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.
If you want to know how to open a bank account in Spain, but you are not a citizen of the European Union or you don’t have a residence permit in Spain. This is your post.
One of the main questions our foreign clients ask when buying a home in Spain is how to proceed when opening a bank account. It is essential to know what are the necessary documents and formalities to be able to open an account in one of the main Banks in Spain.
When a foreigner wishes to open a new bank account in Spain, a distinction must be made between two groups: Residents and Non-residents.
Non-residents must present a series of documents certifying their employment status, their habitual residence and their identity.
Specifically, the following documents are obligatory when opening an account in Spain for non-residents:
– NIF (for EU residents), or Passport
– Non-Resident Certification (Certificado de No residente in Spanish)
The certificate of Non-resident is an official document that must be requested at a Police Station, or at the consulate of your country. It takes approximately 10 to 12 days and only a passport is required for the application. Some banks can offer to get this document for you against the payment of a fee.
Depending on the bank, they may request a series of documents in addition to those described above:
– Letter of recommendation from the corresponding bank in your country.
– Payroll or certificate of employment status
– Document to verify your address (recent bank statement, or bill for direct debit service dated no more than 3 months)
– Proof of income
Note that in order for the documents to be acceptable, they must be translated into Spanish by a sworn official translator (traductor Jurado).
If you are planning on Selling your property in Marbella or anywhere in Spain, you will have to assume a series of expenses and certain taxes. One of the taxes that charges the selling of a property in Spain is the Plusvalía. But what is it?
There are thousands of articles about how much will the buyer pay for the purchase of a property in Spain (aprox. 10% of the property price). However, it is not so common to talk about the costs incurred by the seller of the property.
Doesn’t matter if you are selling an apartment, a townhouse or a luxury villa, the selling of a property also involves costs and taxes that you must take into account when setting the price of your property in order to avoid unpleasant surprises.
Broadly speaking, the person who sells his or her home must pay the capital gain tax, the plusvalía, notary fees and the cancellation of the mortgage -if there was any-.
The plusvalía is a local tax charged by the townhall on the increase in the value of the property when it is sold. The reason beneath this tax is the increase of the property value due to the improvements done in the area by the local government.
When a property is sold, the Seller must pay the plusvalía. Buyer and seller may reach an agreement for the buyer to pay it, however the administration will always demand it from the person selling the property.
But pay close attention! If the seller resides abroad, the buyer of the house must pay this tax. In addition, if it were not a sale, but a gift or donation, it would be the recipient of the property who should assume the payment of this tax.
This tax must be paid within 30 working days of the sale of the property (six months in case of inheritance), and you must go to the townhall of the city in which the house is located.
Yes, in some cases there are ways to pay less plusvalía or even not to pay it at all. This tax has some excemptions and bonuses, although its application depends on each city council.
The transfer of real estates within the historical – artistic perimeter of a municipality are exempt, as well as the properties declared as Cultural Interests, but only if their owners made the rehabilitation or improvement of the house, and not the townhall.
There are some exemptions in the payment of the plusvalia tax in Spain, namely when the property ownership is being transferred between spouses or in favor of a child to comply with sentences of separation or divorce.
Some city councils such as the Madrid one, also apply bonuses between 15% and 95% if the transfer of the property ownership is due to death.
If you want to know more about taxes when selling your property, advice on how to sell your property in Marbella or the Costa del Sol or would like us to give you more information on any matter related to this issue, don’t hesitate to contact us!
Knowing how to set the right sales price for your home is one of the most important factors to sell it quickly and with profits.
We all want to earn money from the sale of our house, however we must keep in mind that even though it might be the perfect house for us, an objective and reasonable price must be set to attract potential buyers.
To set the price of your property in Spain correctly, you should take into account at least the following variables:
The prices fluctuate depending on the areas of the city they are in. Even from one street to the next!
The services, the state of the surrounding houses, the status of the neighbourhood and the development have a great influence on the average price per m2 of each area. For example, in Marbella, the average price of a house in Las Brisas (Nueva Andalucía), ranges between 3.700 – 4.000€ per M2, while in the area of La Campana (Nueva Andalucía), it is around 2.000-2.500€ /m2.
– Market demand
For a first aproximation, you can use the prices of property portals such as Idealista or Fotocasa as a reference. It should be borne in mind that these properties will not be exactly as the home to be valued, and that there is a difference, sometimes quite substantial, between the price announced on these portals and the actual price for which the transaction was signed.
