Emigrating

1. What are the requirements for a foreigner to purchase property on the Costa del Sol?

To purchase property on the Costa del Sol or elsewhere in Spain, foreigners only need an Identity Number for Foreigners, (Número de Identidad de Extranjero or NIE), which may be applied for at Government delegations or sub-delegations or at any Foreign Office (Oficina de Extranjería). If you are unable to personally apply for a NIE, you may call in a legal representative, who will do the paperwork for you if duly authorized.

To speed up the processing of the NIE (a personal, unique, sequential identification number) and enter into a mortgage contract for your home, do not hesitate to contact us:. Our team of lawyers is at your service.

2. If I buy an apartment in Spain but keep my residence in my country of origin, do I need to pay taxes in Spain?

When property is purchased in Spain, taxes and expenses related to the purchase must be paid in Spain.

3. Should I get a mortgage from a Spanish bank? Or is it preferable to ask for one in my country of origin?

No Spanish legislation forces buyers to get a mortgage in Spain to purchase a home. In fact, we recommend that you finance your property purchase in your country of origin. If you are not a legal resident, getting a mortgage in Spain means higher costs due to taxes.

4. Can I get a residence permit if I own an apartment in Spain?

No, unless you invest over €500,000 in your home.

5. Would the residence permit be granted only to me as the property owner, or may my family also benefit from it?

In Spain, family reunification is currently regulated under temporary residence. If you have purchased property in Spain worth over €500,000 and have obtained a residence permit, you may apply for an authorization to register your family in home you bought.

6. Is it recommendable to use a conveyance solicitor?

It is the buyer’s decision to use a solicitor or not, but there are many reasons to hire the professional services of a Spanish solicitor specialized in real estate law. The solicitor knows  the local laws and taxes better than anybody, so it is highly recommended to contact one because he will make the purchase process smooth, trouble free and 100 % secure.

7. What information do I have to get about the property before purchasing it?

Before buying a property in Spain, there are some basic checks and searches to be carried out: who is the legal owner; possible charges or mortgages on it; being free of any debts regarding local taxes and utilities bills; etc.

The key point is to carry out searches in the local council and in the land registry to get updated information on the property and confirm that everything is correct and that it can be purchased without any problems. The solicitor is the right person to do these searches and confirm that the property is in good legal condition to be purchased.

In case the property belongs to an urbanization, it is essential that the community of owners confirms the property is up to date with the community rates. Otherwise, the buyer can be compelled to take over previous debts.

8. Which documents do I need to purchase a property in Spain?

Buying a property in Spain is simple. The only documents requested are an original and valid (that is, not expired) passport or identity card, to confirm the identity of the buyer; and a NIE number (Tax Identification number for Foreigner), which can be obtained in the police offices in Spain. It is a quite easy procedure.

Please, also be aware that in order to transfer the necessary funds to pay the purchase price, it is necessary to have a Spanish bank account. Most of Law offices have a “clients account” for this purpose, so the buyer who uses a solicitor will only need a personal bank account after completing the purchase.

9. Once the purchase is completed, do I have to do any further paperwork?

When the purchase has been completed in front of a Public Notary, it is necessary to pay the Transfer Taxes (8 % of the purchase price) within 30 days, and to take the title deeds to the land registry so the ownership is registered.
It is also necessary to change local taxes, water and electricity contracts, and community rates into the name of the buyer; as well as to order future payments by direct debit.
A solicitor will be able to arrange all these matters in a speedy way and without problems. Another good reason for hiring one when buying your property in Spain.

In Andalucia nearly a third of property sales or purchases are carried out by foreigners. The foreign population in Malaga has increased dramatically over the past few years.

If you are considering purchasing or selling a property  then you should be aware of a number of taxes that have to be paid.

Vendors or buyers should be aware of these tax implications so that these can be budgeted for in advance and taken into account in the agreed price.

