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FAQ's
We have tried to answer some of the most common questions, but if you have any more question or require any other information, please contact us and we will be very please to help you with any matter. Thank you. ![foto_12[1]](/uploads/foto_12[1].jpg)
- Calculating my budget
- Where to buy.
- Bank Guarantees Your investment risk free.
- Construction Guarantee
- Spanish Will.
- The Notary.
- Legal advice.
- The Escritura.
- Land Registry Office.
- Community charges.
- Annual running costs.
- Insuring the property.
- Education facilities.
- The pensions
- Spanish bank acount
Before visiting Spain it is advisable to visit you bank or financial advisor and ensure that a purchase is within your means. Remember, if you need a mortgage, that the monthly payment should not exceed 35% or 40% of your disposable income.
Please bear in mind that any purchase will incur expenses of approximately 10% of the basic price as per the table detailed below:
- I.V.A. (VAT) 7% of the declared price – Applicable to new properties only
- I.T.P. (Property Transfer Tax) 7% of declared price – Applicable only on resales
- I.A.J.D (Stamp Duty) 1% of declared price. – Applicable to new properties only
- Notary Costs: Approximately 0,6 % to 1% of declared price
- Registration Charges: Approx 0,3% to 0,7% of declared price
- PLUSVALIA: (Tax on Increase in value of Land) Approx 0,2% to 2% of declared price
- Water Connection Charge : Approximately 155€ Applicable on new property
- Electricity Connection Charge : Approximately 155€ Applicable on new property
- Solicitors fees: which should cover residents requirements e.g fiscal number N.I.E.
The first thing to decide is what type of property you would like and where: beside the sea, beside a golf club, in town or in the country.The approximate cost of the property is of vital importance and you should consider whether you require a new (off plan), key in hand or second hand property.
Bank Guarantees - Your investment risk free.
Your investment is risk-free, as all payments are guaranteed by the bank. That means that your money is completely safe, held in a bank for you until the buying process is complete.
Spanish law states that all new properties must be guaranteed for 10 years, the architect and the builder being legally responsible for the same and they are obliged to take out special insurance to cover any construction problems.
It is necessary to make a Spanish Will as the law is very different to other countries. The solicitor can arrange this matter for a very small charge.
The notary is the lawyer who represents the Government who wnsures all the ownership changes are correct and legal. You can give Power Attorney to your solicitor if you do not wish to attend the notary yourself.
Legal advice - Spanish solicitor
We strongly recommend that you contract an English speaking Spanish solicitor:
We are with you during each step of the purchase process, but a Spanish solicitor (an expert in the Spanish law) will take care of the legal side during all the process and he will look after the tax payments during the completion process. The fees for all these services will be between 900-1000’-euros in total.
After completion a Spanish solicitor will ensure that your interests are well taken care of in your absence. These fees are between 60-100’-euros a year.
We can introduce you to a reliable solicitor who will explain and undertake all your legal obligations.
The escritura is the title deeds to prove ownership and contains detailed description of the property.
"Registro de la propiedad" - Land registry office.
Your solicitor after the title deeds have been exchanged will send your deeds to the "land registry office", make payment and the deeds will be sent back to you once they will be registred.
If you purchase a property within an apartment block or complex, you are obliged to join its resident association which administers the general maintenance of the areas of common ownership, such as swimming pools, lifts, exterior lighting, gardens, hallways, 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. Normally the community hires an administrator to look after such payments and questions.
The fees for that matter use to be between 200-400 pounds a year aprox. depending the kind of property.
What are the annual running costs?
Annual running costs for a property in Spain are considerably lower than that of the UK. Costs do vary according to the size of the property, its value, how much it is used and in which town or city is it. The average costs are as follows:
- Community fees..........................................200.00 GBP
- Property tax...................................................100.00 GBP
- Local rates......................................................80.00 GBP
- Water & Electricity standing charge ....... 150.00 GBP
- Fiscal representation..................................100.00 GBP
- House and contents Insurance................150.00 GBP
These charges are usually paid by direct debit or standing order from your Spanish bank account.
In many cases the community insures the building or the complex in general. Likewise banks insure the property in the case of properties purchased with mortgages or loans. However it is advisable to insure your contents even if you community or bank has insured the property. We can advise you to arrange such insurance for you.
Spain enjoys a very high and quality education system and level. Schools can be public (free) or private. Usually the smaller children integrate and adapt quickly to the Spanish schools and quickly learn the language. Older children find it a little harder to adapt so it is recommended that they enrol in one of the international schools in the area that we can recommend you.
Your pension can be paid into your Spanish bank account and the DSS in Newcastle will be able to provide you with the relevant documentation
Spanish bank account
It is recommended to open a bank account in Spain. You need identification (passports or picture driving licence) to transfer final payment of your property and in the future your direct debits will go out every month (water, electricity,...). We can recommend you a good currency broker if you need it, so you can get a good exchange rate when transferring money.