In Andalucia Realty we also have access to information from the last sales records made in the previous 6 months, so we can make a much more comprehensive valuation of your property.
Reviewing the turnover of properties in the area of our property should also be a factor to consider. In other words, in order to calculate how long it will take for the property to be sold, it may be useful to look at the first posted date of similar ads in these portals.
– The state of the property and the community:
Each house is different and therefore will need a different valuation. Two houses, even if they are in the same building and within the same floor, may have very different prices. Some of the reasons could be views, conservation status or orientation.
This also applies to the community. If the house is in a condominium, the condition of the building and the services available will also affect its price. Caution! High community fees can also delay the sale of a house.
The way to present a home is very important. If the house is old, it is advisable to invest a little in small improvements such as painting to be able to get more money from the house. If you want to learn more about how to sell your property faster, check out this article on Home Staging and how to impress the customer on the first visit.
To summarize, the most important factors that affect when setting the price of your home for sale are:
– Year of construction
– Appraised value
– Neighboring homes for sale
– The views
-Reforms or improvements made to the dwelling
-State of conservation (would you need reforms, or is it ready to “come to live”?)
-Distribution (e.g. bathrooms en-suite, many corridors or “lost” space? Terraces?
-Furniture (included or not?)
– State of the community
– Neighborhood level (Is it a popular area? Luxury?)
– Services and accessibility of the area
– Presentation of the home (Home staging)
– Supply and demand in the area
– Annexes (garage, storerooms?)
Once all the above factors have been studied, an estimated valuation of the selling price can be given. Only an expert real estate agent will be able to provide you with a correct market value, as he has data and tools that are not available to all individuals. At Andalucia Realty we offer you a complete report with a free professional valuation of your property. If you decide to sell your house in Marbella, Estepona or Benahavis, contact us!
If you want to know more about selling your property in Marbella, Estepona or the Costa del Sol in general we recommend that you take a look at other post such as How much is paid to the tax office for the sale of a flat?
If you are tax based in Spain, the profit obtained by the sale of a property constitutes an income subject to the payment of the Capital Gain Tax (IRPF in Spanish). This increase in an individual’s wealth can be taxed up to 23%, or in certain cases even be exempt. But how does the tax office calculate the profit obtained when selling a property in Spain? How much is paid to the tax office for the sale of a flat? What do we have to take into account? What if you are a non resident, will you have to pay for selling a property in Spain? In this post we are going to give answers to all these questions for both, residents and Non residents in Spain:
If you are a Non Residents in Spain:
If you are a Non Residents in Spain (but resident in EU country), you will have to pay 19% on the profit. However it is important to know that even if you are making no profit at all, and due to you being a Non Resident, the buyer of your property will be obliged to retain 3% of the sale price on account of your possible tax liability. Of course, if you have no tax liability at all because you are losing money with the sale, or your liability if less than the 3% retained, you will be entitled to a total or partial tax rebate, depending on the case.
If you are a resident in spain:
If you are a resident in spain The tax office takes as profit, the amount of money obtained by calculating the difference between the transfer value and the acquisition value.
The acquisition value must include all the expenses and taxes paid for the purchase of the property. Expenses such as notaries, administration offices, municipal taxes, etc., must be taken into account. Any type of interest paid on the purchase, such as mortgages or other loans, should not be included in this amount.
This information is found in the deed of sale of the property. It must detail the amount for which the home was acquired. In addition, you must have a copy of the notary and management costs that caused the purchase of it.
If the property had been bought before 2014, the acquisition value must be increased in accordance with the following table:
Source: Spanish Tax Agency.
The transfer value is calculated as the amount for which the property is sold, subtracting all the expenses and taxes that the buyer payed. In this case, the Plusvalía (municipal tax) is added as an expense borne by the buyer, as well as notary or management fees.
Maria bought a second hand home in Marbella in 2012 for a registered amount of €200,000. She had expenses of 380€ in agency, 740€ of notary, 450€ of Registry and 16.000€ of “Autoliquidación of Taxes” (Tax of patrimonial transmissions or Impuesto de transmisiones patrimoniales model 600).
For the calculation of the Purchase Value we add to the deeded amount all the expenses caused by the purchase of the property (without interest). In this case it would be:
200.000€ + 380 + 740+ 450 + 16000 = 217.570€
As the house was also purchased before 2014, according to the table above, the value should be increased as follows:
217.570€ * 1.0201 = 221.943,16€
The Acquisition Value of this property would be 221,943.16€.