Taxes in Spain corresponding to buyer:

1. IMPUESTOS DE TRANSMISIONES PATRIMONIALES (ITP): This tax is payable whenever a second hand property changes hands whether by sale or inheritance. It is charged by the autonomous region, (CCAA), in which the property is situated and is generally calculated at a rate of 8% of sale prices up to 400,000€. If the selling price is higher other increased percentages are applied to the difference. It should be paid within 30 days of the signing of the purchase deed by the buyer.
2. VAT +ITP: In the case of the purchase of a new property when the buyer is the first occupier the tax charged would then be VAT, which is calculated at a rate of 10% of the sale price of the property and in addition 1.5% ITP would also be applied.

Taxes in Spain corresponding to vendor:

1. PLUSVALIA: This is a municipal tax payable every time a property changes hands whether by sale or inheritance. This is a charge for the increase in the value of the land during the years of ownership and is calculated by the Town Hall based on the Cadastral value and should be paid by the vendor.
2. MODELO 211 RETENCIÓN EN LA ADQUISICIÓN DE BIENES INMUEBLES A NO RESIDENTES: This is a retention made when a vendor is not a resident in Spain. 3% of the selling price will be retained at the time of completion and duly paid to the Spanish Tax Office to cover any Capital Gains Tax which may be due. If no profit has been made and the vendor is up to date with his tax obligations he/she can apply for a refund.

As you can see the payment and payment deadlines, together with any other problems or complications that may arise during the purchase or sale of a property, require a specific knowledge and so it is recommendable to leave these matters in the hands of an experienced Lawyer.

(If you have bought your Spanish home with us, the law firm will register your property for rental if you wish. So you don’t have to worry about this.)

From May 11, 2016 all property located in a residential area that is regularly offered through marketing or promotion channels to tourists for rental at a price, (i.e. through travel agencies, mediators or organizing companies, or through any media giving the possibility of making a reservation or booking), is considered housing for tourism use.

Type of Accommodation:

• Complete properties: The maximum permitted sleeping capacity for each property is of 15 people at any one time.
• Bed and Breakfast /Rooms: -he owner must reside in the property and cannot sleep more than 6 people at any one time.

In both cases the maximum occupation per room should not exceed 4 people.

Registering a property for tourist use – Requirements:

1. Occupation Licence or Certificate of Habitability
2. All rooms must have direct ventilation from outside or from a patio, and must have some means of darkening.
3. The accommodation must be sufficiently furnished and equipped to meet the immediate requirements of the number of people specified
4. If the rental period includes dates in the months from May to September (inclusive), a fixed cooling device must be provided or if the rental period includes dates in the months from October to April (inclusive), then heating must be provided.
5. First aid kit.
6. Provide: information and operating instructions for all appliances; tourist information; and telephone numbers for queries and incidents.
7. All properties must have a “Complaints and Claims Book” readily available with a corresponding prominently displayed wall notice.
8. The accommodation must be clean for the arrival and at the exit of clients
9. Bedding, linen, household goods in general should be supplied
10. Information on internal rules for use of the facilities and for the community.

How to register in the Andalucia Tourism Register free of charge

Make a written statement demonstrating your responsibility and compliance with the above listed requirements:

• Register in the Register of Tourism of Andalusia when you will be assigned a code number.
• Include your registration code number in all of the advertising and promotions related to the property.

The following properties are NOT included in the above law:

• Rentals without payment.
• Rentals for a continuous period of more than 2 months to the same individual/s.
• Rural Properties.
• When a group of 3 or more properties which are located in the same building, complex, urbanization, or group of buildings are rented by one person or company.

Foreigners who own real estate, bank accounts or any type of asset in Spain probably have wondered occasionally about whether or not to make a will here in this country.

Our advice is that wherever goods and/or assets are located, in whichever country, it is advisable to make a will in each of those countries. This ensures that the distribution of your goods and /or assets; and the choice of heirs, is specified according to your wishes, thus avoiding any misunderstanding after death.

We would like to clarify, that although it is not compulsory to sign a will in Spain as the Spanish authorities do recognize the validity of foreign wills;the costs for the translation and legalization or apostle, (a requisite which is indispensable for the any document to be accepted in Spain), are very high compared to the relatively inexpensive costs for making a Spanish will now.

