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Why choose Andalucia Realty

Andalucia Realty is a leading real estate agency in Marbella that places at your disposal the knowledge and experience acquired over 20 years of working in the property market of Marbella, Estepona and Benahavis.

We are proud members of AIPP: Association of International Property Professionals, RAIC: Red de Asesores Inmobiliarios Qualificados y AEGI: Asociación Empresarial de Gestión Inmobiliaria and are also certified Real Estate Brokers of two major Spanish banks

We only list quality properties that are in good condition, offer good value for money and are free of legal problems. Additionnaly, we have access to most properties on the market through our extensive network of agents and we will thouroughly search them to make sure we find you the property that perfectly matches your requirements.

We will take good care of you throughout the entire process, from making your initial travel plans to viewing your property, through to completing the sale and beyond, making sure you are very well assisted at all times.

Our experienced, multi-lingual staff are at your complete disposal.

Recent Updates:

IVA (VAT) and ITP in Spain: When do I have to pay it?

IVA (VAT) and ITP in Spain: When do I have to pay it?

It does not matter if you have just started looking for your ideal home or if you have been already searching for a while; most surely the terms “ITP or IVA” had pop out while looking to Property portals or real estate agencies , but what is IVA and what is ITP? And in which case applies each one?

Buying a property in Spain has different costs and expenses depending on which type of property you are buying, your personal conditions (age, legal status, nationality…) and even on which autonomous community you are thinking to buy.

As this might be very complicated at the begining for most of buyers, we are going to explain the two most important taxes that applies to all properties:

  • IVA (or VAT in English) is a tax charged on most goods and services in Spain. The full rate and the most common one is 21%. However, on property sales it is reduced to 10%, only lands for property developments are charged at 21%, therefore be aware of which kind of property you want to buy and its taxation.
  • ITP is a tax depending on the autonomous community. Is considered a transfer tax that in Andalucia is rated as following:

The main difference among these two taxes is that IVA (or VAT) is only charged to new property sales, while when buying a second-hand home you must pay ITP, which will be calculated depending on the community (Notice it is an accumulative tax).

Our aim is to make the process of buying a property in Spain as simple as possible for our clients, that’s why we will advise you through all steps of the purchase.  The agency has the duty of informing the client with all these details, that must be resume in a document called DIA (compulsory in Andalucia).

You can know more about the documents needed to buy a property in Spain and about ITP in Andalucia, and other taxes and useful advices in our Real Estate Blog.

How to choose the perfect Holiday Home for you? | Andalucia Realty

How to choose the perfect Holiday Home for you? | Andalucia Realty

We have gathered the main concerns of our clients to create this useful guide to help you choose the perfect holiday home and buy a property that fulfill all your needs.

1- Location:

It might be very obvious, but location is one of the most important factors to consider when buying a property.

Think what is the most important thing for you about the location: Close to the golf?, close to shops?, or at walking distance to the beach?, do you need to be close to the old town?, do you want pubs and discos around or do you prefer a quiet location?… Write them down!

Is better for you to come and explore the area prior to start looking for a property. If you  are still not sure, a local sales agency will always be of help! We know all the areas, and will find the best one for your needs.

2- Budget:

Yes, we all want a property next to the beach, a 5 minute walk to the Golf, and in the best area of the city with pool, brand new and stunning views. Despite our wishes, not all of us can afford that. Therefore a good option to start looking will be setting a budget.

On this point you have to consider how much will be the maximum budget and if it includes taxes and other costs. It might be the time to start ranking the priorities, what is really something that you wish your property to have? for example, if it is being close to the beach, start thinking how far are you willing to accept as a maximum?

3- Space:

Think if the property will be only for you, or will also family or friends come to visit?, in that case you might want to consider their needs in terms of space.

If you like to be surrounded by your beloved ones check if there enough space to accommodate unexpected visitors as friends or family, or do you prefer a cozy home just for you with low maintenance?

4- Potential:

Even though you are buying a holiday home for you, think about the potential this property might have in case you would like to rent it in the future, or even in the seasons you are not in the city!

You can also be thinking in a holiday home that will become permanent eventually (eg: after retirement), would you sell this and look for another residence to become your main home, or do you prefer just to do one investment and keep this holiday home to become permanent someday?

5- Legal Requirements

It is always useful to have legal requirements in your mind when you are thinking of buying a property.

If you would like us to help you find the perfect holiday home, don’t hesitate to contact us!, just tell us your needs and let us do the work!

The 5-step guide for buying a property in Spain with full guarantees.

The 5-step guide for buying a property in Spain with full guarantees.

