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Old Oct 25th 2017, 10:27 pm   #16
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Default Re: How to purchase a home in Spain - Advice required

Knowingly buying an illegal house anywhere is at best madness, especially when there's plenty of legal ones elsewhere.
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Old Oct 26th 2017, 8:14 am   #17
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Default Re: How to purchase a home in Spain - Advice required

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Originally Posted by Aitor12 View Post
Hello, the most important thing when buying a home is good advice, if the real estate agent does not speak English better, let him or her get confused, the first thing is to get an English speaking lawyer in Spain. the second is to choose the house, either through your agency or another, the lawyer will give you the necessary instructions and the following steps like creating a bank account and what kind to make checks etc, the lawyer will review the cadastre and that all this to the order of the day, they will try to negotiate the price and soon they will stay in notary to sign arras or direct writing, it is better to sign arras first.
I absolutely disagree - better to get an interpreter to go with you.

Pay for the abogados legal skills and not his language skills - horses for courses!
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Old Oct 31st 2017, 6:34 pm   #18
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Default Re: How to purchase a home in Spain - Advice required

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So you are going to buy a house in Spain pre Brexit and when Spain is on the brink of civil unrest?
What I find even more alarming is the 15% purchase costs (tax and legal fees, etc.). Given the state of the Spanish property market, anyone deciding to sell up for any reason at a later date could show a significant loss unless their is an increase in prices.
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Old Oct 31st 2017, 7:11 pm   #19
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Default Re: How to purchase a home in Spain - Advice required

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What I find even more alarming is the 15% purchase costs (tax and legal fees, etc.). Given the state of the Spanish property market, anyone deciding to sell up for any reason at a later date could show a significant loss unless their is an increase in prices.
Isn't it just the same in UK with lawyer fees, stamp duty etc.?
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Old Nov 1st 2017, 8:21 am   #20
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Default Re: How to purchase a home in Spain - Advice required

It's the tax that is higher for most people. In the UK there is no tax to pay up to £125k and then it is incremental up to 12% for properties over £1.5 million (less the £125k).
eg A £250k property in the UK will attract tax at 2% less £125K, amounting to £2.5K.

With buying and selling costs combined it works out at around 20% in Spain so it is important that any property purchase is researched fully. An expensive mistake otherwise.
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Old Nov 1st 2017, 2:25 pm   #21
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Default Re: How to purchase a home in Spain - Advice required

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It's the tax that is higher for most people. In the UK there is no tax to pay up to £125k and then it is incremental up to 12% for properties over £1.5 million (less the £125k).
eg A £250k property in the UK will attract tax at 2% less £125K, amounting to £2.5K.

With buying and selling costs combined it works out at around 20% in Spain so it is important that any property purchase is researched fully. An expensive mistake otherwise.
It certainly makes a good case for newcomers to Spain to rent for a while before buying.
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Old Nov 1st 2017, 2:43 pm   #22
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Default Re: How to purchase a home in Spain - Advice required

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So you are going to buy a house in Spain pre Brexit and when Spain is on the brink of civil unrest?
Sounds like the ideal time to invest then.
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Old Nov 1st 2017, 2:51 pm   #23
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Default Re: How to purchase a home in Spain - Advice required

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Originally Posted by johnnyone View Post
It's the tax that is higher for most people. In the UK there is no tax to pay up to £125k and then it is incremental up to 12% for properties over £1.5 million (less the £125k).
eg A £250k property in the UK will attract tax at 2% less £125K, amounting to £2.5K.

With buying and selling costs combined it works out at around 20% in Spain so it is important that any property purchase is researched fully. An expensive mistake otherwise.
I think your 20% figure is a bit "Over the top" - normal is in the range 12% maybe 15%. Our property came out at 9,8% as the Transmission Tax used to be 7% with additional costs of Lawyer, Notary, Gestoria and Registro.
The Transmission tax varies from region to region but most now charge 10% and now in Andalucia is between 8% - 10%. New builds pay VAT .
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Old Nov 1st 2017, 3:07 pm   #24
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Default Re: How to purchase a home in Spain - Advice required

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I think your 20% figure is a bit "Over the top" - normal is in the range 12% maybe 15%. Our property came out at 9,8% as the Transmission Tax used to be 7% with additional costs of Lawyer, Notary, Gestoria and Registro.
The Transmission tax varies from region to region but most now charge 10% and now in Andalucia is between 8% - 10%. New builds pay VAT .
You're right and like anywhere use common sense. You have to look at the whole cost and not just the purchase tax. You can often use the high purchase costs as a reason to push the actual price down.
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Old Nov 1st 2017, 7:07 pm   #25
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Default Re: How to purchase a home in Spain - Advice required

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Originally Posted by Loafing Along View Post
I think your 20% figure is a bit "Over the top" - normal is in the range 12% maybe 15%. Our property came out at 9,8% as the Transmission Tax used to be 7% with additional costs of Lawyer, Notary, Gestoria and Registro.
The Transmission tax varies from region to region but most now charge 10% and now in Andalucia is between 8% - 10%. New builds pay VAT .
I was referring to the combined cost of buying and then selling.
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Old Nov 1st 2017, 7:43 pm   #26
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Default Re: How to purchase a home in Spain - Advice required

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I was referring to the combined cost of buying and then selling.
Sorry misread OK if you add agent's fee on sale.
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Old Nov 1st 2017, 7:48 pm   #27
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Default Re: How to purchase a home in Spain - Advice required

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Sounds like the ideal time to invest then.
I think you mean gamble not invest
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Old Nov 1st 2017, 8:40 pm   #28
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Default Re: How to purchase a home in Spain - Advice required

No brainer, Brexit, 'Rights of UK citizens in EU', Exchange rate, some Britons moving back to the UK, Spains current issues, Healthcare, etc etc. Rent first, let things stabilise and buy in an area you like when all this cr** is over. Just too many unknowns at this time, honestly. A 'punt' now could turn into a nightmare. We are settled here, so riding it out, but with no serious 'side' issues going on. Come over, Rent, keep your head down!
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Old Nov 1st 2017, 9:35 pm   #29
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Default Re: How to purchase a home in Spain - Advice required

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No brainer, Brexit, 'Rights of UK citizens in EU', Exchange rate, some Britons moving back to the UK, Spains current issues, Healthcare, etc etc. Rent first, let things stabilise and buy in an area you like when all this cr** is over. Just too many unknowns at this time, honestly. A 'punt' now could turn into a nightmare. We are settled here, so riding it out, but with no serious 'side' issues going on. Come over, Rent, keep your head down!
A common sense post
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