The post Use a lawyer when buying a property in Spain appeared first on Costa del Casa.
]]>When you want to buy a property on Costa del Sol in the south of Spain, there are many application processes that are both very bureaucratic, administrative and sometimes a bit cumbersome. In addition, it can be difficult to know what type of property that is worth buying.
You also need to find out about your property rights, how it works for you from a tax point of view, how long you will be there per year and much more. By using a lawyer and a real estate agent when buying a property on Costa del Sol in Spain, you make the experience much better and easier for yourself.
What can a lawyer help you with?
Buying a property in Spain is different from buying property in the UK. So just because you know the housing market there, you can't expect to use that experience in Spain. But luckily a lawyer can help. Firstly, a lawyer can help you translate the contracts you need to sign.
It is important to know what you are signing. If the Spanish language is not your main skill, legal aid is your solution. In addition, you can be sure that you can hold your lawyer responsible for an incorrect translation, should that happen. You can't do that with an external translator, who has no legal obligations to you.
When you buy land or property in Spain, a lawyer can help you check that the land is free of debts or other problems. This will help you avoid getting caught in an uncertain purchase. It would be very sad if you bought a property with debts. In the worst case, you may not be able to live in the house if you don't have the financial means. If you have bought a project, your lawyer can also help you to take over the loan.
At the same time, you also need to know if there is planning permission for the plot of land where you wish to construct. If you buy a house that needs renovating, but you are not allowed to do so, you will end up with a property that you will not be happy with in the long run. At the same time, it may be difficult to resell the property.
Your lawyer will also help you take possession of the property so that you can get a power of attorney. From here you can get financing through a Spanish bank and get paid for any expenses. The lawyer will also help you register a deed, advise on wills and review your payments and contracts.
Last but not least, your lawyer can help you with your application for a NIE number.
What is a NIE Number and how can a lawyer help you?
When you buy a property in Spain you will need what is known as a NIE number. A NIE number can be compared to your national identity number. It is extremely important that you have your NIE number in order before you buy a property, so you need to submit your application quickly.
Your lawyer can help you with this process as it can be very complicated. At the same time, your lawyer can help you translate the application to Spanish. Otherwise, you will have to contact the police station yourself, stand in line all day to fill out the application and know when the application is ready.
You can get help for example from C&D solicitors which makes it much easier for those who don't speak Spanish. The cost of getting help with this is negligible and can save you a lot of time and trouble in the long run.
Which type of property should you buy in Spain?
Once you've got yourself a NIE number, it's time to embark on the big house hunt. Now you need to decide what type of property you want. First and foremost, location is an important factor when you want to buy a property in Spain. The more popular an area is, the higher the price.
If you want a modern home, you can expect the price to be high too. In addition, you need to be sure that you get what you pay for. If you are thinking of renovating your home yourself to buy it more cheaply, a lawyer can help.
A work offer is sometimes a home with both debts and other commitments related to it. If you don't want to take on someone else's debt, the lawyer can guide you in what other homes might be of interest to you but still reasonably priced.
You should also know if you have full planning permission for your land and if there is nothing that needs to be preserved. Again, you will need a lawyer to get it right.
As mentioned earlier, the Spanish rules are also not the same as in the UK. If you want to take over a project where there is a debt on the land in question that you also wish to acquire, it is also best to do this with a lawyer on board so that the process is carried out properly.
You should also be aware of what it costs to live in the south of Spain.
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]]>The post How to get a NIE number and residence in Spain appeared first on Costa del Casa.
]]>Dreaming of buying a house in the south of Spain? We understand. You can sit on your own terrace with your own garden furniture, cook your own food in your own kitchen or on the barbecue and not least visit the house as often as you like. All on your own terms.
Plus, you don't have to worry about getting a hotel stay on certain dates, the fluctuating prices and much more. You only need to worry about the flight ticket. Something that, by the way, can be purchased very cheaply if you are well in advance.
But to buy a house in Spain you need to make several considerations. First, you have to decide where in Spain you want to live. Spain is a very diverse country with many regions. The location should therefore suit you as a person.
Also bear in mind that the more popular the area you move to, the more likely it is that many tourists will also live there. Big cities like Madrid and Barcelona, and areas like the Costa del Sol is very popular.
The prices for buying a property in those areas are a lot higher than other places in Spain. If you are considering buying a property on the Costa del Sol our real estate agency are specialist in that area, and we can answer all of your questions regarding that.
You'll also need to get a NIE number and a residencia, otherwise you won't be able to buy a house according to the Spanish authorities' rules. And that's the most important thing when you're buying a house in Spain.
