Joyespaña - Mijas Costa


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General business conditions
Costa del Sol

01. Question: How to find out in Spain whether the seller is also the estate owner
Ensure yourself by proving the property right of the seller through presentation of his notary sales contract with register note of the land register or an actual summary of land register.

02. Question: Which object information are to be obtained before conclusion of sales contract and what's the difference between the Spanish estate right and the German right?
Before you make a written or verbal agreement (also verbal agreements can be valid according to the Spanish estate right) ensure yourself of the object taken into consideration, especially of following subjects/ informations:
a) charges, b) quality of building land, c) development schemes of community, d) existing rent- or lease contracts, e) debts of tax for which the real estate is responsible, f) possibly existing delays of shares within the comunity.

03. Question: Why often so called form contracts are applicable when purchasing a Spanish estate?
Since in general you conclude private written contracts before the actual notary sales contrat of estate (= Escritura) by which the contract partners buyer and seller agree to a " deal for obligation and fulfillment" mostly so called form contracts are applicable. It's true that these are easy to fill in but often are only well-meant for the contract partner who drafted the form. Balanced individual contracts are causing, however, often headache. Insisting on individual agreements can admittedly influence the mood in the contract negotiations and change mostly the result efficiently.

04. Question: Which further contract components besides the usual sales contract contents should be recorded in the private written contract?
Be sure that you get confirmed in writing even apparently unimportant assurements and obvious things which are taken as a matter of course through your contract partner. Furthermore, you also should always define in the contract which right is to be applicable. When making arrangements of means you should act as per motto: "trust is good - safety better" and check which guarantees are offered through the contract partner for fulfillment of the contract contents even if also legal steps should have to be taken.

05. Question: Which subjects should you especially take into consideration when for instance purchasing a site?
When purchasing a site you should pay attention that it has the minimum size for a later construction.

06. Question: Why it is generally recommended to have a competent consultant?
For all deals with sites and especially in difficult subject questions (purchase by auction) you should always engage a competent consultant (a well-known and competent real estate agency , lawyer etc.) since his fees ( from abt. 600 Euro resp. up to 1 % of the purchase price as rough idea) is often only just a small part of a damage which possibly might occur.

07. Question: Why should the buyer insist on an immediate conclusion of the notary sales contract?
The buyer should insist on immediate conclusion of the notary sales contract and registration as owner in the land register even if instalment-payments have been agreed upon so that no further rights of third parties can be registered in between.

08. Question: What has to be considered when purchasing a new building estate which is not yet ready built when signing the sales contract?
If an object is purchased which is still being built and not yet ready built and if in this connection the usual purchase price instalments are agreed upon the seller (Promotor) has to give to the buyer as guarantee of effected instalments the prove of payment guarantee resp. a bank guarantee.

09. Question: What makes a good real estate partner resp. consultant and why his engagement is recommended?
Whith the choice of an experienced and reliable consultant you will enjoy your purchase right from the beginning. He should be a real local consultantto show you quite a godd selection in objects and to assist you to get acquainted with the surrounding.

10. Question: Which object documents and informations should be looked in and checked up?
After selection of an object you should have a look in the following object documents: a) IBI = yearly payable property tax. From this you can see the land register value of the estate on which are basing further tax. b) land register = registro de la propiedad in the land registry (here all estates are registered by the Escritura Publica), available for everybody and from which you can find out among others the actual property conditions and name of the owner. Here additionally all mortgages and other claims have to be registered. Only there you can see whether the estate is clear. You should never buy an estate unless having checked an actual copy of the Nota Simple (= copy of land register), c) community of proprietors = the urbanisation or the apartment building will be administrated by the legally stipulated and registered Comunidad. When looking at the last receipt covering the monthly or yearly payable Cuota de Comunidad (= dues of community/public housing allowance) you will see how much you actually have to pay. Get a copy of the statutes and a record of the latest meeting as ferom this eventual problems are resulting such as lack of water, claims in construction, forthcoming bigger investments orthelike. Furthermore you can learn by this your rights and duties as a joint owner.

