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A GUIDE TO BUYING
A PROPERTY IN SPAIN
FAMILIARISATION
TOUR
Accompanied tour
of Torrevieja and outlying areas and/or other areas of particular
interest to the client. Half to one full day dependant on visit
duration allocated by the client.
PROPERTY
TOUR
  Accompanied
tour of new and resale properties. An accompanied property
tour is the usual approach to viewing properties here in Spain. Unlike
in the UK or Ireland, a property consultant will take you to see
selected properties of interest and surrounding areas over a three or
four day periode. All that we ask, is that you are in a position to buy
usually suggests property viewings over a three or four day periode.
This can be with a subsidised trip or at the buyer's expense. In both
cases, all that we ask, is that you are in a position to buy should we
find a suitable property for you.
THE SALE
1. If a NEW
property is chosen, visit developers office to sign contract and pay
€uros 3000 (or £2000) deposit. Subsequent payments vary from 30% to
50% of the purchase price usually to be paid within three months,
subject to the builder.
2.If
RESALE property is chosen, meet solicitor to sign contact,
power-of-attorney, and pay minimum of €uros 3000 (£2000) holding fee
and then within 10 days you pay the remainder amounting to 10% of
the total price of the property. The remaining amount is then paid
on the day you get your keys & the title deed.
3.
Open bank
account.
4.Obtain
passport photographs for NIE No. application*
5.
Visit Legal and
Fiscal Representative for NIE No. application* and to discuss
purchase of property. The Fiscal Representative will handle all
aspects of the purchase of new properties.
* NIE number is
a Personal Identification no. for foreigners. The cost of the
application
is usually included in the standard charge for purchasing property.
As a
rule the NIE
takes 2-3 months to come through and can be collected from the
Fiscal
Representative during client’s next visit to the area.
The whole
process can usually be accomplished within one day. Throughout the
process clients will be accompanied by one of our representatives.
Clients are
required to bring the following:
-
PASSPORT
-
DRIVING
LICENCE (if hiring a car)
-
£2000
DEPOSIT (or €3000), or means of paying these sums in £ or €uros. Means of
paying include cash, credit card, bank draft, sterling cheque,
or prior arrangement with UK bank to accept a faxed instruction
to transfer. The preferred way is by credit card. DEBIT
CARDS ARE NOT IDEAL as they often require a very lengthy
procedure which cannot be performed in evenings or weekends.
View-To-Buy
Trips are arranged individually. SUNZONE book flights, hotels, hire
cars if required, and arrange airport collection. According to the
package selected some or all tour expenses may be paid by SUNZONE
Clients who
travel to Spain on a SUNZONE subsidised tour are contractually bound
to spend the duration of their stay in the company of a SUNZONE
representative.
PAYMENT TERMS
On New
Properties payment is made direct to the developer. A
typical payment schedule is as under:
·
DEPOSIT usually €uros 3000 or £2000. Paid on signature of contract.
·
1st
INSTALMENT typically 25% of the total price of the property. Usually
paid 30 days after signature of contract.
·
2nd
INSTALMENT typically a further 25% of the total price of the
property. Usually paid 60-90 days after signature of contract.
·
3rd
INSTALMENT if required. A small minority of developers require a 3rd
Instalment of up to a further 25%, payable up to 6 months before
completion of the property
·
FINAL INSTALMENT of outstanding balance of price on completion of
purchase
On Resale
Properties the terms are usually as under:
·
DEPOSIT 10% of the price of the property, or €uros 8000,
whichever is the greater.
·
FINAL PAYMENT on completion of purchase
A CAUTIONARY
NOTE
NEVER give money
to an individual, however respectable they may seem. Payments
should only be made to the developer (if new property) or an
established Estate Agent or legal
representative (if a resale).
MORTGAGES
Available up to
80% on all properties from Sunzone, subject to proof of income
(normally requires the 3 last payslips, a P60, or if self-employed,
account details going back 3 years). Repayments may be over 5
years, 10 years, 15 years or up to 40 years. Interest rates (Currently at
4.00%) are usually about 1% lower
than in the UK and reviewed annually. It is now possible to make
interest-only payments for at least five years.
|
|
30 years |
25 years |
20 years |
15 years |
10 years |
|
Amount |
100000 |
100000 |
100000 |
100000 |
100000 |
|
Monthly repayments |
€449.00 |
€500.60 |
€580.00 |
€714.90 |
€988.90 |
|
In £ Sterling |
£299.33 |
£333.73 |
£386.67 |
£476.60 |
£659.27 |
ADDITIONAL
EXPENSES RELATING TO THE
PURCHASE
The usual
guideline figure is 10% of the property sale price, on properties
from £40,000 - £100,000, and about 9% for higher priced properties.
