How To Buy Property In Spain - Some Traps To Avoid

Buying properties abroad in countries like Spain is one of the most exciting things you can do, and it can enhance your lifestyle in a big way. But it's absolutely essential for you to understand how to buy property in Spain in a way that actually WILL enhance your lifestyle and not leave you bankrupt!

First and foremost, you absolutely MUST get a lawyer - don't even think of trying to proceed without one. And of course, unless you speak fluent Spanish, it need to be a lawyer who speaks English, and one you can trust. Personal recommendation is probably one of the best ways to find the right lawyer, or the consulate from your own country may have a recommended list. Some UK and US legal firms have set up businesses in Spain specifically to help expats from their own country. But sadly, even some of these have been proved to be "on the take" - so don't take ANYBODY at face value.

Once you have a good lawyer, do use him (or her). Don't even think of entering into private transactions without going through the legal system, though some vendors will try to persuade you to do just that. One of the reasons for this is that sellers of property in Spain have to pay tax on the profit they make on the house. So they will try to persuade you to put a reduced price into the purchase contract and make up the difference in cash. It's actually quite a common practice in Spain.

It may be very tempting for you to do this if you believe you have found your dream property. If you refuse, the seller might well withdraw from the sale and your dream house has gone!

Your problem is, if you do this, the price in the contract is the price you have "officially" paid for the property. So when YOU come to sell the property, your capital gain will be assessed on that price, not on the real price you paid, so YOUR tax will be much bigger! Your only hope will be to try to persuade someone else to enter into a similar illegal transaction! So don't even go there!

Have you been caught out in this way, or been tempted? Do let us have your experiences. More tips in the next post on how to buy property in Spain. Meanwhile if you want to start looking for your property, come and visit http://www.bizwrite.co.uk/realestate/overseasproperty.html We definitely won't try to involve you in any illegal practices! In fact we'll help you with the legalities from Day 1.