Spain is a sovereign state and a member state of the European Union. It is located on the Iberian Peninsula in south-western Europe With an area of 505,992 km2. Spain is the second largest country in Western Europe and the European Union, and the fifth largest country in Europe.
Spain is a beautiful country with a worldwide famous climate, culture, gastronomy and beaches. A favourite destination for travel and invest abroad. Malaga, Costa Del Sol Malaga located in Southern Spain, is the capital city of the Costa del Sol.
Malaga airport is one of the largest in Spain and in a typical year can welcome up to 10 million visitors. Marbella and Puerto Banus Marbella, 100 Kilometres Square and 24 kilometres of beach, is known all over the world as one of the classiest and most beautiful holiday destinations in Southern Europe. It has everything: beaches, mountains, old world charm, cosmopolitan atmosphere and services, countryside and city, and a wonderful climate that keeps the temperatures cooler in summer and warmer in winter than the rest of Malaga province.
The coastline is fine sand all the way, and the land that goes back from the beaches is a paradise of luxury housing developments, golf courses and beautiful mountain scenery. Puerto Banus is the playground for the international jet set. Privately owned super-yachts fill the harbour, luxury sports cars and high-end designer shops line the streets and top quality restaurants and bars are everywhere. At night, Puerto Banus is the place to go and be seen. It’s late bars and clubs have become famous around Europe Balearic Islands The four largest islands are Majorca, Minorca, Ibiza and Formentera.
There are many minor islands and islets in close proximity to the larger islands, including Cabrera, Dragonera and S'Espalmador. The islands have a Mediterranean Climate, and the four major islands are all popular tourist destinations. Ibiza in particular is known as an international party destination, attracting many of the world's most popular DJ's to its nightclubs. The islands' culture and cuisine are similar to that of the rest of Spain.
The Spanish population is estimated at just over 47 million. The six cities with the largest populations are: Madrid, Barcelona, Valencia, Seville, Zaragoza and Malaga (Costa del Sol).
The Mediterranean climate is characterised by dry and warm summers and cool and wet winters.
Spanish - English language is widely spoken in tourist areas.
Yes Can a foreigner get a Spanish residency when buying a property? Yes, it has been approved already that when clients buy properties over 500.000 euros they get the Spanish Residencia.
This will apply to any nationality but the property must be purchased outright and not on mortgage.
Choosing the right Estate Agent Always select an established real estate agent who will find you the right property and be able to guide you through the preliminary negotiations with the seller. Choosing the right lawyer It is advisable to use a lawyer based in Spain who will provide the legal guarantees for the purchase of the property, ensuring that Spanish legal requirements are met.
Reservation deposit and contract Once you have found the right property, the purchase process begins with a reservation agreement, which takes the property off the market and also “freezes” the purchase price. The deposit to be paid at this stage is between 3,000 and 12,000 Euros. Before arriving in Spain, ensure you have funds available. Exchange of private contracts Within approximately 14 days of signing the reservation agreement, the private purchase contract is to be signed between the buyer and the seller (or their authorized representatives).
Formal completion and exchange at the Notary A property sale is formally completed in Spain when the title deed (escritura de compraventa) is signed before a Public Notary in Spain, the agreed final payment is made and possession of the property is passed to the new owner. In the case of new builds, it can take up to 18 months before completion and usually payments are in stages of two to four months, for example by bankers draft, cheques from a Spanish bank account or bank transfer. Registration Once the title deed is signed, the notary will fax a copy of it to the local land registry.
Your lawyer will pay on your behalf all the relevant transfer taxes and will deal with the formalities of registration of your title deed. Final registration of the title deed may take several months. Your lawyer will arrange for the transfer of the utility service accounts, such as water and electricity, to your Spanish bank account.
Purchasing a property on a new development When purchasing a property on a new development, the developer should provide bank guarantees against each payment made on account of the purchase price. Many developers offer these bank guarantees free of charge whilst others make a percentage charge. A bank guarantee protects your payments.
There are in principle three fees and one tax to pay when purchasing property in Spain. You should budget that the costs involved purchasing a property in Spain are approximately 11-14% of the purchase price. If you have a mortgage there is an additional cost of approximately 2% of the property purchase price. Legal fees:
The legal fee depends on the service you require, plus VAT (IVA) currently charged at 21%. We have a transparent fee structure with clear advice of any charges and fees. Notary fees: the notary charges according to a fixed scale, depending upon the official value of the property. The charges may range from 300 to 1200 Euros. Property Registry: Generally 60-80% of the notary fee. The Tax On a resale property, Transfer Tax (ITP) at 8% is applicable on purchases up to 400.000 Euros, from 400.000 Euros up to 700.000 Euros the rate is 9%, and from 700.000 Euros the rate changes to 10% , which is payable upon completion. Example: Purchase price of 450.000 Euros; then you pay 8% of 400.000 Euros and 9% of 50.000 Euros. The transfer tax has to be paid after completion.
