Spanish Property Buyers Guide

1. Property / Business Debts — Do I Inherit Them?

The buyer can be held responsible for outstanding payments prior to purchase on any of the following:

• I.B.I. (local rates)
• Telephone
• Water
• Electricity
• Community Charges
• Rent (leasehold business purchase only)
• Mortgage (if applicable)

Your Lawyer/Gestor should, at the very least, ensure that the vendor provides paid up receipts for all the above. If for any reason the vendor cannot provide proof of payment, then your lawyer/Gestor should withhold money from the purchase price to cover possible future claims.

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2. Can I Bring My Pets to Spain?

If you intend to bring your pet to Spain your local vet will be aware of the required paperwork and injections your pet will need before travelling. Further information on transporting your pets to Spain can be obtained from Airpets (Heathrow Airport) on 0800 371554 or Animal Airlines (Manchester Airport) on 0161 223 0072. These days there are numerous English speaking Veterinary Surgeons in Spain.

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3. What About Medical Care in Spain?

The Spanish National Health Service is available free to Senior Citizens from Britain (Ladies over 60 and men over 65). The service is excellent. However, as in the UK, non-emergencies may be placed on a waiting list. Purchasers of businesses in Spain are obliged to join the Spanish N.H.S. Payments for this service are included in their monthly Spanish National Insurance contribution.

If you are under retirement age and do not intend to work in Spain, then it is a condition of residence in Spain that you take out private medical health cover. Some of the larger private medical health providers in the UK offer schemes suitable for British residents in Spain. Alternatively, there are numerous Insurance Brokers in Spain offering a range of healthcare insurance policies.

Chemists — ‘Farmacias’ as they are called in Spain — abound and can be identified by a prominent (and usually flashing) green cross sign. Most of the medications available in the UK can be purchased in Spain — with many available without prescription. Prices are low and most items cost considerably less than the prescription charges levied in the UK. Chemists in Spain are trained to diagnose and treat many common illnesses and ailments. Most staff speak English to some degree and there is always one Chemist open 24 hours in every large town.

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4. What Happens About My U.K. Pension?

British State Pensions can be paid direct to your bank account in Spain — usually monthly. The Benefits Agency can provide the necessary forms and further advice. If you have a private pension you will need to speak to the pension provider as regulations vary.

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5. Annual Spanish Property Taxes

Non-resident British property owners are advised to nominate a legally recognised Fiscal Representative to prepare the property tax forms. Apart from Local Authority rates there are two annual property taxes:

PATRIMONIO or WEALTH TAX — If you are a permanent resident in Spain there is nothing to pay if your property has a declared value of less than 17,000,000 ptas. Above 17,000,000 ptas the tax payable is 0.2% of the value declared in the Escritura. For non-residents (holiday homeowners, for example) 0.2% tax is payable, whatever the value of the property.

I.R.P.F. (NOTIONAL RENTAL TAX) — If you are a permanent resident in Spain and only own one property, this tax does not apply. For non-residents (holiday-home owners, for example) this tax is 0.5% of the rateable value of the property.

PERSONAL TAXES — RETIRED/NON WORKING — The tax you pay in Spain will depend on your personal circumstances and we recommend that you speak to a suitably qualified Accountant in the UK prior to leaving for Spain. Once in Spain, you should contact a Spanish Accountant and discuss your situation.

PERSONAL TAXES — WORKING — This is a big subject and depends entirely on your personal circumstances. Our recommendation would always be to seek initial advice and assistance from a suitably qualified Spanish Accountancy Practice, especially if you intend to be self-employed. Most small businesses will use the services of a Gestor (paperwork specialist) who will take care of IVA (VAT) returns, income tax, bookkeeping and complete all relevant official forms.

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6. I’m a Builder — Can I Build My Own House?

Provided that you can follow the Architect’s plans and specifications, then there is nothing to stop you building your own property or carrying out repairs. You can do some, or all, of the work yourself.

However, where electrical installations are concerned, it is compulsory that a Spanish qualified electrician carries out the work. Only suitably qualified persons can obtain the ‘boletin de enganche’ which is required before the Electricity Company will make a connection to the Spanish grid system.

