With mortgage rates at an all-time low, buying in Spain has never been more attractive, whether as a permanent home or as an investment. Follow our easy five-step guide.

STEP 1: Working with Agents
Use the Costaproperty.com website to search through properties, gauge the market place, understand the buying process, and do your research before you think about handing over the money.

Based on your specific property needs, Costaproperty will team you up with the appropriate property agent. The agent will help arrange your trip to Spain to view properties.

STEP 2: Find a Lawyer
Seek the advice of a good English-speaking lawyer-costaproperty can recommend one for you. The Spanish legal system differs greatly from the British system, so it's essential that you have a reputable lawyer on your side to explain the intricacies and deal with any problems. Establish their fees at the first meeting before you commit to anything.

Have your lawyer arrange your paperwork for you. Various details and documents relating to the property will need to be checked:

1. At the Land Registry (Registro de la Propriedad, tel 902 201 200 for local branches), check that the Title Deed can be passed on to you and that there are no charges against the property. There are various land registry offices in each town. Eg. In Malaga, at Calle Cerrojo, 17. Tel. 95 207 0351

2.Check with the relevant town hall that the annual Real Estate Tax (IBI - Impuesto de Bienes Inmuebles) has been paid.

3. Check with the Community of Owners that all fees have been paid and if any future works are planned. Get a receipt showing you what you will need to pay as the new owner.

STEP 3: Research Mortgage Options
Your Lighthouse agent can also provide you with recommendations of mortgages lenders who can then advise you on a product to suit your needs. Requesting a Mortgage  Go to our Home Finances Page

STEP 4: Make an Offer
There is no such thing as a verbal offer. To show your intention you will have to put down a deposit (minimum of €3,000 up to €10,000) against the offer. Once the vendor accepts the offer the sum put forward becomes non-refundable. The deposit becomes non-refundable as long as due diligences are met.

Within about two weeks of the acceptance of the offer a sale and purchase contract (contrato de compra-venta) will be drawn up detailing:

   Full details of seller and property

   Price, terms and method of payment

   Completion date

   Implications regarding non payments of stage payments or late    completion

The remainder of the deposit is normally payable at this stage. Read the full details on Making an Offer

STEP 5: Completion
Sign the 'Escritura pública'

Now it is time to sign the 'Escritura pública' - the official document which shows the title deeds and transfer of ownership - before a notario, an official government representative. He does not certify that the statements are true, merely that both parties have sworn to them.

At this stage you pay the remaining cost of the property and the vendor hands over the keys to your new property.

It is the buyer's responsibility to ensure all documentation is correctly registered in the land registry to avoid problems later when you come to sell. You can pay a local gestor (government official who deals with property contracts) or notary to deal with this if you prefer. This process can take up to two months.

Besides the obvious cost of the property, buying a house in Spain involves various administrative and legal costs. They break down as follows:

   VAT (IVA) - 7% for both resale and new build

   Stamp duty: 0.3-1% of property value

   Legal fees: about 1,500-1,800 euros or 1% of property value, whichever  is 

      greater

   Notary fees: about 500 euros

   Property registration fees: 150 euros

   Administration costs of mortgage lender (set-up fee could be around 1,500-        2,500 euros or up to 2% of the mortgage)

If buying from a non-resident or a company, 5% of the purchase amount is held back to be paid to the Spanish tax authorities to cover any capital gain liability that may exist. This is not an extra 5% but a part of the total - rather like withholding tax.

The seller must pay his capital gains tax, selling agents fees and any outstanding community costs and rates. There is also a local tax called 'plus valia', a relatively small sum which is based on an assessment of the value of your property (usually 10-40% of the property's annual increase in value). According to Spanish law, plus valia is paid by the vendor, unless otherwise agreed by both parties.

When budgeting, you should also allow sufficient funds to cover your reservation sum - the minimum is usually 6,000 euros, more for higher priced properties. This can be paid in cash or by credit card. Paying this sum secures you the property and prevents other interested parties from intervening.

You should also consider how much you need to allow for refurbishment or more substantial renovation work, or whether the property needs to be in as near perfect condition as possible.