When buying your property, there are a series of steps which will enable you to make your purchase with full guarantees.

If you decide to select us as your agents in the process of buying a property, we will take care of every single step so it is just for you to choose your dream home property in the Costa del Sol.

There are documents that certify that a house is completely legal in Spain, as the first occupancy licence or the property registration certificate, that you shoud have before purchasing a property. Once you have those documents you must continue with the following steps:

1- Check the legal position of the property by contacting the Property Registry

The Property Registry is a state body and the Registrars are civil servants who provide you with verbal information free of charge and who have the power to issue certificates concerning the legal position of the property.

Every property we advertise in our webpage and portals have an updated simple note that proves all the data we have is correct. The simple note is a document detailing a brief description of the property, its position, surface area, the amount under common ownership in an apartment property, the administrative system that may affect it (e.g. whether it is subsidised housing); any existing mortgages on the property, when they are due to expire and capital, interest and costs.

2- Study the existing mortgage charges

In addition to the legal requirements, it is important to pay attention to whether the property you are going to acquire has a mortgage (if this is the case, it will appear in the Property Register). If so, we recommend that you:

  • Ask the vendor for a bank certificate with the outstanding amount to be paid.
  • Negotiate a better interest rate with the bank. You are not obliged to assume the mortgage loan contracted by the vendor under the same conditions; rather you may demand its cancellation or obtain a new loan with another institution.

We will advise you if the property has a mortgage. Most of properties with it have the mortgage cancelled by the moment of the purchase, having no cost for the buyer.

3- Go to a notary to carry out the purchase and sale

Notaries are also independent public officers who have the authority to attest documents and who are obliged to counsel parties at the time of the sale, informing them about the law that applies to them. Furthermore, they are in charge of drawing up the contract in accordance with the parties’ wishes and adjusting it to the law. The contract takes the form of a public deed.

The public deed is essential in order to register the sale in the Property Register and to benefit from the security it gives you, as explained in point 5.

Before he or she authorises the sale, the Notary shall request a non-certified extract from the Property Register. You may therefore review the legal status of the property again at this point.

In Spain, the Notary acts at the time of the sale, but he or she may also advise you in advance, just as lawyers and agents do in your country of origin.

4- Make sure you pay the corresponding sales taxes

Purchasing and selling property in Spain implies payment of certain taxes:

When buying a new property, you must pay VAT to the vendor.

When buying a used property, you must pay the Tax on Capital Transfers through one of the banks recognised by the Government.

In both cases, if you buy via a mortgage you must pay the Tax on Documented Legal Acts to a Tax Authority account through the collaborating banks.

5- Register as owner of the property in the Property Register

Once the sale has been carried out and the taxes have been paid, go to the Property Register corresponding to the property’s location to register it. Registration is not an obligation, but if a purchaser does so he or she shall be fully protected as the proprietor:

What appears in the Register is presumed to be true and can only be modified by a judge.

Nobody may dispute your right regarding the property that has still not appeared in the Register at the time of carrying out the sale and if someone wishes to register a document he or she may only do so with your consent or by legal procedure to which he or she has been party.

You shall be protected against the vendor’s creditors and against any charges that may occur which have not been entered in the Register. You shall be protected even if a judge were to decide that the contract through which the person who sold you the property originally acquired it is void, for reasons that do not appear in the Register.

In Andalucia realty we know that buying a property is a very important step and a happy moment that can involve a lot of time and resources. For buyers wanting to avoid any future problems and unnecessary complications, our company has already check every detail of each property we advertise, making sure all is up to date and according to the law.

Therefore if you are looking to buy a property in the Costa del Sol, we will gladly advise you and assist you through all the process.

This document is an extract of the text Safely Purhasing a House in Spain, available in the webpage of the Ministery of Public Works Transport and Housing of Spain.

Why is a Licence of First Occupation Needed in Spain? | Andalucia Realty

Why is a Licence of First Occupation Needed in Spain? | Andalucia Realty

The Licence of First Occupation (LFO) is important for purchasing a property in spain for two reasons:

  1. Its granting means the developer has built the dwelling complying fully with the original Town Hall’s Building Licence (BL) as well as complying with all Planning laws. The inspection to grant this Licence is carried out by Town Hall’s chartered technicians who certify that the dwelling complies fully with Health, Access, Security, Planning and Construction Laws and is deemed as apt for human habitation.
  2. It is also required by the property’s owner to have access to the official utilities (water, electricity, gas and telecommunications). Spanish law requires the granting of the LFO to hook up the dwelling to the supply grid. Although in some parts of Spain there have been cases of supply companies waiving this and connecting you without the said licence. In such cases the only requirement was showing the application of having requested the LFO from the Town Hall.

