Information on hidden costs and taxes when buying a property in Spain

It's difficult to know how many Brits have seen the wisdom of this logic and own a home in Spain because many do not register as official residents, but the scale of Britain's southbound migration is staggering. Most sources suggest 700,000-800,000. In addition, 150,000 Brits bought homes in Spain last year, and another 200,000 will do so this year. If you are looking to buy a property in Spain, visit www.easypropertyspain.co.uk for a grand selection of Valencian villas, country houses, apartments, town houses, and other properties.

Development fever is also raging in the Valencia Community, the most popular area of Spain with Britons and Germans. Already, 240,000 homes in the region are said to be owned by non-Spaniards. Another 600,000 properties will be built in the coming years, according to local forecasts. The effect of this pressure on property prices in recent years has been spectacular, and gains have often far exceeded those in Britain. In the Valencia Community, many owners have doubled their money in three years. To find out how to invest in properties, email our real estate agent in Spain at sales@easypropertyspain.co.uk.

What if the price of property in the UK wobbles again, and British confidence in buying abroad is shaken? What if the European and American economies continue to stutter?

There are underlying factors to suggest property prices in Spain will continue to rise. If Britain joins the euro, it will have the same effect as when other countries joined - property prices will rise as people rush to get rid of cash. There are many people who are just itching to move overseas because they have worries about health care and what will happen to their pensions. They are finding that there are other countries with new hospitals, superb health care, and a lower cost of living.

Many of us dream of living abroad at some point in our lives, and technological advances in the workplace, combined with cheaper air travel and the strong pound, mean increasing numbers of us are turning that dream into a reality whether it be on beaches, in our own terrace, in our swimming pool, in our villa or in our Spanish country house.

Estimates are, that British people now own around 1.2 million properties in France and Spain, although most of these are second or retirement homes. Easy Property Spain can help you not only in your purchase, but also in finding a mortgage that suits you. The numbers of house buyers are growing fast.

Buying property in Spain starts with finding the precise area you want to live in and taking it from there. And the lower house prices mean that you are far less restricted in terms of location, except Valencia which has ended up being the unknown Spanish area, and the best moment to buy is starting now.

Property law and practice differs according to where you're buying. In Spain, tax avoidance is endemic so the official valuation given can be as low as 70% of the purchase price. Almost half of all business in Spain is conducted 'under the table' so don't be surprised to find that the amount you are paying for a property is not the amount written in the title deeds. This is nothing to be concerned about as it is done to save you and the seller significant tax bills. Duty on property sales currently stands at 7% which can add a large chunk to your investment, so it makes sense to declare a smaller amount on all the legal paperwork. Everyone does it and the authorities turn a blind eye as they would rather have some money than none at all if the whole deal were done in cash. In Spain and Portugal, you could find yourself liable for any outstanding debts on the property. You'll therefore need to ensure you get expert advice to help you through the minefield, and unless you're completely fluent, you'll need a bilingual estate agent such as Easy Property Spain.

MORTGAGES: Rates for euro mortgages are lower than for sterling. A sterling mortgage for Spain would be charged at 5.75% versus Spanish banks which are currently offering 3.5%.

V.A.T. TAX: This tax is paid by the purchaser at 7% of the theatrical price which is lower than real purchase price agreed between parties.

MUNICIPAL PROPERTY TAX: This is a tax, at a rate set annually, levied by the local authority and based on the "Catastre" land registry value. The rates are different depending on the town hall. It's about 2% of the "catastre" value and the total is typically about 1.6%.

STAMP DUTY: There is a stamp duty of 1% on the transfer of real estate.

As taxes and the manner in which they are applied change frequently specialist advice should always be taken before entering into any arrangements. EasyPropertySpain provides a full range of trustee, and corporate advisory, and invites enquiries. More particulars can be found on our web-site www.easypropertyspain.co.uk

Easy Property Spain is the best choice for your real estate agent in Spain. For your cheap Spanish homes, Valencian villas, Valencian villas, Spanish golf properties, contact one of our Valencia property agents or our Valencia Property real estate agency at sales@easypropertyspain.co.uk and let us guide you in your property search in Spain. If you are interested in buying villa in Spain, Spanish golf properties, rural property in Spain, or in general properties for sale in Spain visit www.easypropertyspain.co.uk and a Valencia property real estate agent will be happy to inform you.

Consult Easy Property Spain at our web site http://www.easypropertyspain.co.uk/ for more than 300 properties and let our real estate agency in Spain guide you in your property search in Spain with their experience and expertise. Alternatively you can contact our Valencia property agents at sales@easypropertyspain.co.uk or call us on our UK National Number 0871 666 5350.Easy Property Spain is the best choice for your real estate agent in Spain.

For your cheap Spanish homes, Valencian villas, rural property in Spain, Spanish golf properties, contact one of our Valencia property agents or our Valencia Property real estate agency at sales@easypropertyspain.co.uk and let us guide you in your property search in Spain. If you are interested in buying villa in Spain, Spanish golf properties, rural property in Spain, or in general properties for sale in Spain visit http://www.easypropertyspain.co.uk/ and a Valencia property real estate agent will be happy to inform you.