When considering buying a property in Spain, many people have the same questions to ask us. For this reason we have provided a list of previously asked questions. We hope they can give you many of the answers you are looking for, however if you still have more questions please contact us and we will be glad to help in any way possible.
There are numerous branches of all the major Spanish banks along the Costa Blanca. Most cater for British customers and offer current & deposit accounts, chequebooks, credit and debit cards and internet & telephone banking all in English.
You can even set up a sterling deposit account. All you need to open an account is your passport. We can of course help you open a bank account and will even come to the bank with you. You can transfer money from the UK to Spain direct from your own bank or you can use one of the specialist currency transfer companies.
Spanish mortgages are readily available, quick and straightforward to apply for. They are generally more expensive to set up than in the UK and you should expect to pay a fee of around 4% of the amount borrowed plus a valuation of around 300Euros.
However interest rates in Spain are much lower than in the UK and you would normally be able to borrow up to 60- 70% of the property value.
You should budget for around 15% of the purchase price (18% - 20% if taking out a mortgage). This breaks down roughly as 10% IVA (Spanish VAT), 1% property tax (Spanish stamp duty), 2% to cover solicitor's fees, notary fees, water & electric connections and a further 4% for a mortgage arrangement fee. A typical payment schedule would be a deposit of 3000 Euros and a second deposit of 10% within 2 weeks and the rest on completion.
The education system for non Spanish residents is excellent in Spain and particular on the Costa Blanca (due to the large number of British people living here).Spanish state schools are very good and most have a large contingent of English or English speaking pupils. International (fee paying private schools) are excellent and there are many in the area.
Pupils are usually accepted from age 3 to age 16 or 18 and are taught in English and Spanish. A typical cost for a 14 year old is approx. 5000 Euros /£3450 per year. There are also plenty nurseries, playgroups and mum & toddler groups.
The Spanish healthcare system is excellent and there are numerous doctors, dentists, health centres, hospitals and specialists on the Costa Blanca. Children under 18 and pensioners are entitled to free healthcare within the Spanish system.
Outside these age brackets you can only get Spanish healthcare if you are paying into the social security system. This happens when you work or set up your own company. You may be able to get Spanish health care paid for by the UK using an E106 form. To see if you are entitled to this you need to contact the pension service in Newcastle upon Tyne on 0191 218 7547.
Private healthcare is excellent, cheaper then the UK and far more comprehensive. Most private health insurances will include hospital inpatient and outpatient treatment, visits to your GP, GP visits to your property, dental costs and emergency ambulances. Finally, you can choose to go to a private doctor and 'pay as you go'. A typical cost would be around 30 Euros/ £21.
Whichever healthcare you have, you will have to pay for prescriptions and you are charged for the actual cost of the drugs. A typical charge is 4 Euros/£2.75 per prescription.
Spanish bureaucracy can be fairly slow compared to the UK. To purchase a property you need to obtain an NIE number which is a fiscal number similar to your UK National Insurance No. You will also need to register on the Padron at your local town hall. Both these are simple to obtain, are free and can be done in a day.
We have wonderful weather, stunning scenery, a relaxed way of life and the cost of living is significantly cheaper than the UK. The Costa Blanca is an excellent investment opportunity.
A Re-sale property is an established home which is ready to move into as soon as you buy it. The process is generaly a lot quicker as you are essentialy making a contract directly wither the owner/vendor.
A New development offers the buyer a chance to buy off-plan and have some input in the finish of your house, such as materials and fittings used. The buyer makes a contract with the builders/developers and payments are made in stages until final completion of the property.