It can be an exciting as well as a dramatic experience to buy or sell a house in Spain. One thing, though, is certain: it is always interesting. Another thing is certain also: you should always be economically as well as mentally prepared for the task. Last but not least, the sound advice to all northern Europeans is to ally themselves with experts.

Make use of a real estate dealer when the scouting and choosing process begins. And make use of legal professionals when the actual purchase is to be completed. There is a world of difference between buying and selling a house in, say, Denmark and in Spain.

Indeed, some people claim that it is feasible to buy or sell a house between holes 13 and 14 whilst on the golf course. Well, perhaps, but the quality of such a deal will probably also reflect just that. Others will say that you can go on a one-week trip to Costa Del Sol and find the house of your dreams. That, too, is possible, but it will take a tremendous amount of luck. And should that be the case, you may still be forced to realise at some point that the grass is greener on the neighbour’s lawn.

Most people know Costa Del Sol on beforehand and have singled out an area of interest - on the beach, in the mountains, in the countryside, or right in the middle of the city with its variety of life and noises - in which to settle down. If that decision is in place, you are already ahead of the game.

Before you begin negotiating, you should make the following things clear to yourself: What kind of dream abode under the sun would I like the most? How much do I want to invest in this new home, and what expenses can I manage? Am I economically viable to follow out this deal?

In Spain you must find a real estate agent you feel comfortable with - and do so in the area that you have already chosen. That dealer will, if he is a professional, know that particular area and its immediate vicinity. He will know the price range and be familiar with the strengths and weaknesses of that area.

Have an informal chat with the property adviser and tell him what you are looking for. He will then, within a short period of time, produce a list of a number of subjects that reflect your demands. Together you will select a handful of houses to be inspected up close. In most cases the estate agent will have obtained the basic information regarding the houses in question. Listen to his advice, and then consider the various decisions that would have to be made.

When your dream home has finally be found - maybe along with an alternative - the dealer will get in contact with the seller. The formally stated price on the house is one thing. Another altogether is the price you yourself will be offering. In many cases there will be something to bargain for, though it may turn out not to be that much. Indeed, if you aim too low, you may risk not getting your hands on that house after all.

Actually the perfect house only exists in the case you build it yourself. Often it is worth the trouble to pay a tad more than you originally had planned, because this tactic will help you get considerably closer to owning that dream house.

Close your eyes and visualise that house decorated in accordance with your own style and taste. Then be pragmatic for a moment. The day might come when you want to or have to sell the house again. Do you think that others will want to pay as much for it as you did?

You must prepare your economy for the future purchase of the house, and this is why it is so important that you and the dealer sit down and go through the individual items of expenditure concerning the new house. Some of those items are as follows:
 

• IBI: this is the annual property tax which is to be paid to the municipal authorities.

• The annual specification of the value of the house as well as of your personal capital tax.

• The shared expenses for that area, such as the general upkeep and access to shared facilities  such a Swimming pools, tennis courts, and garbage collection and disposal.

• The cubic metre price of water.

• The price of electricity, along with the documented consumption of the previous owner.

When you make an offer, you are usually required to pay a small deposit. This will allow for the dealer, in accordance with the seller, to take the house off the market for a short period of time. The property adviser then draws up a trading contract in which it is stated when the remaining parts of the deposit are to be paid. These parts are usually equal to 10% of the purchase price. However, do not expect to get back these deposits if the buyer withdraws midway through the negotiation.

Now it is time to open an account in a Spanish bank. To this new account you transfer the funds that are to be released gradually for various purposes.

We at Atrium Real recommend that you either make use of our legal connections or find your own. There are a number of English-speaking lawyers in the area who are members of the Spanish Legal Society.

The lawyer of your choice will go through the documents and data pertaining to the house in question, making sure that the house indeed does belong legally to the seller, and that it can become free of debt in the process of negotiating. Also, the lawyer will make sure that there is no other debt tied to the house, and that the seller is aware of his responsibilities toward the third party - that is, if the seller is in effect entitled to act in that very capacity.

Some might want to rely on their own, say Danish lawyer, but that is a bad idea unless he knows the negotiating conditions in Spain. Expenses are more than likely to grow if you choose to go down that path.

The lawyer will supervise and handle all payments made from your special Spanish account. This includes payments to the notary, for registration, and stamp duty. In Spain you are also required to pay a special trading tax, called ITP, which amounts to 8-10 % of the purchase price.

The legal fee usually lies somewhere between 300 and 600 Euros. On the other hand, it is common practice to have the lawyer as your party and then subsequently pay him with a percentage of the purchase price. Plus-value tax is usually paid by the seller, depending on what the trading contract says.

Two to four weeks after the purchase has been taken care of, all parties meet at the notary’s office where the final transference of the property takes place. That meeting can turn out to be quite a party. Present there are the estate agent, the lawyer, the notary, the seller, and the buyer. If you are married your spouse must also, according to Spanish law, sign the contract.

The buyer pays for the registration of the house himself. When the payment of the expenses has been substantiated, the house can then be registered at the official registration office. This normally takes three to four months. Please note, by the way, that there is a 16% VAT to be paid for most official services. In most cases - and according to clear-cut agreement - the lawyer will take care of the changing of proprietor conditions at the municipal authorities and at the electricity and water suppliers, respectively.

It is now common in Spain to make a PBS-like agreement with your bank so that it automatically pays your expenses via your account. This is necessary, for instance, when you have the phone installed.