500,000 British citizens now own property in Spain and according to Datamonitor's 'Buying Property Abroad' report, Britons own 36% of the tourist housing stock in Spain. In addition, 37% of second homes owned by Britons outside of the UK are located in Spain.

So is it easy to buy in Spain? What pitfalls are there to watch out for? And what is the best way to deal with a mortgage? These and a few lighter subjects are covered here by Banco Halifax Hispania. Naturally the bank beats it's own drum a little but the underlying information is very useful.

And yes, on the lighter side, Banco Halifax Hispania would also like to introduce you to some potential new neighbours.

The boom in low-cost, budget airlines has meant that owning a property in Spain is a real possibility, not just a lifestyle afforded by the rich and famous, according to Banco Halifax Hispania, the Spanish arm of the UK's largest lender, Halifax.

The transfer of David Beckham, Michael Owen and Jonathan Woodgate to Madrid has put the media focus onto the lives and houses of the rich in Spain, but living in Spain is not a new phenomenon for the rich.

Some of the world's most famous and well-known celebrities that own property in Spain include:

• Claudia Schiffer and her husband Matthew Vaughn own a £6 million property in the South West of Majorca close to the town of Camp de Mar and 40km west of Palma, not far from Andraitx. The property was built to Claudia's own specifications.
• Victoria Beckham moved to Spain to be with her husband David.
• Tom Cruise and Michael Schumacher also both own property around Camp de Mar.
• Richard Branson, Andrew Lloyd Webber and The Douglases have homes in Deia
• Antonio Banderas and Melanie Griffiths own a villa in Marbella, as does Sean Connery.
• Nigel Mansell and Bruce Forsyth both own a villa in La Manga.
• Noel Gallagher also owns property on the Costa Del Sol.

Banco Halifax Hispania provides the following advice and practical hints and tips for anyone also looking to purchase a property in Spain.

The location of the property
Make the time to look around and explore the different options and areas. Remember that the location which was great for a two week holiday may not always be ideal to return to time and time again.

The secret is to think things through carefully and not to rush.

As with all property purchases, whether in Spain or the UK, it is a big decision, so take the time to get it right.

Use the experts
British expatriates are an important part of the property market, particularly within the popular Costa del Sol and Costa Blanca regions and this has resulted in the emergence of a few well-known UK banks in Spain, including Banco Halifax Hispania.

Banco Halifax Hispania specialises in providing a range of financial services for residents living permanently in Spain and also for those buying a holiday home.

Communicate in English
The main difficulty most prospective buyers experience in the house buying process is, inevitably, language terminology, such as evaluators rather than surveyors.

However, as long as care is taken over the choice of bank and some initial enquiries are carried out to check its ability to deal with British customers in English, all these differences can be overcome.

Most Britons buying property in Spain demand similar products and services to those available in the UK.

For this reason, the British banks that combine a network of branches in Spain with a customer service team in the UK are best placed to provide the product range and standards of service expected by British customers.

Dealing with a UK based customer service team also avoids international telephone charges and allows all paperwork to be handled in the UK.

In addition, it is more convenient as the team's business hours are unaffected by different time zones and the Spanish practice of working winter and summer hours. For some, it simply means sorting out everything before arriving in Spain, therefore allowing more free time in the sun.

And when in Spain, a major benefit for Banco Halifax Hispania customers is that all branch teams in the Costa del Sol and Costa Blanca are fluent in English.

An important point to remember when taking out a loan in euros is that the lender will require monthly repayments in that currency. Fluctuations in the exchange rate will certainly affect the value of the monthly repayments, if they are being met from income earned outside of the Euro zone.

Most banks in Spain will offer a maximum loan to value of around 70% of the property. The large 30% deposit reflects the fact that the property is not the customer's main residency. In situations where someone holds Spanish residency papers, the maximum loan will usually be increased to 80%.

Interest rates are currently as low as 3.301% and have generally been below those quoted in the UK for quite some time. Most banks offer what the British customer would consider to be a one-year tracker. This means that the interest rate is fixed for a period of 12 months and reviewed annually.

Based on its understanding of British attitudes and culture, Banco Halifax Hispania offers mortgage terms as long as 30 years.

The importance of using a qualified solicitor with local knowledge and experience of acting for British customers cannot be over emphasised when buying property in Spain. Few people would consider buying a property in the UK without using an independent solicitor and surveyor, so why should it be any different in Spain?

Banco Halifax Hispania has an approved panel of solicitors and surveyors in the Costa Blanca region, as well as in the Costa del Sol.

Although employing an independent solicitor and surveyor increases the purchase costs, as legal and survey fees have to be paid, these amounts are relatively small compared to the expense of trying to sort out unexpected difficulties in the future.

As in the UK, a Spanish solicitor will ensure that all aspects of the purchase, including planning permission, obtaining a residency certificate and other legal requirements are satisfactory.

In addition, valuation reports and reports from the Land registry or Property Registry with details of charges, laws, rules and regulations that could impair any future use of the property can also be provided in English by the solicitors. Advice about tax, if required, can also be provided.

If you are considering buying a property abroad, Banco Halifax Hispania also recommends that you make the following personal arrangements before you leave the UK:

• Obtain all necessary up-to-date documentation, including visas and work permits.
• Ensure that you have registered your residency status with both the Inland Revenue in the UK and the appropriate authorities in the country you are moving to.
• Check medical arrangements.
• Consult a tax specialist.
• Arrange bank accounts in Spain.
• Ensure that any regular payments in the UK are met while you are in Spain and let your bank know about the move.
• Decide what you want to do with your home in the UK.
• Advise insurance companies about changes that might affect policies, including buildings and contents cover, health insurance and pensions.
• Tell everyone about your change of address.
• Check your will and make sure it takes into account Spanish rules.
• Make sure that you arrange furniture shipments well in advance.
• Remember some electrical items may not work abroad.

The first port of call for anyone leaving the UK to work abroad is to see a tax adviser:
If you are a UK resident for tax purposes, you will pay UK income tax on your whole income wherever it arises.

If you're not a UK resident, you will pay UK income tax only on that income which arises from a source in the UK - you should ensure that you know what considers you to be a 'non resident.'

Despite this, any income earned in the UK, like interest on deposits or returns on investments, will be taxed in the UK. That is why some people transfer most of their assets offshore.

Your home could also land you with a hefty tax bill. Under UK tax rules only your main home is exempt from Capital Gains tax. So if you own another home, even in a foreign country, you could be liable to tax on any profit made when it is sold. One way to avoid this is to buy and sell the new home during the period you are regarded by the tax-man as non resident.

It is important to check financial arrangements just before returning to the UK so that you can try and avoid extra tax liabilities.

Ian Smith, Head of European Operations at Halifax plc, said: "The demand from British people for property in Spain has not only been fuelled by the high demand for low rate Euro mortgages, but also by the boom in low-cost, budget airlines."

"Many people have now realised that owning property in Spain is a real possibility and Banco Halifax Hispania has helped to arrange a record number of mortgages."