Regarding building materials — virtually everything a builder would require is easily available in Spain. Builder’s Merchants abound. Prices are generally much lower than in the UK and many luxury items, such as quality ceramic tiles and marble flooring are available at ‘give-away’ prices.

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7. Is Property Purchase in Spain a Safe Investment?

A recent survey by the Abbey National Building Society showed that while UK house prices in many areas have stagnated, had you bought a property in Spain 10 years ago you would have been laughing — Spanish property prices rose by 150% during this time and are still going up rapidly.

Exchange rates are extremely favourable for Britons in Spain at present. Although property prices have escalated dramatically over the last 2 years much of the increase has been off-set (for British buyers with sterling) by the strong pound and weak peseta.

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8. Horror Stories

Yes, we have all heard them — usually second or third hand!

Provided that qualified professionals are employed at each appropriate stage of any purchase, then buying a property or business in Spain is no more dangerous than buying in the UK. These days the system is very similar. As with any purchase, caution should be your watchword and — under no circumstance — try to ‘go it alone’. Professional advice and assistance costs money, but the benefits far outweigh the charges.

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9. Which Estate Agent/Lawyer/Builder Do I Choose?

This is very much a question of personal choice combined with common sense. Make sure your chosen Spanish Estate Agent has the necessary Licences — API, GIPE or similar. His membership number is usually prominently displayed both on his promotional literature and in his office. If the Estate Agent introduces you to a Lawyer, or suggests you choose one from a panel of Lawyers, it is almost certain that the Lawyer will be English speaking and specialise in conveyancing.

Recommendations from ex-pats can be useful, especially where builders are concerned. If you are having a house built then ask to see properties your chosen builder has already completed and, if possible, speak to the owners.

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10. Buying Off Plans

This can apply to apartments, town houses and villas — even businesses, if you are having a new installation.

Where apartment and town house developments are concerned, it is almost certain that the builder or promoter will already have a standard contract, together with a memorandum listing the quality and type of such items as construction materials, wall and floor tiles, kitchen fittings and appliances (often not included), sanitary ware, single or double glazing, internal and external doors, fitted wardrobes, etc.

Both parties (buyer and seller) should sign the memorandum to ensure there is no discrepancy as to what will be included. At this stage it may be possible to ‘personalise’ the property — your own choice of tiles, air conditioning, extra kitchen units and so on. These items will be ‘extras’ and any charges in excess of the builder’s list price should be recorded and signed for by both parties.

All important in the contract is the method of payment and completion date. Usually an initial reservation deposit is required, quickly followed by a more substantial payment. Stage payments are then made up to the time of completion. There should be a clause in the contract that penalises the builder if he goes ‘over date’ on completion.

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11. Do I Need a Spanish Partner?

Many years ago — before the EEC was formed — then you would have needed a Spanish partner (usually silent) in order to obtain permission to open a business. These days it is no longer a requirement and there are no real bureaucratic barriers to UK citizens opening a business in Spain. The rules and regulations involved are more or less the same for all EEC nationals — including Spaniards.

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12. Buying Through an Offshore Company

Ten years ago this would have been something to consider.

Many property purchases were made through Gibraltar Companies, thereby giving the purchaser anonymity. Another big bonus was that should the property be sold only the shares of the Offshore Company are transferred to the purchaser, thus saving the transfer tax. This ‘loophole’ has now been blocked. Nowadays a range of taxes are imposed on Offshore Companies by the Spanish Government and, in most cases, these taxes outweigh the benefits of offshore ownership.

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13. Can I Get My Money Out of Spain?

Since Spain’s full entry into the Common Market the transfer of funds from Spain to the UK and from the UK to Spain by bank transfer is virtually unrestricted.

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14. Spanish Banks

The full range of banking services are available — deposit account, cheque books, cheque guarantee cards, weekly or monthly statements, investment advice, mortgages, etc. Almost certainly at least one member of staff will be English speaking.

Utility accounts such as electricity and water, community charges, local rates, telephone bills, etc. can be paid by direct debit — invoices go direct to the bank for payment. Senior citizens can have their British State Pension paid direct to their Spanish bank account.

Many of Spain’s mainland resorts and villages are within easy driving distance of the off-shore banking tax haven of Gibraltar. Investors will be pleased to know that interest is paid tax-free on deposits.

