Spain

It may recently have experienced a few wobbles but Spain still tops the polls for Brits seeking a bolthole in the sun. Since the 1970s first brought us the delights of the package holiday and alerted droves of sun-seekers to its charms, Spain has consistently been our most popular holiday destination of choice and this pattern is reflected in the numbers of us buying there.
While off plan apartments on the Costas have traditionally seen most of the buying action, today's buyers are just as likely to be seeking city apartments or a country house.
Throw in the laid back Spanish culture, the fresh Mediterranean diet and a Spanish passion for football that rivals the UK's and it's easy to see why for most of us it is still 'Espana por favor!'

Travel

Air

Iberia is Spain's national carrier and there are numerous scheduled flights between the two countries. Budget flights now fly from at least 23 airports around the UK: Belfast, Birmingham, Bournemouth, Bristol, Cardiff, Coventry, East Midlands, Edinburgh, Exeter, Glasgow, Humberside, Leeds/Bradford, Liverpool, Gatwick, Heathrow, Luton, Manchester, Newcastle, Norwich, Preston, Southampton, Stansted and Teesside.

Spanish International airports serving the UK, at the time of writing in 2007, include; Alicante, Almeria, Barcelona, Bilbao, Gerona, Granada, Gran Canaria, Ibiza, Jerez, Lanzarote, Madrid, Malaga, Murcia, Palma, Reus, Santiago de Compostela, Seville, Tenerife, Valencia, Vallandolid, Vitoria and Zaragoza. The situation is constantly improving, for example, Spanish low-cost airline Clickair recently announced daily flights between Heathrow and La Coruna in the north-western Galicia region of the country starting on March 25, with prices starting from £16 one-way.

Spain has a good network of domestic flight connections, with airports in all major cities and many smaller ones too. Iberia's domestic flights fly to most major Spanish cities from Madrid Barajas airport, and there is a regular shuttle between Madrid and Barcelona with Iberia, Spanair, and Air Europa.

Sea

It is also possible to take a ferry across to northern Spain, which is useful for anyone planning on taking their car across. Ferries operate between Portsmouth and Bilbao and Plymouth to Santander but the route is only for the truly sea hardy as journey times can be up to 24 four hours and involve crossing the infamously stormy Bay of Biscay.

Spain has around 58 routes on offer and services run between numerous ferry ports on the mainland to England, France, Italy, Morocco, Argelia, Balearic, and the Canary Islands.

Train

The Spanish rail network is operated by the state company Red Nacional de los Ferrocarriles Espanoles, RENFE, and connects all regions. Besides the regular trains and sleeper cars, there is now a more modern way to travel. AVE are high speed trains and offer services such as between Madrid and Seville and Madrid and Malaga. There are also a huge variety of local, short-distance trains called tranvia and suburban commuter trains, cercanias, are second class only and stop at all stations.

Roads

Spain has a road network measuring 317,000 kilometres of which 2,000 are relatively recent motorways. The most important motorways are: the Mediterranean coastal road from the French border to Alicante, and the one linking the Cantabrian region with Catalonia. The use of the Spanish motorways usually requires paying a toll, especially in the north of the country, which can be calculated on the basis of the type of vehicle in question and the distance to be travelled.

Buses

There are many bus companies throughout the country that offer good service. Generally, public buses are of a high standard, well maintained and cheap. Most towns have a bus terminal called 'estación de autobus but be aware that on Sundays and public holidays, schedules are drastically reduced.

Climate

Spain has an extremely diverse climate thanks to differentials in altitude, the sea and sheer size. As the second most mountainous country in Europe, it borders both the Mediterranean and the Atlantic Ocean and there are stark differences between the north and south.

Mediterranean Spain has high sunshine levels, from six hours per day in the winter to 12 hours per day in summer. Winters are mild and much warmer than central Spain. Rain is rare from June to August although the northern Mediterranean coast may be liable to occasional heavy downpours. In the south, a hot wind from north Africa, the Leveche, sometimes blows through but sea breezes stop temperatures from rising too high.

Central Spain and the Southern Atlantic coast generally have low rainfall although winter snow can be heavy on the sierras. Summers are typically very hot, especially in the Guadalquivir valley of northern Andalucía, out to Seville where some of the country's highest temperatures are recorded hence the nickname 'the frying pan of Europe'. Sunshine levels average five hours per day in winter rising to 12 hours per day in summer. This area can be particularly windy and winds are cold when they blow in from the snow-covered sierras.

North and North-West Spain can be influenced by depressions from the Atlantic, particularly in the autumn and winter, making this the wettest and cloudiest part of Spain. Sunshine levels average three hours per day during the winter and eight hours per day in the summer. Summer temperatures are lower than other parts of Spain but still with much warm and sunny weather.

