We offer access to Local Lawyers who can help with any queries you may have with regards to Spanish property law, taxes, mortgages etc. We can also recommend English speaking Spanish solicitors who will deal with all the legal implications and act on your behalf. They will ensure that all the necessary searches are done, the property is free of charges and all the necessary planning and building permissions are in place. Spanish mortgages are available via our chosen partner Mortgages Direct who will look to find the best deal available for your personal situation.

For resale properties we normally require a holding deposit to secure the property (normally 3.000€) and then a 10% deposit (which constitutes a legally binding contract) within 7 working days; the balance after deposit is normally required in approx. 4-8 weeks depending on the agreement with the vendors. Payment is paid by bankers draft at the notary on the day of completion and signing of the Escritura (Title Deeds). We will help you to organise this with your Spanish Bank and inform them in advance the amount and the name of the beneficiary. If you are taking a mortgage the mortgage amount will be paid by the bank at the notary and the outstanding amount by banker’s draft. For new build / off plan properties the payment schedule is dependent on the individual developer.

Properties Spain by eXp offer you access to the best Currency companies that suit your situation and requirements. Ask us for more details

When you have decided which property to buy, you will be given the price for that property in euros, and the price in sterling at that day’s exchange rate. However the property could cost more than you had planned should the Euro strengthen or become cheaper if sterling strengthens. Especially when working to a fixed budget, it may be worth considering fixing the exchange rate for all of your future stage payments. This can be done in various ways:

• Buy all of the currency now on a “spot contract”. You would hold the currency on deposit and send payments when they are due for your euro account. You would need to have all the funds available.
• Buy as much currency as you can afford now and reserve an exchange rate for the remaining payments – “forward buying”. This can be done through your bank where you “buy” the currency now but pay for it on a set date. There is no charge as this would only be applied should you not take the amount on the date you have booked it. This exchange rate is not quite as good as a spot contract but does guarantee you know the price of the property.
• Use a specialist currency broker such as Worldwide Currencies. We can arrange for a representative to contact you to discuss their services and charges etc.

Once you have selected your dream home in Spain, and the deposit is paid, a purchase contract will be drawn up (Contrato de Arras) between yourself and the builder/vendor. Once this is signed the official title deeds (Escritura) are drawn up by a Spanish public notary ready for signing on the agreed completion day. On this day both parties or their representatives attend the Notaries office and have a chance to read and if necessary, correct the draft Escritura. This is then signed by both parties. Although it is not necessary for you to be present as your solicitor / Properties Spain can, if you wish have power of attorney we prefer that you are here so we can explain the whole process and see the property together after completion.

There are various taxes and costs once you have chosen your dream home.

• Purchase legal costs: These are one-off costs which average 13% of the basic price for your property. This will cover the purchase taxes, notary fees, NIE numbers, deed registration, water and electricity connection charges, plus-valia tax and 1st year legal representation.
• If you are requiring a mortgage there will be a setting up charge levied by the bank.
• Annual running costs and taxes (approximate for guidance only): Standing charges for water and electricity – consumption of water and electricity is metered – normally these are paid directly from your bank account. Average usage for Electricity is around 60€ per month with water a lot less Local rates, rubbish collection and other taxes – For public lighting, police, education, street & beach cleaning etc. this is usually around 400 euros per annum.

Community charges – This is controlled by the community of owners of which you will normally be one. This is not applied should you have your own villa on a plot of land. It pays for the upkeep of the communal swimming pool, gardens, passageways, lighting, lifts and security etc. the amount you pay normally depends on the number of properties and the facilities that are available. The average price is between 750 and 1.000 Euros per annum.
House and contents insurance. We can introduce you to a company.
Fiscal representation 170 euros.
Property owner’s tax & Wealth tax; this is paid by non-residents and combines to 0.7% of the declared Suma value of your property.

If you have purchased your Spanish property with a view to investment, you may wish to rent out the property for additional income. With the year round sunshine and a wealth of attractions to entertain holidaymakers, there is always a demand for well maintained, quality homes. Properties Spain can introduce you to companies who provide a complete letting service so we can give you any advice / assistance you need.

There are certain regulations to be adhered to before bringing your pet to Spain. A health certificate from your vet must be obtained not more than 15 days before you enter Spain. In addition you will need a certificate of vaccination against rabies, and you should check with your vet as to the timing of this vaccination. A certificate from your agriculture ministry is also required which states the area in which the animal is normally kept is free from animal diseases. These certificates must be stamped and legalized by the Spanish consulate for which a small fee is charged. It is recommended that on arrival in Spain you micro-chip your pet which gives your address in Spain. UK pet owners can take their pets back with them but the procedures should be started well in advance of your trip – again it is advised to consult your vet.

