Frequently asked Questions

Can I see exactly where my property is being built?

Yes –a representative from Imagine Costa Blanca will take you to the site where your property is to be built. It may not always be possible to enter the site because of works in progress but, whenever possible, we will take you onto the development to see where your property will be.

What else is planned around it and in the area?

Unless the surrounding area is designated as a ‘protected’ area, you cannot be sure of what is planned for the area in the future. Land that is currently designated as agricultural land could be reclassified in a year's time as land suitable for a new development. Your lawyer can only check to see if any plans have been submitted to the town hall for the surrounding area and advise you accordingly.

Is the property furnished? If so, is this included in the purchase price?

Generally, new properties are sold unfurnished, but kitchen units are usually included. However, this varies from developer to developer.  Your reservation contract should tell you what is included in the price of the property. 

Imagine Costa Blanca can help you with the purchase of your furniture as we have recruited the services of some local furniture suppliers who can offer you a choice of furniture packs at competitive prices. This is a simple and cost-effective way of furnishing your new home.

Can you explain step by step the process of buying a property?

Deposit and Stage payments

Varies from developer to developer - defined in reservation contract.

Legal fees

Your lawyer will normally charge 50% when you instruct him to review the contract, and 50% on completion

Notary

Due at time of completion

Land registry

Due on completion

Taxes

IVA (VAT) is due on all deposits and stage payments as the sale progresses, and on the final payment at the time completion.

Other taxes are due on completion.

Stamp duty

Not applicable

Do you need a bank account before you pay the deposit?

No – you only need to open a bank account when you are ready to take possession of your property. You will need your bank account to pay your utilities (electricity, water, etc), community fees and property tax (rates).

What will I need to open a bank account?

You just need a copy of your passport to open a bank account.

Can you help me to open one?

Yes – we can open an account on your behalf. We will need a copy of your passport and sign a bank agreement form which we can provide and we can do the rest.

Do I need to arrange a mortgage before I pay the deposit?

No

If not when?

We would advise yo to talk to a mortgage provider, to discuss your requirements when you find the property.  However, you will not be able to enter into any agreement until the property can be valued, shortly before the completion.

Can you help me to arrange one?

Yes – Imagine Murcia will help you find the mortgage that suits you best and assist you throughout the process.

What are the running costs?

Community Charges

With most types of property you will have to pay a community charge to cover costs such as maintenance and cleaning of the community pool, care of gardens, etc. The amount you have to pay depends on the number of properties within the community and the services that the community committee agrees are required.  This could be around €100 per month.

Rates

Property rates vary from place to place, and are set by the town hall.  You should allow something between €1,500 and €2,500 per year. 

Gas

Most places do not have mains gas, however bottled gas is readily available, at €9 a bottle. You will need a certificate proving your property has been inspected as suitable for the use of gas appliances before you can purchase gas bottles. However, your builder should supply you with this.

Electricity

This depends, on your consumption. There is a standard charge of around €12 payable every 2 months and then a charge for consumption in addition to this.

Banks Accounts

A small amount of money will be taken from your bank account without your permission, this is normal to cover a non-resident fee, typically €18 per named person per year on your account.

It is also worth noting that Spanish banks charge a fee for receiving transfers into your account.

Do I need a solicitor?

When you purchase a property it is advisable to employ the services of an English speaking Spanish solicitor. It is not obligatory, but most British people feel happier to use one.

What are their responsibilities and costs?

The responsibility of the solicitor is to guide you through the property purchasing process. He will ensure that the builders have the proper licences in place for the buildings and that there is nothing hidden in the contract.

It is advisable to make a Spanish will and the importance of this will be explained by your solicitor. You may also want to give him power of attorney if you cannot be present yourself for the exchanging of contracts.

The costs of providing these services vary depending on the solicitor, but an average cost is 1% of the value of the property.

Can you recommend a solicitor or should I use the developer's solicitor?

Imagine Costa Blanca can recommend an English speaking Spanish solicitor. It is always wise to have an impartial solicitor.

What is the Notary's responsibilities and costs?

The Notary's function is to oversee all legal proceedings. You will always see a Notary when exchanging contracts for the purchase of your property, to register wills or give power of attorney to your solicitor to allow him to purchase a property on your behalf.

Notaries charge approximately €1,000 for the purchase of a property, which includes the property registration.

How much is the deposit, how do I pay and when is it due?

This is established by the developer, or estate agent. 

For off-plan properties, the pre-reservation deposit is usually about €3,000, but the full deposit could be up to 30%.

For resale properties, the deposit is usually around 10% and is non-refundable.

What happens if I back out, having paid the deposit?

Normally you will lose your deposit. Once you have signed the purchase contract for the property and paid your deposit the purchase is considered done.

Is the contract in Spanish? If so, can you help with translation?

The purchase contract will be in Spanish (as required by law).  But normally the developer or estate agent provides you with a translated version.  If a translated version is not available Imagine Costa Blanca will translate it for you, free of charge.

What are the other stage payments and when are they due?

The staged payments vary from developer to developer, and are specified on the reservation contract.

Are my payments protected/guaranteed by the developer/bank?

When you invest in a new Spanish property the developer is obliged by law to give you a bank guarantee for all monies paid to date. This guarantee ensures that you will get all your money back, in the unlikely event of the developer going bust.

What is an NIE number?

NIE (Numero de Identificacion de Extranjeros) is your fiscal identification number in Spain. It is a legal requirement when you buy a Spanish property.

When will construction start?

You will be advised of the construction phases and dates at the time of purchase.

When will it be finished?

You will be advised of the completion dates at the time of purchase.

What happens if building is delayed? Will I receive compensation?

Generally there is no compensation for delayed delivery dates.  The developer should keep you informed of any delays. 

What happens if it is never finished?

You would be covered by your bank guarantee and you would get your money back in full.

Is the property built with a 10 year construction guarantee?

Yes – all new properties should come with an independent 10 year guarentee.

Who arranges water and electric connection?

Normally water and electricity connection is done by the builder. However, you must arrange for the services to be put into your name.

Do I need building and contents insurance?

If you take out a mortgage on your property, the lender will insist on building insurance. Depending upon the policy, this could include contents.

Average cost of a € 100,000 building policy with a € 350 excess - € 185 per annum

Average cost of a € 11,500 contents policy with a € 350 excess - €55.00 per annum

Can you help me with finding an insurance policy?

Yes - Imagine Costa Blanca can organise insurance cover for you.  We have put you in touch with companies that specialise in policies for non-resident owners.

Currently the annual capital growth for the area of the Cost Blanca is in excess of 20%

Can I sell before completion? If so, is this back to developer or privately?

This depends entirely on the developer. Some purchase contracts allow you to sell before completion, whilst others do not. If you are permitted to sell before completion, it would be a private sale.

Can I rent the property?

Yes - you can rent your property.

How do I find a letting agent?

Imagine Costa Blanca can assist you in finding a letting agent.

What is the typical rental income I can anticipate and number of weeks per year?

This is very difficult to estimate. It all depends if whether you rent through an agency in Spain or whether you advertise it yourself in magazines or the internet. Another factor to consider is how many weeks of personal usage you require and if this will be in peak rental periods.  Some agencies will guarantee a certain amount of letting, but with greatly restricted personal use.