Banks normally require the LFO before they consider granting a mortgage loan against the property. The only exception would be the developer’s bank which has already underwritten the whole development and is able to offer a mortgage loan without it because they are eager to spread the developer’s default risk. Also, taking on the mortgage offered by the developer’s bank has many advantages as it reduces the legal set-up expenses borne by the prospective purchaser.

What are the Associated Problems of Completing on a Property without a LFO?

Although it is legal to complete in such a case, it has numerous legal and practical drawbacks which ought to be highlighted by your lawyer to aid you in making an informed decision. To name a few:

  • Primarily, you will not be able to take out a mortgage on the property or remortgage it – if needed be- by any bank other than the developer’s.
  • You will not be able to benefit from the official utility supplies; only from the developer’s supplies (water and electricity) with all the associated problems this has, namely that you may be cut off at any time as it is the developer who is paying for it and if they go into receivership you will be shut off. Besides, the site supply electricity doesn’t have the same strength and power surges are fairly common on simultaneously turning on various electrical appliances such as air conditioning.
  • Any future prospective purchaser, or their lawyer, will haggle with you and only pay a lower purchase price if you lack a LFO in a newly built resale. In a resale, the purchasers in turn will undergo the same problems to secure finance by means of a mortgage loan. A lack of a LFO implies that you are actually reducing the base of potential purchasers for your resale.
  • If there are planning issues, the Town Hall can set a charge against the property and you as the new owner of an off-plan –and not the developer- may be held liable to pay the fine for the planning illegality.
  • Needless to say, you cannot let a property legally without a LFO.

In Andalucia Realty, we do an exhaustive Due to Diligence, making sure every property complies with the law and has all the documentation required to carry on the sales process. Therefore our clients can be sure that buying a property in the Costa del Sol is a safe transaction with us.

Documents needed before buying a property

Documents needed before buying a property

Together with the Association of Spanish Property and Commercial Registrars, the Ministry of Public Works, Transport and Housing has drawn up a brief, simple guide outlining the different steps and recommendations that a private purchaser should follow when buying a house in Spain.

It aims to help private purchasers make informed decisions. Within the Spanish legal system there are a series of documents that certify that a house is completely legal. All of them are needed before purchasing a property.

If  you are looking to buy a property in the Costa del sol, in Andalucia Realty we make sure all the properties advertised in our web are legal and the owners are asked to deliver these documents prior to advertise with our company. We take care of all these documents and processes, so it is just for you to decide the date of the purchase.

These documents are:

  • A construction permit and certificate from a competent expert verifying that the building matches both the license granted by the town council and the project it approved.
  • A first occupancy license, a habitability certificate and other administrative authorizations that establish that the dwelling is legally habitable. Find out more about the License of First Ocupation.
  • Documents signed by the utilities supplying the essential services (electricity, water, gas and telephone).
  • The entry of the building in the Property Register (just for new buildings), together with insurance cover against hidden defects or flaws in the construction, as established by law.
  • A Property Registration Certificate setting forth the legal situation of the building.
  • The Owners Association Statutes (or inscription in the Property Register of the deeds of any new, finished and horizontally-divided building).

We also recommend:

  • In the case of new constructions, for buyers to ask the developer for: a Certificate from the Commercial Registry accrediting the legal existence of the company, details of its registration, the administrators and/or their representatives, the company’s registered office, its fiscal identity number, confirmation that bankruptcy proceedings have not been registered, and a declaration that there are no claims, lawsuits or any other contingencies that might affect the development
  • In the case of housing that is not newly built, ask for last year’s property tax receipt, a certificate signed by the president of the Owners Association and endorsed by the building’s secretary stating that the property you are buying is up-to-date with all payments, as well as a formal confirmation and a public document stating that the property is not subject to any rental contracts.

Once this documentation has been checked we recommend you to read our 5-step Guide for buying a property in Spain with Full Guarantees, to continue through the process.

In Andalucia realty we know that buying a property is a very important step and a happy moment that can involve a lot of time and resources. For buyers wanting to avoid any future problems and unnecessary complications, our company has already check every detail of each property we advertise, making sure all is up to date and according to the law.

Therefore if you are looking to buy a property in the Costa del Sol, we will gladly advise you and assist you through all the process.

This document is an extract of the text safely purhasing a house in spain, available in the webpage of the Ministery of Public Works Transport and Housing of Spain.

 

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