The most recent figures reveal that 25 per cent of purchasers of new homes are Brits and a trawl through the Internet will show there are dozens of agents with Spanish homes on their books. You can even go to the high street where estate agents specialising in overseas property have suddenly started to spring up.

What it means is that there are a lot of people with experience of buying and selling in Spain. There's loads of advice out there.

RELOCATING TO SPAIN

It's not difficult to see why Spain is top of the pops when it comes to buying an overseas home - it's got everything from plenty of sun, lots of sea and a pace of life that is enviable.

The Spanish sun, the sangria and the siestas. Sounds good - and it is for more and more Brits who are packing up their bags and heading for the land of Don Quixote and Cervantes.

Incredibly the Costa Blanca and the Costa del Sol are now the most heavily pensioner-populated place in the world - move over Eastbourne, your day is done. Having said that, there are plenty of young families who are making the move and it is not hard to see why.

If you want the brash and bawdy - it's there, as anyone who has been to Benidorm will testify. If you want the tranquil and serene it's there in the olive grove, mountains and villages all along the coast. If you want history and classical architecture think Seville, the urban and chic then how about Madrid, Barcelona or even the up-and-coming Valencia, Spain's third city.

This is a country that can be all things to all people. It is developing fast and becoming quite sophisticated. So what is all the fuss about? First, some facts. Between 1987 and 2002 property prices leapt by a staggering 284 per cent and have gone up by an average of nearly 100 per cent over the last decade.

This has all been fuelled by disillusionment with the Stock Market and an ever-increasing demand from foreign buyers wanting to escape the wet and miserable overcrowded miseries of northern Europe. Experts predict prices along the Costas will continue to rise - albeit at a less dramatic pace.

If you do want to buy in Spain remember the housing market along the Costas works in a completely different way from inland Spain. You only have to look at the feverish construction activity taking place along all the most popular coastal stretches to see that foreign demand for those dream homes in the sun is as strong as ever.

Spain is the world's top tourist destination attracting more than 50 million visitors a year. If you find out where they're going and buy a property there you won't go too far wrong. If you're buying solely for investment purposes it's sensible to purchase a property with good letting potential - ie near the sea, close to local amenities and an international airport and with either a private or communal swimming pool.

The Costa del Sol and Costa Blanca are two of the most popular tourist spots and consequently are prime investment areas. Property prices are relatively high in both areas but because there's such a huge demand for housing on both Costas you can be fairly sure that if you invest there you'll be sitting on a goldmine in the long term.

LEGAL EAGLES

© Nick Stubbs/istockphoto.com

Let's start at the beginning. There are some formalities that need to be fulfilled before you buy. You will need a NIE number (Numero de Identificacion de Extranjeros) rather like a National Insurance number. To get it involves filling in a form with your lawyer (abogado) and you also need to supply a passport photo, a photocopy of your passport and your passport. The solicitor will then obtain your NIE number from the local police station.

You will also need a Spanish bank account and again a number of documents must be handed over. All documents must be the originals and copies will be taken at the bank. They include passports, driving licences, if you are working then the payslips for the last three months and your latest P60. If you are self-employed you will need the last three years audited accounts, tax returns and accountant ??s reference.

Once you've made your choice make your offer in writing, if possible, and include not only the price, but also the amount of deposit, when you are prepared to pay it, when you will complete, what you consider to be included in the price and, an often neglected point, insist that all machinery equipment and installations should be in normal working order.

Once the offer is accepted the lawyer takes the legal responsibility for checking the land registry and if all is well, he will then prepare a private contract that will bind both parties to the deal (you may be asked to lodge a deposit on the property, to take the property off the market). The lawyer will next prepare the public deeds (Escritura de Compraventa) for signature in front of a Spanish notary.

When the balance of the purchase price is paid and vacant possession is granted, the sale is completed.