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15. Spanish Mortgages and Finance

MORTGAGES — Can often be arranged through Spanish Banks or Gibraltar based UK Building Societies. These are subject to status and will be at current interest rates. It is unlikely that much more than 50% of the lender’s valuation of the property can be mortgaged in Spain.

Where new property is concerned, the builder may have borrowed money from a Spanish bank to finance the project. If this is the case then he can ‘subrogate’ (or pass on the loan piecemeal) to each individual purchaser. In these cases loans of up to 70% are often available.

When mortgages are sought from Spanish Banks most ask for proof of income plus a reference from a UK Bank. British based Banks and Building Societies will not lend on Spanish property. However, if you have sufficient equity in a UK property, it may be possible to ‘top-up’ your existing loan.

FREEHOLD BUSINESS PURCHASE — Spanish Banks will lend around 50% of their bricks and mortar valuation of the property. The profitability of the business is not usually taken into account.

LEASEHOLD BUSINESS PURCHASE — It is virtually impossible to finance a leasehold business purchase through Spanish Banks. However a personal loan from the vendor may be possible.

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16. Coast or Country — Which Is Best?

This is obviously very much a matter of personal choice.

COASTAL PROPERTY — Almost certainly this will be in, or on the edge of, a resort town. Apartments are likely to be high rise in the town. Town house complexes are usually on the edge of town. Villas will be located in urbanisations similar to garden suburbs.

Benefits: A big plus is that semi-permanent or holiday homeowners can lock their homes up and return to their own country without worry. Outside maintenance is taken care of by the community. Everything is on the doorstep — shops, nightlife, banks, medical facilities.

Minuses: Noise — resort areas are noisy, especially in evenings. Expense — it will cost you more to live in a coastal location. Property prices are much higher than in the countryside.

COUNTRY PROPERTY — There are 3 main categories: old farms or cottages to renovate, modern country villas and village houses.

Benefits: You will certainly get more for your money. Most rural properties will come with a tract of land. Peace and quiet. A 15 minute drive inland from many tourist ‘hotspots’ often accesses open countryside and white pueblos — the ‘real’ Spain.

Minuses: You will almost certainly need a car. Rural properties with land may deteriorate if left unoccupied for lengthy periods. Security is probably non-existent, however petty crime is limited to the tourist areas.

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17. How Do I Know If a Business Is Viable?

If the business in which you are interested is a bar, café or small shop, then the vendor should be able to provide copies of the information he has supplied to Hacienda (the Spanish Inland Revenue) i.e. his tax returns. Be prepared for substantial differences between official and unofficial records!

Where bars, cafés, restaurants and catering businesses in general are concerned, past success (or failure) is no guide to future profitability. Businesses of this sort in Spain often reflect the operator’s ability, rather than the viability of the business alone.

The good news is that profit margins in Spain are high and most mixed food and drink businesses work on at least 50% net profit on turnover. Fixed overheads are much lower than in the UK.

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18. I’ve Got a Great Business Idea — Will It Work in Spain?

Our advice would always be to stick to tried and tested formulae. British owners have been successfully operating bars, cafés, discos, pubs, restaurants, car hire, small shops and modest Hotels for many years in Spain.

Many business concepts with A1 track records in Britain don’t catch on in Spain. If you are still convinced you have that ‘winning formula’ try to test the market in Spain as inexpensively as possible — put one toe in the water, not both feet!

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19. Cars in Spain

You can take your UK registered car to Spain. Officially you are allowed to use the vehicle in Spain for 6 months (although this time limit is not particularly enforced). If necessary, it can be sold once in Spain or part-exchanged for a Spanish registered car within the 6 months limit.

There is plenty of choice if you want to buy a car in Spain and all the major manufacturers have dealerships. Air conditioning is standard in many models — if it’s not included, it’s the one extra that you should opt for.

Non residents can travel down to Spain in their UK plated cars provided that the duration of their stay is no more than 6 months. Residents do not need to re-take a driving test in Spain; you just swap your British Licence for a Spanish one.

Car insurance costs are equivalent to Britain. Your British ‘No Claims Bonus’ is valid in Spain. Petrol and especially diesel are much cheaper than in the UK with savings of up to 40%.

