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As such a wide range of properties are available, people from every walk of life can find what they are looking for. This region hasn’t become over commercialised so it suits anyone who is used to, and expects, the very best. Beautiful beaches, superb golf courses, excellent cuisine and relaxed nightlife typify this region. The ethnic make-up of the area is varied and this is reflected in the wide range of restaurants, cafes and bars that you’ll find here. The lower living costs and healthy atmosphere are the main attractions of this area. People are much healthier and friendlier when the sun shines, so you’ll make friends very quickly, as the sun is an almost constant companion here offering 320 days of sunshine each year on the Costa Blanca. Are Spanish properties a good investment?Yes. It’s quite usual for owners to rent out their property of a few years before they use it themselves as a retirement home, for example. In fact, this is a very good way to recoup some of your costs if you don’t intend to use the property all year round yourself. As the price of property continues to increase, this will further enhance the value of your property. There is of course a difference between a ‘solely’ investment and a ‘purely’ residential property we are glad to offer advice to help you get the best value for money deal. As an example, the climate is warmer here so you may benefit more by purchasing a slightly smaller property with a large terrace or solarium because you and your tenants will be spending more time outdoors. Our sales team will spend as much time as necessary discussing your financial requirements. How do I arrange a viewing visit...?Simply e mail us at info@buyaspanishhome.com Back to TopCan non residents buy property in Spain...?
Non residents have been buying property in Spain for at least the last 20 years, Spain is part of the EEC and they actively encourage people to purchase property for holiday homes or to live there, as with the tourist industry, it brings a large amount of money and work into the country. Literally hundreds of non Spanish people buy property in Spain every week. The low cost of living and the pleasant climate being the main reason, the relatively low cost of property pricing being another. Buying property in Spain is just as easy as in the UK once you adapt to the no rush way of doing things. Back to Top
If you decide on your visit to purchase a property, you will be introduced to your solicitor who will explain the buying process and what his charges will be. You will also need to open a bank account We recommend using a bank that has Internet or phone banking, as standing orders will need to be set up for water, electricity, rates and community charges, using the Internet makes it easy to keep track of your account from home. You will have to sign a contract with the builder or estate agent of your new property. At the time of signing you will have to pay a non-refundable deposit and agree at what dates the builder, estate agent will require further funds from yourself.
On a new property this is a good time to make any changes you require such as different tiles, additional sockets, outside lights etc. The normal electricity supply is 3.8kw this needs to be upgraded to 5.5kw if you intend to install air conditioning when the property is built, or at a later date, again you should be able to organise this when you sign the contracts. You also need to keep your upgrade certificate as this is required by the air conditioning installer.
You will be expected to visit a Notary during the buying process, you will always be taken to the Notaries by the solicitor or one of his/ her assistants. The Notary function is to oversee all legal proceedings. You will always see a Notary when, exchanging contracts for the purchase of your property, to register wills or give power of attorney to your solicitor to allow him to purchase a property on your behalf.
It is worth remembering you will need a number of passport sized photographs for various documents. N.B. some Notary’s insist that men wear trousers not shorts when going before them, just a small point but could save having to rush out and buy some trousers! Del Numero de Identificacion de Extranjeros, (NIE) numbers are required, theses are a legal requirement, they are your non-resident numbers, again your solicitor will organise these for you. Passport photographs are required. Back to TopHow can I finance a property...?There are a number of ways to finance the buying of a Spanish property. Spanish mortgages are as easy to arrange as ours and the interest rate is lower at present, obviously the exchange rate fluctuations plus bank transfer charges may negate any savings.
It is worth noting Spanish banks in general will only lend money on properties which are already built, therefore if you intend to buy a property which has not being built when you sign the contract (this is quite common as demand for new properties can mean a build completion time of up to a year on the more popular sites) you must be able to find by other means up to 50% of the agreed price within 4 to 6 weeks of signing the contract depending on the agreement you reach with the builder.
