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| Frequently asked questions |
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| What are
the advantages of living in a town/village or in the countryside? |
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There are both advantages and disadvantages. The idyllic image of living
in a country setting may be diminished by a feeling of isolation and the
necessity to travel some distance to visit the shops. Yet the tranquility,
peace and often marvelous views may be just what you are looking for.
Living in a town or village has the disadvantage of often being quite noisy
and the views can be limited, but the bustle of many people and the proximity
of the local shops can be a benefit. Learning Spanish can be made easier
if you have people to practice with and often you will find shop keepers
and other villagers willing to help you learn. |
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| What
are the benefits of living in a town/village for your children? |
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| If you have children who will be entering the state schooling system you
might consider living within or close to a town or village. From personal
experience, children do tend to settle more quickly and easily if they are
among other children and immersed in the community. They often make friends
and learn Spanish more rapidly than if they are living a distance away from
the village. |
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| Choosing a professional person to guide you through the buying process |
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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........ |
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| Antonio may be contacted at:-
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
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| Should Antonio not be available you will be able to leave a message with his secretary, Sylvia, who speaks excellent English, Spanish, French and German. |
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| If I have
to return to the UK how can I be sure that everything is going ahead as
planned? |
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You can feel confident that we will be monitoring the progress of the
purchase of your property. We will ensure that once the property has
been checked for encumbrances that the signing of the title deeds can take
place as soon as possible. We will keep you well informed at every stage.
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| What if
I am unable to attend the Notary to sign the title deeds? |
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| It is quite common to give your legal advisor Power of Attorney in order
that they can sign the title deeds on your behalf. You will need to
have transferred the final balance for the property plus taxes to them prior
to the signing of the deeds. |
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| Is it
possible to purchase a property from overseas? |
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| If having returned home and then decided that you wish to make an offer
on a property you have seen we can put this to the owner of the property.
Once it is accepted we can arrange for the contract to be sent to you or
your legal advisor by fax or post. You will need to sign the contract and
transfer the deposit before your offer is officially accepted. |
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| What if I change my mind on a
property? |
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| Once you have signed a contract for the property and paid a deposit this
is considered an official intent to purchase the property. This deposit
is a non-refundable payment and will only become refundable in the event
of a specific clause in the contract not being fulfilled. It is therefore
extremely important that you are absolutely certain that this is the property
you wish to purchase and that you do not feel under any duress to sign the
contract. |
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| How long
does it take between signing the contract and completion? |
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Depending on the outcome of the searches made by the legal advisor the
process can take anywhere between 3 weeks and 3 months. If the property
does not have a registered title deed it can take a little longer.
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| What happens to my deposit if
the searches are returned as unsatisfactory? |
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| If for whatever reason the searches are returned as unsatisfactory, you
will receive your deposit back in full. It is for this reason that
the initial deposit is not paid immediately to the owner. |
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| When will
I receive the keys to the property? |
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| You will be given the keys on the completion of the signing of the title
deeds with the owner at the Notary. |
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| When will
I need to insure the house? |
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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:-
- Full name and NIE number or passport number
- Full address of the property
- Re-build cost
- Value of contents to be insured
If you do not live in Spain all of the time the insurance
company will probably also need to know:-
- How many doors and windows your house has and if they have metal
security grills or security glass
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| What expenses will I have if I
decide to sell my house? |
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| When you sell your house you will need to pay tax to the local town hall the Plusvalía tax and to the Hacienda or tax office the Capital Gains Tax for the profits you will have made on the sale of your house.The amount you pay and how you pay them will depend on which of the following categories you fall into. |
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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| What documents will
I need when I sell my house? |
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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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