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| F.A.Q. |
General Conditions |
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How to find us? |
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Finding Javea from Alicante is not a difficult task and is also a nice drive for a bit of sight seeing along the way. When leaving the airport car park in Alicante you need to turn left following the sign for the A7 in the direction of Valencia, continue along the motorway and you will pass throught the tolls. Continue along the motorway for approx 50 mins until you see the turn for Denia/Jávea, you are now 15 mins from Javea, continue the follow the signs.
Javeamar Properties are located along side the Arenal beach.
Have a nice trip and welcome to our little paradise in the Sun |
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What is a notary? |
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A notary is a mandatory in Spain and has to be used when buying- they are equivalent to a local UK magistrate and will need to stamp various bits of paperwork to enable the property to be completed. |
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DOCUMENTS NEEDED TO START A MORTGAGE MANAGEMENT |
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1. A copy of your passport and NIE (Spanish Fiscal Number) or Residential Card.
2. The last two income loans or an ofitial certificate emited by the Company justifying last year income. Last year tax documentation.
3. Self-employed: last year value-added tax, and income tax documentation. Detailed balance of the company
4. Pensionist: Last year pension ofitial certificate. Last year income tax documentation.
5. Other banks motgage, latest loan dues.
6. A copy of the house title deed. A copy of the purchase/sale contract.
7. A copy of the last house tax. IBI
More information:
We give you a financing up to 70% of the valuation rate. You must pay the ammount for the valuation into your current account.
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The purchasing process |
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*CHOSSING THE RIGHT ESTATE AGENT
Always select an established and licensed real estate agent who will find you the right property and be able to guide you through the preliminary negotiatons with the seller.
*CHOOSING THE RIGHT LAWYER
It is advisable to use a lawyer based in Spain who will provide the legal gurantees for the property, ensuring that Spanish legal requirements are met. Your lawyer should run a check to ensure taht the property is bought free of encumbrances, liens, charges or debts and that all payments of local contributions and community charges are paid.
*PROPERTY SEARCHES
The property searches may very depending on the kind of property that you have choosen to purchase. Using a lawyer from your home country could substantially increase your legal fees and most certainly will delay the sales process.
*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 pay at this stage is between 3.000 and 12.000 euros. Before arriving in Spain, ensure you have funds available. The best way to pay the reservation fee is by credit card or in cash. It is not advisable to pay by cheque, especially if drawn on a foreign bank account, as it can take approximately 14 days to clear at a Spanish bank. Such a delay could cost you your propety.
*EXCHANGE OF PRIVATE CONTRACTS
Within 28 days after signing the reservation agreement, the private purchase contract is to be signed between the purchaser and the seller (or their authorised representatives). During this time, the lawyer should have completed the investigations and searches of the property and will have arranged with the seller the procedure for cancellation of any outstanding debts. It is customary practice at this point to pay between 10% and 50% of the pruchase price. Funds should be loged in our own Spanish bank account. Your lawyer can arrange for an account to be opended for you. Our lawyers has negotiated competitive rates with local Spanish banks for our clients.
*REGISTRATION
Once the title deed has been signed, the notary will fax a copy of the deed to the local land registry. Your lawyer will pay on your behalf all the relevant transfer taxes and will
deal with the formalities of registering your title deed. Final regitration of the title deed may take several months. Your lawyer will arrange for transfer of accounts with utilty services, such as water and electricity, through your Spanish bank account. |
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Purchasing a property on a new development |
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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, others make a percentage charge. A bank guarantee protects your payments. In the unlikely event that the developer does not finish the property or goes into liquidation, al funds will be returned in full with 6% interest.
New property is handed over without water and electricity connection. This can however be arranged through the lawyer. Connection of such services can take up to four weeks following completion. Therefore, we suggest that you do not many plans to use the property during this period. Under Spanish Law, the developer will ussue you with a 10 year construction guarantee.
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COSTS/FEES/TAXES |
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There are in principle three fees and two taxess to pay when purchasing proeprty in Spain. You should budget that the costs involcved purchasing a properety in Spain are approximately 10% to 11% of the purchase price. If you require a Spanish mortgage there is an additional cost of 2% to the property purchase price.
The fees:
1). Legal fees: The standard fee is between 1% and 1.5 % of the purchase price depending on the purchase price and the work involved, plus VAT (IVA) currently charged at 16%.This fee applies whether you are buying or selling.
2). Notary fees: The notary charges according to a fixed scale and depending on the official value of the property. His charges may range from 300 to 1200 euros.
3). Land Reistry fees: generally 60%-80% of Notary fee.
The taxes:
1/. On a resale property, Transfer TAx (ITP) at 7% is applicable or, when buying from a developer VAT (IVA) is 7% plus Stamp Duty at 1% of the property price. VAT is payable with each instalament, whereas Transfer Tax is payable on completion. A VAT rate of 16% is applicable when buying commercial premises, plots of land or garage spaces.
