The important questions

Our guide answers the most important and commonly asked questions when considering purchasing a property in Spain.

1) WHAT IS THE REAL COST OF BUYING A HOME IN SPAIN

When you purchase a home in Spain, as in the UK, you have several costs which you must factor in to your total budget. Property purchase taxes, notary fees and other costs are unavoidable in Spain and you must allow up to 8% on top of the value of your purchase to cover your purchase costs, or, 10% if you intend to arrange a mortgage in Spain to fund your purchase.

For example a villa with a purchase price of €300,000 will cost approximately €330,000 euros in total if you wish to arrange a Spanish mortgage to fund the purchase. (For a full breakdown and explanation of these costs please contact us)

 

2) DO I PAY ANYTHING TO YOU, THE ESTATE AGENT?

Our service to you the buyer is completely free of charge.  All our fees are covered by the commission we make when we sell a vendor´s property on their behalf. Our services which includes mortgage advice/arrangement, expert rental advice and as much of our time as you require viewing properties, is provided at no charge to the buyer.

We also offer tailor made trips from the UK to view properties.  Should you purchase a property we will refund all your travel costs.

These are not subsidised high pressure sales trips, you can stay as long as you like and we do not expect you to buy.

Frequently your accommodation whilst here will be provided by our rental division.

 

3) WHAT SIZE OF DEPOSIT DO I REQUIRE?

If you see a property you wish to purchase you first need to make an offer which must be relayed and hopefully accepted by the vendor. You must then lodge a €3,000 reservation fee with Renvida which is payable to the owner, this does not obligate you to buy the property but allows us to take the property off the market whilst the private purchase agreement is arranged and surveys and mortgages performed if necessary. (N.B. This deposit is non-refundable and kept by the vendor should you later pull out of the sale.)

Later, at the time of signing the Purchase Contract (usually within 2 to 3 weeks of paying the reservation fee) a 10% deposit must be made and a completion date contractually agreed, the €3,000 euro reservation fee is deducted from the 10% deposit required.

 

4) DO I NEED A SOLICITOR TO PURCHASE A PROPERTY?

We can assist you with finding a good, reputable solicitor to handle the legal aspects of the purchase process. We will also assist you in finding a surveyor for a full structural survey if this is required. Legal fees for the purchase of a property are very reasonable in Spain and range from €500 to €1500 euros.

5) CAN Renvida ASSIST IN THE MANAGEMENT OF MY PROPERTY?

In your absence you may wish your house to be managed. We offer a complete service that includes, key holding services, pool cleaning, gardening, maintenance, cleaning and linen services and regular property checks if required.

6) WHAT ARE THE PROSPECTS FOR CAPITAL GROWTH ON THE COSTA BLANCA?

The towns of Moraira and Javea now offer an attractive alternative for sophisticated customers looking for quality beaches, restaurants, shops and infrastructure at a lower price than the Costa Del Sol, Mallorca and other more established expensive parts of Spain.

Property prices in Moraira and Javea are still low in comparison to their more established couterparts and this bodes very well for continuing future property price rises that buck current the national trend of stagnant or declining values.

This is particularly true at the higher end of the market.

7) IF I SELL MY PROPERTY WILL I PAY CAPITAL GAINS TAX?

The simple answer is yes, if the price rises the tax equates to 18% of the gain you have made, this equates to approximately 3% to 4% of the value of your property at the time of sale. Please ask us for further details about Capital Gains tax and how it can be reduced or avoided.

8) WHY SHOULD I CHOOSE Renvida?

We believe we are the best alternative for an investor looking for a Spanish rental investment or for someone considering purchasing a permanent move or holiday home on the Costa Blanca. We offer the widest selection of properties and outstanding personal service before, during and after your purchase.

We look forward to meeting you!