1 FIND ADEQUATE PROPERTY.
For this purpose, we offer you a wide range of possible homes with features that require your ideal home, advising you on the best value for money and better investment alternative to provide an easy lease or subsequent resale.
2 PRELIMINARY PROCEDURES TO BUYING.
Once found, if it is a property we will identify if there are charges or levies on housing, mortgage, foreclosure, tenants, if it is subject to a special regime (official protection), if the owner is current in the payment of the costs of community, IBI (estate tax), if it has been paid… All of this will be at our disposal before signing any contract.
In the event that a foreigner with residence outside Spain, can buy a property in Spain, you need to count with a foreigner identification number (NIE), which is the equivalent to the Spanish to the national identification document (DNI). To apply for the NIE, is not required the physical presence of foreign, just may do so through a legal representative in Spain, with one power of attorney enough for the application of this NIE with the precise purpose of purchase and sale of housing.
Since the law on entrepreneurs of the year 2013, foreigners who invest in the purchase of a home in Spain, at least of 500,000 euros, can obtain a visa of residence in Spain. The applicant must provide proof of having an investment in real estate of € 500,000 free of any charge or taxes.
*If I buy a new construction home, what information should facilitate us the promoter of a construction or new construction in Spain?
-Name or business name of the promoter, registration register data.
-Specific housing information: flat site housing, description, useful surface, services and supplies, public areas, damage and latent defects insurance.
-Data registry of property, to verify:
-the plot on which to construct the building, be enrolled on behalf of the promoter that we hire.
-that the building has been authorized by the City Council, by means of the corresponding grant of license.
-Statutes of the community.
-Selling price and form of payment
-Data of the subrogation of mortgage in case of beech.
-The way in which it is intended to write the contract, with its general and specific conditions, by expressly stating:
a)That previous expenditure which, by law, belong to the seller, will be not supported by the buyer.
b)Right of the buyer to demand the granting of public deed and the choice of notary.
In any case, all these data are collected and duly validated by our advisory staff, which as expert in the field, check that everything is correct and corresponding monitors of work, facilitating the most work to the purchaser.
*If I buy a second hand property, what information should I get from the owner?
-Registry simple document related to your property
-Latest receipt of the tax on real estate (IBI).
-Last receipt of electricity, water, gas.
-Be aware of community fees have been payed, certificate (if you don’t get and had debts, the community may require up to certain amount limit to the buyer, without prejudice to their right to claim it to whom sold you).
-Copy of the statutes of the community, entered in the registry of property.
-In the event that the property is mortgaged and is pending, certified capital of the State of the debts issued by the lending institution.
3. SEARCH FOR ADEQUATE FUNDING.
We will advise you, if required, to manage your mortgage in the Bank most suitable to their conditions and ensure the best loan for the purchase of your home.
If the housing that we acquire is engraved with a mortgage, the buyer may subrogate the remaining amount of the mortgage and/or constitute a new mortgage loan.
In the case in which we have to apply for a mortgage loan to the Bank for the acquisition of housing, as well as the costs of notary, registration and management there are others linked to the bank lender:
-Valuation of the property: normally for the approval of the mortgage loan by the Bank, this will require the valuation of dwelling object of purchase by a valuation company authorized, in order to determine the maximum amount of the mortgage loan and the conditions of the same. Usually the Bank grants a loan based on the appraised(valued) amount provided that this amount does not exceed the price of the House. The amount will depend on the appraised value normally, and it can be between 180 – €400 to be payed.
-Other expenses: can be agreed by the Bank the payment of a fee, which usually consist of a percentage of the amount of the capital borrowed, the hiring of a home insurance: the Law 21981 undertakes to the holder of a mortgage loan to hire a fire (or damage), insurance on housing mortgage. It is an insurance that covers the continent, not the contents of the housing, which can ensure such insurance to expand.
It may be advisable, though it is not required, insurance of repayment of the loan that covers, in case of death of the owner, the capital of the outstanding loan.
4. THE SIGNATURE OF THE CONTRACT OR WRITING.
Operation can be formalized through private document, which involves the buyer part (or his representative), and the selling part (or representative);if this operation is financed through a loan it requires a public deed.
Subsequently this document, must be elevated to public deed to register that property newly acquired in the land registry. In this event, intervenes a notary who will give faith and authenticity to the trading operation. The notary shall make available the parties a simple note proving ownership and charges of the estate.