11. Question: What about the tax and fees when purchasing a plot in Spain and who bears which fees and expenses?
You can calculate with approx. Plus/minus 10 % of the contract value for tasx, fees and additional costs as rough idea. Notary fees are fixed legally, have to be paid from the buyer and are amounting to at least 300 Euro, registration fees for the property transfer are amounting between 120 to 300 Euro and will be paid from the buyer, the land acquisitation tax amounts to 6 % of the contract value for second hand estates resp. 7 % value added tax (=IVA) for the purchase of a new building from the promotor and has also to be paid from the buyer. The consultant has to ask for the increase-in-value-tax in individual cases in the town hall and it will be calculated out of differece amount between sales price less former purchase price = increase in value (=Plusvalor). It has to be paid the seller. The seller also bears the estate agent fees (approx. 5 % of contract value for the engaged agent through him.

12. Question: How to find the ideal real estate consultant?
We, Joyespaña Inmobiliaria S.L., recommend ourselves as your personal consultant due to following reasons: a) we know the Costa del Sol since many years and in those dys had the same questions ( who is a good consultant, what have I to do, is it working well, who guarantees a good success of my investment, is it a reasonable price, who takes care for the so called "after-sales-service" such as legal and fiscal consultation and assistance, insurance, administration, who looks for a house-maid, a good school for the children, who takes care for my house (property) during my absence, who reconstructs my object in case of need, who looks for the gardener or poolboy etc.), therefore your requests, requirements,. Questions etc. are well-known to us. b) We are living with our families since years on the COSTA DEL SOL and are doing different busine for many years with success, such as in the promotor-, real estate-, consulting- and trading-range, c) We will successfully consult you, will have "Time for you, your family and requests" any day and time since also your reference is very important for us! d) we are cooperating only with first-class addresses and give just the best service to our clients.

13. Question: What's the difference in purchasing a real estate in Germany to Spain?
a. A purchase of a property will already be effected through a private written contract with handing over the keys or the notarial certificate (escritura).In Germany you get owner just by registrationin the land register.
b. The registration in the land register is not necessaryly stipulated in Spain, however, very important since others could purchase the plotcredulously. As per German right this registration is urgent and essential.
c. In Spain your registration remark and your right o obtain a property will be secured by an asiento de presentacion between notarial contract and registration in the land register taking into consideration of certain periods of time.
d. Without certification in the land register you will not be owner in Germany. In Spain you will not get any securityfor your real estate property without registration without registration in the land register.
e. The notary is acting in Spain just on demand if there should be a request about the land register situation before signing the contract as well as an information to the land register as the certification with notice of non-negotiability is concerned. A notary is acting like this automatically in Germany.
f. Before certification the German notary automatically looks into the land register. In Spain the notary is not obliged to do so. Everybody can get here a nota simple (information about plot) from the land registry.
g. The Spanish communities levy an increase-in value-tax which has to be paid as per law from the seller. In Germany there is not existing such a tax. All further tax when purchasing a real estate are at least similar in both countries.
h. The seller has to keep back in Spain 5 % of the purchase price if he sells to a non-resident who can get back the amount when he files a tax return. In Germany the seller is not liable for any tax owings of the buyer.
i. A particular acceptance declaration for an inheritance is not required in Germany. The legal situation in Spain requires the acceptance of the inheritance (aceptación de la herencia) before the sale of an inherited plot.
j. Every representative wgo can present a notarial power of attorney is able to purchase a plot in Germany. In Spain there is the same proceeding, however, you need additionally an official translation and the international apostilla.

