comes to the crunch. You will need to show a sustainable income source to get mortgages from most lenders. See our mortgage information page.
Remember to factor in money transfer costs. You will need to discuss these with your home bank and your Spanish bank as both are likely to charge transfer fees.
Buying property in Spain - First Steps - Choose your area
Calculate your budget and arrange finance
Decide on the type of property you want and see what is available
Arrange an inspection visit to see available Spanish properties
Arranging a mortgage on your Spanish property
Tax considerations when buying Spanish property
