Monday, October 24, 2011

How to invest in real estate in Spain

Any kind of property in Spain should be registered in Reglstro de Propiedad (Register property), where you can get full information about who owns the property, what is its exact price, the exact area, as well as the presence of a possible debt the owner. At the owner's name is made the main official document called Escritura Publica, which is then assigned its own registration number, number, volume and page to enter her in the Register. If necessary, the buyer can take advantage of a bank loan Sell a property under the laws of Spain, is entitled only to the owner or a person designated by them and having, respectively, of a notarized power of attorney. As a rule, entrusted to sell the agency, in this case, the agency must be licensed. Each company or agency also has its Eskrituru whose data is stored in the register of property in Spain, where you can put it on the certificate. If you suddenly have a question about the lack of confidence, in which case you will receive a document called a Nota Simple Informatlva (Nota Simple Information). If the owner or the owner of several married, according to the requirements of the Civil Code of Spain in the sale must be present and consent of all owners or a notarized power of attorney from them. After you select a suitable property and a decision on its purchase is a private contract of sale, in which, inter alia, specifies the conditions and method of payment. When signing the contract, as accepted, the buyer pays 10% of property value, thereby reserving the property for themselves. After the conclusion of contract, the buyer must contact your local police so-called N. I. E. (Foreigner identification number), then to properly process the deal with the notary. Further, during the month is made the chief official document of sale - Escritura Publica or simply "Eskritura." The remaining amount of money paid at the signing Eskritury, then you become the rightful owner. And there are different payment terms, for example, you can get a loan, as a rule, he is 50, 60, a maximum of 70% of the purchase price for non-residents of Spain. All this is stipulated in the contract before signing it. Eskritura signed by buyer and seller in a notary's office in the presence of Spanish notary. In Eskrituru on request may be made not only the name of one owner, but also his whole family. After the signing procedure can only register your property in the property register in Spain. The registration process usually takes about three months. The costs associated with the acquisition of real estate. First of all, I must say that there is some difference in the costs associated with buying a new property and the secondary. Speaking of running costs should also mention another important point. In Spain, widely practiced as follows: in Eskriture officially declared value underestimated by 10 - 20% of real estate prices. This is done in order to reduce operating costs and taxes associated with the purchase. But to do this is undesirable, since it can later be legal problems in case of resale. Total cost of buying property * notary fees (Notario) - paid for by a special scale, progressive, depending on the value of the property. For example, when buying a property tax a little more in case of registration of the mortgage. * Registration fees (Registro) in the property register in Spain - are paid when you make your name and property data in the register as a new owner. This amount is also determined by a special scale, depending on the purchase price, in the case of the same sample from 50,000 to 100,000 euros, it ranges from 120 to 180 euros - the cost of paperwork (Gestoria). If you hire the services of private counsel, that his service will cost around 850 euros. When purchasing a new property in addition to the above mentioned shall be paid the following taxes: * Value Added Tax (Impuesto sobre Valor Anadido, abbreviated I. V. A.). This tax is for apartments and houses 7%, and commercial facilities designed for private production and undeveloped land - 16% of the value specified in Eskriture. Paid to the municipal offices to receive taxes. * Tax on documented legal acts (Actos Juridicos Documentados. Abbreviated A. J. D.), Up 0.5% of the value specified in Eskriture. When purchasing real estate, second hand, that is, from "second hand" levied the following taxes: * the transfer tax (Impuesto de Transmlsiones Patrimoniales, abbreviated I. TR), 7% of the value declared in Eskriture and paid to the Council Economics and Finance of Spain. * Tax Plus Valia. This city, which is based on a formal assessment of growth in the value of real estate at the time of sale. This tax must pay the owner of the property, that is, the seller, but in practice, taxes are usually paid by the buyer. The exact value of tax points to the local municipality, the amount of which is affected by age and number of years of real estate ownership of real estate the last of its owner. In total, all costs of making the purchase without a mortgage up about 9% of the value of real estate, mortgage loan, these costs increased to about 12%. Real estate purchase process when buying property in Spain, operates conventional design process of sale: 1. Buyer opens an account with one of the Spanish banks in his name shall be made or to transfer money. 2. When you choose a property, the private reservation contract drawn up in triplicate between buyer and seller of real estate, at the signing by the buyer paid about 10-20% of the value of real estate as collateral for a means of check, certified bank. The contract is in full force and status. The object is removed from sale. Property value is fixed for that day. By the value of the object should always add about 9% on the cost of registration of real estate (notary fees, property register, VAT). 3. If necessary, the buyer can take advantage of bank loans (from 50% to 80% of the cost). In this case, is an independent assessment of the property, after which the bank within 15 days decide on the amount of credit for many years and by what percentage (usually for foreign nationals to quickly resolve the issue limit: up to 25 years, up to 60% in the case of secondary the market). 4. After signing a private contract (mortgage) - You have 60 days to complete processing of the acquired real estate in notary offices (the signing of the deed authenticated by a notary - "Escritura"). Client on the basis of the preliminary contract, you must obtain an alien identification number to the police. 5. At the time of signing the deed at the notary you pay the difference in value, you buy a property cashier's check (in case you receive a bank loan, it is exercised by a representative of the bank, who will be present at the signing at the notary deed). Costs of real estate * real estate tax (ITP) = 7% * Notary fees = 0.3 ... 0.5% * Register Property = 0.5 ... 0.8% * Open a bank loan = 1 ... 1 , 5%, * Insurance for an apartment (in the case of bank credit) = 150 ... 