Language

no habla español!

Your linguistic ability will probably determine where you choose to buy in Spain. In certain areas where Brits have traditionally bought such as the Costa del Sol, language problems will rarely hinder you. But head even slightly off the beaten track and life becomes increasingly difficult for non-Spanish speakers and a few basic sentences are a must.

An added complication for those who do speak traditional Spanish is the fact that Catalan is widely spoken in certain parts of the country but is completely different to traditional Spanish. For anyone considering buying in Catalan country, a basic grasp of the language will work marvels.

While Spanish is spoken throughout the country this is not the whole story. Spanish is the national language and the only language you can use if you want to be understood almost everywhere. But Spain also has three other officially recognised languages, and language use continues to be a hot political issue in parts of the country with sizeable proportions of the local population using a tongue other than Spanish as their first language.

Euskara is spoken by the Basques in the north central region of the country, which today number around 600,000. The language itself is sometimes called Basque and is seemingly unrelated to any other language. It uses the Roman alphabet and most letters are pronounced as they would be in Spanish.

Catalan is spoken by around 4m people and appears to be a cross between Spanish and French, although it is a major language in its own right and is said to be more similar to Italian than Spanish. Its alphabet is similar to that of English, although it also includes the Spanish Ç and conjugation is also close to traditional Spanish.

On Portugal's southern border, around 3m Spaniards speak Galician and the language has strong similarities to Portuguese, especially in vocabulary and syntax. It developed along with Portuguese until the 14th century, when a split developed, largely for political reasons. Native Galician speakers are said to understand around 85% of the Portuguese language.

key Spanish phrases include:

Property - propiedad
The notary - notario
Solicitor - abogado
Sales contract - contrato de compra / venta
Planning permission - permiso de obra
Title deeds - escritura
Deposit - depósito / pago señal
Loan - préstamo
The buyer - el comprador
The seller - el vendedor
An estate agent - agente inmobiliari
An apartment - apartamento
A block of flats - un bloque de pisos
A traditional stone house - una casa tradicional de piedra
A farmhouse - un cortijo
A large house, castle - un palacio/castillo
A family house - una casa familiar
To be restored - para restaurar
Can be converted - con posibilidades para convertir

Legal

Visas

Before buying property in Spain, you should investigate your status as a foreigner. Even if you are only interested in a summer home or want to stay in Spain longer than three months, you will need either a residence visa plus residence permit or a 90-day extension, permanencia.

Visitors from EU countries do not need a visa for a stay of up to 90 days. If you plan to live permanently in Spain, you should obtain a Spanish residence visa before you enter the country. You can apply for the residence permit in Spain at the Oficina de Extranjeros.

Once you have lived in Spain for a certain time, you are no longer considered a tourist and should apply for a residence permit. Fortunately, the revised foreigner's law, which went into effect on 1 March 2003, makes it easier for European Union citizens to apply for residence and EU citizens who are working in Spain do not need to renew their permits. The normal residence permit is renewed once every five years and renewal is usually a fairly straightforward matter. Normally, you apply for your residence card at your national police station or 'oficina de extranjeros'.

Property ownership and the buying process

In order to buy in Spain you will need a fiscal number NIE, Numero de Identificacion, which you can apply for personally or ask your solicitor to apply for on your behalf.

It is important to realise that by making an offer, if accepted by the seller, you are engaged in a binding agreement. Offers are made in writing and at this time, your solicitor will check to see if the property has any debts attached, such as mortgages or loans, and will check the property's title deeds to confirm the legal owner. It is possible to do some investigation yourself.

You can check the 'valor cadastral' and ensure that the fiscal value is not over-rated. If everything is as it should be, your solicitor draws up a contract stipulating the buying price, deposit, usually 10%, and dates when you intend paying the deposit and possible completion date. If you subsequently back out of the sale you will lose any deposit paid while sellers who back out pay twice the amount.

Your solicitor then prepares the title deed, the 'Escritura de Compraventa', which is signed by you and the seller in front of the public notary. On completion, the notary sends details of the title deeds to the local land registry and around three months later the Escritura will be returned.

Fees and taxes

Buyers should allow 10% of the purchase price for fees. Transfer tax is 7%, legal fees are 1% and notary and property registry fees are each 1% (2007).

Capital gains tax

If you sell a Spanish property more than one year after buying it, then you are liable to pay Spanish capital gains tax (CGT) on the difference between the amount that you sell the property for and the amount that you declared you paid for it minus any inflationary gain.

