Why buy a property in Spain?
Spain is a fantastic country to visit and live in. There are numerous cities of considerable size, offering all the services you need plus a fantastic diversity regarding nature, culture, music, gastronomy, wines, activities, etc.
The property prices have drop down between 20 and 40 % in most areas from 2.008 to 2.012 so it is the time to buy now!
What are the benefits of buying a Marbella property?
Within all the options in Spain, Marbella is simply THE PLACE TO BE for many reasons out of which we highlight:
- Business wise, when buying a property in Marbella, you are buying a brand which is well known and respected worldwide and which keeps safer the value of your property.
- Weather: yearly average 20º Celsius and 325 days of beautiful sunshine.
- Strategic location: Marbella is located on the south coast of Spain, in the province of Malaga. From Marbella you get easy access to two international airports in Malaga and Gibraltar, high speed train in Malaga, highways and motorways connecting to historic cities of Cordoba, Seville and Granada within 2 hours drive or to some amazing villages like Ronda, Jerez and Antequera.
- Multicultural: Marbella hosts more than 120 different nationalities.
- Beach, light and nature: these are the first things you will see notice when coming to Marbella. Living in Marbella means living surrounded by subtropical gardens nearly everywhere you go, having the beach almost at hand at any time and being illuminated by the sunlight most days of the year.
- Services and activities: in Marbella there are many different types of restaurants and bars, hotels, sports clubs, golf courses, yachting, sailing, kite surfing, cicling, mountain biking, hiking, shops and boutiques and a beautiful historic town.
What is the property purchase process?
Once you have found the property you like, the basic purchase process in Marbella is:
- Reserve the property. Normally a Reservation Contract” and deposit payment is required in order to “block” the property out of the market. The deposit is to be paid into the seller's agency account. Once this is done, within 10 to 20 days all documents need to be prepared for the Private Purchase Contract. (mortgage, lawyer, notary, etc).
- Private Purchase Contract. This will be signed by the buyer and the seller, detailing the purchase conditions and completing payment of 10% of the purchase price. (deposit amount plus remaining amount to complete 10% of the purchase price). In this contract, all the details of the purchase should be explained, including a fixed or approximate date to do the Property Registration, normally about 4 weeks later.
- Property Registration. This takes place at the selected Notary office who certifies the property is being sold correctly and legally. All due payments take place at this moment.
How can I get my NIE?
The NIE is not a residency permit.
The NIE is the “Nonresident identification Number”. This is a unique personal number which is provided by the “Oficina de Extranjeros” (nonresidents office). This number will be needed and shown in all official documents of yours.
Your NIE will be required when opening a bank account, buying a property, a car, setting up a business, do your tax declaration, etc.
The documents you need to present to obtain your NIE are:
- Official demanding form.
- Original Identity Card or Passport plus copy.
- Carnet size picture with white background.
- Reason/s why you require a NIE number (documentation to be provided)
This process normally takes from 1 to 5 weeks and the document is to be picked up personally.
What are the final payments?
Before going to the Notary and register the property officially, the following costs and taxes should apply:
Registration fees: normally 0.2 % ,or even less, of the value declared in the deed.
Notary fees: normally do not exceed 0.3% of the value declared in the deed.
- Estate Transfer Tax (ITP), 8%, 9% or 10%.
Buyer pays for it provided the vendor is not a developer or normally trading in the business of resale properties. If the “minimum fiscal value” of the property, as per the Regional Government, is greater than the price, then the minimum fiscal valuation applies: 8% is applicable up to the amount of 400,000€ or 30,000€ in the case of garages except those belonging to the dwelling and with a maximum of two; 9% is applicable to the amount between 400,000€ and 700,000€ or between 30,000€ and 50,000€ for garages; 10% is applicable to the amount exceeding 700,000€ or 50,000€ for garages.
- I.V.A. 10% Stamp Duty 1,2%. For any town, apartment or garage attached to a home, where the vendor is a promoter or habitual trader of brand new properties (first transmission).
- I.V.A. 21% Stamp Duty 1.2%. To land, commercial premises or garages not attached to a dwelling, provided that the vendor is a sponsor and/or habitual trader of such properties.
- Capital Gains Tax (Plusvalia). This is a municipal tax paid each time you transfer the ownership of a real estate (house, parking, retail, plot, etc). The actual tax is applied on the increase of the field value from the purchasing to the selling dates. This tax is paid by the seller of the property, except if agreed differently under the terms of the transaction.
Attorney's fees. Contracting a lawyer is not compulsory but it is recommendable. Its fees normally do not exceed 1% of the purchase value.
What is the Energy Efficiency Certification?
Depending on the Directive 2010/31/EU of the European Parliament and of the Council of May 19, 2010, with respect to the energy certification of buildings, the Royal Decree 235/2013 in the Spanish context, by which incorporates the basic procedure for certification of energy efficiency of existing buildings.
This Royal Decree establishes the obligation to make available to the buyers or users of buildings energy performance certificate which must include factual information about the energy efficiency of a building or property, (energy demand or consumption) as well as values reference, such as minimum energy requirements in order that the owners or tenants of the building or house, to compare and assess their energy efficiency.
This document is issued by a certifying containing technical information on current energy characteristics of each property and the energy efficiency of a building or unit thereof, calculated according to the calculation method defined by the Ministries of Industry, Energy and Tourism and Development.
The aim of this Royal Decree, is to optimize the energy resources used today, adapting housing and routing it to become more energy efficient through improvement options in both its thermal envelope, such as adequacy of facilities, while pursues the use of renewable energy, replacing those that increase CO2 emissions to the atmosphere, and thus contributing to a reduction in climate change.