Property in Spain

Population: 40.341.465
Area: 504,782 km2
Capital: Madrid
Language: Castilian Spanish 74%, Catalan 17%, Galician 7%, Basque 2%
Currency: euro(eur)
Gdp per capita: €19,150
Gdp Growth: %2.6
Dialing code: + 34
Emergency service: 112
Embassy phone in Ireland: 012839900
Visa requiry: no
Dublin - Madrid distance: 1.485 km
Agent Fees: %2 - %15 paid by seller
Legal fees: up to %3
Season High: May - Sept

Real Estate prices in Spain rose 170% from 1997 to 2005, in what many consider a remarkable example of bubble economics. 651.168.000.000 € is the current mortgage debt (second quarter 2005) of Spanish families (this debt continues to grow at 25% per year -2001 through 2005-, with 97% of mortgages at variable rate interest). Spain started to build 900,000 new houses in 2005 (800,000 in 2004) 2004 estimations of demand: 300,000 for Spanish people, 100,000 for foreign investors, 100,000 for foreign people living in Spain and 300,000 in a country with 16.5 million families, 22-24 million houses and 3-4 million empty houses.

House ownership in Spain is above 80%. The ownership feeling was inducted by the government in the 60's and 70's, as the way to follow for a "honest" family, thus being deeply embedded in spaniard's mind. If the speculative bubble pops Spain is likely to be one of the worst affected countries. As opposed to the Ireland case, in Spain the labour cost does not follow the rise of the house market in same proportion. While some observators suggest that a soft landing, others suggest that a crash in prices is probable. Lower home prices will allow low-income families and young people to enter the market, however there is a strong perception that house prices never go down. The main actor for speculation are banks, taking young people as hostages for 40 and, recently, 50 year mortgages

 

Buying process and taxes After you get your fiscal number (numero de identificacion de extranjeros) your solicitor makes an offer, after that you pay a deposit. Your solicitor checks that the owner has right to sell the property and if debts are outstanding against the property, which is very important because these always remains with the house unless they are cleared before or on completion by the selling party, if all is in place both side would agree a private contract stating the price and what it covers, deposit is usually arround 10%, after deposit if you decide to not buy it, you will lose your deposit, if the seller breaks the deal he will pay you twice the deposit. When you sign the public title deed in the front of a notary sales completes.