Buying a holiday home in Spain but not sure where to start? We have listed 5 tips for you.

Step 1: in which region do you want to buy a holiday home?

The first question you should ask yourself is: where in Spain do I feel at home and will I be happy? Many buyers are guided by pictures on the internet. Of course, it is important to buy a property you like. But the location and surroundings are decisive in making you feel at home. First gather enough information about the different Spanish regions and the Costa’s. Once you have determined your dream location, you can start your property search.

Step 2: what do you enjoy in Spain?

A second thing to think about is what your ideal day in Spain looks like. Based on that, you can start looking for the region and property that suits you. Do you like going for a coffee at a beach bar in the morning, with your feet in the sand? Then it’s best to buy a flat within walking or cycling distance of the sea. Do you like living on a mountainside, with a large terrace and a fantastic view of the sea? Then you will feel more at home in a house or flat located more in the mountains.

Step 3: determine the cost price

It is important to determine your budget well in advance to avoid any financial surprises. The purchase price involves some additional costs:

New construction: on top of the purchase price comes VAT (IVA). This is currently 10%, a significant difference compared to the 21% VAT in Belgium.
Existing home: take into account transfer and selling costs (ITP). These go from 7% to 10%. There are also lawyer and notary fees plus some taxes. This brings you to 12% to 14% additional costs.

If you buy a property with a purchase price of €200,000, it comes to a total of €224,000 to €228,000, depending on the region and whether you opt for new construction or an existing property.

Step 4: looking for your dream house in Spain

Once you know which region you want to live in and what your budget is, you can start looking. Go on site for a few days and try to see as many properties as possible. If necessary, you can be guided by a local estate agent or property specialist.

Step 5: book, buy and enjoy

Found your dream home? Then it is important to get it off the market as soon as possible so you can be sure you can buy it. To do this, you need to sign the reservation agreement as soon as possible. This will include who the buyer and seller are, what is being bought, at what price and the period for which the property is reserved.

You must pay a reservation sum that varies between €3,000 and €6,000. When this amount is in the account of the property developer (new construction) or the lawyer (existing property), the reservation is in order. The reservation period usually lasts one month. Within that period, the purchase contract is signed, which contains the payment instalments. After 30 days, you usually pay 30% to 40% of the purchase price. The rest is paid when the deed is signed.

It is wise to hire a lawyer from the beginning and give him/her a power of attorney. The lawyer will then arrange everything needed to buy the property in your name. This way, you don’t have to deal with this yourself. Afterwards, all you have to do is sign the deeds and receive the keys to your Spanish home. And then it’s time to enjoy Spain!

Would you like to buy a holiday home in Spain? Come along to one of our expos, or contact us without any obligation.