The legal aspects of buying property in Spain

When buying a house in Spain, there are numerous aspects which require a lawyer's expertise. You know the dizzying moment, after endless house-hunting, when you walk into a place and know it's the one. When that place is in Spain, add to that ecstatic feeling a huge dollop of sunshine, beaches and cheap wine - and suddenly all sorts of thoughts can pop into your head, such as 'Why spend money on a lawyer? This all looks simple enough to sort out myself'. Well, you wouldn't dream of buying a house without a lawyer at home. So why would you even consider it in a country where you are probably unfamiliar with the legal system, the language (even if you speak Spanish, who really understands legal jargon?) and the ins and outs of local property culture. Perhaps the single most important consideration, when buying a property abroad, is to have a good, independent English-speaking lawyer lined up so that they can get moving as soon as you give them the nod. Noemi Chavez, President of the Colegio de Abogados de Marbella (Marbella's Law Society), cannot stress enough how crucial it is that foreign buyers find an independent lawyer. "Do not use a lawyer recommended by a developer or a vendor who has different interests to yours. It is also not advisable to use legal representatives based in the UK as they are not qualified as a Spanish 'abogado' and do not know Spanish law," says Chavez. "Property purchase regulations, formalities and searches vary considerably from one country to another and only someone with a proper degree in Spanish law - and only an 'abogado', not a solicitor- can provide advice on contracts and deals done under Spanish law," Chavez adds. Your lawyer's work begins with ensuring the property is legitimately owned by the vendor, that it is free from debts or charges and that it has the valid title deeds. A lawyer will negotiate with the other side over trickier elements of the transaction, register the title deeds and sort out all relevant transfer taxes. The double taxation agreement between the UK and Spain means you shouldn't be taxed for the same things in both countries, but if you own property in Spain you lawyer must advise you on wealth tax, local taxes and - when it comes to sell - capital gains tax. They can also tell you how to get an NIE, a tax ID number, which is essential for all home-owners. And, finally, you should consult your lawyer about drawing up a Spanish will separate from your UK will, to cover your Spanish assets. The Spanish laws on inheritance are strict and complicated, so you will need expert advice on the taxes involved and the other financial implications of your purchase in the future. Even the way in which your set up the purchase of your property at the start will affect how your estate is dealt with and taxed in future - and inheritance tax can be as high as 34-per-cent. To draw up the document to cover a straightforward estate and register it in Madrid, your lawyer should not charge much more than about 200 euros. When looking for a good lawyer, ask for personal recommendations, as you would at home. Alternatively, ask your Lighthouse Customer Service Consultant, who can recommend lawyers with whom Lighthouse has good, longstanding relationships. Or if you are looking in the Malaga province, contact Noemi Chavez at abogados@inverius.com for a list of members of Malaga's Colegio de Abogados. Local newspapers also carry adverts for conveyancing lawyers. In Costa del Sol see Sur In English or Euro Weekly News, or in Costa Blanca the main English-language paper is Costa Blanca News. Make sure your lawyer speaks good English and is well practised in helping British property buyers. And always obtain an estimate of costs in advance. For property conveyancing, fees will be calculated as a percentage of the sum involved - usually 1%. Only in the case of conveyancing for very low price properties will the lawyer charge a fixed fee.