When buying from a developer, you will pay VAT (IVA) at 10% which is payable with each instalment, plus Stamp duty at 1,5 % of the property price. A VAT rate of 21% is applicable when buying commercial premises, plots of land or garage spaces. Other costs to bear in mind are as follows: - Change of utility contracts and organising their payment by direct debit - Fiscal representation - Community representation - Wills - Insurance - Water and electricity connection charges - NIE number (This is the Spanish Tax number, which will be requested by the notary in order to sign the title deed. We recommend that you apply for your NIE number at an early stage, as you need to be present in person at the local Spanish police station to do so.
We can organise an appointment at the police station for you and will accompany you there. - Power of Attorney - You should provide your lawyer with a power of attorney in order to act on your behalf with regards to your purchase. Bear in mind Annual Property Costs. Community fees Local Real Estate Tax (IBI) Annual Income Tax (non resident tax) Utility Services Insurance Mortgages Spanish banks are willing to give mortgages to non-resident purchasers of property in Spain.
The period of the mortgage depends upon the age of the buyer but can be extended up to a maximum of 30 years. The amount borrowed is 60 to 70% of the property’s value, depending upon your income and assets. You will need to provide proof of your capacity to repay the mortgage and most banks will look for earnings per month in excess of three times your expected monthly mortgage repayment.
As in many European countries, Spanish properties are typically advertised with a monthly rent and a living space in square metres. Properties are offer furnished or unfurnished, its best to ask the Agent for a Inventory of what is in the apartment or villa . Note Since 1 June 2013, all properties for long-term lets (rather than holiday lets) are required to have an energy efficiency certificate. This will often help you spot houses that will be expensive to heat or which are older, as new properties will typically have a good energy rating.
The Process You will be asked for one months rent for the security deposit and a one-month advance rent payment and requested to provide the following paperwork • Evidence of employment or ability to pay the rent; • tax identification number (if you are working); • passport or ID; • personal references. Tenancy Contracts In Spain, a tenancy agreement (contrato de arrendamiento) is valid whether verbal or written. Verbal contracts are generally a bad idea, particularly if you don't speak the language fluently.
Insist on having everything in writing so you ensure you fully understand what you're signing. As standard, a tenant with a long term (over 1 year) contract has the right to renew annually for 5 years, unless the landlord states in the initial contract that they intend to occupy the property personally on a given date.
The landlord are permitted to increase the rent if improvements are made, as long as the increase meets certain standards and is less than 20 percent overall. Typically, a contract will be for 12 months, renewed annually, and if you give notice to quit during this period, you will have to pay rent until the end of the contract. However, as of June 2013 this is no longer legally required – rental periods can be as little as six months followed by a rolling one month contract. Still, if you expect to have to leave suddenly and in a way that is out of your control – for example being recalled by your company – you should budget for this or have an escape clause written into the contract.
Short-term tenancies Short-term (under 12 months) and holiday lets (under 3 months) are regulated in Spain and landlords must be licensed. Spain is a popular holiday destination, which means that there are many properties available at all prices. However, you may find that affordable short-term accommodation is in short supply in popular areas or during the high season (typically summer, school holidays and Christmas).
You must vacate the property when your short-term contract (contrato de arrendamiento de temporada) ends. The Fees Estate Agents (inmobiliarias) are usually paid by the landlord. However, if you ask an agent to find you a property, you can expect to pay for this service, either a fixed fee or a percentage of the monthly rent. This will typically be between EUR 250 up to a month's rent.
The deposit is equivalent to a minimum of one, typically two, months of rent and cannot be used to pay your rent. It should be held by a third party. The landlord cannot ask to be paid more than one month's rent in advance, and payment is usually at the beginning of the month. The landlord may ask for a bank guarantee. This means that if the tenant fails to pay the rent, the landlord can apply directly to the tenant's bank for the funds.
In addition to the rent, the tenant will be expected to pay for utilities and minor repairs due to wear and tear. This should be made clear in the contract. Utilities for a two bedroom apartment in Spain are typically around EUR 50–150 per month, depending on energy efficiency, usage and type of utilities. On top of this, there may be annual or monthly fees for maintenance of communal areas and local charges, such as garbage collection.
information from http://www.expatica.com/