14. Question: How about the actual demand and why to ned a consultant?
In Spain there is presently an incredible boom and many Europeans are presently active with requirements on the real estate market. Nevertheless it must be clear to interested purchases that abroad there are besides the other language also other laws and customs. Who, however, is active on the market with a good agent with know-how and his contacts ( such as interpreter, lawyer and tax consultant, architekt and engeneer, etc.) will eliminate all risks.
Lawyers and notaries: The buyer should not save on the wrong side. It's true that a legal consultation causes low additional costs, gives, however, the necessary legal- and consulting security to the buyer. We have best contacts to the relevant lawyers with different native languages (German, English, Spanish, Dutch, French etc.) who all are members in the Spanish Chamber of Attorney and thus are offering the relevant service to our clients to get translated and explained all contracts in their mother tongue. In contrary to other countries notaries in Spain are not obliged to check the contracts but just have the duty with look at land register. It is important that the rights of the purchase will immediately be registered after the Escritura (= notarial certification of the private written real estate sales contract) in the land register. The notary has to be encouraged to register immediately the effectuation of the sales contract of plot in the land register and the resulting owner rights for the buyer. This especially refers to a purchase of plot as the buyer otherwise runs the risk not to be owner of building - at eventually agreed promotor measurements.

15. Question: Which advise could you give me for the construction of a building (technical/heating)?
Today's standard should always be the installation of a central heating resp. at least the necessary pre-installation and a good warming insolation, the planning of a storage room, installation of insolated glas windows (generally of synthetics resp. aluminium due to weather, in special cases even wooden windows), installation of solar cells, low energy systems etc.) In order to calculate just the net living area you should generally deduct from the Spanish measure 30 % of the mostly stated constructed size.

16. Question: Which specialities are occuring to the agent/consultant and who pays the courtage.
In Spain meanwhile there is existing the so called liberty of profession in the real estate business i.e. here everybody is allowed to arrange real estates. The agent courtage recommended from the chamber of commerce is generally 5 % of the purchase price volume - up to 10 % is normal - which has in general to be paid from the buyer.

17. Question: Who arranges valuations/estimations and what about the costs in general?
They are recommendable and are amounting in general up to 1 % of the estimation value depending on the object size and can be executed through size experts or even agents. If financing (=mortgages) the valuation in general will be effected through an expert of a bank.

18. Question: To what do you have to pay attention when purchasing a new building with regard to contract arrangement, bank-guarantee etc.?
When purchasing serious promotor objects , individual and detailed construction plans with fixed date of termination , penalty for delay of time, fixed total price and cpl. Construction description are today's standard. In general the promotor gives a corresponding bank-guarantee of a first-class bank for each payment of purchase. The purchaser as client should in any case take into consideration an insurance ( similar to liability insurance for building and client in Germany).

19. Question: Which tax are due for the buyer/seller?
From each real estate business the Spanish government claims tax - a short record of tax which are due for buyer and/or seller when purchasing an estate.
(ITP) Land acquisition tax:
It's due for all second hand deals and has to be paid from buyer. The property will be transferred in the land register only if it has also been paid. Basis of the calculation is the sales price of plot stated in the Escritura resp. private contract.
(IVA) Sales tax:
Instead of land acquisitation tax the sales tax is due always if purchased from a promotor who is obliged to pay value added tax (in Germany for new buildings, first transfer of chalets, apartments, villas etc.), is amounting to 7 % of the purchase price and has to be paid from the buyer. When selling shops in general the sales tax is also due and amounts to 16 %
(Plusvalia) Increase in value tax:
It's also called increase in value tax for land and has to be paid from the seller on the value increase of the plot (building and other construction will not be valuated) during his possession-time. The hight of tax refers to the land registervalue of the estate in the relation of the ownership-time of the seller and amounts to approx. 16 - 30 % of the evaluated increase in value. Generally approx. 5 % of the agreed purchase price will be kept back on a notary trust account until final determination - buyer and seller are commonly respnsible for the payment.
Speculation tax, retention of income tax: Buyers of real estates should ask their consultant if they should have to pay 5 % as retention of the income tax or not - if purchasing a real estate from a non-resident seller he should therefore be very careful. Non-resident sellers have to pay tax on the profit out of the sale (= difference between purchase- and sales price as per escritura details) with estimated 35 %. Residents, however, just pay 18 % if they have owned the estate at least one year before sale. A tax-free sale is always possible if the sales object has been owned to the seller already at the qualifying date per 31.12.1996 for 10 years. A resident with first domiciliation in Spain has further advantages if he reinvests the sales price in a housing within Spain . by this the sales profit is tax-free. A tax consultant will explain you all details.

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