The first thing you should do when searching for a home in Spain is to find a reputable real estate agent. You want someone who is registered and experienced. Unscrupulous agents have been known to exploit foreign buyers who may not understand real estate laws in Spain. Learning to speak Spanish is a good way to understand and communicate effectively.

Be sure to hire a lawyer to assist you in your purchase. An attorney will go over the contract, mortgage information and protect your interests in the sale. A Spanish lawyer will be well acquainted with the laws involving real estate transactions.

A real estate agent may recommend a lawyer. It’s better to get a lawyer independently to be sure he is working only for you. A friend or neighbour may be able to recommend someone for you.

In some cases, the seller may ask you to put a reduced price in the contract and pay the difference in cash. The reason for this is the seller wants to pay less in capital gains taxes. Keep in mind that this practice is illegal and is considered tax evasion.

While this may not seem like a problem, keep in mind that you would be paying more taxes later, in the event you sell the property. If you sell, your capital gains tax will be based on the purchase price and your selling price. This may cost you a significant amount more in capital gains taxes.

Unless you are independently wealthy, you will probably need a mortgage to purchase your vacation property. There are a variety of different mortgage types you can get for purchasing your new home. Take the time to research your options to get the best deal.

An International Mortgage can be found with a lender in your home country. Larger mortgage companies generally offer mortgages to people interested in purchasing properties in other countries. These are generally offered for a second home when you already own a home in your country. In general, you can finance 70 percent of the purchase price with a 30 percent down payment.

Second mortgages are a popular method for buying a holiday home. This is a good option if you have significant equity in your primary residence. With a second mortgage, you are borrowing against your primary residence to fund the purchase of your home in Spain. Your home is the collateral. Make sure you can afford the payment, interest and taxes.

A Spanish mortgage is offered by a Spanish company to non residents looking to purchase property in the country. These are generally offered by larger banks. Be sure you understand the terms and conditions of the loan. This is easier if you speak the Spanish language. A lawyer can also help you understand the terms of the loan. Compare interest and fees here with lenders in your home country.

The increasing wealth of the nation is being distributed among its people because Czech citizens are benefiting from an abundance of better paying employment opportunities as more international companies relocate to the Czech Republic.

All of these facts mean that the real estate market in the Czech Republic is currently buoyant, in demand and potentially very lucrative for overseas investors who seek to directly target the local market with rental accommodation and resale property.

The key to making a successful real estate investment in the Czech Republic is targeting the local market. Outside of the country’s capital city of Prague there is very little tourism interest in rental accommodation and very little expatriate interest in purchasing accommodation – so those who wish to profit have to identify exactly the types of property the local citizens’ demand and target that particular market segment.

In Prague and the city of Brno for example, quality family apartments are most in demand from the rental sector. In terms of properties people are seeking to purchase these include family homes in city suburbs and well located apartments preferably with access to shared facilities such as a gym.

The Czech people are embracing their new found wealth status and have adopted a very cosmopolitan and ‘western’ standard of living which means anyone contemplating renovating real estate particularly in Prague should do so with these facts in mind. Properties with high standard finishes and quality fixtures and fittings rent or sell the fastest, and as mortgage products and property based finance become more widely available across the Czech Republic so the consumer demand for larger and more expensive properties to purchase intensifies.

This means that a real estate investor who gets on the property ladder now in the Czech Republic can improve, increase and expand his property portfolio within the country as the Czech people become more able to afford more expensive property.

US, UK and EU citizens are free to own real estate in the Czech Republic and many choose to do so through an SRO which is a Czech limited liability company. These companies act as a taxation and liability shelter for property owners and can be established within la couple of days by any lawyer in the Czech Republic.