Those eligible for state health care include
Retired EU foreigners who follow correct procedures.
The employed and the registered self-employed.

Not eligible are:
Non-working expatriates below retirement age, Private Health cover will be needed for your Visa
Pensioners who have not completed the formalities. Pensioners applying for a Non Lucrative Visa will need Private Health Cover

If registered self-employed, you pay a levy and are entitled to the same benefits as a Spaniard. British men over 65 and women over 60 are also “in” if they have completed the E121 form

The problem area is the non-working, early-retired expatriate.

As long as you are employed, your employer should be contributing to the social security pool, and you are entitled to full treatment.

Non EU citizens who are not working in Spain should always take out Health Insurance / Private Health Care

For families intending to make their home in Spain, state education is free but it is only conducted in Spanish. However, this does not seem to present a problem for young children who tend to pick up the language quickly. Attending a Spanish school is definitely one of the best ways of ensuring that both the child, and in most cases, the family, become integrated into the local Spanish community. It is often a good idea for the family and especially the children to have some Spanish lessons prior to coming to Spain.

In Spain, children must attend the school closest to where they live, so if you decide to live an area full of British ex-pats, you’re likely to find plenty of British children in the local school. In order to get your child into a Spanish school, you will need all the necessary paperwork, proof of residency (usually in the form of proof of address), the child’s full birth certificate, passport, photos, and immunization record etc. For specific information, it is best to contact the school direct, or the appropriate town hall.

If the child is older or in the middle of a GSCE or A level course, it may be advisable to consider an International School. Fees for day students are usually cheaper than in the U.K. and you will have the advantage of having your child privately educated. These schools also tend to offer qualifications better known to UK universities. Some schools offer a system of English and Spanish curricula which enables students to be qualified for either Spain or the UK.

VISAS[+]

Non Lucrative Visa

Non-EU nationals looking to reside in Spain for more than 90 days require a visa for entry into Spain. If you want to live in Spain and have sufficient means of subsistence (meaning you don’t need to perform any commercial activity), the Non-Lucrative Residence Visa is perfect for your situation: it allows you to reside in Spain, but does not permit a professional activity nor employment.   How to apply for a Non-Lucrative Residence Visa   This application must be submitted at the Spanish Consulate of your home country. Besides the application form, you will need:   A valid passport or any other travel document. Proof of your sufficient financial means. Proof of your medical insurance. Medical certificate. Criminal record or similar.   Many people have decided to move to Spain thanks to its quality of life. For Expats, obtaining a Spanish residence permit not only means living in a country with an outstanding position in global rankings, but also enjoying access to the rest of the countries of the European Union.   The Consulate will then have three months to process your application. If the visa is granted, you’ll have other three months to enter Spain, and, once you are there, one month to register in Spain and apply for the residence card.

GOLDEN VISA:

As of 2013 the Spanish Goverment has issued a Law outlining the so called “Golden Visa”

This new law allows non-EU investors to qualify for the highly coveted so-called Golden Visas. To summarise, this new law enables non-EU nationals to attain qualified residency permits in return for investing in Spanish real estate (and other assets), leading to permanent residency in Spain if certain conditions are fulfilled.

Investors’ General Requirements

Applicants pursuing investor visas / permits need to comply with the following general requirements which are specific to Non-Lucrative Residency Permits (art 62):Non-EU national (art 61)
– The investor applicant must be of legal age (18-years-old or over)
– The investor must not hold a criminal record whether in Spain or in the previous five years where he has resided
– Not be already in Spain irregularly
– Have access to medical insurance whether private or public
– Have sufficient financial means to support both himself and his family whilst in Spain. This should definitely not be an issue for those who have the socioeconomic profile to qualify for a Golden visa in the first place; it goes without saying.
– Pay the relevant application fee

One may attain a residency visa by; Acquisition of real estate located within Spanish territory of at least €500,000 per applicant.

Can I request a mortgage on investing €500,000 in Spanish real estate?

Yes, but only for the excess above €500,000. The law only requires that the first €500,000 is unencumbered – meaning the equity threshold must be free. The excess can be indeed financed through a mortgage loan if necessary. What is important to understand is that the first half million euros must be mortgage-free. So an investor is expected to have the financial means to come up with these funds unassisted by a lender, whether national or foreign.

For more information on the Golden Visa please contact Properties Spain.