5. PAYMENT OF TAXES AND OTHER EXPENSES.
The buyer must pay on the purchase price an additional percentage depending on the following cases:
a) Purchase of new housing (purchase promoter): tax on the added value (VAT), which must be paid directly to the buyer to the seller, which shall enter it later in the Treasury.
The current VAT rates are as follows:
-Super reduced rate of 4% for subsidized housing.
-Reduced rate of 10% for buildings, houses, garages and annexes.
-21% general rate applicable to all those operations that have not set one lower type. EJ. commercials, plots, garages and storerooms not attached to the housing.
b) Purchase of a used property: tax on Impuesto sobre Transmisiones Patrimoniales Onerosas( onerous patrimonial transmissions) (ITPO), whereby subject operations between individuals and the acquisitions to companies declaring themselves exempt from VAT.
The tax rate will be 10%, except for subsidized housing, which applies the 8%. Unlike how it occurs in the VAT,the obliged to the tax debt is the acquirer.
If the individual is a non-resident without a permanent establishment in Spain, the purchaser will be obliged to retain and to make the income of a 3% of the agreed operation, in respect of a payment on account of tax that should satisfy the non-resident and pay into Treasury.
The buyer must also pay the property transfer tax mode “stamp (AJD) that, for the region of Valencia, is established the following types of assessment:”
1. the 1.5% in General.
2. the 0.1% if it’s the first copies of deeds that document procurement of residence.
3. the 2% for the cases that have renounced the exemption in the VAT.
Taxation of the urban properties owned by non-resident individuals:
1. GENERAL CONSIDERATIONS
If you have the status of non-resident in Spain and you are the owner of any urban property in this country, you are subject to the tax on income of non-residents and a tribute of local character, the real estate tax IBI(impuesto sobre bienes inmuebles)
In addition, on a temporary basis, has been established the Impuesto sobre el Patrimonio (the wealth tax) for the years 2011, 2012, 2013, 2014 and 2015.
Except in cases of residents in countries or territories with which there is an effective exchange of tax information, there is no obligation to appoint a representative before the tax administration. However, you can appoint yourself voluntarily if desired and communicate the appointment to the delegation or administration of the tax corresponding to the place of location of the property agency.
1.2 TAX IDENTIFICATION (ID) NUMBER
In Spain each person is assigned a tax identification number that should be recorded in tax returns and in communications to the tax administration.
In general, for people of Spanish nationality, the NIF is the number of your national identification document (DNI), and for persons of foreign nationality, the NIF is the personal identification number of foreigner (NIE). The processing of these identifications is carried out before the General Directorate of police. However, foreigners who have no NIE, either temporarily by being forced to have it or definitively not be forced to do so, must request the assignment of a NIF tax administration when they go to perform operations of nature or with tax significance.
2. NON-RESIDENT INCOME TAX.
When a property belongs to a married couple or several people, each of them is an independent contributor, so must file separate returns.
Depending on the destination of the property, the income subject to assessment are:
2.1 INCOME IMPUTED URBAN REAL ESTATE FOR OWN USE.
The income to be declared to be taxable, shall be the amount resulting from applying to the rateable value of the property contained in the receipt of tax on real estate (IBI), the following percentages:
Accruals until 2014: In general, the 2%.
In the case of real estate with cadastral values revised or modified from January 1, 1994, the 1.1 per 100.
Accruals from 2015: In general, the 2%.
In the case of property whose rateable value has been revised or modified and entered into force in the tax period or in the period of the ten previous tax periods
This performance is understood to be earned once per year, on December 31.
The proportion of this amount will be declared if it has not been owner of the property throughout the year, or if for any period of time you have been leased.
Type of tax 2015:
EU, Iceland and Norway residents from 12-07-2015: 19.50%.
6. REGISTRATION IN THE LAND REGISTRY.
This Act is necessary for the buyer is regarded as unique and true owner and protected against potential creditors of the seller and hidden charges, to obtain a mortgage loan that the Bank has entered the mortgage that guarantees your periodic return.
Once registered, will be communicated to cadastre change in ownership of the housing so the new receipt is turned on behalf of the buyer.
7. FURTHER TAXATION. DURING THE TENURE OF THE PROPERTY WITHOUT RENTING IT.
1. If the holder is a natural person resident in Spain.
1.1. taxation for the income tax of physical persons.
1.2 tax heritage.
1.3. taxation on real estate tax.
2. If the owner of the property is a natural person non-resident in Spain
2.1. tax on the income of non-residents.
2.2 tax heritage.
2.3. taxation on real estate tax.
