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RENTING
We advise that you rent a property in a country before committing to a purchase.  You must learn about an area and experience living there first.  Rents are very reasonable in Spain and as a tenant you have considerable rights.

FINDING A HOUSE TO RENT
Start your property search online to get an idea of what is available, at what price, and what the cost includes.  Then, when you get to your area of choice, we advise using a local agent to guide you through the intricacies of the Spanish rental contract. 

You will be expected to place a security deposit on the property, and that can be up to two months’ rent if the property is furnished.  Ask your agent who is responsible for his fees, as it often is the buyer, not the seller.  Expect the realtor fees to equal one month’s rent.

Walk away from a property that requires you to place an amount up to six months’ rent in escrow in a local bank as assurance of your ability to pay. 

LONG TERM RENTALS
Long term, or "vivienda" rentals are less costly than short term.  They run for a year, and after that first year, the tenant has a renewal right for up to five (5) years.  The rate of increase in rent is based on the rate of inflation.   You cannot be evicted unless you have missed rental payments, or if the landlord declares that he has to move into the property himself. 

If you do decide to leave the property before the end of your rental contract, you will have to pay a penalty.  After that first year, you need only give written notice a month or two before leaving.  Be sure these terms are included in your contract. 

SHORT TERM RENTALS
Short term rental ("temporada") contracts are intended for very short-term and are used mostly by those in search of a vacation rental.  However, you can find 1-11 month “temporada” contracts available on many properties.  The cost will be higher but may prove beneficial to you.  Ask if you can rent “short-term” and if all goes well, then trade the short-term contract for a long-term one. 

Interestingly, the Spanish court system prevails over short-term contracts, and may, at its discretion, change a short-term contract into a long-term contract if the landlord has been judged to be abusing the system of contracts on the property or if there is a shortage of long-term rental properties available. 

BUYING A PROPERTY IN SPAIN
Be sure your visa status allows you to purchase property.  You will be required to have a Residence Permit. 

First:  hire an attorney who knows the ins and outs of Spanish real estate law, especially the laws in the area of interest to you.   The Spanish courts have lately been demolishing properties, or issuing demands for demolition on properties that have been purchased and constructed by people who have moved into the country.  CHECK ALL THE FACTS, especially between the local government and the regional government. 

If you are buying a property to be constructed, you will make a series of payments at set stages of construction.  Your initial payment is usually 10% of the purchase price and is non-refundable.  Be sure your contractor is reputable.  Again, an attorney should guide you through this process.

If you are purchasing an existing property, a small deposit will hold the property for you while the due diligence is performed.  It is after the clearance of the title is made that you enter into a contract of sale.  At that time, another payment is expected, usually 10%.  If you fail to conclude the contract, you will forfeit your deposit.  If the seller fails to conclude, he must pay you twice the amount of your deposit. 

A word to the wise:  do not enter into any agreement where you pay a certain amount of money in cash to the owner, for a lower appraisal of the purchase.  This is illegal and not only the seller, but you as well, will be liable for penalties. 

The fees attached to the purchase of a property will be anywhere between 10-14% of the purchase price. 

Be sure to ascertain the maintenance fees involved if purchasing a property within a complex. 

It is possible to obtain a mortgage, but expect to pay a down payment of at least 20% and the fees for a foreigner to obtain a mortgage are higher than normal.