That's why we've put together a little guide for you that tells you the essentials about NIE numbers and residencia. So that you can start your home purchase with peace of mind.
What is a NIE Number?
When buying a house in Spain, it's important that you first apply for a NIE Number. A NIE Number is the national identity number for foreigners.
The reason it's so important to get a NIE number if you have your eye on the Spanish housing market is that a NIE number is what you use when you buy a car, house, choose a doctor, get a job and much more. You also need a NIE number even if you don't want to live permanently in Spain.
You can pick up the application form at your local police station. The application is in Spanish, so you need to be aware of what the different things mean. However, you can write your answers in English. When you go to the police station, you will need to make two completed applications and take your passport and two photocopies of this with you.
It can take a while to get your NIE number
It varies from area to area how long it takes to apply. Therefore, it is wise to check with the local police station in advance about their application procedure. In some places, you'll need to be there two hours before the station opens to get a place in the queue.
However, in some places you can make an appointment at the police station to avoid queuing for most of the day.
When your papers are to be collected, it is important to check when this is to happen. It depends on which area you have applied in, and in some places, it can take up to six weeks. Also remember that you will be given a stamped copy of your application to show together with your passport when you collect your certificate.
Under the 2007 rules, you must have a NIE number when you purchase a home. If not, extra fees may apply. At the same time, the NIE number must be present at the time of the actual trade. It used to be one month, but that has changed. Again, an important reason to get a NIE number as soon as possible.
Fortunately, you can also get help with this, and if you do have a solicitor involved in the home purchase, you can kill two birds with one stone.
Here you can watch a video showing how to get a NIE number.
What is Residencia?
Residencia is what you apply for when you spend more than 183 days a year in Spain. It doesn't matter if the days are consecutive. So, you can't spend 182 consecutive days down there, go home and come back shortly afterwards.
So, if you spend all those days down there in the heat, you'll be considered a resident. It is for tax reasons that you must register as a resident in Spain, but this does not affect your rights in the UK at all. Being a resident in Spain is not the same as having a nationality.
Before 28 March 2007, you had to have a resident permit. Today, the rules are that you must have a residencia certificate. This means that you no longer have to carry a card in your wallet, which is also very practical because you don't risk misplacing it. It also means that it is no longer a long process until you get your card.
To get your residencia certificate, you must apply to be registered in the Central Register of Foreigners. You can do this at the local immigration office in the city where you live in Spain or at the Spanish National Police, also known as Policía Nacional.
Give yourself plenty of time to get your residencia.
It is important that you submit your application within the first three months of your stay in Spain, otherwise your application will not be processed.
It is also important that you have plenty of time during these three months. This is because you will need to call in to the Central Registry or the police to make an appointment. This can often take a very long time, sometimes a whole month, but on the other hand you don't have to queue. Do it right away.
On the day of your appointment, all you need to do is turn up with documentation. That's your NIE number, passport and so on. If you're not sure what documents you need, you can ask the Central Registry.
Once you've got your application through, you'll get your residencia certificate after a while. The certificate will state your name, address, nationality, NIE number and date of issue.
If you ever have to sell your home, you will also avoid paying five percent tax if you can show that you have residencia.
Seek legal help
If you have difficulty understanding the system, it is always a good idea to seek legal advice.
A lawyer can help you with many things, such as getting your applications through. It's also worth having a lawyer look at your case if you need help buying a house, writing a contract or making a will. This is because you need to make sure that the house or land you are buying has no debts or other financial commitments.
This can be your responsibility, and not everyone has the financial resources to take care of this in addition to buying a home.
Buying existing projects or new developments
If you want to take over a building project that already has a debt, it is also important to seek legal help with the transfer. Even when buying new developments, legal help is a good idea. You do not want to get caught up in some rules you did'nt know.
It is important to remember that Spain has different rules. You may be a housing genius back in your own country, but you can't expect other countries to work exactly the same.
You can also hire a gestoria in Spain, which can handle all the bureaucracy and administration involved in obtaining a NIE number and a residencia. This is a good option for those who don't have the time to go through all the red tape involved in such an application process.
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Many people feel they want to escape the UK climate and head for the sun in the south. And more and more UK citizens are doing so.
There is a clear increase in people wanting to buy a property in Spain, and luckily, it's also very easy.
Spain has realized that they have a real commodity in homes for tourists from other countries, and therefore it is not a cumbersome process to buy these homes either.
However, it is not always easy to overlook the later costs of having a home in Spain.
Fortunately, Spain's rules are very good when it comes to selling your home.
