Chapter

Coast, village or city: choosing a setting in Spain

§ 1Three settings, three sets of questions

The choice between coast, village and city is often made on a feeling. Each setting comes with its own legal rules, risks, services and costs, and a good choice is one where you know them in advance. This chapter belongs to the section on more on where to buy. It uses the official facts we could verify and leaves the feeling to you.

§ 2The coast

On the coast the coastal law applies: the shore and a protection zone are public or restricted, and buildings in the zone have limits, as the legal section of this handbook explains. Floods from heavy rain, sea storms and retreat of the shoreline are risks, which the location checks section covers. Tourist-let rules are stricter in many coastal regions, and foreign buyers concentrate there: the registry reports 46.43% of purchases in the province of Alicante and 37.01% in Málaga were by foreigners. The regional chapters cover the main coasts.

§ 3The village

A village offers space and low prices and demands more of you. Services such as a doctor, a shop and a bus may be thin, winters can be cold and homes can be old, with questions about licences, water and sewage. A village home sets out the questions. The inland chapter, inland Spain explained, covers three inland regions.

§ 4The city

A flat in a city is close to services, transport and work and exposes you to noise, community charges and rules on lets. The registry reports the highest twelve-month city averages in Donostia/San Sebastián at €6,420 per m², Madrid at €5,534 per m², Barcelona at €5,045 per m² and Palma at €4,291 per m². A city flat sets out the checks for a city flat.

§ 5Costs across settings

The price per square metre is one cost. Add transport, heating and cooling, the community charge, the local property tax and the cost of the second car. A cheap village home can cost more to run than a flat in a town with a bus. The costs section explains the taxes at purchase, which depend on the region.

§ 6Rules across settings

Rules on holiday lets, building and water differ by region and town, and the settings differ in how much they matter. A flat in a block depends on the community and its statutes. A village house depends on the town hall and the water authority. A coastal home depends on the coastal law.

§ 7Risks across settings

Flood and fire risks differ by place, not setting. The location checks section explains how to test any plot with official maps.

§ 8Visit twice

See the place in high season and in low season. A beach town is a different place in February, a village can be silent, and a city has its seasons of noise. The off-season visit tells you the most.

§ 9The other chapters

For the question of where, see best places for buyers. For price, see affordable places in detail.

The Costa del Sol is covered in Costa del Sol explained and the Costa Blanca in Costa Blanca explained.

§ 10The regional chapters

Costa Cálida explained covers the Costa Cálida and Andalusia explained covers Andalusia.

Valencian Community explained covers the Valencian Community and Catalonia explained covers Catalonia.

Balearic Islands explained covers the Balearic Islands and Canary Islands explained covers the Canary Islands.

§ 11Madrid and the north

Madrid explained covers Madrid and Northern Spain explained covers northern Spain.

§ 12Questions to put to the seller

Ask the seller or agent for the registry note, the cadastral reference, the latest property tax receipt, the energy certificate and the community certificate of debts. Ask neighbours about noise, parking, the community and the bills. Put the questions in writing and keep the answers. A seller who cannot produce a basic document before a deposit is telling you something about the sale. The legal process section explains each document and who can supply it.

§ 13Costs beyond the price

Budget for the transfer tax, or VAT and stamp duty on a new home, then the notary, the registry, a lawyer and any bank or valuation costs. After the purchase come the annual property tax, community charges, insurance, utilities and maintenance. A flat in a community pays shared charges, and a house pays its own repairs, so compare like with like. The costs section explains each item without giving a single total, because the total depends on the price, the region and the type of home.

§ 14Visiting in more than one season

Visit on a weekday morning and a weekend night, because a village and a city street change with the hour. Go on a weekday and at a weekend, in the morning and at night, and talk to neighbours and local shopkeepers. A viewing arranged by an agent shows the best hour of the best day, so return unannounced if you can. Take photographs of the street, the access and the neighbouring buildings, and compare them with the plans.

§ 15Working with advisers

A lawyer who works for you, and not for the developer or the agent, should check the title, the licences and the charges. A surveyor can check the structure, and a tax adviser can explain your position as a resident or a non-resident. Choose a lawyer who handles the type of home you are buying, flat or house. Ask each adviser for a written fee before they start, and keep the fee separate from any commission paid by a seller.

§ 16Deposits and timing

Reservation fees and deposits are common in Spain. Ask what each payment buys, whether it is refundable and under which conditions, and who holds the money. Ask what the reservation fee buys and under which conditions it comes back. Do not pay a large sum before the checks above are complete, and do not let an agent hurry you with a story of rival buyers. The legal process section explains the private contract, the deposit and the deed.

§ 17If you plan to let the home

Rental income is never certain, and the rules are layered: national, regional and municipal law, plus the statutes of the community. Letting rules differ for flats and houses, and a community can ban tourist lets, so check the statutes. Check what the registry and the community allow before you buy, and budget for periods without tenants. The section on renting and investing explains the layers and what we could not read.

§ 18Reading the figures on this page

The figures here come from official sources and describe averages for a region or a period. They do not describe the home in front of you. Use them to set expectations, then compare with recent sales in the exact street. We record the source of each figure in the list at the foot of the page, and we say where we could not read a rule, so that you know what to ask a professional.

General information only. This is not legal, tax or financial advice. Check your own situation with a qualified adviser.