In the case where a person does not leave a will the assets of the deceased are not left to the state. In Spain an “intestate” succession is covered by the Spanish law which stipulates which relatives inherit and in what proportion.  In Spain bloodline takes precedence over partners or spouse. (E.g. the testator’s children have the right to inherit before their husband or wife).

All Spanish wills must always be signed in front of a Public Notary, who will certify the testator’s identity, status, state of mind, (suitability to sign a will) and will attest to his last wishes, all this is reflected in a written document signed by all parties. This Public Notary is responsible for notifying the General Registry in Madrid of the testator’s last will.

Once deceased, it is the heir/s that will be required to obtain a Certificate of Last Will and Testimony from the Central Will Registry in Madridwhere all of the wills that the deceased signed in Spain during their life are listed. The last will signed by the deceased is the only one that is valid.

Spanish law requires that a will is made following the formalities specified by Spanish law. To date the law applicable to the distribution of assets after death, (if nothing was mentioned in the will), would be that of the country of the nationality of the testator. However, from August 2015 the new law states that the law to be applied will now be that of the country of residence of the testator at the time of death. This change can be over ruled simply by stating in a new will which law you wish to take precedence. That is why we recommend that your will is checked and that if necessary a new will is signed specifying exactly which law should be applied in your case.

The process for preparing a will in Spain is relatively simple as long as you count on the advice of a lawyer who can advise and prepare the document.  It is best to do it in two columns, (one in English, and one in Spanish), so that the testator can understand the content of what is being signed. Another point that concerns some people is the cost, which actually is relatively cheap compared to other countries. In our case, we charge only 150 euro per person all inclusive, no extra charges, (including: meeting with clients and information gathering; translation, preparation of will, notary assistance, fees, and VAT.), so there`s no excuse not to call us now for your free no obligation appointment.

For a more detailed report on this topic or any other matter, or to discuss your personal circumstances in more detail, please contact us. 

These are 10 important things you should know if you are an expat living in Andalusia

1. If you live in Andalucia for more than 183 days a year, you should be a tax resident in Spain
2. The residence of the deceased person and the beneficiary are key points which decide where the inheritance taxes should be submitted i.e. at the Andalucia Tax office (in case of residents in Andalucia) or at the Spanish Inland Revenue in Madrid (in case of being non-residents).
3. The inheritance laws to be applied to an inheritance (regarding the distribution and disposition of assets) will be the ones of the nationality of the deceased person. i.e. if you are British, the British laws will apply to your inheritance.
4. If you have assets in Spain (i.e. real estate property, funds in bank accounts, shares, vehicles, etc) it is recommendable to make a Spanish will only for the distribution of the Spanish assets. It will make things easier, cheaper and quicker for your relatives when anything happens to you.
5. The signed Spanish will will be 100 % respected if it complies with the national laws. It is important to seek advice when drafting your will.
6. If you receive an inheritance, and are a tax resident in Spain, the inheritance taxes, (if any), should be paid in Spain, even if the assets inherited are situated outside of Spain.
7. In Andalucia, when the inheritance transfer takes place between direct relatives (spouses and children) there are allowances of up to 1,000,000€ per heir. This is applicable to Andalusian residents and Europeans. Therefore, in most cases there is no inheritance tax to be paid.
8. The tax return for an inheritance must be filed within 6 months from the date of the death.
9. Transmission of ownership of the assets of the deceased person is not automatic and it is also compulsory to carry out some complicated Legal and tax paperwork, (e.g.: – get certificate of last will, sign the inheritance deeds in front of a public notary, file the inheritance tax returns, etc), in order to acquire ownership of the inheritance. It is highly recommended that you seek advice and professional assistance from a solicitor.
10. When receiving an Inheritance in Spain, it is not only the estate of the deceased person that is inherited, but also their debts. Therefore, this matter should be checked out before accepting an inheritance so that it does not turn into a nightmare. The debts could be higher than the assets!!