During the time that the property is our property we must also be very present taxes affecting such ownership. Then we will see the taxation according to the condition of the owner of the property.
1.1 If the holder is a natural person resident in Spain.
1.1.1 tax for the income tax on natural persons (in later IRPF).
The concept of residence is key in the configuration of the imposition of tenure of property regulated in the law on personal income tax.
For purposes of this tax, residence, means any building which is the residence of the taxpayer for a continued, at least a three-year period, requiring additionally taxpayer inhabit it effectively and permanently, within a period not exceeding twelve months from the date of acquisition or termination of the works.
The use of a residence does not generate any income. Moreover, in certain cases you can give right to a deduction on your purchase.
If it is not your primary residence, in addition to not be able to practice the deduction of the preceding paragraph, the law provides for the so-called urban real estate that are not related to economic activities, or produce income from the real estate capital which will be considered income 2 per 100 of the cadastral value (1,1 per 100 if the rateable value has been revised with effect from 1 January 1994). This income is taxed on a general scale.
Deduction for purchase of residence: according to our current legislation, any investment aimed at the acquisition or rehabilitation of the residence allows a deduction in the tax on the income of physical persons (IRPF) by both invested capital and interest paid, if you have applied for a mortgage loan.
Deduction for purchase of housing, can also enjoy from the 4 years before the purchase, through the opening of a housing account, which is a savings account whose amount will be destined to the comprarehabilitacion’s residence, by virtue of which can deduct the fee integrates income 15 quantities entered during that year , with the maximum €9.015,18 basis.
Can be deducted from the quota integrates 15 %of the amounts paid by purchase in the same fiscal year, with the maximum of €9.015,18 basis.
What’s with the amounts already deducted in previous regular homes?
It may not deduct any amount until the inverted quantities are not exceeded former habitual homes.
What is the treatment of the reinvestment in residence?
If in the transmission housing usual ancient is generated a capital gain, this is exempt from tax when they reinvest the total amount obtained from the transmission in the acquisition of a new residence in a period not exceeding 2 years from the date of the transmission.
If only part is reinvested, is exempt from tax the part proportional to the amount effectively reinvested.
Similarly the equity gain obtained is entitled to exemption by reinvestment when the old home is sold after the acquisition of the usual new housing if the amount obtained from the sale is intended to meet the price of new housing within a period of 2 years from the date of purchase of the new House.
If you purchase a new residence without having sold even the former, not you can practice is the deduction on new housing until the amount invested exceeds the amount invested in the previous object of deduction.
If the deduction is already made by acquisition of another residence, not can practice is the deduction on new housing until the amount invested exceeds the amount invested in the previous object of deduction.
1.1.2 Impuesto el Patrimonio (IP)(Tax heritage).
Resident individuals must pay taxes for the IP tax. The tax Base is the value of their goods wherever they are located at 31 December.
In the case of real estate, we take as value, the greatest of the following three:
-value established by the administration.
In Valencia, there is a minimum that is exempt from the wealth tax of 108.182,17 euros, with the minimum rate in the 0.2 and the maximum in the 2.5.
1.1.3 Tributación por el Impuesto sobre Bienes Inmuebles.1.1.3. (taxation on real estate tax).
Real estate tax (in later IBI), is a municipal tax levied on real estate ownership.
You are required to pay this tribute, the owner of the property to date 1 January each year, time in which occurs the accrual of the tax.
Broadly speaking, is determined by applying to the rateable value of the property one type of assessment, agreed by the respective town councils in the corresponding municipal regulations. However, the maximum tax rate may not exceed the 1.17% in the case of urban buildings, and the 1.11% case of rustic buildings.
It is a local tax, i.e., demanded by the municipalities, property owners must pay.
All the real estate of each municipality are included in a census and are assigned a value (rateable value). Based on the rateable value and by applying the tax rate that sets the City Council gets the amount to pay.
Annually, for each property included in the census, is issued a receipt for the payment of the tax. Normally, Councils establish the possibility of direct debit payment receipt in a bank account, which is provided that this takes place within the fixed payment term and avoid the surcharges.
The deadline for the payment varies in each municipality, although it is usually around the months of September, October and November each year.
1.2 If the owner of the property is an individual not resident in Spain.
1.2.1. tax on the income of non-residents.
In the event that the owner of the property is a non-resident physical person, you must support an imputation of income consistent in 2% of the rateable value of the property (the 1.1% if such rateable value is revised subsequent to January 1, 1994). The applicable rate on such income shall be the 24.75%.