Once the property has been built you can transfer to a Spanish mortgage if required. Again as a general rule they tend to lend up to 70% of the property value and over a 10 to 15 year period. Should you have sufficient equity in your own property, i.e. the difference between your mortgage and the current value of your property, most banks and building societies will advance up to 90% of your properties current value, which can be used to fund or part fund a property. However you intend to fund the purchase we strongly recommend you take independent financial advice. Back to TopWhat will buying a property cost me...?Typically you should allow at least 10% of the property cost to cover all the legal expenses, this will normally cover all solicitors fees, property VAT (currently 7% for new and resale properties) and the connection of services. This figure does not cover furniture, cooker, washing machines etc. that may or may not be included in the property purchase price depending on which property you buy. Additional costs...?It is advisable to make a Spanish will, the importance of this will be explained by your solicitor also see the The Guide for further info. You may also want to give him power of attorney if you can not be present yourself for the exchanging of contracts. The costs of providing these services vary depending on the solicitor. Once you own a property in Spain you will need a fiscal representative again your solicitor will normally act on your behalf. A small amount of money will be taken from your bank account without your permission, this is normal to cover a non-resident fee, typically £12 per named person per year on your account. Tax Regulations There’s nothing in life as sure as death and taxes! Income from property let abroad is taxed in the owner’s country of residence. You will be able to deduct the normal running expenses before arriving at the amount you will be liable to pay. We advise our clients to appoint a local fiscal representative to look after all financial matters on their behalf. Our staff will be happy to advise you of a local fiscal representative so don’t hesitate to seek their help. That’s what we’re here for. Back to TopIs it expensive to live there..?The cost of living may be as much as 30% less than the U.K. Running a property could cost as little as £650 a year, this obviously depends on how much electricity, water etc is used. Electricity and water, which are both, metered, are billed every two months for electricity and every three months for the water. Electricity typically costs between £25/35 every two months depending on usage (obviously if you have air conditioning fitted and you use it a lot the cost will be higher) air conditioning costs from £800 upwards to have installed, water about £18 every three months, again depending on usage, all costs based on a two bed-roomed apartment.
With most types of property you will have to pay a community charge to cover items like the cleaning of communal pool, care of gardens etc. The amount you have to pay depends on the number of properties within the community and the services that the community jointly agrees are required this could cost around £12/15 per month in a larger community. Property rates could be as little as £100 a year based on an apartment with two bedrooms.
Most places do not have mains gas, however bottled gas is readily available, at £10 a bottle, you will need a certificate proving your property has been certified as suitable for the use of gas appliances before you can purchase gas bottles, however your builder should supply you with this.
As the rest of Europe car prices are lower than at home. Car tax and insurance are also noticeably cheaper. Petrol is approximately the same price as in the UK. With the abundance of fresh food available, buying food and eating out is a real eye opener, once you know were to eat, a meal for two with a bottle of wine can cost as little as £8. Spain has recently introduced a wealth tax, which is based on the value of your property, your solicitor, as your fiscal representative will look after this on your behalf. You may receive an official looking letter full of bar codes, these are required by your fiscal representative for your tax returns. Back to TopWhen your property is readyAs the time approaches for you to exchange contracts we will keep you informed of the building progress and advise you when your property is ready for inspection. Do not book your flights until you have been advised by us that your property is ready for occupation, we will arrange accommodation* for you and meet you from the airport if required. We will assist you through the signing and moving in process. *Accommodation costs will be for your own account, however we will always endeavour to minimise the length of your stay prior to moving in to your new property. N.B. You may want to consider hiring a car for the moving in phase, as it is useful to have your own transport for the many visits to the supermarkets etc.
Once you have moved in to your property, you may find with a new property that you are using the builder's electricity and water until the development is completed. The builder may charge you for this it really seems to depend on the builder and how long you are using his services. It is useful if you can leave a key with someone if possible, as the electricity company will need access to your property to connect you to the normal electricity supply.
Don't forget to collect your water & electric supply contracts from your builder for new properties, you should also have a Cedula De Habitabilidad certificate, again you should get this from the builder, you can not sell your property without this so make sure you look after it!. (the solicitor will look after all of the above) Once the rate for the property has been set this will already be in place for a resale, you will receive a letter from the Suma (local rates office) you or your legal representative will have to collect the letter containing the rateable value of your property as you need to sign for it, you also need your passport, yet again your fiscal representative or your solicitor (normally the same person) will look after this for you. We recommend you don't ignore any official looking letters you receive, always check with your solicitor as unless you read Spanish the consequences could be dire!. Back to Top
Fincas are purpose built Spanish houses, usually in rural areas (although not always as some of the fincas have had property developments built around them). They often have large plots of land. Some are currently inhabited and have services connected (Electricity and water), whilst other may be derelict, which provides an ideal opportunity to rebuild to your own design.
Rusticos are conversions from non-housing buildings into housing (barn conversions etc.). Once again, often rural, and the other attributes of Fincas (above) apply. Because they are always re-sale properties, it is difficult to produce details of actual properties for sale- they often sell in a few days of coming onto the market, or are in remote areas. To purchase such properties, you need to come over and look, and be prepared to place a deposit to secure a property when you find one you like.
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