Spain, as you might expect, has a mishmash of real estate laws that can make your buying experience a difficult one if you aren't careful. You can indeed find your dream home in Spain, and you shouldn't let a different way of doing things discourage you, but you should be aware of what you need to do.

The first thing to know is that sellers in Spain don't like taxes. Ok, that's true anywhere in the world. But in Spain they will actively try to get around those pesky taxes. In order to do this the seller is likely to ask you to agree to one price on paper, but a different price in actuality. The less the amount on the paper, the lower the sellers capital gains taxes will be. Of course this is illegal, but don't be surprised if you come across this situation.

Although this has been happening in Spain for a long time, and it doesn't affect the buyer in terms of what the actual price is, the government has been cracking down on this practice and may very well come after the buyer as well as the seller. It would seem then that the practice would have decreased. Well, in reality it hasn't much. The problem you will run into then is that you may find yourself not considered a good buyer if you don't play the game. The seller will simply look for someone who's willing to play along.

So, what should buyer do? Do you accept the seller's demands and do part of the deal in cold hard cash? If you do play along, they the price you pay on paper will be matched against any profits if the house is sold in the future. In that case, you might very well feel you need to ask your buyer to do the same for you. (And this is why it's such a viscous cycle and continues even though the government has said it is cracking down.) Who knows what the laws or the long arm of the law will be like in the future and how easy or not it will be to do the same thing? All in all, it's best to play things safe and do everything above board. If you deal under the table then you risk getting into trouble in the first place, or you risk paying more taxes than you should if you decide to sell in the future. True, you may lose the house you want to someone who is willing to play the game, but there's always another house, even if it seems like there isn't at the moment.

Another point to consider when buying property in Spain is that there are a number of unregistered real estates in Spain. Because of this you can run into problems ranging from simple incompetence to outright unscrupulous "agents."

A good rule of thumb when looking for a real estate agent is to look for someone with a good reputation. Although you may not have someone to turn to for this, you can generally get an idea by doing a little sleuthing - on the internet and in person. Someone who's been around a while will probably be at least competent. If you're on the ground in Spain, try to talk to other foreigners especially about who might be a good agent. Some agents may spot a foreigner and see an easy target. If there's an agent who has a decent reputation among foreigners, then your chances of getting someone you want are better. If your Spanis is limited or non-existent, you'll also want an agent that has a good level of English. You don't want any miscommunication happening.

A lot of agencies will want to recommend a lawyer to their buyers (or sellers) when it comes the time for that. Keep in mind that an lawyer that's the agent's friend is going to act in the agent's interest before they will act in yours. That's not to say that you will automatically get cheated, but if you have other options you should investigate them before going with someone the agent recommends.

Another thing to consider when buying in Spain is the recent changes in the laws (especially in Valencia and Andalusia). The laws have been enacted to protect rural property and farmland, to prevent the scourge of overdevelopment. But the laws have been somewhat twisted, it would seem. That, at least, is the claim of some foreigners who feel that they were duped into buying land which they are now prohibited from building on. Be aware that there may be laws that you aren't aware of. Again, try to get an agent you can trust and a lawyer that's going to act in your interest.

If you can take those two basic recommendations above, then buying a property in Spain shouldn't be as hard as it might seem at the beginning. Simply try to consider any long-term effects of your actions and then you can start living the longtime dream of living in relaxed, elegant Spain.