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20. Exchange Rate £ Sterling to € Euro

When is the best time to change your sterling into euros? There is no real answer to this one as the rate varies every day and is subject to international financial movements. The rate advertised in many Daily Newspapers is the tourist rate. Higher commercial rates are available from the major Banks. If you are close to purchasing in Spain and have sterling immediately available, British Banks will sell you euros on any trading day. Exchange rates vary from Bank to Bank — shop around.

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21. Selling Your Property or Business in Future

No doubt if you buy in Spain you will buy through a Spanish Estate Agency — probably one with an associate office in the UK. If you were happy with the service you received, then place the property or business with them if you decide to sell. If they operate professionally they will photograph your property or business, advertise it both in Spain and in the UK and keep you informed of any progress. It’s as simple as that!

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22. Spanish or British/International Schools?

Many property or business purchasers will have children of school age. In Spain you can choose a traditional British style education or opt for a Spanish School. If your children are close to school leaving age it may be advisable to finish their education in a British style school. Younger children will find it easier to adapt to a new language and teaching style in a Spanish school.

BRITISH/INTERNATIONAL SCHOOLS — All these Schools are fee paying. Most have their own bus service. The syllabus is often the same as in the UK with GCSE “O” and “A” level subjects being taught.

SPANISH STATE SCHOOLS — Free, although you may have to pay for school books. In our experience British children attending Spanish Schools have a working knowledge of Spanish within 3 months and are usually fluent within a year.

KINDERGARTENS — ‘Guarderias’ as they are known in Spain — are plentiful. Children from the age of 1 to 4 are accepted. Most tots can usually chatter away in Spanish within a few weeks. Prices are astonishingly low.

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23. The Cost of Living in Spain

Compared to the UK, a good lifestyle can still be maintained for considerably less outlay. Official European Union statistics show that in Spain average income is under £9,000 per annum. The Spanish own houses, pay mortgages, have large families, own cars — just as we do. This clearly shows that a good standard of living can be maintained in Spain for considerably less than in the UK.

A good 3 course meal with wine included still costs under £5 and for those preferring to cater for themselves the local markets have an abundance of fresh fruit and vegetables at a fraction of UK prices.

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24. I’m Retiring Early — Will I Be Bored?

If you are bored in Spain then you will be bored anywhere. Every kind of sport is available, usually with the weather to enjoy it. Fishing, lawn bowls, golf, boating, water-sports, tennis, beautiful walks, darts, pool or you could join a gym.

If you are not the active type there are lots of Clubs to join — Chess, bridge, choral societies, painting classes, book exchanges — or why not learn to cook the Spanish way!

As for living costs, your money will go much further in Spain. Pre-supposing that your Spanish property and car are paid for, a couple can live well enough on £10,000 per year. There are considerable savings on:

• Supermarket shopping — 25% cheaper than UK
• Heating bills — minimal
• Local rates — £200 to £400 per year
• Water — typically 50% of UK charges
• Wine, spirits, beer and tobacco — up to 50% savings
• Fuel — up to 40% less than UK
• Eating out — 3 course meals with wine from £3–£5
• Clothing — temperate climate means less outlay
• Markets — locally grown produce at bargain prices

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25. Learning the Language

If you buy a property in one of the major resort towns then only a rudimentary knowledge of the Spanish language is necessary. There will be many British owned shops and service providers catering to the resident ex-pat population.

Country property purchasers will, almost certainly, need a better command of Spanish. Neighbours will be Spaniards rather than Brits and local shops and businesses will be geared to the local Spanish market.

If you have the time you can take a ‘crash course’ in Spain — usually lasting a couple of months — attending a Language College every day. Don’t be afraid to practise — Spaniards are used to foreign tourists ‘mangling’ their language and rarely laugh at even the most ridiculous mistakes.

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26. I Know Nothing About Bar Work — Will I Be Able to Do It?

Obviously if you have previous experience in the pub or restaurant trade, it is going to stand you in good stead. If not, there is nothing to stop you taking a course before you go to Spain.

Operating a British Bar — in its simplest form — i.e. serving drinks and light snacks doesn’t need a University education. A willingness to work, the ability to be ‘customer friendly’, cleanliness, efficiency and so on. In most cases, the vendor of the business will stay on for a while to introduce the purchaser to both his regular customers and his suppliers.

