- Before you view a property -
Before arriving in Spain you should make sure that you
have at your disposal sufficient funds for a reservation deposit on a
property.
The reservation deposit can be kept in the lawyers client account or directly
with the developer.
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- Can I get a mortgage in Spain? -
Depending on status you can get approx. 70% of the total value of the
property.
The documents needed are:
The interest now given by most banks / savings bank is approx. 3,5 %.
Please note that the property must be valued by the banks surveyor.
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One of the first things you need to do when you have decided to purchase in Spain is to open a bank account. Please note that some Spanish bank charge a commission to receive funds, sometimes up to 0,5% on the amount being transferred. We are happy to assist you in opening a bank account and can recommend the better banks in the area.
- Do I need a NIE-number (fiscal id-number)? -
Yes all foreign property owners must apply for a NIE-number. These are processed by the Police authority and in most cases your Estate Agent, Lawyer or Gestoria offers this service at a charge. If your bank has offered to apply for the id-number do check that it is the NIE-number and not just a provisional number.
Once you have decided on a property you should proceed to apply for your NIE-number so it is ready in time for signing your Title Deed. Talk to us we are happy to help you with the matter.
- Who should I use for the purchase of a property? -
Use the person/company you feel happy with but still using your common sense. Estate Agents should be members of API or GIPE (or similar) and their members number is usually displayed in their offices. The Euro All prices should now be in €uros as from the 1st of January 2002. Please use our "currency converter" to convert the €uro prices into Pound Sterling as per todays rate. The amounts given in pound sterling on some of the displayed properties should be treated as a guide line only and have no contract value.
- Completion of sale at the notary -
As sale is formally completed here in Spain when the public title deed of purchase are signed and the final payment made, and possession given to the purchaser.
- Do I become responsible for existing debts on a resale property? -
Yes you can be held responsible for the outstanding payments prior to the purchase of the following: local rates, water, community charges, electricity, telephone, mortgage if applicable etc. It is therefore very important that your Gestor or Lawyer makes sure that these debts are paid before you sign the Title Deed (Escritura).
- Can you help with the conveyancing? -
Yes of course we can as a fully registered estate agency but these matters
are handled by another company taking care of all our clients paper work.
For
more information click here.
- Do I have to pay local rates? -
Yes - everybody - pays local rates (Impuesto sobre Bienes Inmuebles) to the corresponding municipality. These are issued by the local Town Hall or by Suma. Failing to pay these can result in an "embargo" on your property. Make sure that you or your representative prepares a standing order for your Spanish bank to pay these every year.
Local rates are payable annually, and are calculated from the cadastral or rateable value of the land assigned by the Spanish tax office. The cadastral value takes into account the value of the land plus the value of the building.
It is a homeowners association, a legal entity comprised of the owners of the apartments in a building, or villas on an estate. The purpose of the community is to maintain the common elements of the building or estate.
- If my property is used as a holiday home - do I have to pay taxes in
Spain? -
Yes - as a non-resident in Spain and owner of a property you have to submit every year a tax form for both wealth tax (Patrimonio) and Notional rental tax (I.R.P.F.).
For a property that costs 95.000 €uros the tax to pay is approx. 430 €uros.
- Should I belive all these "stories" I hear when I am out and
about? -
No - but please use common sense when purchasing a property and we recommend that you use an Estate Agent. If buying privately use a professional company that can help you with the conveyancing. Professional advice and assistance do cost money BUT note that the benefit outweighs the charges.
- I now want to sell my property -
You have now decided that after x amount of years as owner of a Spanish property, you would like to sell and you are not sure who you should contact. There are many agents around and the same applies to when you purchased, use the one you feel comfortable with. Were you satisfied with the company your purchased through - then we recommend that you contact them again.
- Should I make a spanish will? -
Yes - the situation for the family members can be difficult enough. The will is made out in two columns, one in Spanish and one in English. The document is signed in front of the Public Notary. The original stays in this Notary's files and a notification is sent to the central registry in Madrid. You will also, of course, receive a copy.
Is an expression quickly disappearing in Spain BUT still remember that the way of life is more relaxed than our home country and that the priorities also come in a different order. As guest in this country show courtesy but still firmness. Unfortunately "raising your voice" and "thumping the table" will not take you very far down the road - the opposite - you will be ignored. Act as you would expect people to do with you.
- Learn spanish – Do I need to? -
It will be greatly appreciated if you try. Check with your local Town Hall because they normally provide Spanish lessons for foreigners. If not there are many language schools you can contact. Spain has the highest number of language schools in Europe!!!!
Yes it does happen - as every where else in Europe and the rest of the
World. We advice that you take precautions. Have an alarm fitted that
is connected to a central office and the police. Have a safe fitted for
your jewellery, passport etc. And do not forget the insurance.
If
you would like to receive a quote for a house insurance please click here.
- Should I take out private health insurance? -
This is a decision only you can make. Note that if you are planning to become "resident" in Spain and you are of non-retirement age you MUST have a private health insurance.
If the property you are about to purchase is only going to be used as a holiday home then you are covered by the EC reciprocal agreement (form E-111). Note that this only applies to the national health doctors and hospitals. Another alternative is of course taking out a travel insurance when booking your flight tickets.
Would you like to receive an estimate on private health insurance please click here.