In 2018 she sold the property for € 280,000, having to pay a municipal tax (Plusvalía) of 5,760€. (Simulation of a house in Marbella)
The transfer value is calculated as the amount received for the sale of the property less all costs arising therefrom that are borne by the buyer. In this example:
Transfer Value: 280.000€ – 5.760€ = 274.240€.
The profit from the sale is the difference between the transfer value and the acquisition value.
Profit: € 274,240 – € 221,943.16 = € 52,296.84
Once the profit has been obtained, the CGT can be calculated on that profit.
In the case of the sale of a home, the tax brackets are 19% for the first €6,000 earned as a benefit of the sale, 21% from €6,000 to €50,000 and 23% from €50,000.
If we continue with the previous example:
(6.000 x 0.19) + (46.296, 84 x 0.21) = 1.140€ + 9.722,33€ = 10.862,33€.
So, following the example, Maria should pay to the Treasury € 10,862.33 in her annual income tax declaration.
There are cases in which the Transfer Value is higher than the Acquisition Value, so a loss is generated. In these situations where there are losses, the tax is not due.
Other circumstances in which the payment of the tax on the profit from the sale is exempt is if it is reinvested in the purchase or improvement of the main residence. (For residents in Spain)
Do you want to sell your house in Marbella? At Andalucia Realty we manage the sale of your home, also carrying out a market study to assess its competitiveness. As a sign of our confidence that we can sell your property, we offer you an investment valued at more than 2300€ in marketing for your property: professional photos, promotion in the first places on the web, virtual video…
NOTE: The new mortgage law of 2019, changes some of this costs. Check new information here.
In addition to the price of the property, there are some additional expenses to pay in each autonomous community. But what are the expenses involved when buying a house in Andalusia?
This autonomous community attracts both the foreign and national public. The wide variety of landscapes: from mountains and snow, to sun and white sandy beaches, makes Andalusia one of the most famous areas of Spain to buy a second home or a place of rest and retirement.
Buying a property in Spain is an important outlay for most families, who want to know as precisely as possible how much they will be paying for the new home. In this post we clarify all the expenses related to the purchase of a property in Andalucia.
The prices advertised in portals, real estate websites and in general in any media, are always exempt from taxes and other expenses, unless otherwise specified. Therefore the selling price should not be confused with the total amount to be paid by the buyer.
The rest of the expenses will be proportional to the sale price, that is to say, the higher the price, the greater the amount to be paid for these taxes and expenses.
Depending on whether you buy a new home or a second-hand property, VAT or ITP would be paid respectively. The VAT on real estate (except for development plots) is 10%. The Transfer Tax or ITP is between 8% and 10%. For more information on how to calculate the ITP you can check our blog, and if you still want to know more about VAT and ITP, click on the link above.
This tax will be paid if a mortgage is requested for the purchase of the house. In Andalucia the AJD tax is 1.5% of the mortgage loan applied for, but there are two cases of reduced rates:
– 0.3% for people under 35 years old
– 0.1% for persons with disabilities equal to or greater than 33%.
Important note: This tax has been modified and must now be paid by banks, so it will not affect the consumer. The expenses derived from the application and formalization of the Mortgage are not contemplated in this entry (opening commission, study, appraisal etc.), and should be contemplated being able to be between 1% or 3% of the amount requested.
For any type of transaction of purchase and sale of a property, it is necessary to go to a notary’s office in which the Public Deed of Purchase and Sale will be signed. These services have an established fixed cost, which can range from €600 to €1000. It depends on the number of pages of the document and the complexity of the transaction.
Once the deed has been signed, it must be registered in the Land Registry, which can range between 300€ and 2000€ depending on the price of the property.
It is usual that in purchase of a property for an external agent to be in charge of the bureaucracy relative to the payments of taxes, inscriptions in the registry and payment to the notary.
If you apply for a mortgage loan for the purchase, the bank will offer you its own agency to take care of these formalities. You can also look at one of your choice, or even entrust these formalities to the Notary’s office by depositing a Provision of Funds.
These procedures usually involve a cost of between 200€ and 500€, but may vary as it is a private service and there are not fixed prices.
A PRACTICAL EXAMPLE OF HOW TO CALCULATE EXPENSES WHEN BUYING A HOME IN ANDALUSIA:
If you buy a second hand home in Marbella without mortgage, for a price of €250,000 the costs to be paid will be as follows:
A fairly close approximation is usually to calculate between 8% or 10% of the purchase price as expenses.