Deciding to emigrate to a new country can be incredibly daunting, especially when you mark its permanency with a property purchase. The commitment to your new life can feel overwhelming, especially with foreign legislation and an often reduced network to support you along the way. Nuances in one country may seem obvious to its locals with these small details often overlooked by guidebooks or online tools.
1. Do your own research, based on your own circumstances, to make your own decisions...
With its beach club culture and gorgeous coastline, of course you’d want a home in a beach resort… as everyone tells you. Regardless of moving to an island, it doesn’t mean you have to also live on the beach and settle for the assumed lifestyle. Perhaps the rural interior or urban living in Ibiza Town is more for you. When people move abroad, surprisingly more people will opt for a lifestyle close to their existing rather than a huge shift from their current.
Nothing will validate this more than allowing yourself time and space to really absorb the different regions or places on the island that you’re keen to consider. Though support from your network back home or recommendations from new contacts on the island will be invaluable, it’s key to know when to shut off some of the external noise to make your own decisions. Discovery trips are some of the best ways to do this - dedicate a couple of days in an area to truly absorb it and the people. Wander the streets, meet the people and simply stop to take it all in. Perhaps that busy intersection will prove too congested or you’ll discover a hidden sanctuary the owner of the local cafe shared with you.
Additional factors such as schooling, place of work, finance and your own accessibility are key. You may be forced to explore areas slightly out of your original remit that prove the better option when you consider what’s required for you and your family. It’s important to put your situation first rather than compare with other people’s set up or what you initially envisioned for yourself in Ibiza. As such, it’s good to familiarise yourself with that word ‘compromise’ as early as possible.
It’s also critical to fully understand what’s involved in purchasing a property in a new country, let alone an island which may feel less supported than somewhere in a larger city or on the mainland. From the costs involved, including ongoing taxes, purchase fees and the currency exchange rate, to the mortgage consultants you may need to explore, there’s a lot to line up.
2. Engage a lawyer
For any international property purchase (whether in a new country you will reside or a second home), it’s key to engage a lawyer as early as possible. Our recommendation is to always seek a professional who is independent, however also English speaking (or your native language) with specific expertise in advising UK (or your home country) clients. The unique rules and regulations pertaining between both countries is complex and needs to be considered early, especially if you require Power of Attorney for the lawyer to act on your behalf at any point when you may not be in Ibiza.
Not only will you be able to account for all legal fees from the start, which will be considerably lower when you don’t have the challenge of a translation barrier, it’ll also facilitate being able to move quicker should your property purchase require it.
A further tip is to also engage a lawyer who is independent from your estate agent in Ibiza; a recommended firm is fine, however they should not be affiliated to each other. This will ensure your engaged lawyer is always acting solely in your interests. Next Stop Ibiza have a range of legal contacts specific to property purchase across different regions in Ibiza and can put you in touch upon your request.
3. Embark on your property search
With some of the administrative requirements aside, now the fun bit starts…
Property search in a new country can be daunting, however it’s also an opportunity to consider this new chapter in your life with an open mind. Once you’ve determined the type of property you need according to your lifestyle and own situation, take time to properly research and visit a range of properties to inform your final purchase decision. It’s advisable to allow at least four weeks to attend property viewings and familiarise yourself with new areas.
Research tips are key; whether it’s a few hours out of your routine from a temporary residence in Ibiza or a couple of designated trips from the UK (or your home country) to Ibiza dedicated to your property search. Take the time with different realtors to establish a rapport and who you will work well with for the best result. Consider your time throughout this too; prioritise properties you really want to see with in-person viewings. For anything else, you may be able to virtually view so you can focus more time on all requirements as you establish yourself in Ibiza.
Also factor you may not get the desired outcome at first; from being gazumped to taking longer to find your dream home than you perhaps imagined, know it can be stressful and be easy on yourself throughout the process.
Perhaps consider initially renting and for longer than initially anticipated to grant you more time and breathing space to truly consider your property purchase. It’ll also allow you to budget accordingly and not pay as much as you would in a holiday rentals. Working with agents or property finders, such as Next Stop Ibiza, also puts you in good steed before you embark on your sales journey with some property search experience under your belt.
4. Obtain an NIE number
A quick task to tick off your checklist, however mandatory to enable you to progress further with your property purchase. A Spanish NIE (Numero de Identidad de Extranjero) number (roughly translated as Foreign Identity Number) is required by all non-Spanish citizens as an official identification and tax number for you to undergo any formal legal process in Spain, including the purchase of a property.
5. Contract and completion
The final step to the finish line... completion! The point at which you can finally call your new home yours; occuring once your engaged lawyer has completed all final checks and approvals on the property. They will also prepare the final Public Purchase Deed and confirm a time for this to be signed by both parties (the vendor and buyer of the property). This will likely be arranged via the vendor’s own lawyers. Note, the deeds must be signed at the Notaries office in Ibiza.
For this to occur, your lawyer must ensure all required documents are ready and physically delivered to the notary in Ibiza, including all reports, certificates and your all-important NIE number. On the day of completion, the Public Purchase Deed must be signed in front of a notary in Ibiza. If you are unable to be present and in the country, your lawyer can act on your behalf to sign the deed so long you have provided them with a Power of Attorney.
At this point, the remaining balance of the property purchase cost will need to be paid alongside any transfer taxes. This will enable you to be registered as the new owners of the property in Ibiza; officiated on the Land Registry and with the tax authorities. Once the property is in your name, your lawyer or Next Stop Ibiza can further support you in setting up your utilities in Ibiza, including council tax (IBI), Waste Tax (RSU) and also any ongoing bank payments for bills, such as water and electricity.
If you’re keen to embark on your property purchase in Ibiza and with the support of Next Stop Ibiza, get in touch with PaddyAnne McAllister today. Email paddyanne@nextstopibiza.com