When buying a property in a foreign country it is not always easy to find a reliable, English speaking professional to support you and to guide you through the process.

Our clients frequently ask us for advice about whether they should use the services of a lawyer or an asesoria. Experience gained over the past five years tells us that, for most people, a carefully chosen asesoria (legal advisor and accountant but not a fully qualified lawyer) will provide the expertise you need.

Over the last two years, Sunset Properties has used the services of Antonio Ortega Fernandez and we have found him to be efficient, reliable and highly professional. However you are, of course, free to choose any legal advisor to represent your interests.

If you choose to use his services, Antonio will:

•  act as your guide through every stage of the purchase of your new property
•  verify that the purchase contract is correct and covers your interests
•  carry out the necessary searches
•  prepare all the documents for going to the Notary to complete on your purchase
•  arrange for utilities to be transferred to your name

If you require further help he can:

•  apply for your N.I.E. number
•  submit your yearly tax returns
•  transfer car ownership and registration
•  apply for residency
•  create Spanish wills

And much more........

Cito. Plazamar Centro, 65-A
29740 Torre del Mar, Málaga.
Tel: (0034) 952 545 105
Fax: (0034) 952 543 278
Mob:(0034) 670 664 480

e-mail: info@asesoriaaxarquia.es

The insurance of the house becomes your responsibility once completion has taken place at the Notary's office. Most Spanish insurance companies offer insurance as a split policy, with the building and contents being assessed separately. To obtain a quote you will need to have the following information at hand:-

If you do not live in Spain all of the time the insurance company will probably also need to know:-

Foreign non-residents.

You are required to pay 18% on the profit from the sale of your house (the difference between what you declared when you bought the house and what you will declare when you sell the house).
On the day that you complete on the sale you will be charged a flat rate of 3% on the full amount of the declared sale price (the amount shown in the escritura or title deed). This amount will be deducted from the final money you will receive when you visit the Notary to complete on the sale of the property. Buyers from non-resident sellers are required to withhold 3% of the total purchase price and pay it directly to the Spanish Tax Agency, usually through their lawyer or asesoria..
This 3% paid on the day of completion is a deposit on 18% on the profit from the sale. Usually the remaining amount of the 18% on the profit owed is not paid nor asked for by the tax office.
You can also choose to pay 18% on the profit if this amount works out to be less than 3% on the full amount. Within a month of completion your lawyer or asesoria will make an application to claim back the 3% already paid and then you will be able to pay 18% on the profits from the sale.

Foreign residents.

To qualify and be treated as a Spanish resident you will need to prove that you intend to continue to live in Spain by providing a contract to purchase a new home, a rental contract for at least one year or show that you possess a second property in the country. Alongside this you must also provide a copy of your Income Tax Declaration form if you have lived in Spain for two or more years. If, however, you have lived in Spain for less time, it is sufficient enough to prove your intent to continue living in Spain and as such will therefore make a Income Tax declaration the following year. Your lawyer or asesoria will apply for a certificate (O2) from the tax office to say that you qualify to be exempt from the normal retention of 3%.

In this situation you must pay 18% tax on the profits from the sale. This amount is not paid on completion of the sale, but is declared in your following year's tax declaration. If within 2 years of the sale you invest all of the monies derived from the sale into another primary home you will not have to pay this tax.

If you are selling a second Spanish home you will be required to pay 18% on the profit . Rollover credit is not available for any other house than your primary residence.

Foreign residents who are aged 65 and over:

If you are selling your primary residence you are not liable to pay capital gains tax.

Please note that to satisfy the requirements of the tax office Spanish residency will be proved by the possession of a residencia certificate, an application will not be sufficient. This application will normally take approximately a month to complete.

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We recommend that you have the following documents available when you decide to sell:

• Title Deed - for the property in question
• IBI Receipt - proving your property taxes (IBI, in Spanish) are paid
• Income Tax - a copy of your most recent income tax papers
• Proof of Payment - for community fees if applicable
• Proof of Payment - for each of your utilities: water, electricity and telephone
• Personal Identification - your resident card or passport
• If you have had any extensions built onto your house or a swimming pool added you will need the planning permission, a copy of the plans and a letter from the architect stating that the work is finished. You can then, at the same time as completing on the sale at the notary have the new escritura amended to include the new parts of the house. There will be a fee charged by your asesoria or lawyer for this.

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