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27. A Spanish Will

When purchasing freehold property in Spain it is advisable to make a Spanish Will. This is registered at the Notaries Office. Your Solicitor will provide the form; personal details can then be inserted. You will be given a number of copies to distribute to your family, UK Lawyers, etc. Costs are between £50 and £100 for a straightforward will. Spanish inheritance laws are complex and a Spanish Will enables a property to pass directly to an inheritor without becoming too involved in the cumbersome Spanish bureaucratic system.

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28. Telephones

There are ample public telephones — both in the street and in cafés and shops. If the property or business purchased does not have a telephone your installation costs will be about the same as the UK. Telefónica (the Spanish Telephone Company) guarantee to install your telephone within 14 days.

Mobile telephones are available everywhere. Most British GSM mobile telephones will work in Spain, although if connected to a UK service provider all calls are routed via the UK. The telephone service in Spain has been de-monopolised and there are numerous service providers to choose from.

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29. Spain — What Will the Future Bring?

As far as property investment goes, the future looks rosy. There may be dips in the market from time to time but the long-term investment outlook is good. Nice properties in good locations of Spain will always be in demand.

Frequent and inexpensive air travel makes journeys between northern European countries and Spain quick and affordable. The EEC has ensured that movement of people and money within member states is de-regulated and many of the barriers that once stood in the way of property and business purchasers have now been removed.

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30. Business Partnerships

Some work and some don’t — think long and hard before you make any commitment. Good friends and close relatives are likely to be most people’s choice as business partners.

In our experience it is vital that both partners invest equal capital in the business. The ‘I’ll put the money and you put the work/experience’ type of agreement is usually the rocky road to ruin.

A very noticeable and often repeated success story is the family business — Mum, Dad plus a couple of teenage children to help out.

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31. Do I Need to Use an Estate Agent?

The obvious answer is no. However, it must be clearly understood that Spain isn’t Britain — no matter how anglicised the tourist areas appear. The laws are not the same, neither are the business practices. Experience and local knowledge are all important.

Yes, your chosen Estate Agent will make some commission if you buy, but he will earn it! He has done much of his work before you arrive — visiting properties, making valuations, taking details and photographs, preparing brochures and videos.

Another misconception is thinking that money can be saved by going direct to overseas estate agents or developers. This is not usually the case — the commission on the property is the same, it just gets split between those involved in the sale.

Once you have made your selection your estate agent should introduce you to an English speaking Lawyer specialising in conveyancing. After purchase, the responsible Estate Agent will have available the full range of ancillary services — assistance with relocation, furnishings, utilities, schooling, banking, insurance, health cover, car purchase and more.

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32. Extra Cash After Purchase — What Do I Do With It?

We recommend professional and impartial advice. Speak to a Chartered Accountant in the UK before moving to Spain. Speak to a qualified Accountant once you arrive in Spain. All the major financial institutions have offices in Gibraltar — all offer free advice. Listen to them all before you make your decision. Always invest with the major players.

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33. Planning Permission

Worries about planning permission will almost always concern plots of land. Your chosen Estate Agent should already have done his homework and know in advance what type and size of property will be allowable.

COASTAL PLOTS — These will almost certainly be on an urbanisation (housing development). Outline Planning Permission is almost certainly already given. Your Lawyer can obtain this information easily from the local Town Hall.

COUNTRYSIDE PLOTS — This is a bit more complicated. In order to preserve the rural aspect of the countryside, the Authorities in many areas have wisely decided to limit over-building by applying minimum plot size regulations. All the necessary information is available prior to purchase from the local Town Hall. A competent Lawyer will guide you through this maze.

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34. Property Overheads After Purchase

COMMUNITY CHARGES — Most apartment and town house complexes are subject to a Community Charge covering cleaning and maintenance of communal gardens and swimming pools, lighting, lift maintenance, building insurance, etc. Charges average around £30–£50 per month.

RATES — Paid annually to the Town Hall, based on the Local Authority’s valuation. Compared to UK rates they are quite low: Village Houses approx. £40–£80 p.a., 2 Bed Apartments approx. £150–£300 p.a., 3 Bed Villas approx. £250–£500 p.a.

ELECTRICITY — Costs are about the same as in the UK, with bills coming every 2 months. Most electrical appliances will work in Spain. Sky TV is available in most areas.