Typical costs on a property priced at £100,000
·
7% IVA
(Spanish transfer tax) £7000
·
Water
and Electricity connection £250
·
Legal
fees £900
·
Notary
fee for registration of title deeds £400
Land Registration Fee £250
·
Miscellaneous £200
TOTAL
EXPENSES £9000
These
expenses are payable on completion of purchase
ANNUAL
RUNNING COSTS
Running costs of a property in Spain are well below those in the UK.
Typical annual costs for a town house would be as under:
·
ELECTRICITY
£350
·
WATER
(metered)
£150
·
COUNCIL TAX (Rates)
£150
·
COMMUNITY CHARGES
£200
·
BUILDING AND CONTENTS INSURANCE
£150
TOTAL
RUNNING COSTS
£1000
FINANCIAL TRANSACTIONS
It is required for all property owners
to engage a local Fiscal Representative to handle their financial
and tax affairs, especially if they are non-resident in Spain. As
part of the service SUNZONE will introduce the client to a reliable,
English-speaking Fiscal Representative, who will also arrange to
draw up a Will.
On purchases of
new properties the Fiscal Representative handles all aspects of the
purchase process up to signing of the title deed.
NIE No.
This is a social
security code, which property owners in Spain need in order to carry
out major financial transactions. The Fiscal Representative will
process clients’ applications as part of the property purchase at no
extra charge.
BANK ACCOUNT
Property owners
in Spain are required to have a bank account, principally in order
to pay utility and other bills by direct debit.
A bank account
can be opened in about 30 minutes on production of a valid passport
and an NIE number. It is not necessary to deposit funds at that time
although if a property needs a valuation for a mortgage, the bank
will require a small deposit of a few hundred euros.
TAX REGULATIONS
Any revenue from property lettings and
capital gains are subject to tax in Spain. The Fiscal Representative
will advise on how to minimise the amounts payable.
NEW vs. RESALE - THE PROS AND
THE CONS
SUNZONE sells
both New and Resale properties. Our policy is to explain to clients
the merits and demerits of both without bias, so as to enable
you to make an informed decision.
At the time of
writing, on the south
Costa Blanca and Costa Calida, new properties
outsell resale properties by a ratio of 2 to 1. However, this
balance will shift gradually in favour of resale as land becomes
scarcer and more expensive.
REASONS TO BUY NEW
-
Usually
costs less than identical or equivalent resale property, and
therefore represents better value for money
-
Covered by
10-year builders guarantee, legally enforceable
-
Subject to
current stringent building regulations
-
Everything
will be in full working order. No upgrading or repair work
required
-
All new
properties have low-maintenance finish
-
Low deposit
of £2000 secures property and fixes price
REASONS TO BUY RESALE
-
No waiting time
-
Immediate vicinity usually fully-developed
-
Usually sold furnished and with all fittings in place
-
Any faults may reasonably be expected to have been rectified
under the original warranty
IF
OLDER PROPERTY -
REASONS NOT TO BUY NEW
REASONS NOT TO BUY RESALE
-
Sometimes overpriced
-
Minimum deposit at time of contract – 10%. Balance usually
payable within 6 weeks.
-
Some wear and tear to be expected
-
Care must be exercised to ensure that there are no charges or
debts against the property, especially if buying direct from the
owner (i.e. without an agent)
-
Short payment timescale. Minimum deposit 10% of price payable
immediately. Balance to be paid on handover of property,
generally about 6-8 weeks from date of contract.
IF
OVER 10 YEARS OLD -
IF
OVER 20 YEARS OLD -
CONCLUSIONS
Because all
clients have their own individual priorities and criteria we make no
recommendations either way.
You pays your
money and you takes your choice!
NOTE:
published property prices usually do not include 7% IVA (same
as VAT) which is payable on all properties, new and resales. A
further 3% should be allowed for, to cover the transfer costs and
legal charges.
