Guide to buying property in Spain - budget and finance

What can you afford to spend on a property?

It would be a mistake to look for property valued at the total amount of money you have to spend. The actual cost of any property you purchase will be 10-12% more than the sale price. You can see the approximate costs involved in all purchases of Spanish property on our costs page.

Flamenco dancers

If you intend to get a mortgage to finance your Spanish property purchase, there will be additional costs incurred including property valuation and mortgage application fees. See our mortgages page for advice on this aspect.

You will also need to take into account the cost of furnishing your new property or transporting existing furniture, either of which will be expensive. Remember also to allow for the cost of inspection visits and subsequent visits to complete documents.

Arrange the finance 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 and it is accepted, you will usually be required to pay a non-refundable deposit. If you are unable to complete the sale, you will lose the deposit you have paid. There are some exceptions to this, and you need to discuss the issues with your lawyer before paying a deposit.

If you intend to pay all or part of the costs of your new property using the money from the sale of your existing property, it is 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 (bear in mind that currency exchage factors can affect your overall budget. See our exchange page for more details) .

If you will be taking out 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 may charge transfer fees.

Buying property in Spain - First Steps - Choose your area

Decide on the type of property you want and see what is available

Calculate your budget and arrange finance

Arrange an inspection visit to see available Spanish properties

Making an offer on a property

Exchanging currency

Arranging a mortgage on your Spanish property

Legal matters

Deposit and completion

Tax considerations when buying Spanish property

Approximate costs when buying property in Spain