If you plan on spending more than six months in Spain you need to apply for a residencia - to become a resident. Being a resident does not restrict movements in any way and it has many advantages ie lower taxes. If you don't become a resident, you must appoint a fiscal representative and you must have a Spanish will.

Also ask your lawyer to check out payment of local taxes, and utility bills so you fully understand your legal liabilities.

LUXURY RESIDENCES
Not surprising there is growing interest in developments with access close to golf courses and the Spanish are concentrating on luxury developments - urbanisations as they are called, clusters of villas built to high specifications.

PROPERTY HOT SPOT - COSTA DEL SOL

PROPERTY on this stretch of the Spanish Mediterranean has always been considered a good investment and many buyers have doubled or tripled the value of their property in the past 10 years.

Malaga airport provides daily flights to the main European cities, ensuring excellent access and cheap flights for those who have bought property on Costa del Sol with a view to holidaying regularly in the area and, of course, encouraging a healthy property rental market.

The Costa del Sol is one of the most popular all-year-round destinations of Europe with an average temperature of 18 degrees and a wide range of attractions in the area including excellent beaches, theme parks and highly-rated golf courses - there are more than 60 of them.

Just a few miles inland, the countryside is stunning and much of it is classed as protected National Park. White "pueblos" dot the landscape for those who wish to see more of the real Spain and sales of village property has been increasing steadily over the past few years. Rural property too, for those who want to get away from it all, can be found just a few miles from the coast

The Costa del Sol has become a popular place for retirement and a change of lifestyle for many northern Europeans. Keen to move away from the cold winters and high prices, more and more Brits (and other Europeans) are opting for a life in the sun and making a permanent move to the Costa del Sol.

Of course, popularity pushes up the prices Costa del Sol property is relatively pricey compared with some of the up-and-coming areas such as Almeria, the Costa de la Luz and Costa Azahar. Marbella's swanky Golden Mile is Millionaires' Row where property prices are among the highest in Spain.

Properties become more affordable the further east and west you go from Marbella and they're cheaper still if you buy a little way back from the coast. But the good news is that the Costa del Sol represents one of the best investment opportunities in Spain because it is one of the most popular holiday destinations. Rental tariffs are higher there than anywhere else in the country, including the Balearic and Canary Islands.

A popular way to invest on the Costa del Sol is to buy into an "off-plan" project, putting a down payment of say 30 per cent on a property yet to be built. Many investors have then sold their "option to buy" at a substantial profit even before the property has been completed.

© Juliana Mittmann

WHAT ABOUT SCHOOLING
What about schooling? There are a growing number of international schools in Spain that follow the British curriculum. Fees for day students are usually cheaper than school fees in Britain and demand for places can be high. If you and or your children are intent on returning home to live, then choose a school that follows the National Curriculum and offers IGCSE, AS/A Level or the IB.

Spanish schools can be state or privately owned. Fees are payable in some private schools but not all. Concertado schools would be subsidised by the Spanish government, are the same as British "grant- maintained" schools and, therefore, tuition is usually provided free. Concertado schools actively encourage parental involvement, but generally parents find there's more opportunity to meet with teachers in Spanish state schools than is often the case in state schools in England and Wales.

And what about you? How will you cope with the language? Luckily Spain is so popular there are few problems in finding a language teacher to help you. Most towns, and many villages, have their expat communities and this is the place to go to find out the local information in a language you can understand. A few lessons and it won't matter what tongue you hear - you'll understand it all.

You need to know: You will require a NIE number (Numero de Identificacion de Extranjeros) rather like a National Insurance number and a Spanish bank account. Currency: Euro. Language: Spanish. Government: Madrid. Health: State provided.

© Nick Stubbs/istockphoto.com

CASE STUDY - SPAIN

Three years ago Dominic and Petra King moved to Spain, throwing in their office jobs and selling all that they owned. They were off to fulfil a dream - running a tapas bar. A romantic future lay ahead - a future without stress, traffic jams, thousands of e-mails a day, dark clouds and rain.