AFTER- SALES SERVICE
 If
you don’t think the after sales service is important, just ask the
many clients who have been dumped by their agency once they have
signed the contract. The quality of the after sales service you
receive is at least as important as buying the right property. Most
of our clients are resident in the UK, and when they return home
after making their purchase it is comforting to know that someone
over here is still looking after their interests, and is available
at the end of a telephone line from 7.00am to midnight, seven days a
week (which means you can phone in the evening or at weekends, at
cheap rate). And after sales service doesn’t just mean dealing with
matters connected to the property itself.
SUNZONE is proud
of its After-Sales Service. We believe it to be second-to-none.
This is why we call it our “AFTER SALES GUARANTEE.” And because it
is a guarantee it is legally binding on us.
THE SUNZONE 25-POINT AFTER-SALES
GUARANTEE
FOR ALL BUYERS
AFTER COMPLETION OF PURCHASE
·
HELPLINE open
7.00am to Midnight for general assistance
plus
·
Introduction to a Legal and Fiscal Representative (see note 1)
·
Introduction to a Bank (see note 2)
ADVICE and
INFORMATION on the following –
·
Medical services, including private health insurance
·
House and contents insurance
·
Obtaining and operating a Mobile Phone
·
Land Line installation
·
Cut-price overseas telephone services
·
UK
Television conversion
·
Television installation including Sky TV and Digital
·
Shopping
·
Buying a car
·
Road tax and motor insurance
·
Schools
·
Organizing removal from UK to Spain
·
Storage in Spain
·
Temporary accommodation in Spain
·
Application for Residence Permit
·
Social life
·
English Clubs and Associations, including Golf Clubs
·
Interpreter Services
·
Home security systems
·
Property maintenance services
·
Property management services
TROUBLESHOOTING
Our
AFTER-SALES GUARANTEE includes our acting as your
troubleshooter in the unlikely event of problems or
misunderstandings with the developer or owner of the property you
have purchased.
In
the ordinary way, once the contract has been signed, you will
communicate directly with the developer or, in the case of a resale,
your legal representative. However, if you cannot get a
satisfactory answer we will intervene on your behalf. Being ‘on the
spot’ enables us to succeed where a telephone call or letter might
fail. Just like in the UK, your legal and fiscal people are the ones
responsible for taking care of the completion of your purchase – but
of course, if you are having problems we will use our best endeavors
to assist.
COMPLETION OF PURCHASE
When your property is finished, you will be contacted by ourselves
or by the builder or developer. At that stage you will need to speak
with your fiscal representative to establish your completion funds,
notary date – at which you and the builder or developer will sign
contracts; from this date, the property is yours – you will receive
the keys on the day you complete.
This is how your completion visit should go.
-
You are advised of the building completion
-
You speak to your fiscal advisor to establish final payment
amount, mortgage requirement, if any etc – also to mutually
agree a notary date convenient to all parties (yourselves, the
builder or developer and your representative)
-
Arrival at airport; you will need to advise us prior to this
whether your require assistance in accommodation booking, car
hire, airport pick-up etc
-
Meeting with Sunzone representative to visit building site to
undertake thorough snagging list
-
Completion day at the notary; your fiscal representative will
advise you of the notary to be used, together with the address
and directions as to how to get there.
-
Now you have the keys to your new Spanish home – you can go
ahead with installing furniture, white goods etc – and the
serious business of celebrating!
TESTIMONIALS
If you would like to speak to any of our
former and current clients we will be happy to provide an up-to-date
list from which you can make your own selection which one/s to
contact.
NOTES
1.
The Fiscal Representative
is a tax and legal adviser who also acts as intermediary between
client and lawyers, notaries, and others in the house purchase
process.
2.
We work closely with 4
major banks with English-speaking personnel. All these banks offer
mortgages to British clients at competitive rates.
© Ventura Real Estate
SL 2007
SUNZONE
SPANISH PROPERTIES: UK 0870 803 4763
Tel Spain-
(0034) 966 705 653 or 965 703 247
email:
info@sunzoneproperties.com
Plaza de
la Constitucion, Nº5 Bajo
Torrevieja, 03181, Alicante.
(Costa Blanca)
Registered
Estate Agent. C.I.F: B-54170485
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