Property Solicitors Alicante Costa Blanca 2017-12-19T08:55:25+00:00

Property Solicitors Alicante Costa Blanca

Situation of the real estate market on the Costa Blanca

 

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Property Solicitors Costa Blanca Alicante

An increasingly common fact among the inhabitants of the European Union is to buy a second home in Spain. Many residents of countries with colder weather prefer to have a warmer, calmer home nearer to the waters of the Mediterranean Sea. There they rest and spend their vacations or live during their retirement.

Spain is the ideal country to live according to foreigners thanks to its warm climate, the friendly and open character of the people, the gastronomy and the culture of the country. That is why last year almost 55,000 homes were sold to foreigners in Spain.

Most foreigners living in Spain are retirees who have a second home in this country. Although some of them definitely move to this Mediterranean country. More than 74% of the sales are of flats and the rest of houses. Moreover, it predominates the shopping near the beach.

There are tourists of all nationalities. The biggest buyers are the French, although one of every five houses bought by foreigners are of British. Citizens of the United Kingdom prefer the Balearic Islands, Andalusia and especially the Costa Blanca to have a home.

The average price of real estate on the coast of Alicante is around 175,000 pounds although some companies like Taylor Wimpey has been able to sell homes between 200,000 and 350,000 pounds. This company, which has been working for many decades in the real estate sector, declares that they prefer to carry out their actions in the Spanish coasts as they are preferred for the buyers.

The type of home you buy varies between flats with a large area, townhouses and chalets. But all these types of housing have to be close to the beach and be, in a way, exclusive. Customers want a comfortable and restful home where they can relax and enjoy Spanish life.

This is why the destination chosen by most of them is the Costa Blanca, especially Alicante. It is a place not too expensive, but with many facilities for day to day. Also, it is next to the Mediterranean Sea and it is very well adapted for foreigners.

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How does Brexit affect?

Despite what may seem at first, the Brexit does not appear to adversely affect the purchase houses abroad by British.

As we have said before, a large number of foreigners buying homes in the Mediterranean country are British, as well as French or Russian. Many real estate companies working on the Costa Blanca say they have received many inquiries from people in Britain who are thinking of moving out of the country for Brexit.
There are many Alicante lawyers who are receiving consultations about the procedures for acquiring a home in this country and if the Brexit will change some of the steps and documentation currently needed.

According to a report published after the referendum, the number of citizens wishing to move from the UK has increased by 30%, many of them young people between the ages of 18 and 25.

If you are one of these people who wants to move to Alicante or another locality of the Costa Blanca, you should know well about all the steps to follow for the acquisition of a house in Spain. You have here some basic information you should keep in mind, but this is only a guide. Remember that it is safest to trust in a professional.

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Procedures needed to buy a house in Spain

The fact of buying a house in Spain if you are a non-resident foreigner is very simple, but we recommend you to have advice so that everything is perfect.

The first and fundamental step to be able to buy a property in Spain is to have the NIE (Residence Card Number). Foreigners with an economic or professional interest in Spain will have a unique and exclusive personal number of a sequential nature. The personal number will be the foreign person’s identifier. The NIE must appear in all documents that are issued or processed, as well as in the steps that are stamped on your identity card or passport. It is indispensable to buy properties.

The NIE is issued ex officio by the Police General Directorate. This can be requested from outside Spain or from this country by going to a foreign office or a police station. If you do it from the UK, you must go to the Spanish embassy or consulate.

From this moment it is highly recommended to have a conveyancing solicitor to advise us on the purchase of the property. The lawyer will tell us what documentation we need, he will help us with all taxes and expenses associated with the purchase of the home and he will ensure that everything goes as planned. This way, we will avoid problems later, as losing too much time with the public administration with procedures that we do not understand or with the seller. Besides, we will be able to trust that the process is totally correct and legal.

Once you have the NIE you can start all the actions to buy your house in the peninsula. To make the transaction it is not completely mandatory to have a bank account in Spain although if you have it, it may be easier to do some of the actions you have to do to acquire a home. For example, having a bank account in Spain can be useful for some procedures such as paying taxes like VAT or ITP, notary, registration, IBI or rubbish charges. All of these expenses must be paid in the country of the home so it is easier if the money is there.

In addition, if you are a foreigner buying a home in this country and you live there less than 183 days a year, you must pay the IRNR (Nonresident Income Tax). But we will talk you about that below.