The tapas restaurant was in a pretty little village on the Costa Blanca. The initial idea was to open for a few hours per day. They rented an empty unit close to a very busy weekly market. With only little experience in the catering industry (but not completely brainless), little knowledge of the Spanish language, no knowledge of the Spanish culture or business attitude whatsoever, they thought they were bound to get in a lot of trouble.

Amazingly they didn't because they asked the right questions of the right people. Building the bar was something else because they wanted a non-Spanish bar setup. That made the beer people, the wine people, and all other suppliers freak and run out immediately with the words "ai hombre, problema!" - and not show their faces for a couple of days.

In order to get ice cream, they had to stand in the middle of the street to stop the sales rep and ask him to come in. He delivered once, came for a refill and then never showed up again. Hence, they had to change brands in the middle of summer.

It took them two years to finish the paperwork for the licence as well as numerous visits from the "ajuntamento" and the health inspection before they finally approved it. Each time they came, they brought a new list with rules and regulations, assuring the Kings that this was the final version.

However, once set up, the restaurant worked really well.

"To run a bar and/or restaurant is probably one of the most effective ways of learning Spanish, Spanish culture, the local way of doing things(probably different for every part of Spain) their rules and regulations, their business culture etc. Plus, you hear a lot," said Petra.

"Never ever think you get anything done in one go. There is no way. Plan two to three attempts for anything you need to arrange. Knowing this in advance will save you a lot of stress.


"Smile a lot and relax. You want to move to Spain because you wanted more time so go with the flow."

BUYING PROPERTY AS AN INVESTMENT IN SPAIN

© Paul Cowan/istockphoto.com

The big air-tour companies will tell you that the Spanish package holiday is dying and well it might be. But with half a million Brits owning overseas properties, and Spain as the most popular destination, something is going on.

That something is a more discerning visitor and a more switched-on investor. Travel along the Costa Blanca or the Costa Sol and you will find so much building going on you will wonder where all the builders are coming from.

Spain so far has offered plenty for the investor -longevity, reliability, and infrastructure, stability, familiarity and popularity. Prices may have stabilised but the country is still in demand.

Buy-to-let investment opportunities in certain parts of Spain still stack-up brilliantly against the competition. This is especially true on the Costa del Sol. Properties in the areas south-west of Marbella are experiencing strong capital growth. But more importantly, it's an area where strong rental income can be achieved all year round.

Not only are summertime rental prices some of the highest in Europe, but the favourable climate throughout the winter months has led to a massive development of world-class golf courses. This makes 30-35 weeks' annual rental a realistic proposition - with a potential yield of 10-12 per cent.

If you are buying a Spanish property as an investment, rather than as a permanent home, you will probably want a villa or apartment with good letting potential and there are many who make a decent living from such a business.

It is best to take the advice of seasoned holiday property owners and the more upmarket you aim, the better the returns. Don't skimp on the furnishings and extras - quality and comfort will be appreciated by your guests. They'll probably come back year after year and tell all their friends about your villa.

© Nick Stubbs/istockphoto.com

The same applies even if you are buying a small studio apartment. Furnish and equip it well and pay attention to small details - a welcome pack with helpful information and a bottle of wine in the fridge all go a long way to making the right impression from the start.

Location, of course, is everything. At best a private pool, at worst a communal swimming pool, is essential for successful letting as is easy access to the beach, shops and nightlife. Your holiday let will also need to be within easy reach of an international airport with regular charter flights.

So if you have been seduced by the charms of a lovely little mountain hideaway in the back of beyond, remember you won't make much of a living if you are using it as a buy-to-let property.

Rental income in Spain is taxed at either 25 per cent or 35 per cent, depending on whether you are a permanent resident or not. But the system of payment is different from the UK, and a letting agent who handles this is a sensible option.

For a hardheaded investor, well-chosen Spanish property is still a very sensible choice, comfortably seeing off newcomers with aplomb.