Information about Spain

  



Introduction
Regional Locations
The buying Process
Legal Issues to Consider
Financing a property purchase
Investment Potential
Government
Economy
Education
Health




Introduction:

Mainland Spain is situated in South Western Europe and it occupies a major part of the Iberian Peninsula. Spain also includes the Balearic Islands which are in the Mediterranean Sea and the Canary Islands in the Atlantic Ocean. Spain borders on the Bay of Biscay, France and Andorra to the North, the Mediterranean Sea to the East and South as well as the Atlantic Ocean (to the South) and on the West by Portugal and the Atlantic.

 

Spain is considered one of the world's most fascinating destinations. Its vibrant culture and hospitable people have attracted visitors for hundreds of years. Bounded by the Atlantic Ocean and the Mediterranean Sea, Spain boasts an amazing variety of terrain, from the sunny south to the lush green north.

 

Visitors will find a host of attractions, from festivals to fiestas, and from ancient castles to spectacular mountains and glorious beaches. The dramatic museums and cosmopolitan city centres contrast brilliantly with the rustic farms and finca houses Spain has to offer. Not forgetting the fantastic cuisine and drink. Paella and Sangria remain firm favourites among the tourists.

 

Spain is still the most popular overseas holiday destination amongst the British. In the first quarter of 2005 Spain received a record 13.6 million foreign tourists. It is easy to understand why, considering the above reasons and the diversity Spain can offer.

 

The climate on the Atlantic coasts is generally cloudy and cool, central Spain has hot summers (droughts are common) but the winters are cold. The Southern Mediterranean coast has a subtropical climate and has mild winters. Most of Spain receives little rain each year (less than 24 in).

Regional Locations:

Almeria

 

Almeria is located on the eastern edge of Andalucia, and is popular among tourists and expatriates as this part of the country has some of the longest beaches in Spain. Almeria caters for just about everyone, whether it's walking, riding playing golf or relaxing on the beach you'll find it here. Like most of Spain, Almeria gets very busy around summer months as people flock from European destinations to take in the sun.

 

This region of Spain has not always been as popular as areas like Malaga, Seville or Granada but it has come on board as a recognised and respected holiday destination in recent years. A popular international airport enables the region to support the volume of people who visit the region all year round.  

 

Almeria also offers a host of popular and most importantly reasonably priced restaurants and bars with good food and an atmosphere to match, a number of which can be found in the old town. There are many buildings and churches in the old town which date back as far as the 15th century.

 

 

Granada

 

As the 13th largest urban area in Spain, Granada has a population of approximately 300,000 people and is located next to the Sierra Nevada Mountains in Andalusia. It is thought that its origins stem from its surroundings with steep mountains on one side offering perfect protection and flat agricultural land at the back providing perfect farming facilities.

 

Granada is popular among tourists and is home to one of the biggest and oldest castles in the world - the Alhambra, which is also Spain's most visited monument. Unlike most Spanish cities, Granada has a huge student population and is therefore quieter over summer months as students leave for the holidays.

 

Getting to Granada is easy enough, one can either fly directly to a small airport located approximately 12km from the city centre or as many people do, you could fly into Malaga and then make your way to Granada by car or bus.

 

Granada is well known for its beautiful parks and gardens which should be visited if ever you get the chance.

• The garden of Carmen de los Mártires
• The garden of Zaidin
• The garden of Federico Garcia Lorca
• The garden of Alhambra
• The garden of Fuente nueva

Zaragoza

 

Zaragoza which is pronounced Saragossa in English is located in the North Eastern region of Spain just below the French border of Andorra. The city itself is situated on the river Ebro about 200 meters above sea level, in a valley surrounded by a combination of landscapes from desert to forest.

 

Zaragoza has a population of approximately 700,000 people who enjoy a Mediterranean climate with high temperatures in summer months. Low temperatures are often experienced in winter months as a result of being situated in a valley, wind and foggy conditions are not uncommon.

 

Zaragoza's location makes it very accessible from all directions; the city is connected by highways that run as far as 300 kilometers from main destinations like Barcelona, Valencia and Madrid. High speed railway also offers an easy alternative to driving with Madrid and Barcelona reachable in just over an hour.

 

Zaragoza has a rich culture and offers visitors a host of attractions from The Roman Town walls to Museums, Churches, Chapels and Monasteries.   

 

 

Las Palmas

 

Las Palmas or Las Palmas de Gran Canaria as it is actually named is a Small Spanish city located on the island of Gran Canaria. This island is part of the Canary Islands and is located around 200 kilometers off the North Western coast of Africa in the Atlantic Ocean.

