1) Always use a Spanish qualified Lawyer when buying a property in Spain
2) Sign a private contract with the vendor. The contract will set out the legal description of the property, the price, the payment terms and the obligations of both parties.
3) Signing takes place two weeks after the contract is signed, unless you are getting a Mortgage, which may take a few more.
4) The final stage of your purchase will be formally completed before a Public Notary when the vendor signs the property over to you. You will exchange your final payment for keys to your new home. If you are purchasing property from a non resident, your lawyer will ensure that retention of 5% is paid to the town hall as insurance against the tax liability of the vendor.
5) The vendor usually pays a tax called plus valia, however it may have been stipulated that you are responsible for all costs as a condition of the sale. This tax may range from a few hundred to several thousand euros because it is calculated on how much the land your property lies on has increased in value since it was last sold. Your lawyer should find out how much this tax is likely to be before you agree to pay it
6) Personal circumstances vary greatly but you may cease to be liable to UK tax if you cut all ties with the UK and become domiciled abroad. However you will technically be a UK resident if you spend a requisite number of days in the UK and will consequently suffer UK tax on your income. Obtain more information on tax and your domicile status from the Inland Revenue’s document called IR20. If you do change you residency cash held offshore may still be liable to tax in Spain depending on local tax rules. Please note that Spain imposes a wealth tax on your world-wide assets. However, as Spain and UK have a double taxation treaty you should be given relief for double taxation
7) As a foreigner living and/or working in Spain, the first thing you MUST do on arrival is obtain an NIE number. This is a simple process providing you follow the guidelines. To do it your self, go to the National Police station and collect an application form. The following details will need to filed in.
8) 1 DATOS PERSONALES means PERSONAL DETAILS
9) 1er Apellido: Surname
2º Apellido: (second Surname)
Nombre: Christian Name same as in passport
Fecha de Nacimiento: Date of birth (use two digits for day and month)
Lugar de nacimiento: Place of birth
Sexo: Gender “H” for Male (Hombre) and “M” Female (Mujer).
X the one applicable
Estado Civil: Status. S for single C for married. V for widow and D for divorced
País de nacimiento: Country of Birth
País de nacionalidad: Current Nationality
Nombre del padre: Father’s name
Nombre de la Madre: Mother’s name
Domicilio en España: Address in Spain (if you have one, otherwise leave blank) - Localidad: Town, CP: Postcode, Provincia: Province
Reasons for application:
Economic, Professional or Social (Tick professional for work reasons or social for house purchase)
10) DOMICILIO A EFECTOS DE NOTIFICACIONES
Leave blank
11) Sign the form at the bottom, under 'firma de solicitante'.Complete the form and take it back to the National Police station, along with a photocopy. You also need to provide your original passport and a photocopy
12) You need this number to do anything fiscal in Spain such as open a bank account [this can also be done with your passport number].
13) CURRENT DRIVING LICENCE, preferably the EU type with the ring of stars
14) Two EU approved, red warning triangles.
15) Approved reflective jackets that must be worn by all outside the car at anytime, day or night, outside the vehicle at the side of any highway not in an urban (street lights?) area. The jackets must be kept inside the car so they can be put on BEFORE getting out and also must be visible from outside the car. The pocket in the back of the front seat is a good place. The jackets are inexpensive and can be bought at most supermarkets if you do not have them already.
16) A set of spare lamps/bulbs for your car AND the tool/s to change them.
17) If you wear corrective glasses for driving, a spare pair.
18) Your number plate should be an EU one with the ring of stars containing your country code, or a small plate/sticker with your country code (GB, etc) should secured to the rear of the car.
19) Valid insurance.
20) All vehicle documents relating to the car.
21) If you are from outside the EU, you will need an International Driving Licence issued by the correct authority in your home country. It must have one page of information in Spanish.
22) Remember that your “tourist status” in a foreign country usually applies for only three months as far as insurance is concerned, so for any longer periods, do not forget to discuss this with your broker.
23) The roads in Spain vary from very poor to very good, the latter especially since Spain joined the EU and has benefited from the funding from other countries over the last 20 years. The main connecting roads are generally excellent. Roads are classified thus, and they can be easily clarified on a road map.