FAQs
Do you
offer subsidised inspection trips?
No.
Generally, we have found that our buyers have been independent minded
people who have not wished to feel in any way beholding to companies
offering "subsidised" trips. We as a small and totally
independent company do not escort groups of variously assorted
viewers but operate solely on a "one to one" basis to show
you only properties matching your criteria, needs and budget.
Can we
look even though
we have not yet found a buyer for our house?
We have no
wish to dissapoint you or the seller so we do ask that our clients
are in a position to purchase before they request any viewings.
Can you
arrange a mortgage for us?
Yes, but it
is important that we discuss finance matters before we arrange
viewings as some properties are easier to finance than others.
Can you
arrange our accommodation?
To
facilitate your stay we can if required pre-book your accommodation
whether it be a hotel or a holiday let.
How long
should we allow for our stay?
We would
suggest that a minimum stay of 3 or 4 days will allow sufficient time
to show you a selection of the available
properties and their immediate surroundings.
Can you
arrange for our hire car?
If you wish
it we can arrange for a hire car to be available at the airport .
Do we
need to open a bank account?
Yes, if you
intend to purchase a property you will need a Spanish Bank Account
and we will be happy to go with you to open an account at the Bank of
your choice.
NIE Numbers?
Everyone
wanting to buy property has to have an NIE (National Identity
Estranjeros) number and each person that will be a party to the
purchase needs to apply for this number in person. We will be
happy to help you apply for this number and guide you through
the process. It can be done quickly if necessary.
What
about local schools?
Yes, many
local villages have their own primary school and upon reaching 11
years children are bused to the nearest major towns to attend the
senior schools. There are also international fee paying schools
available in some of the major towns.
How much
deposit is necessary if we find a property we want?
Normally
3000 euros is paid assoon as possible as a reserve and upon signing
the contract 10% of the sale price will also be required. Deposit
monies can be sent from the UK but if you want to be sure of the
property that you have selected you should try to make a 3000 euros
deposit before you return home. For new properties different
arrangements are made according to the developer and for resale
properties some owners may allow different arrangements dependant on
the individual circumstances.
How long
does it take to purchase a property in Spain?
Once you
have your NIE numbers it can be done very rapidly and a date is
agreed between the buyer and the seller following the advice of the
solicitor and the bank.
Do I need
a lawyer?
Yes, we will
always insist that you use a fully independent English speaking lawyer.
Are there
any extra charges?
Yes, there
will be the costs of actually buying your property These include 7%
tax on the written value, fees for the Notary and Property
Registration plus your Solicitors Costs etc. The total of all fees
should not exceed 10% of the sale price of the property but if
finance is required then the produced cost of setting up the mortgage
should be calculated separately. We are happy to advise you on
approximate overall costs.
Capital
Gains Tax for Sellers?
Normally and
in brief: for NON RESIDENT SELLERS in Spain and from January 07 a 3%
retention will be made from the proceeds of your sale and paid to the
Hacienda on your behalf. This is an interim payment towards any
possible Capital Gains Tax liability but if the sum retained is more
than the 18% tax liability a rebate can be claimed. If the 3% is less
than your liability a further tax payment will be required. Other
rules apply for residents and long term owners and your lawyer can
provide you with the fullest of information. For residents proof of
Spanish tax returns are likely to be needed.
How do I
transfer Money to Spain?
You can seek
the assistance of your local UK banks or there are companies
specializing in currency exchange and transfer that can usually offer
preferential rates of exchange and charges. We can put you in touch
with leading companies specializing in currency transfers.
Can we
buy with a mortgage?
Yes, on most
properties a mortgage can be arranged dependant on the property, your
circumstances and the amount that you need to borrow. Interest rates
vary but do compare favorable with rates available in the UK. We can
help you apply for a mortgage and interest only mortgages are now
available in Spain and we can advise clients with special
circumstances and those wishing to maximize tax efficiency and
inheritance tax planning.
GENERAL INFORMATION.
Wealth tax.
Along with
the Personal Income Tax, Spanish residents and non-residents property
owners are also liable to Wealth Tax (Impuesto sobre el Patrimonio).
They should declare for both taxes at the same time.
Wealth tax
is a direct tax levied on your assets and property located in Spain
as at 31st December of every year.
Provided
that taxpayers' principal wealth is normally their home, most of
resident taxpayers do not pay this tax as the first € 108,182.18
is exempted. However, non-resident property owners are always taxed
on their assets located in Spain (car, houses, bank accounts etc&ldots;)
The value of
the house to be declared is the official catastral value which can be
found on any I.B.I receipt, the amount you have deposited in a
Spanish bank is the average cleared balance over the previous year.
Tax Rates
are progressive depending on the type of property, ranging from 0.20
to 0.50% according to the Spanish law applicable; national or
regional law.
These are
only general guidelines, it is suggested that all technical and legal
matters pertaining to taxes be referred to professionals for advice,
guidance and execution.
WHAT OTHER TAXES
-STATE AND LOCAL?
What State
tax and local rate am I supposed to pay as the owner of a property in Spain?
Being the
owner of a property in Spain and being a Non-Resident in Spanish
territory, you will be required every year to present a yearly tax declaration.
This tax
will show that you pay your property owner's imputed income tax,
based on an imaginary level of income that is calculated as 2% of the
assessed value of the property showed on the receipt of local rates
(IBI). In addition to the income tax, as a non resident property
owner, you will have to declare and pay Spanish Wealth taxes based on
the Title Deeds value of the house.
It is very
important to notice that the fact of Spanish Residence or
Non-residence influences very much on taxes. Therefore, Spanish
residence property owners do not pay either any Income tax on the
property that they have if they live permanently on it or any Wealth
tax if the value of that property is not over a minimum allowance of
± 110.000,00 €.
In order to
make a long story short, we are able to say that both the Income tax
and the Wealth tax can be calculated as an average percentage of 0.7%
of the market value of the property.
Local
Property Rates (I.B.I. - Impuesto Sobre Bienes Inmuebles) is a
municipal tax payable once a year to the City Council where the house
is located. The I.B.I. can vary widely from town to town for the same
type of property because of being a local or a municipal tax.
Property owners of an inland accommodation set back from the coast do
not pay normally the same than those who live in a typical village
house on a large lot well-positioned area in the coast. Nevertheless,
these rates do not normally raise more than six hundred euros to nine
hundred euros a year as an average.
This local
rate also show the official assessed value of the property for tax
purposes called "valor catastral".
This value
is always less than the real market value, but it is gradually raised
during the years depending on the annual State inflation rate.
The
existence of rates on the property confirms that the house is
registered for local and annual taxes, but it is not a common thing
when the property is brand new.
In other
words, the State and the Local Authorities normally take a few years
to file the properties and assign a reference number of it.
All information
is given for general guidance and should not be regarded as up to
date nor complete, for a accurate accessment of your responsibilities
consult a fiscal representative and/or tax adviser.
Click
this link for details more information on mortgages.