In addition, Spain is a cheaper country when it comes to consumption. Supermarkets have reasonable prices and high quality. So that is not where the budget comes in.
Property tax in Spain
Property owners pays a spanish property tax called Impuesto Sobre Bienes Inmuebles (IBI). It is a local tax that must be paid whether you live in Spain or the UK.
So, you pay this tax even if you only visit your home once or twice a year. The tax is calculated in relation to the value of your land.
The fee is set by the local authority, so in some places you may get the same amount of land but with a cheaper IBI. You can check in advance with the local authority you choose to live in what their average IBI is per square meter.
The IBI is an administratively set fee that is usually much lower than the market value.
Your personal income tax
IRNR, also known as Impuesto sobre la Renta de No Residentes, is the tax calculated from your personal income.
If you own a property but are not resident in Spain and do not earn money from renting out your property, or if you do not have income elsewhere in Spain, your tax is calculated on the value of the property.
We will now explain how this works. The tax is set at 19% or 24%, which is a fixed percentage of the value of the property.
The IRNR tax base is 1.1% of the property value of €100,000. That is €1,100, but because of the 19-24%, it comes to €209 or €264 per year.
If you are resident in Spain, you will have to pay IRPF personal income tax instead.
Remember to insure your home
When you have a property in Spain that you don't necessarily live in all year, it's important that you have good home insurance.
Spain may be a very peaceful country, but the increase in tourists buying homes in Spain has raised the eyebrows of burglars. The price of your insurance depends on the characteristics of your property, which together determine its quality, as well as on your possessions and their value.
If you don't want to take out a large insurance policy for your house, you can insure your most valuable possessions and possibly buy the remaining furniture more cheaply.
Your garden furniture doesn't have to be the most expensive in the world, and your sofa can easily be from IKEA and still be stylish and beautiful.
In addition, you can make a neighbor agreement to keep an eye on each other's homes and possibly give them a key to the house if you trust them, so they can check that everything is in order. Plus, they can make it look like someone lives there when you don't.
You can also get help online, for example at Blog-Uno where Sarah writes about moving to Spain with her husband and children. There is a lot of useful knowledge on her blog. You can read about the challenges they faced when they moved their whole lives to Spain.
Communal costs in your area
If your property is part of an estate, neighborhood or housing estate where there are communal areas, it goes without saying that you will also have to pay something for these.
If the homes in your area have a communal area with a swimming pool, you will all have to pay for the maintenance of the pool, for water changes and for keeping the area clean and tidy.
In addition, it is a legal requirement that all owners are members of the owners' association. This is where the budget for common costs is set, usually at an annual meeting.
If you want to have an influence on the finances of the common areas and want to prepare or complete them, you can become chairman of the owners' association.
Then you have some power over how the money is managed. For example, you might want a lift for all the elderly people living in the area, so that they don't have to climb many stairs.
It may also be that an extension to the pool is an obvious option if many more people have moved into the area.
A children's pool could also be arranged so that adults without children on the trip can relax by themselves. This way, children can also play without having to worry about being too wild or making too much noise.
Prices depend on the area
When you want to buy a property in Spain, your costs also depend on the area. The more popular the area, the more expensive your expenses may be.
So, it can pay to live in an area that has not yet attracted as much attention from tourists from other countries. Then you can experience cheaper restaurants and local shops because there is not the same competition.
If you are looking for properties for sale in Malaga and want to live in the center of Malaga, you will find that all the shops and restaurants must raise their prices as soon as someone else does. At the same time, they can afford to do so, as they are guaranteed a large clientele anyway.
So, you can save a lot of money per year on consumption alone if you strategically place yourself in the country.
Moreover, there is something charming about living in an area that has not yet been overpopulated by tourists. So, every year you visit your accommodation, you're ensuring that you have an authentic experience in Spain.
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]]>The post Renting out your own home in Spain appeared first on Costa del Casa.
]]>If you have a property in the south of Spain that you don't live in all year round, there is a great opportunity to earn extra money by renting out your property. As well as making another family happy to live in your beautiful Spanish home, you don't have to worry about your property being empty when you're not there.
However before you start looking for properties for sale on the Costa del Sol, there are several things you need to be aware of.
First and foremost, there are tax issues, but also all the administrative aspects of renting out your property. You can read more about the costs of owning a home in the south of Spain here.
Finally, you need to prepare yourself mentally for the fact that there will be strangers living in your home. Here you also need to take care of your insurance and give them a beautiful and clean experience in your home. And you need to avoid the thought that something might go wrong.