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Steps to buy a house in Spain if you are a foreigner

First of all you have to find out which house you are going to buy and where it is going to be. The favourite place to move when you decide to relocate is Alicante in the Costa Blanca. Also, it is recommended because some of the best property solicitors work there.

You must think that the house need to meet the minimum requirements that you have in mind. It is important to be patient and not to rush. It is much better to take longer but find the ideal home. If you need help, do not hesitate to request it.

Another important issue is to use a professional property lawyer to carry out all the formalities. In the Costa Blanca there are many people who speak English, but the ideal is to look for a conveyancing solicitor who can help us specifically in all the necessary procedures to acquire the property.

As we have said above, you must obtain the NIE. Obtaining the NIE will be very simple as we will simply have to explain that we want to acquire a home in the country.
And you will also have to decide whether to get a bank account in Spain. In our case, we believe that having money in Spain is more comfortable and easier to avoid problems in some transactions.

To open a bank account you only need to bring to the bank:

1) The NIE
2) The current passport
3) An official document of the country of origin duly translated into Spanish to justify the source of their income.

Some of the most important things in which you will need the advice of a good property lawyer are the following:

– You’ll have to sign a Contrato de Arras, which is a purchase deposit. That is, a contract between the buyer and the seller. This contract is a kind of “reservation” of the lodging, where it is ensured that the buyer will buy that dwelling. By doing this, it also delivers a quantity of money to the seller as deposit. This contract is not always mandatory but it must be done if the seller requests it. In this way, both parties make sure that the sale will be made and both parties confirm that they want the process to be carried out.

– Public deed of the sale. You must go to a notary with the seller to formalize the purchase of the house. In order to do this, the seller must deliver all mandatory documentation of the property and all documents that prove that it has no tax debt.

– You must make the payment of the total of the price with a bank check if you have own money to do it. On the other hand, if you have applied for a mortgage to make the purchase, a representative of the bank must also come at that time to formalize the mortgage loan that has been granted.

– To finish, you must pay all the taxes that we have talked about previously. In addition to registering the house with your name in the Property Registry to certify the change of owner.

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Selling ​​a house in Spain if you are a foreigner

As we have said above, if you want to buy or sell a house on the Costa Blanca, it is essential to have an Alicante lawyer who can help you with the whole process. This way you will make sure that everything is legal and you will not have to worry about breaking any rules.

In case you are not a buyer, but a person who wants to sell your home on the Costa Blanca you must follow some steps that vary depending on whether you are resident in Spain or not. It is considered that you are resident if you live more than 183 days a year here, as we have already mentioned.

Therefore, if the seller is resident in Spain, he must comply with the Taxation in the IRPF:

In Spain, if you have obtained profits by the sale of some property you must declare it in the declaration of the rent of the following year. That is, if you have sold a flat in 2016, you must declare it in 2017.

How much is this?

Residents in the country are taxed up to the first 6,000 € of goodwill to 21%. Up to 24,000 € are taxed at 25% and the rest at 27%, if you cannot offset it with other equity decreases from other operations.

The amount of the benefit is quantified by the difference between the transfer values. ​​That is the sale value less the expenses and taxes and the acquisition value of the house, which is the purchase price plus selling expenses, which are taxes, Notary fees, etc.

You must also pay for the Tax on the Increase of the Value of Urban Land. In addition to a tax to the town hall of the locality of the Costa Blanca where the property is located. This tax is called tax on the increase of the value of the lands of urban nature.

In order to do all this you must present some documentation to the city council, in addition to making the Declaration of Income.

All this can seem very complicated is why we insist that you go to a professional who can help you at all times.

If the seller is Non-resident in Spain, he must pay the Non Resident Income Tax:

In the case of the capital gains are derived from the transfer of real estate located in Spanish territory, to determine the taxable base, the rules established in the IPRF Law will also apply but with some exceptions.

Normally, this amount is calculated by the difference between the transfer value and the acquisition value of the property in question. It applies a percentage of 21% on the base amount to these benefits by the sale of a dwelling.

As in this case the seller of the house does not reside in Spain and therefore he does not make the Declaration of Incomes in that country, the buyer must pay 3% of the cost of the sale. This is a tax corresponding to the surplus value of the house that Hacienda asks the buyer because it cannot guarantee that the seller will pay.

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Property Solicitors Alicante Costa Blanca
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