|
What do I essentially need when buying a property in Spain?
You need a Fiscal Id Number(NIE)and a Bank Account.
What taxes should I expect?
For new properties VAT is 7% plus 1% Stamp duty. On resale properties it is 6-7% Transfer tax. Plots of land work out at 16% VAT and 1% Stamp duty. Once you own the property you will have to pay the IBI rates (council tax), water, electric, telephone, community rates etc...
How much extra should I budget for on top of the purchase price?
Allow 10-12% of the purchase price to cover costs. These are:
- IVA (or transfer tax) 7%
- Stamp Duty 1%, payable on completion
- Notary & Land Registry Fees, approx 2%-3%, payable on completion
- Legal Fees 1%
What are Community Fees?
Community fees are payable to the Community of Owners, usually by direct debit on a quarterly basis. They usually cover all costs relating to the external fabric and upkeep of communal areas, e.g. pools, gardens, paths, staircases, external painting, security etc. Exact budgets are discussed and agreed at AGMs, chaired by an elected president. Attendance is not compulsory, as votes can be registered by proxy.
Can I get a mortgage?
You can get either a Euro or Sterling mortgage, though a Euro mortgage is advisable to avoid losing money as a result of exchange rate fluctuations. Halifax and Lloyds TSB have a special service for British customers wanting to take out a mortgage on a Spanish property. Solbank is a Spanish bank which specialises in expat mortgages and bank accounts.
Spanish banks will usually lend up to 70% of the property value to non-residents. Their choice of mortgages is more limited than that in the UK but it's a relatively simple process to secure a mortgage, provided you have evidence of income and a letter from your bank. If you are not a Spanish resident, you may have to provide an aval, which means someone who can guarantee they will pay in the event of you being unable to.
Most mortgage products are repaid on an interest and capital basis, with a maximum length of 20 years. Shop around for deals. Ask for a copy of the mortgage contract and take it to another bank to see if they can improve the offer, as they frequently will.
Can I live and work in Spain?
EU citizens can live and work in Spain without needing any visas or work permits. As soon as you arrive in Spain you will need to apply for a tax ID number (NIE) from your local police station. You can live in Spain for up to six months a year without having to pay taxes there and without being a Spanish resident. Over that period you are officially a Spanish resident for tax purposes.
|
News 
