To find an accommodation in large cities like Madrid or Barcelona can be difficult. Demand and prices are high. In other parts of Spain, prices are more accessible and very often cheaper as in most other European countries.

LEASE CONDITIONS IN SPAIN

Terms ---> A lease is usually signed for a period of one year and is renewable each year up to five years. The first year of the lease is usually obligatory for the tenant, but after one year the tenant may leave by giving two months notice to the landlord (one year, if leaving the country). The owner does not have the right not to renew the lease each year, subject to an annual rental increase, until the period of five years has expired.

Responsibility for repairs and maintenance of the property

It is the owner's obligation to leave the property in perfect condition, clean and with everything in working order. During the first 30 days of your lease the owner will take full responsibility for anything that breaks or malfunctions, and has an obligation to organise the repair within the shortest time possible. At the end of this 30-day period, the owner is responsible for the repair of any major or structural problem, such as a leaking roof. The tenant however, is obliged to repair any defect that results from everyday use or wear and tear, including such items as window blinds, leaking taps, etc.
Upon his departure, the tenant is expected to leave the property in good condition, but is not expected to paint it, and normal depreciation is accepted.

Annual rental increase

The monthly rental payments are increased annually by the figure published in the National Consumer Trade Index. This figure is published each month and the difference between the 2 figures from one year to the next is applied to the monthly rental payment. The owner must inform the tenant of the increase in writing, at least one month before it is applied.

Payments required upon signing a lease

Upon signing your lease you will be required to pay the following amounts:
- The first month rent, or the rent for the days remaining in the current month.
- A deposit of one month rent for unfurnished property and 2 months rent for a furnished property. This deposit will be returned when you leave, as long as the property is left in good condition and all bills have been paid. The owner has 30 days following the date of the tenant's' departure in order to return the deposit.
- The estate agents fee. This will be either one month rent or 10% of one year plus VAT at 16%.
- There may also be some small lease administration fees and a small registration fee to register the lease with the chamber of rented properties.

BUYING A HOUSE

Some advice before buying a house:
Survey of the physical state of the property: If you have some doubt, go with a professional or an architect.
Survey of the legal situation: Title deeds, certificate of habitability, payment of taxes, urbanism and land-registry, register to the domain, etc.

Signature of the act (2 types)
Signature between individuals (private document)
Contrary to the public document, no notary intervenes and the act may not include all legal guarantees that give the notarial intervention. You will have no access to the Register of the Property and won't be able to enjoy protection in all domains.

Signature using notary (public document)
This act requires a notary's intervention that will write the document according to the legal requirements of the Spanish law. The "public document" is indispensable to have access to the "Register of the Property", the act and the registration being the basis of the private legal security. The Notary will make the registration offícial. He will be able to finally advise you on the other steps to do after the signature of the act. If you have any doubt, he will counsel you before signing. The notary fees will be adjusted according to what has been agreed between the two parties. It is not recommended to do any anticipated payment for the purchase until the act has been signed. If a deposit must be paid beforehand, ensure that it is a moderate quantity. At the time of signature, you will pay the balance or the total, provided that the property is free of all loans.

The seller's responsibility
The seller is responsible for defects and hidden shortcomings of the property he sells. In cases of hidden defects, the purchaser can break the contract, make the seller repay the expenses or ask for a proportional decrease of the price after an appraisal by experts. The judicial action is valid during the six months that follow the purchase of the property.

What shall you do after the signature?
Register the property at "Registro de la Propiedad"
Although the registration is not obligatory in the Spanish legislation, there is no doubt that it offers guarantees.

· Payment of the registration Tax
In order to be able to write down the act to the Register, it is necessary to present the receipt of payment of the tax on the registration.

· Change of owner at the Land-registry
Do not forget to make the change of owner at the Land-registry

Taxes to pay

· In the case of a new lodging, the purchase is submitted to the VAT of 16% in the peninsula and in the Balearic Islands. Besides, the act of sale by "public document" entails a supplementary tax of 0,50%.

· In the case of an old lodging, generally done between individuals, the purchase is submitted exclusively to the tax on the transmission of heritage that is 6% of the price, except in the following communities: Aragon, Baleares, Catalonia, Galice, Madrid and Murcia where it is 7%.