 

The city of Las Palmas was founded in 1478 and was originally named Real de Las Palmas. It has a vibrant cosmopolitan population of around 400,000 making it the largest city in the Canary Islands. Like all of the Canary Islands, Las Palmas is popular and well known for its beaches; three of the more popular beaches are Las Canteras, Las Alcaravaneras and San Cristobal.

 

Gran Canaria on a whole has very pleasant weather with warm mild temperatures of 30 degrees Celsius in the summer and around 20 degrees Celsius in the winter. It is a popular destination for tourists especially from Europe and the UK.

 

 

Cadiz

 

Cadiz city is located on a peninsular just off the coast of Mainland Spain. Also known as the coast of light, Cadiz is popular among tourists as it offers long stretches of white beach with breath taking sun rises and sunsets. Beaches in Cadiz have been subject to changing weather and climate conditions in recent years however the government has been proactive in maintaining this coastline in order to preserve its beauty for generations to come.

 

Cadiz unfortunately is not the most accessible region in Spain although getting here in its own right is testament to the areas charm and beauty, making the trip all the worth while. To reach the mainland from Cadiz you will need to cross a narrow channel to Isla de Leon before crossing another channel to the mainland.

 

Cadiz is the seventeenth largest city in Spain with a population of around 700,000 inhabitants. A shortage of available land in this area has resulted in the construction of a number of apartment blocks and various other dense building projects which have also been blamed for the decline in the population in recent years. Building in this region is difficult and costly as foundations have to be sunk deep enough to support the structure on what is essentially a giant sandpit.

 

Don't be fooled though, this area is beautiful and rich in history and culture; it is a popular destination among foreigners looking to explore its unique features.

 

 

Murcia

 

Murcia is located on the South Eastern coast of Spain, pretty much in the middle of Valencia to the North and Malaga to the South. Set back slightly from the actual coast - Murcia is situated on a low lying plain known as the Orchard of Murcia.

 

This region is well known all over the world as a popular holiday destination of choice especially among Europeans and the UK. A Mediterranean climate with exceptional weather and beautiful beaches attracts thousands of people to this area every year.  Murcia like many cities located in this area support a large expatriate community who enjoy relatively lower costs of living, relaxing in the sun and of course playing golf on some of the worlds most exclusive courses.

 

Murcia receives around 300 days of sunshine a year, summer months here are hot, and temperatures in this region over the summer can often exceed 40 degrees Celsius. Sea breezes would reduce the temperature but the closest coastline is roughly 50 kilometers away. This area has also increased in popularity with the introduction of a number of low cost airlines and flights coming in from all destinations of Europe and the UK, the airport of Murcia is located about 40 kilometers from the city centre and serves other popular surrounding destinations like Torrevieja and La Manga.  

 

Interestingly enough, this area has not grown as quickly as some of its surrounding areas, however the introduction of a number of exclusive property developments around Mar Menor have attracted the attention of property developers who have already achieved huge success in developing existing and surrounding areas of the Costa Del Sol.   

 

Malaga

 

Malaga is located on the Southern coast of Spain in the heart of the Costa del Sol, which has earned it its nickname as the capital of the Costa del Sol. The Malaga province has a population in the region of 1.25 million people and is still growing every year as more and more people look to settle here in order to enjoy its fantastic weather and quality of life. Millions of people jet into Malaga on an annual basis, on average Malaga's airport handles around 16 million visitors every year.

 

Majority of Malaga's popularity can be attributed to its close proximity to the Costa del Sol although a number of people visit this area as it is also the birthplace of the infamous painter Picasso. Like Murcia and Valencia, growth in this area has also been enhanced by the introduction of low cost airlines which have helped deliver millions of potential property buyers which in turn has fuelled the property boom over the course of the last 10 years.

 

Popular destinations and beaches in Malaga include, Estepona, Marbella, Benalmadena, Mijas and Fuengirola. Pretty much all of the beaches in Malaga offer a range of activities and attractions which range from bars and restaurants to any kind of water sport imaginable.    

 

The average price of property in Malaga is around € 310,000 which has held steady over the course of the last few years.

 

Alicante

 

Alicante is the largest city in the Costa Blanca region of Spain; it is located in Southern Spain on the coast between Murcia and Valencia. Alicante is a popular tourist destination and draws in thousand of visitors a year who are looking to soak up the Spanish sun while enjoying a combination of rich culture, history and food. Alicante is one of those particular areas in Spain that has continued to experience year on year growth which looks set to continue well into the future.

