Buying Guide Details

Buying Property on the Costa de la Luz

Where to buy property on the Costa de la Luz

Overseas property buyers are relatively new to this area, on the Atlantic coast of Andalucia, but the Spanish have been coming here for years. In cities such as Jerez and Huelva and in its charming coastal harbours and unspoilt villages inland there is a wealth of property on the Costa de la Luz to suit most property buyers.

As is often the case, the true bargain properties are located away from the coast, though improvements to roads and other infrastructure investment here are making the beach more accessible from rural areas. Which is not to detract from the appeal of inland Andalucia, where attractive towns such as Arcos de la Frontera offer beautiful, fertile countryside and an increasing number of golf courses and other leisure facilities.

Chiclana de la Frontera is one of the better known resorts, with an eight-kilometre Blue Flag beach and excellent facilities. Close by is Sancti Petri, an urbanizacion with a large and busy harbour, horse riding and a Seve Ballesteros-designed golf course.

The northernmost part of the coast, west of Huelva, has the same climate as the neighbouring Algarve region of Portugal, but properties in a town such as Ayamonte are somewhat cheaper than a Portuguese equivalent. Cadiz has an historic Old Town with some very traditional old properties at low prices, and the trendy windsurfing resort of Tarifa has some of the most sought-after and expensive properties on this coast.

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The Process of Buying Property on the Costa de la Luz

Anyone wishing to buy (or sell) a property on the Costa de la Luz must first obtain from the state – in person – a fiscal number for foreigners known as NIE (numero de identificacion de extranjeros)
Once the property buyer has received the NIE number, the buyer’s lawyers can make an offer on their behalf. When a price has been agreed, it is recommended that both parties sign a preliminary agreement which outlines details such as the completion date
A deposit of 10% is the normal amount placed to secure the deal. After this, if the property buyer pulls out they lose the full deposit but, should the seller decide not to go ahead, he/she must return double the amount of the deposit – i.e. 20% – to the property buyer
If buying a property on the Costa de la Luz off-plan, it is usual for payments to be broken into stages, the balance being paid when construction finishes
On completion, when all the necessary checks have been carried out, both parties sign the escritura (title deeds) in the presence of a notary. The buyer then pays the balance, plus all other fees and taxes. Copies of the deeds are sent to the Land Registry and the tax office.

Homes Overseas Property Club

Homes Overseas has joined forces with a collection of IFA specialists to form the Homes Overseas Property Club (HOPC), designed for existing and prospective overseas property homeowners.

The Club – which has access to international lawyers in no fewer than 43 different countries - has been set up in order to guide people through some of the various issues relating to buying and maintaining a property overseas. It offers advice on a range of topics, including financial, legal, insurance, taxation, property management and foreign currency matters.

For further information please telephone 0845 838 7142 or email info@homesoverseaspropertyclub.com

Fees & Taxes

Taxes and fees usually amount to around 10% of the total purchase price of the property on the Costa de la Luz
Taxes payable depend on whether the property on the Costa de la Luz being purchased is new-build or resale. Currently, transfer tax of around 7% is applied on resales, which includes stamp duty. For new-build properties, VAT (IVA) of 7% is payable in addition to 1% stamp duty
On top of this there is also plusvalia (capital gains tax), which is set by the local authorities and depends on the area concerned and the amount of profit being made on the sale. This is usually paid by the seller
If the property buyer is purchasing land or commercial property on the Costa de la Luz rather than residential property on the Costa de la Luz, VAT is 16% as opposed to 7%. Stamp duty remains the same
Most Spanish lawyers charge around 1% of the final purchase price, and notary fees are around 0.5%
Agents’ fees can vary anywhere between 2% and 15% – so be careful not to be ripped off

Getting there

Jerez and Seville are served by several airlines from many regional airports in the UK year-round. At the northern and southern extremes, you might prefer to fly to Faro-Huelva in Portugal, or Gibraltar.

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