2/. Plus Valia: This is a tax paid on the increase in value of the land since the previous sale and is fixed by the local Tax Authorities. It is calculated on the size of the land. By law, the vendor is obliged to pay this tax, however it has become customary to negotiate this, and it is not uncommon that the purchaser settles this amount.
Other costs to bear in mind are as follows:
*Wills: You should make a separate Spanish will dealing exclusively with your Spanish assers in porder to avoid time-consuming and expensive legal problems for your heirs.As a foreigner, you will usually find taht Spanish authorities do not oblige you to follow the Spanish law of comulsory heirs. You can leave your property to whomever you choose, as long as your own national law permits it.
*Changing of utility contracts and arranging their payment by direct debit.
*Community representation.
*Insurance-household (buildings and contents)
*Water and electricity connection charges.
BEAR IN MIND ANNUAL PROPERTY COSTS
1- Community fees
2- Local Real Estate Tax
3- Annual Income Tax
4- Property Wealth Tax
5- Utility Services
6- Insurance
7- Fiscal representation
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Mortgages |
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Spanish banks are willing to give mortgages to non-resident purchasers of property in Spain. The period of the mortgage depends upon age but can extend to a mximum of 20 years. The amount borrowed is 60% to 70% of the property's value, depending on your income and assets. You will need to provide proof of your capacity to repay the mortgage and most banks willl look for earnings per month in excess of three times your expected monthly mortgage repayment.
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SELLING A PROPERTY |
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* Capital gains is due on the sale of a property. The tax is calculated on the difference between the value of the property at the time of its acquisition and the value at the time of its sale. The tax rate is 35% for non-residents and 20% for residents.
* If the vendor is a non-resident in Spain, the purchaser will need to retain 5% of the purchase price and pay it into the Tax Office Treasury on account of the potential liability to Capital Gains Tax. Our lawyer will inform you about existing exceptions.
* Plus Valia (Tax on the increase in land value since the previous sale). |
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Tax |
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The Spanish Income Tax system is similar to that in the Uk and you are ahigh net worth individual. However, in general it is likely that, one similar income, you will pay less income tax in Spain than the UK. There are all the other usual Tax Classes such as Capital Gains, Gift Tax, Inheritance Tax, etc..asd you would expect. In the case of Capital Gains and Inheritance Tax it is recommended that you take professional advice, as there can be extremely large savings to be made here.
We can introduce you to English speking Tax and Investment advisors to help you make the right decisions with regard to Spanish Taxes. |
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Bank Accounts |
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It isvery easy setting up a Spanish BAnk account. |
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KOSTEN VERWICKELT BEI DER ÜBERTRAGUNG EINER IMMOBILIE |
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A. Übertragungssteuern. Diese Steuer muss von dem Käufer bezahlt werden. Es werden 7% vom deklarierten Wert angerechnet. Für Neubauten muss man Mehrwertsteuern bezahlen, die auch 7% sind, plus 1% Übertragungssteuern vom deklariertem Wert.
B. Landesregisterkosten und Notarkosten (kommt auf den Notar drauf an). Wir empfehlen eine provisionale Summe von 1.500 Euros für diese Kosten.
C. “Plus Valia” Steuer. Diese Steuer ist eine Steuer auf den Wert des Grundstück. Wie länger man das Grundstück hat, wie höher ist die Steuer. Diese Steuer muss der Verkäufer bezahlen und wird so auch im Vertrag erwähnt.
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DIE PROZEDUR LÄUFT FOLGENDERMASEN: |
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1. Ein Reservationseinverständniss wird unterschrieben, welches die Details vom Käufer und von der Liegenschaft, den Preis und die Zahlungsart beinhält. Eine Anzahlung wird in diesem Moment gemacht. Bevorzuglich 10%, oder eine kleinere Summe und dann schnell folgend der Rest zu den 10%. Der Verkäufer nimmt dann das Objekt vom Markt während ein privater Vertrag vorbereitet wird.
2. Ein privater Vertrag wird von dem Abogado vorbereitet. Dieser enthält die vollen Details vom Preis, Zahlungsform und Konditionen zur Überschreibung des Objekts. Der Vertrag beinhält eine Klausel die den Verkäufer verpflichtet dem Käufer eine “Escritura” zu übergeben, wenn er den Restbetrag des Objekts erhalten hat.
3. Die “Escritura” muss von einem Notar unterschrieben werden, welcher die Identität und die Unterschrift der beiden Parteien kontroliert. Die Escritura enthält eine Klausel welche aussägt, dass das Objekt frei von allen Schulden ist.
Nach der Unterschrift der Escritura beim Notar, erhält de Kaufer eine “Copia Simple”. Das Original wird zum Landesregister gesendet, wo es auf den neuen Besitzer umgeschrieben wird.
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Preferences