HEATING — Not a major consideration for most of the year. The most popular method is a wood burning open fire. Air conditioning units also incorporate warm air heating.

GAS — There is very little piped gas in Spain. Butane gas is available in canisters at approximately £5 per large container.

WATER — Metered (you pay for what you use). Annual costs are likely to be much lower than in the UK. The water is drinkable, however most locals prefer bottled spring water.

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35. How Much Income Do I Need to Live in Spain?

Pre-supposing that your Spanish property and car are paid for, a couple can live well enough on £10,000 per year. Many British pensioners manage quite well on their State Pension.

There are considerable savings on supermarket shopping (25% cheaper), heating (minimal), local rates (£150–£300/year for a 2 bed apartment), water (50% of UK charges), wine/spirits/tobacco (up to 50% savings), fuel (up to 40% less), eating out (£3–£5 for 3 courses with wine), and clothing. Weekly open markets offer locally grown fruit and vegetables at bargain prices.

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36. Getting a Job in Spain

There is free movement of labour within the EEC. However, unless you are reasonably fluent in Spanish, you will be precluded from most work opportunities. Many British qualifications are not recognised in Spain.

WAGES — Per capita income is much less in Spain than in the UK and, whatever your skill, you are unlikely to command an equivalent salary. Fortunately, the lower cost of living does counteract reduced salaries.

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37. How Do the Spanish Feel About Foreign Residents?

Permanent residents have contributed enormously to local Spanish economies. This huge yearly cash in-flow has enabled most Spaniards living and working in the major tourist areas to increase their living standards dramatically.

Spaniards are a naturally friendly and gregarious people — eager to learn about your culture and introduce newcomers to their customs and way of life. In our experience, there is rarely animosity to foreigners in Spain. However, if you really want to be accepted, learning a little of the language should be at the top of your list of priorities.

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38. Paying Bills

Most mundane day-to-day bills can be paid by direct bank debit. Electricity, telephone, community charges, water and Town Hall rates can usually be paid through your Spanish Bank account.

Cash is still ‘King’ in Spain and, although the use of credit cards and cheque payments is increasing, Spain is still a long way behind the UK in this regard.

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39. The Mañana Syndrome

The mañana syndrome is still alive and well in Spain! If you expect the kind of speedy service we are accustomed to from most companies in the UK, then you will almost certainly be disappointed. Things do get done — it just takes a little longer!

Siesta time — usually 2pm to 5pm — is still sacrosanct in many areas. It’s almost impossible to budge the Spaniards from this time honoured custom. However, they do work late — shops and offices will be open until at least 8pm and often later. Once you settle down to the more relaxed lifestyle, it starts to make sense to take things easy during the hottest part of the day.

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40. Shopping in Spain

What a pleasure this is in Spain! Most housing developments will have mini-markets — handy for day to day items like bread and milk.

A visit to one of the bigger hypermarkets is almost a day out. Most will have a good Bar/Restaurant in-house. There is always a huge range of products — British, German, Dutch, French, Italian and Asian foods are widely available. Fruit, vegetable and fish departments have mouth-watering displays.

Some big towns will have an ‘El Corte Inglés’ store — these Harrods style department stores are huge, with all the famous designer labels plus furniture from all over the world.

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41. Countryside Businesses — Rural Farming, etc.

Opportunities exist for British owned countryside businesses in Spain. Rural tourism is avidly promoted by the Spanish Government. Inland areas are likely spots for Pensions, small Hotels and Bed & Breakfast outlets. Specialist holidays are big business: Mountain bikers, fishermen, painters, hikers, ornithologists and country lovers in general are all potential customers.

FARMING — The most prolific crops are likely to be almonds, olives, grapes, citrus fruits, peach, plum, avocado and tropical fruits. Fruit farms generally need very little land to produce a reasonable income — 3 or 4 productive acres can often give an annual income of £10,000 to £15,000. Olive and almond farms need much more land — at least 15 to 20 acres.

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42. Crime in Spain

PETTY CRIME — Bag snatching and theft from unattended vehicles does happen. This is almost always limited to the busy tourist areas. Take the usual precautions.