A non-resident will pay Spanish CGT tax at 35% and residents will pay at a rate of 15%. A resident may have the option to 'roll' the tax into another property provided that it is a single main residence and as long as they do so within two years of selling. If you own the property for longer than 10 years no CGT is payable.

Communications

Telephones

Telephone access varies greatly depending on location. While Spain generally has a good and constantly improving telephone system provided by Telefonica and other new companies offering similar services, many buyers on new developments find it difficult to get a line installed and this also applies to some rural areas.

Installation times vary widely. In cities and built-up areas, the service is good and you may be connected within a few days. In remote areas where there are no telegraph poles, you can wait for literally years and, if you do get a landline, it can cost a considerable amount. Telefonica sometimes insist that several residents in the area apply for a line before they will consider you. In some areas, ADSL internet lines are not yet available.

Once you have a line installed, you will find Telefonica's service is quite good. The company employs an increasing amount of English speaking staff who are very helpful. Dial 1004 from your phone to get assistance.

Your landline comes complete with several additional services such as an answer phone which can be opted out of if you have your own. If the telephone is not answered within a certain number of rings, the 'contestador' cuts in and takes messages. Increasingly owners tend to use mobiles and many are opting to use Skype if their property has satellite internet.

Mobiles

In Spain, you have a choice of three main service providers, Orange, Movistar, a subsidiary of Telefonica, and Vodafone. Coverage is generally good. Many expats find that europa network offer the lowest tariffs in Spain and they also offer the same low rate as on fixed lines for example 4.9 cents per minute to the UK.

broadband

This is available as ADSL in most towns and villages and via satellite, Iberbanda, in most other areas.

Television

Spanish television can only be described as an acquired taste. It may have stations a plenty but that doesn't mean that any of it is much good. Most Brits opt for their traditional visual fare, the BBC and other UK programming which, in Spain, is not a problem. You basically need a satellite dish and receiver - a Sky Digibox, which provides the most comprehensive selection of UK channels. The service is not supposed to be available outside the UK, but as long as you have a UK address, there is little to stop you taking your box and viewing card to Spain, which will give you all of BBC, ITV, Channels 4 and 5 and a host of other viewing options.

There is a Spanish satellite system Canal+ which offers three film channels with most films in dual language (Spanish and English) and several English news services Sky, CNN, Fox and even Al Jazerra! Other English speaking channels include; National Geographic and Eurosport.

Financial

Banking

You can open a Spanish bank account, as either a resident or a non-resident. It is much more convenient to make payments using a Spanish bank than transferring everything from your account abroad. Since 1993, there are no restrictions for EU citizens to open an account and the same regulations apply as in your home country.

Mortgages

Spain has a mortgage market with a number of lenders offering a great variety of Spanish mortgages. Mortgages in Spain are offered by a most Spanish banks either directly by the lenders or through mortgage brokers. Several international banks, including British banks such as Barclays and Lloyds TSB also offer mortgages in Spain.

Spanish mortgages tend to be cheaper than UK offerings but costs vary considerably on the many types of mortgages available. It always pays to seek expert advice when seeking a mortgage in Spain as significant savings can be made.

Spain has attractive mortgage rates and banks can mortgage properties to foreign buyers. The maximum loan amount is usually 80% for new homes. Some lenders do not require proof of income but in these case rates might be not as attractive. Usually you need to give proof of income and your monthly spending. The income of any spouse will also been taken into consideration.

It is much harder to mortgage your property as a secondary home than for your primary residence. The maximum loan to value percentage is lower and rates are less favourable. Many foreigners either finance their Spanish holiday home in cash or take out a second mortgage on their existing home in the UK.

Taxation (See also capital gains tax above).

On new residential buildings there is Vat - IVA - charged at 7% of the value, plus 1% stamp duty, and these are paid by the purchaser. However, on urban plots, commercial premises and some garages, not annexed to a home and purchased from developing or trading companies, VAT is 16% (2007).

On re-sales, there is a property transfer tax set at 7%. In all cases there is a surplus value tax, plusvalia (not to be confused with capital gains tax payable by the seller on the profit made when selling the property). In theory, plusvalia is paid by the seller, and is a municipal tax on the increase in value on the land only. However, it may be subject of negotiation between buyer and seller.

Property wealth tax

Most Britons moving to Spain or buying property there understand that they will have to pay Spanish taxes such as income tax, capital gains tax and inheritance tax. However, Spain also imposes an extra tax, one with no equivalent in the UK and which is payable on top of the other Spanish taxes. Spanish Wealth Tax is payable by both residents and non-residents if they own property in Spain, although the rules are different.

Residents pay wealth tax on their worldwide assets but have quite generous tax-free allowances, whereas non-residents are only liable on net assets within Spain but miss out on the allowances. In both cases, the tax is calculated annually on assets held at 31 December each year.