We want to help you with the most necessary steps when renting out your home for the first time. It's not nearly as difficult as you might think.
Registering your property and important things to remember
When renting out your property short term, it is important that it is registered with your local tourist office. In the past, there were several restrictions that made it difficult for homeowners to register their property for rental.
Now, thankfully, it's much easier, which is reflected in the number of people who choose to rent out their property.
However, there are a few requirements that the property must meet. The kitchen must have all the necessary utensils. This means a working oven, a fridge, a hotplate, a kettle, various utensils and not least cups, plates and cutlery.
In addition, clean bed linen and towels should be ready for guests when they arrive. Also make sure you have an instruction manual for all electronic equipment in your home. There's no guarantee that others will know how your state-of-the-art TV works or how to turn on the air conditioner.
It is very important to have a first aid kit and a fire extinguisher in the house. This is for obvious safety reasons. You never know if something might catch fire. It could be anything from a drought to forgetting to turn off a light.
That's why it's so important to have a fire extinguisher in the house. At the same time, it's also essential to have a first aid kit in case you get hurt. It's important to make sure your first aid kit is always up to date when you return to your home.
Your home should also have natural lighting in all bedrooms, proper ventilation and you should make sure you know if there are stairs and/or a lift. It's important for your customers to know if it's handicapped or elderly friendly.
Air condition, or similar, with cold and hot air is also a requirement in all bedrooms and in the living room.
Remember to ask for permission first
Your holiday home must have a permit for renting out, which you can get from the local council office. There should also be clear contact details for you, so that your tenants can always get hold of you in case of complications.
There should also be a compulsory complaints book in your home so that your tenants can write down what they have been unhappy about.
Once your holiday home meets the above requirements, you can get permission to rent it out.
Initially, you will be given a temporary registration number. With this number, you can now rent out your property on various websites and in newspapers.
Nowadays, most people find their holiday accommodation online, so it's a good idea to advertise your accommodation mainly there. Remember to keep the temporary registration number visible until you get the official registration number.
It is compulsory to register your accommodation if you are not renting for a long period of time with the same tenant.
These rules are those that apply to public housing landlords, and other types of holiday accommodation have several different and stricter requirements for the housing landlord.
If you have bought a property on Costa del Sol and need help with the permits, our real estate agents will be happy to guide you further in the process.
Insurance
When renting out your property, we recommend that you get good housing insurance.
You never know if your tenants will break something, and it would be a shame to be left with the bill. At the same time, you can't know if your home will be robbed. Fortunately, this is rare, but it's always good to be prepared.
In Spain, most home insurance costs between €200 and €1500 a year.
It is also important to make good agreements with your neighbors. Make sure they have a key so they can lock themselves in if they see anything suspicious.
It's also a good idea for them to have a key in case your tenants throw away the key you gave them. Then they can always be let in by the neighbor and borrow the neighbor’s key until they must go home.
When your tenants need to be registered
Any short accommodation must always register its guests with the Spanish Ministry of the Interior, also known as the Registro de Huéspedes.
If you rent your accommodation through an agency, they will usually take care of the registration, but if you rent privately, you must register yourself within 24 hours. Registration is usually done at the local police station.
A representative can also be sent if you are not in the country. At the police station, you will need to bring documents proving that this is your holiday home. These include your registration number, NIE number and residencia, if you have one.
At the police station you will be given a code which you can use on the Ministry of the Interior website.
With the code, you log on to the Home Office website, record the names of the adult guests, their passport numbers, the expiry date of their passports and, most importantly, how long they intend to stay in your accommodation.
The tax aspect
When you rent out your home, there is of course tax on the income you receive from renting out your property.
If you are resident in Spain, tax is paid on the profit you make from renting out your property. This is done through the Spanish tax return, which must be filed annually.
The tax is treated in the same way as general salary income, and you are taxed according to Spain's tax rules.
You report what you have earned to the Spanish tax authorities.
In the Spanish tax return, you can deduct water, landlord's fees, insurance and electricity, which your tenants can use.
The commission paid to the agency, if you have one, and not least the advertising, can also be deducted from your tax return.
If you are not resident in Spain, the tax is paid via a quarterly statement. However, you are still entitled to the same deductions as a person resident in Spain.
All rental income for non-residents is taxable, whether you rent out your property. However, tax can be deducted during periods when your property is rented out to non-residents.
At the end of December, non-residents must report their tax for the previous year, so in December 2023 you must report tax from December 2022. The whole process can seem advanced at first, especially when you don't necessarily know the language.
If you are unsure, you can always contact a lawyer who can help you through the whole process and translate for you.
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