Euro: Strong against US $ and linked currencies. The cost of living is lower than Northern Europe and well balanced against average earnings.

Economic climate: There are no limitations to foreign property investment. The national average income of 11,000 euros per annum is one of the lowest in Europe.

Taxes: Vendors selling their primary home do not incur Capital Gains Tax. CGT is applied to the sale of 2nd properties but decreases yearly based on the period of ownership and relevant inflation rate. Wealth tax of 0.2%-2.5% on E’s 105,000 +.

Popular areas: Focus on beach resort/island based homes. The Costa’s Del Sol, Dorada & Blanca; Majorca, Minorca and the Canaries are favourites. Barcelona and Madrid are beautiful city locations. Budget properties are normally found inland.

Price ranges: Varied dependent on location. Budget inland property will normally need refurbishing and it is wise to check the electricity supply before purchasing.

Budgetary guide: Villa’s: Euro 350,000+, Town houses: Euro 240,000+, Apartments (Costa Del Sol + 15% and add for Canaries, Majorca etc) Euro 270,000+ Rural houses: Euro 120,000 to 200,000+, Finca’s/renovation: from Euro 36,000.

Buying Property: As prices are agreed both parties should sign a Contrato privado de compraventa (preliminary contract), a 10% deposit pending finance is required. Deeds change hands after signing an Escritura de compraventa, (definitive contract).

Service Fees: Overall 10% of sale price: Stamp Duty 7% (Canary Islands 4.5%), Legal fees 1%, and registration documentation fees 0.5%. A location variable Local Authority services charge applies. Overall includes Notary fees.

Mortgages: Spanish mortgages can be arranged in Euro & Sterling either on a Repayment or Endowment basis. Minimum loan amount is E´s 75,000 to be paid up by age 70 over a 5-25 year term. The mortgage is secured on the property in Spain.



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