Books from amazon, to help you if
you are, or are considering buying a property in Spain.
Click here for a guide to Spain
Click here for Books from amazon on moving to spain,
taxes in Spain, guides on moving to Spain etc
Click here for Spanish maps
A guide to Spain:
Population: 39.6m
Currency: Euro
Spain is a large mass of land that is blessed with a magnificent
coast line and sunny weather. The weather is good for most of the
year which makes it a particular favourite with expatriates from
other EU countries.
Capital gains tax is not applicable for residents who sell their
main residence but is payable on second home sales and is reduced
annually for inflation and length of ownership. It is a good idea
to officially note any money or funds that you bring into Spain
so that any sale proceeds can be repatriated.
There are no restrictions on Foreign Ownership.
Property prices in Spain range from around £10,000 / $15,000
for inland properties in need of restoration (check for water and
electrical supplies). to around the millions for exclusive homes
especially near Marbella.
Locations to buy property in Spain
The coastal resorts of Spain such as the Costa del Sol and Blanca
are popular especially for winter sun as well as the Canary and
Balearic Islands (Majorca etc). Madrid and Barcelona offer a more
cosmopolitan feel and stunning architecture.
Buying property in Spain
Buying a Spanish property will normally be entail a private contract
and to put down a deposit of around 10%, which is binding by law.
It is possible to agree a contract where either party may change
their minds at a financial cost. The private contract should contain
details of the agreed deposit payment, purchase price and details
for payment of the outstanding balance of the agreed buying price
plus any additional extras and your intended completion. A Notary
will prepare the official contracts and make sure it complies with
Spanish regulations. If there is common ownership a Community of
Owners must be established through which community charges can be
shared. If your property is contained in an apartment block then
the law will relate to the Horizontal Division and this should be
clarified, especially in new developments. Any property sale or
purchase in Spain should be registered in the Land Registry and
its important to make sure any relevant taxes are paid before this
is done.
Note:
It is common practice for the sale and purchase price to be understated
by Spanish sellers, enabling them to reduce their tax liability
and reducing your stamp duty fees. However, you could be liable
for Capital Gains tax on additional profit once the true price is
declared and non residents will normally be expected to deposit
5% of the sale proceeds with local tax offices until any agreements
are reached, and could have liability by both seller and buyer if
the profits are in excess of set limits.
Fees
You would expect to pay a total of around 10% of the purchase price
for property / real estate in Spain. This could include Stamp duty,
charged at 7% of the official selling price (4.5% for the Canaries),
and 0.5% for contract documents Land Registry is charged against
a rateable table held by local authorities. There will also be a
tax on the increase of the land your property lies on since it was
last sold and should be paid by the vendor. Notary fees will also
be included in the total costs.
Property Tax
All your Spanish property taxes will be based on the official price
registered, not on selling prices and you would expect to pay under
1% annually, plus additional service taxes set by the local authority.
Wealth tax charges apply for residents after 17m ptas of net assets;
if you don’t apply for residency you could be charged tax
for all your net assets. Rate varies from fractions of a percent
to over 2% depending on net assets.
Mortgages
Spanish lenders will allow you to borrow against Spanish property
and can usually be arranged in most major currencies normally over
terms of up to 15 years, with exception of 25 years at up to 80%
of the buying price.
For more information on buying property in Spain, please visit
the Spanish Governments website:
www.mae.es
Our guide will not cover all the legal and full financial information
for your property purchase but should enable you to get an idea
of the financial involvement. Belwo you will find some books from
amazon which may prove useful. Click here for the top of the page
Guides to buying property overseas:
Retiring to Spain:
Click here for the top of the page
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Maps of Spain:
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Learn to speak Spainish:
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