 

Alicante has some of the best beaches in the world with long stretches of white sand, warm Mediterranean ocean and 300 days of sunshine a year. With the introduction of the Euro, property prices have continued increase year on year and have been fuelled predominantly by an increasing population of expatriates who have either purchased second home abroad or retired here.

 

Property is still in high demand and quite expensive in Alicante although prices do drop as soon you start to move inland, real bargains can still be found around 15 minutes drive back from the coast. Generally buyers in this region are from mainland central Europe including Germany, France, and Holland and of course the UK.

 

Seville

 

Seville is the Capital of Andalusia and of the province of Sevilla. The population of this Southern region of Spain is roughly 1.5 million people if you include all of the surrounding urban areas. These numbers rank this region as the fourth largest metropolitan area of Spain.

 

Seville is nearly 2000 years old and still offers visitors and tourists a chance to see many historical and ancient sites and some of the oldest cathedrals in the world, most of which reflect ancient Medieval and Gothic periods. Seville has a very Mediterranean climate with hot summers and mild winters with July being the warmest month of the year.

 

Seville as a strong economic structure and has been subject to much positive growth since the early 1990's and is well positioned and close to Malaga and the rest of the Costa del Sol.

 

Valencia

 

Valencia is located on the East Coast of Spain. The province of Valencia is the third largest city in Spain and has a population of roughly 2 million people which also makes it the fifteenth largest city in the European Union. Situated at the centre of the Spanish Mediterranean Coast, Valencia overlooks the Gulf of Valencia and forms the biggest port on the Mediterranean West Coast.

 

Valencia is well known as the administrative capital of the Valencia community. This densely populated area is home to many ancient Roman and Arab ruins along with an array of old medieval towers and monasteries.

 

Millions of people visit Valencia every year and the economy has experienced strong growth over the last 10 years as a result of its booming tourism and construction industries. Valencia has also recently joined the world of Formula 1 racing.

 

 

Barcelona

 

Barcelona is located in the North of Spain in the very North Eastern region of the country. Barcelona is the capital of Catalonia which is also the most populated city in Spain.  Founded as a Roman city, Barcelona is one of Europe's principal Mediterranean ports.  The city is rich in cultural history and attracts millions of tourists every year who enter the city via the Barcelona International Airport. Barcelona forms part of the Coast of the Iberian Peninsula and sits on a plateau approximately 170 square kilometres in size.

 

Barcelona as a result of its location and close proximity to the Mediterranean has a Mediterranean climate with mild winters and hot, dry summers. The warmest months of the year are July and August and the coldest months are January and February.

 

Barcelona has seven main beaches which measure a combined length of around 5 kilometres of soft sand, most of which is shifted in from surrounding quarries. Five of the main beaches, namely, Nova Icària, Bogatell, Mar Bella, Nova Mar Bella and Llevant were opened to help the city gear up to the 1992 Summer Olympics.

The buying Process:

 

Preliminary Contract aka Contrato privado de compraventa

 

When your offer has been accepted and the purchase price has been set, both you and the seller will usually sign a preliminary sales contract. Before signing the initial contract, it would be worth ensuring that you have done your homework. At this point you should always ensure that the property you are buying is owned by the seller and that the property holds no debt or charges. Be aware that any outstanding mortgage will be taken on by the new buyer, so it is essential to make sure that your new property is debt free.

 

The sales contract will usually include all of the details pertaining to your purchase, once the contract has been signed by both parties, you will be expected to pay your deposit which can range between 5 - 15% of the purchase price. It is customary in most cases to pay your deposit before signing the preliminary contract. The Estate Agent involved in the transaction will provide you with the account details for your transfer. Before making this transfer, ensure that the deposit account is an Escrow or Ring Fenced account. If for whatever reason the Seller decides to pull out once the contract has been signed, you will be entitled to twice the deposit as compensation.

 

Final Contract aka Escritura de compraventa

 

Your completion date will be set and outlined in the preliminary contract of sale. You will need to ensure that you have made full payment for your purchase inclusive of any fees before your completion date is reached. Once payment has been received, both the buyer and the seller will sign the final contract which is essentially the Deeds of the Property.

The buyer is then given a Public Deed of Conveyance before a Notary Public who by law is required to witness the deed of sale. The Public Deed of Conveyance will then be given to the tax office as well as to the property registry.

