Take the pain out of buying in Spain
Yorkshire’s appetite for buying homes in Spain is as strong as ever and a new guide should prove helpful. Sharon Dale reports.
With regular flights between Spain and Leeds Bradford and Doncaster Sheffield airports, those in search of sun and siestas have made it the number one place for Yorkshire people to buy a holiday home.
While the pandemic and Foreign Office advice against all non-essential travel has affected the property market in Spain, it has not deterred the most determined home hunters from pursuing their dream
Sean Woolley, founder and director of Marbella-based estate agency Cloud Nine Spain and the author of a new book From the Ground Up – The Insider’s Guide to Buying Spanish Property, says: “Since the outbreak of the pandemic, our client database has become segmented into two distinct categories.
“Those who were already cautious seem to have become more watchful and nervous of buying overseas but those who were already at an advanced stage of interest are becoming even more active and even keener to secure a property, spurred on by redefined lifestyle goals.
“Many have the attitude that it is time to enjoy life rather than be consumed by worry and panic.”
His clients include a young couple from Yorkshire who are looking at buying a second home in the golden triangle of Marbella/ Benahavis/Estepona on the Costa del Sol.
“They initially want a second home, but they both intend to spend more time here in the future. They have realised that it is not essential to be in the UK 24/7 and, as a result of this, they are keen to enhance their lifestyle by having a place that they can escape to, but also work from and all within a lovely climate that is only three hours flying time from Yorkshire,” says Sean.
Brexit has muddied the water over the length of time you can stay in a holiday home but as Spain is heavily dependent on foreign visitors, those with properties there are not too concerned.
While nothing has been formally agreed between the UK and EU, it seems likely that short stays will not be affected and it has been mooted that a simple entry visa may be required for stays of more than three months.
Buying procedures should also remain the same though taxation on rental income will change.
“There are no foreseen restrictions for Britons buying property in Spain, just as there are no restrictions for Swiss or Norwegian buyers. Both of those countries are also outside of the EU,” says Sean. “The only thing to watch for is the rental income tax. If you rent out your property in Spain as an EU citizen, you would pay 19 per cent and if you are not an EU citizen, the rate is 24 per cent.”
He adds that those hoping to make a permanent move to Spain are being advised to act quickly before the end of the Brexit transition period, which is expected to be the end of this year, 2020.
The Spanish government has already issued a statement safeguarding the rights of existing residents with all of their paperwork and ID cards in order, accrediting their legal residence in Spain and allowing them to benefit from the conditions of the Withdrawal Agreement.
For those buyers hoping to find an up-and-coming area,
Sean Woolley says that most of the Spanish costas have already been discovered by British buyers and holidaymakers but suggests: “Areas such as the Costa de la
Luz, which is between Gibraltar and Portugal, are still relatively untouched by UK tourism, although they are popular with Spanish and German visitors
“However, the restrictions on development and the protection of the coastline in this area means that investment opportunities are rare. The good news is that you can easily explore this stunning area with its white sand beaches in a day trip or short stay from a base on the western Costa del Sol.”
Prices vary but you can find second-hand two-bedroom apartments in older developments from about 70,000 euros. The twobedroom, new-build apartment with sea and mountain views by Taylor Wimpey Marbella, pictured left, is 222.000 euros. Sean says that as a rule, the total buying costs for a resale property will be somewhere between 10 and 11 per cent of the purchase price while the costs for a new-build property are about 13.5 to 14.5 per cent.
In addition to the costs of purchase, you will also need to consider the property’s running costs. These will include utility bills, the local Town Hall tax known as IBI, the garbage collection tax and if you live in an area or on a development with shared costs and services, there are community fees.
To be eligible for a Spanish mortgage, you will need to pass an affordablity test and provide your last three to six months bank statements, payslips and a existing liabilities, such as other mortgages, loans etc. plus a credit report. For non-residents, most lenders will agree to 60 to 70 per cent of the purchase price
■ From the Ground Up – The Insider’s Guide to Buying Spanish Property by Sean Woolley is available from Amazon.
Many have the attitude that it is time to enjoy life rather than be consumed with worry or panic.