200 EURO. The above expenses are paid by bank check addressed to the appropriate agencies. If you receive a bank loan, these payments shall bank representative, in advance reserving fund in your account. 6. Following the signing of the notarial purchase contract (Escritura), you get the keys, a notarized copy of the contract. Original "eskritury" sent to the property registry (Registro propiedad), where for 20-30 days is the state registration. Based on "eskritury" your property, and extracts from the register of ownership, you can get into the Spanish embassy in Moscow one year Schengen visa (this procedure is made within 10 days). Additional costs associated with buying property in Spain when buying property in Spain you have to rely on additional costs, which account for 10-13% of property value and consist of: * IVA (Impuesto sobre el Valor Anadido) - a tax that is paid once when buying a new property and consists of 7% of the inventory value of the property or; * ITP (Impuesto de Transmisiones Patrimoniales) - tax when buying a property second-hand, which as well as the IVA is paid once and is composed of 7% of the inventory value of the property * o Rates for notary services for the design of the so-called "escritura" buy / sell is usually from 300 to 600 euros; * Registro de Propiedad - register the purchased property in the register of the Municipality depends on the value of the property, but is generally about 300 euros in the area of ​​Torrevieja, for example, * The contract for the connection of electricity and water - about 420 euros * The amount of insurance depends on the value of property; What taxes must be paid when buying property in Spain for those who are not residents. The cost of maintaining property - Annual costs * Impuesto Sobre Bienes Inmuebles - IBI council tax, which is paid once a year, in August or September (persons who are residents and non-residents). Tax rate depends on the area and is calculated on the cadastral value of real estate. For example, in Torrevieja, this tax amounts to 0.8% of the cadastral value of real estate * Impuesto Extraordinario Sobre el Patrimonio is paid once a year in December - a tax on the availability of existing assets: house, car, bank account. Example: 0 to 167,129 euros tax is 0.2% .0 This means that you will pay 200 euros per year if the value of your property € 100,000 * Declaracion de la renta - a proposed tax on income from property rental - 0 5% of the cadastral value of B Spanish utilities are paid, as elsewhere, on the counter. In a month, if not to save for a house will come 100-150 euros - if the whole day in a microwave oven pies and at the same time to wallow in the bath. At the apartment - much less: 40-50 euros. Communal pool and garden will cost 400-800 euros per year, an individual gardener will go to you as needed for about 150-180 euros per month. In this utility will be automatically debited from your bank account, "fastened" to the contract. If the money in the account will not - the bank will pay out of their means, but it will cost you a loan at a relatively significant percentage of the credit. Bank and mortgage to a bank account in Spain, the passport is required. You should also sign the forms, which must include your address and phone number. Must also make a contribution in a short time (one month) to your account to activate it. The mortgage. To do this, you must provide the following documents: 1. A copy of your annual income declaration or similar document that confirms your cash revenue 2. The last three copies of your monthly salary / pension, or a copy of your bank account 3. A copy of your passport These documents are assessed along with information about the property (price and location). After that, the bank gives you the supporting response. If necessary, we can provide you calculate the monthly payment, the cost of mortgages, the annual interest, etc. See the example below: Price 200,000 euros loan rate 50%; full amount zaema100.000 euros. Estimated monthly payment: The payment term 15 years - 720 euro, 10 years old - 1,000 euros. Please remember that the mortgage is usually given in the last 50% of property value. The normal term of the mortgage from 10 to 20 years (it depends on the age of the client). Visa regime to enter the country needed a Schengen visa which is valid in all participating countries. The Schengen area includes the territories of European countries - participants of the Schengen agreement. This - Spain, Portugal, Germany, France, the Netherlands, Belgium, Luxembourg, Italy, Greece, Austria, Denmark, Iceland, Norway, Finland and Sweden. Before you arrange a visa to Spain you may be required to show proof of your ability to pay for your stay in the chosen country, itinerary or hotel reservation, return tickets and letters of recommendation. You can not ask for more than two visas in any 12-month period, and are not renewable in Spain. Less of a problem to obtain a visa couples have filed the European Union (EU), and their children. There are also various options for transit visas. Possible design of a residence permit. However, the residence again, not a nationality. Become a citizen you can, after ten years of residence (date of multivisa not included). The question of obtaining a residence permit is a major, if you purchase a property in order to stay in Spain. With the acquisition of real estate it is not directly related, but we also assist customers who have purchased our property. There are several official ways of addressing this issue. After receiving eskritury, which logs all family members, including minor family members, you can arrange multivisa, which is issued for three months and may be extended for another three. - One of the most popular to date methods of obtaining permits is doing business. If you open a company and provide jobs to citizens of Spain (2-3 jobs), we can obtain a residence permit. It will be quite tedious and not quick, but the results can be achieved. - Retired after purchasing property in Spain may stay and apply for registration of permanent residence. - By a job in the Spanish company. There are 3 types of residence permits: 1. ENTRY - a minimum of 3 months up to 2 years. 2. NORMAL - maximum of 5 years only for those who have resided legally and continuously in Spain for more than 2 years old 3. SPECIAL - maximum 10 years for special occasions, such as, seniors, people born in Spain or are married to Spaniards or with dependent relatives of Spanish nationality. Documents are available in person alien to the office for foreigners in those provinces where it exists, or the Central Office of the Commissioner of Police, where the alien or the nearest office of the Civil Police (Article 17.3). You can also provide the Embassy or Consulate of Spain in the country, where the person concerned. There are differences in the above paragraphs when purchasing different types of real estate, for example, buying office - is not the same thing as buying an apartment or a cottage, not a new house or a prestigious area away from the sea, up to 200,000 euros or more in a prestigious new home a gorgeous view.

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