Your Estate agent should be able to help you with:

• Obtaining a NIE Number (numero de identificacion de extranjeros).
• Appointing a Spanish, English speaking Lawyer (abogado).
• Negotiating your offer and preparing your preliminary contract
• Any Legal checks that need to be carried out prior to signing the contracts
• Opening foreign banking accounts

Legal Issues to Consider:



• Spanish property law is complicated.
• Spanish law allows only the person named on the title deed to sell the property.
• Appoint a Lawyer/Notary who speaks English.
• Make sure the contract is translated into English.
• Check that the property you are buying is debt free.
• Ensure that the property has been legally built and has planning permission

 

Fees and Taxes

As the buyer you will be responsible for paying:

Taxes

• The Notary's legal fees
• The property registry inscription fees
• The Property sales tax - which includes VAT and Stamp Duty
• Any applicable transfer tax
• Plusvalia - Tax levied by the Town Hall is based on the properties size, position, value and previous title deed. (Negotiate who will pay this before doing anything)

Fees

• Notary Fees are approximately 0.5%.
• Lawyers Fees are approximately 1%.
• Transfer Tax is 7% on re sales (which includes Stamp Duty)
• Transfer Tax is 16% on land and commercial property
• Transfer Tax is 7% on new builds 7% plus 1% Stamp Duty.
• Registration Fees are approximately 0.5%.
• Estate Agents fees for sellers vary from 2 - 10%.

Financing a property purchase:

Financing an overseas property purchase is easy when you deal with professionals...

 

If you are thinking about buying an overseas property, then you also need to be thinking about the best way to finance your purchase. At Sublime Location we work closely with a number of specialised lenders who have all been carefully selected based on trust, experience and reputation.

 

Selecting the right product and making the right decision when it comes to financing a large investment could save thousands.

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• Time saving rate comparison on mortgage products
• Competitive rates negotiated on your behalf
• Money saving tips
• First class service
• Impartial advice
• Unique products in various currencies
• Education on all aspects of overseas finance
• All areas covered including Legal costs and Tax issues



Click Here - Overseas Mortgages



Investment Potential:

In terms of investment, Spain has to be one of the top property investment destinations for those hoping to combine pleasure and profit.

 

Property is no longer considered an 'alternative investment' as it is a viable investment option that offers excellent returns on initial capital. The growth in buying property both in the U.K. and overseas for either investment purposes or as a second holiday home is at an all time high.

The Spanish property market  is a mature market that continues to increase due to a number of reasons. Firstly, many purchase the property for a holiday residence with golfing facilities or for a retirement home in the sun. Rental potential is brilliant and capital gains are made from property price rises.

Each year rental investors can expect to gain around 10% to 12% of the value of their property, plus the long term annual property value growth. Low mortgage rates in the EU make it easy to cover the yearly mortgage payments.

Government:

Spain has had a constitutional monarchy since 1975. Spain's bicameral legislature, the Cortes, consists of the chamber of deputies and the senate, both of whose representatives are elected every four years in provincial elections. Spain's executive branch consists of the president (prime minister), vice presidents, and heads of ministries. Its responsibilities include the regulation of international and national policies and defence.

 

The king proposes the prime minister, who then must be approved by the Cortes. Each of the autonomous regions forms its own parliament and regional government and exercises legislative and executive authority in the manner outlined by the national constitution

Economy:

Spain has made great economic progress in recent decades, due to the development of steel, shipbuilding, textile and the mining industries.

 

Traditionally Spain is an agricultural country and is the world's largest producer of Olive Oil and Europe's largest producer of lemons, oranges & strawberries.

 

Another leading export is wine and canned fish. Ships, footwear machinery and chemicals are also widely exported. Despite all this, tourism is undoubtedly Spain's greatest source of income.

Education:

Education is compulsory and free of charge to all Spanish students up to the age of 16. International students of course have to pay school fees to study in the Spanish Education System.

 

Primary school hours are from 9:00am to 12:30pm and 15:30pm to 17:00pm. Full time classes are also available from 9:00am to 14:00pm but depend on the school. During June and September classes are usually in the mornings only.

 

Secondary schools work from 8:30 to 14:20 throughout the school year.

 

Most local villages have their own primary schools, and there is widespread coverage of school transport.

Health:

On the whole Spain has a good health care sector with both private and public hospitals where most doctors and nurses speak English.

 

The Spanish health care system is still under funded; treatment facilities do vary from area to area and depending on your requirement you may have to travel to an area where specific treatments are available.

 

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