Where property is concerned, take the same steps you would take in the UK. Have an alarm system fitted, have a safe fitted and lock up your valuables. Take out adequate insurance. In our experience petty crime in Spain is pretty well limited to theft. There is very little evidence of violence.

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43. Should We Buy a Bigger Property for Family Visits?

There are many British retired couples rattling around in properties that are much too big for their requirements simply because their children visit for a couple of weeks every year. Most resort areas will have a plethora of property available for short term rental. In our opinion it makes much more sense to purchase a property that is suitable for your needs only. When the family comes to visit, just rent them a nearby apartment or villa for the duration of their stay. The cost of a few weeks rental every year is hardly likely to add up to the expense of buying and maintaining an oversize property.

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44. Spanish Escritura and Notary

The Notary is a semi-public official who is legally qualified and appointed by the Spanish government. The Notary prepares the Title Deed (Escritura) from the information given to him by the vendor or his Lawyer. The Notary certifies that the Escritura complies with Spanish Law and witnesses the signatures of both buyer and seller.

The Notarial charges for preparing the Escritura are set by law on a scale depending on the property value. Expect to pay no more than 1% of the property value plus IVA (VAT) at 16%.

The Property Transfer Tax levied on re-sale properties is 6% of the purchase price. If you buy a new property from a Developer, you will pay IVA (VAT) levied at 7% of the selling price plus 0.5% stamp duty.

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45. Spanish Land Registry

All properties in Spain should be registered in the Registro de la Propiedad (Land Registry), where you can obtain full details of the property owner, exact size of the property and full details of any mortgages, debts or liens against the property. Only the persons named on the Escritura have the right to sell the property — unless a Notarised Power of Attorney has been given to a third party. Land Registry fees do not normally exceed 1% of the registered value of the property.

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46. Community Charges Explained

If you purchase an apartment, townhouse or villa in an urbanisation, you will automatically become a member of the community of owners — administering general maintenance of areas of common ownership such as streets, gardens, hallways, lifts and swimming pools.

An annual budget is calculated and divided between all owners according to the size of their properties. Regular meetings are held by the property owners. Every owner has a vote. Non-residents can give a proxy vote.

Community charges often include building insurance (not contents). Your Lawyer should check the latest receipts and obtain a certificate stating that there are no charges outstanding.

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47. Spanish Local Authority Rates

These are levied by the local Town Hall and are known as ‘Impuestos Sobre Bienes Inmuebles’ or I.B.I. for short. Discounts are often given for prompt payment and surcharges levied (usually 20%) on late payers.

The I.B.I. receipt shows the Valor Catastral (rateable value) of the property — the officially assessed value rather than the real value. The amount of I.B.I. you pay is 0.7% of the Catastral Value. The cost of rubbish collection is usually billed separately but in most cases is little more than a few pounds a year.

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48. Renting / Income from a Spanish Property

The amount of rental income depends on the property. Properties in the most demand tend to be:

• Golf Property — course-side properties commanding high rents
• Seafront Apartments — always popular and easily rentable
• Villas with Pools — often commanding rents in excess of £1,000 per week in summer

Most holiday homeowners will need a Spanish based Rental and Management Company. Expect to pay around 15% of the gross rental as commission.

TAX ON RENTAL INCOME — Non-resident property owners are taxed at 25% on rental income declared in Spain. Spain has a dual taxation agreement with the UK and any tax paid in Spain is deductible from UK tax liabilities.

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49. Moving to Spain

Moving to Spain is probably much easier than you imagine. It pays to use the services of a specialist carrier and to shop around. Provided that the furniture and goods you are taking are for your own use, there are few restrictions. Many of the larger Removal Companies have on-site storage facilities in Spain.

Think long and hard about what you take. The cost of shipping many household items is uneconomical. There’s a huge range of furniture and domestic appliances available in Spain — prices are reasonable and, of course, local guarantees apply.

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50. What Is a Spanish NIE Number?

This is the Número de Identificación de Extranjeros. All property owners in Spain — whether resident or non-resident — must obtain the NIE. It is simply a fiscal I.D. number. You will not be able to pay your taxes or register your property without it. The easy to complete application forms are available from the local Comisaria (Guardia Civil Police Station) or the nearest Tax Office. There is no charge for the NIE number. Most people will let their Lawyer look after this simple but essential procedure — he is likely to charge around £25 for his time.

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