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Spanish Costa
Properties are not tied to any builders, developers or Spanish Estate agents. This enables us to provide you the best deals available. We make sure that your requirement to locate the most suitable properties in Spain is met on personal basis.
We not only strive to provide all the necessary information relating to your purchase but also facilitate you in effecting the transaction with ease.
All viewing arrangements with Spanish Costa Properties and our partners are on a one-to-one basis.
Buying New Properties in Spain
Our new property portfolio is extensive and is hand picked to provide our customers with high quality properties at the best available price.
All properties in our portfolio are constructed to the highest standards and are offered for sale freehold and carry a minimum 10 years structural guarantee.
Buying Re-sale Properties in Spain
Spanish Costa Properties has a wide selection of resale properties in its portfolio catering for a variety of tastes and budgets. In general, resale properties are open to negotiation with the owner, but remember, the golden rule is that before you make an offer you should be in a position of buying. In other words you need to be certain that you can raise the finances before making the offer.
Budgets and Financing
At the outset, the most important thing you should do is assess your budget. Set the limit of your purchasing power and don't look at properties out of your buying price range. We can help you arrange a mortgage in Spain should you require one. A full range of status and non-status mortgages are available.
Choosing the Area
Remember, the cheapest property is not necessarily the best buy. From the point of view of investment potential, the same rule applies in Spain as here in the UK.
Location, Location, Location!
If you are not sure of the
location we will give you the best advise based on your requirements
and budget.
Holding Deposit
Having found the property you
wish to purchase, the first step is to pay a holding deposit
(€3,000
or £2,000) which removes the property from the market. This
sum is usually lodged to your Spanish solicitor's client account.
Appointing Your Solicitor
It is generally advisable to
engage the services of a Spanish solicitor (or a solicitor
well-versed in Property Law of Spain) to look after your purchase.
Spanish Costa Properties can recommend a number of experienced
bilingual solicitors. Your solicitor will first of all ensure
that the property has no debts attaching to it and that it
is correctly registered.
The Purchase Contract
This is the private contract
between vendor and purchaser and is binding on both parties.
It is usually drawn up between 2 and 3 weeks after the holding
deposit has been put down. It should specify the name(s) of
the purchaser(s), the completion date and the terms and conditions
governing the sale. At this point the balance of the deposit
(usually 10% of the purchase price) has to be paid.
Signing of the Deed
This is done in front of the
Notary in Spain or by someone (usually your solicitor) with
power of attorney from you to sign on your behalf. Full payment
is required before the title deed can be transferred into
the name(s) of the owner(s). Spanish inheritance taxes are
high, so it is advisable to include the names of any children
who would inherit your property upon your demise. Some purchasers
may decide that it is financially more beneficial to purchase
the property through a company, and in this case the company
name would appear on the title deed.
Taking Possession
The handing over of the property
and the keys will normally take place only when the full purchase
price has been paid.
Transfer of Services
Having completed the purchase,
it is necessary to connect or transfer services. Electricity
and water need to be in your name.
Building and Content Insurance
This is
your responsibility upon taking possession of your property. Our
local representative can advise you on this matter or you may
like to get a couple of quotes so try
www.intasure.com.
Intasure are specialists in Holiday home insurance and expatriates
insurance in Spain and Portugal.
Payments of Charges and
Taxes
As in the case of owning a
property anywhere, certain periodic payments have to be made.
Your solicitor will usually be willing to look after these
matters, but you can appoint a Gestor (fiscal representative)
to make the necessary payments and take care of whatever paper-work
is involved. Local rates are paid to the town hall (ayuntamiento).
You need to obtain a fiscal number from the local tax-administration
office.
Community Fees
If you purchase a property
within a complex or apartment block, you are obliged to join
its residents association which administers the general maintenance
of the areas of common ownership, such as gardens, hallways,
lifts, swimming pools, exterior lighting etc. An annual budget
is calculated to cover these costs, which is divided between
all the owners according to the size of their properties.
All owners have a vote to agree the budget at the annual general
meeting.
Patrimonio Tax
This is wealth tax, calculated
at 0.2% of the declared value of the property and is payable
each year by non-residents.
Impuesta de la Renta
An annual tax payable by non-residents,
which is based on the estimated value of the property on the
assumption the property is rented out, whether it is or not.
The amount is approximately 0.5% of the property value.
Plusvalia Tax
A one off tax on the sale of
a property, it is calculated on the appreciative value of
the land the property is on and varies between towns. It is
common for this tax to be paid by the purchaser.
The Escritura
These are the freehold title
deeds, which are presented before the notary-public, showing
ownership of the property.
The Notary
A lawyer appointed by the Spanish
government to ensure that the change of title is properly
executed. It is his/her job to make sure that the seller is
legally entitled to sell and the taxes are paid. The notary
will register the change of ownership in the land registry
office, this in turn is registered at the central registry
of foreign investments in Madrid. The local land registry
office is where all the escrituras relating to property transfers
are recorded after the taxes have been paid
These documents are available for public inspection.
Property Guarantees
Spanish law states that all
new properties must be guaranteed for 10 years, the architect
and the builder being legally responsible.
Most new developments also include a bank bond within the
terms of their contract, guaranteeing each stage-payment and
frequently a no-later-than completion date.
Rental Income
Since
you own the Freehold on your property you may well decide
to derive rental income from it. Spanish Costa Properties
will be happy to advise you about how best to do this and
about expected rental yields.
Making a Will
Because
Spanish inheritance-laws are different from ours, it is generally
recommended that you instruct your solicitor to draw up a
Spanish will covering the succession rights to your property.
Transferring Money to Spain
When
paying for your property in Euros you will need to transfer your
money to Spain. The best way to do this is to use a
specialist company. Spanish Costa Properties recommend
Sterling Exchange who are the the UK's leading currency
specialist and is currently spearheading the drive to allow
corporate and commercial exchange rates and services to be made
available to everyone. They specialise in the purchase and
transfer of foreign currency from one place to another as
quickly and as cheaply as possible and their experienced staff
are equipped to help you with all of your currency exchange
requirements.
- No
commission
- Free
Transfers on all trades
- Excellent
exchange rates on any size trade
- Guaranteed
rates for up to 2 years
- 24 hour a
day, seven day info service
- Mortgage
payments
- Personal
currency planner
Upon
registering with Sterling Exchange you will be assigned a
personal currency planner who will assess your currency needs
and suggest the best course of action to save you time and
money.
For more information on the easy to use free service offered by
Sterling Exchange please visit
www.sterlingexchange.co.uk or call 0207 329 9977 and ask for
Antonio Michael and mention Spanish Costa Properties.
PLEASE NOTE:
Because
the terms and conditions governing property purchase in Spain
are subject to periodic changes, all points of information
included in this buyers guide are intended as a guideline
only.
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