Annual property taxes

Many taxes in Spain are calculated by reference to the 'rateable value', valor catastral, of the property, which is assessed by the tax office and revised every 10 years. The valor catastral is generally considerably less than the purchase/sale price of the property.

Non-residents for tax purposes still need to make a tax return in respect of the notional letting value of the property. This tax return has to be made whether the property is let or not. Owners sometimes question why income tax is payable when there is no income. The reason for this is that the tax authority assigns an imaginary income, or imputed income, or notional letting value to the property, regardless of whether the owner actually gets an income from the property.

On a property worth around £200,000 the tax would be £400 annually.

Other taxes/expenses

Rubbish collection tax is paid to the local authorities and usually equates to around £50 per year.

Community fees

These are fees paid to the Community of Owners for services and maintenance of communal areas, when the property is located in a development or condominium.

Calendar

Public holidays celebrated in Spain include a mix of religious (Roman Catholic), national and regional observances. Each municipality is allowed to declare 14 public holidays per year; up to nine of these are chosen by the national government and at least two are chosen locally.

If a public holiday falls on a Tuesday or Thursday, many Spaniards talk about 'doing a bridge' haciendo puente. This involves also taking the Monday or Friday off in order to enjoy a four-day long break. Most schools are closed on bridge days. Note that during bank holidays Spanish taxis add a small surcharge to the fare.

January 1 New Year's Day - Año Nuevo
January 6 Feast of the Epiphany - Los Reyes Magos
Maundy Thursday - Jueves Santo
Good Friday - Viernes Santo
May 1 - Fiesta del Trabajo / Día del Trabajador
May 2 - Fiesta de la Comunidad
May 15 - San Isidro (Madrid only)
August 15 The Ascension - La Asunción de la Virgen
October 12 - Fiesta Nacional de España or Día de la Hispanidad
November 1 - Todos los Santos
November 9 All Saints Day - Nuestra Señor de la Almudena
December 6 Constitution Day - Día de la Constitución
December 25 Christmas - Navidad del Señor

Nowhere are public holidays and festivals more celebrated than in Spain and it is virtually impossible to spend any length of time in the country there without coming across one of the 10 public holidays or numerous regional festivals which, of course, the hospitable Spanish are more than pleased to see you join in with.

Holy week during March and April is a special time in this principally Catholic country and in all large cities you come across large parades bearing religious icons which are carried throughout the streets on Palm Sunday lasting until Easter Sunday. As it's a deeply religious event, the usual accompaniments to any Spanish festival, excessive alcohol consumption and fireworks, are not appropriate.

25 December is a national holiday but Christmas in Spain is celebrated in a special way and for children, January 6, 12 days after Christmas Day, Dia de los tres Reyes, is the most important event with the coming of the three kings. This is the day when socks are placed outside but with the threat of coal, not gifts, for those who misbehave. On the eve of January 6, traditionally three men dressed as kings ride around the town throwing sweets to any following children.

Año Nuevo, New Year's Day, is a large festival often accompanied by fireworks. Traditionally people celebrate the old year's passing by eating 12 grapes as each bell tolls which is considered good luck if all grapes are eaten in time.

April traditionally is the month of 'ferias' with festivals and processions lasting up to two weeks during which time there are plenty of firework displays, bullfights and flamenco shows along with the usual Spanish exuberance for late night partying. Seville in Andalucía, is said to have the best and biggest of all ferias.

The following regional traditions are well worth visiting.

Malaga on the Costa del Sol, plays host to the Feria de Malaga each August. During this 10 day festival the city teems with firework displays, fairground rides, horses and many stalls selling food and wine and one of the most famous celebrations is in Nerja where the parade leaves the town and heads to the famous caves.

La tomatina the tomato festival

The world's biggest tomato fight takes place on the last Wednesday of August at Bunyol near Valencia.

Fallas Festival in Valencia

The Fallas is one of Spain's biggest national festivals, which takes place every March in Valencia to celebrate the feast of San José, the patron saint of carpenters. It consists of huge papier-maché figures, which are burnt during the course of the week along with an enormous amount of fireworks and plenty of partying.

Festes de la Merce

Barcelona's biggest annual festival takes place on 24 September with giants parading around the streets, human pyramid competitions and heavy Cava consumption with fireworks and music.

San Isidro in Madrid

Madrid's main annual festival is San Isidro on May 15, which heralds nine days of celebrations as well as the start of the capital's bullfighting season.

Fiesta de Sanfermínis

Pamplona's running of the bulls attracts participants, usually male, from all over the world, as this is probably the country's most famous and dramatic tradition.


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