Tuesday, February 27, 2007

Why so many foreign people buy properties on Costa Blanca

Whilst other people choose to go on vacation there, many German people enjoy Spain to such an extent, they choose to stay. According to various surveys, a third of German people long for a better quality of life in a place with better weather than their homeland. Consequently, living in Spain is a popular dream.
 
The German magazine „Spiegel“ estimates that about 280000 German immigrants live on the Spanish mainland, 180000 on the Balearic Islands and 70.000 on the Canary Islands. For many people, though the dream of buying their own “place in the sun” will forever remain just that, a dream. However in recent years an increasing number of people have been able to turn that dream into a reality. Tempted by the long hours of sunshine and the leisurely and relaxed way of life, many have chosen the Costa Blanca area as their dream destination. In fact the Costa Blanca is an ideal location for a holiday home or even for permanent relocation. With its cultural richness, its excellent climate, low rainfall, fantastic hot sunny summers and easy access to major airports and motorways the Costa Blanca is an ideal place to live. Also the beaches and mountains of the regions are a delight for everyone.
 
You should have a good idea of what type of property you want to buy, where the property should be and how much money you want to spend. The decision to buy property in Spain is something very personal and depends on several factors. It is very important to be conscious about what you search and how you want to achieve it. A little planning in advance will give you a clearer idea of what you want and will facilitate the searching process.
 
Although the price of property along the Costa Blanca has risen dramatically over recent years, it now seems to have stabilised somewhat and certainly in the resale sector of the market there are some wonderful offers to be found.
 
Costa Blanca`s prices are cheaper than those on the Costa del Sol. In Costa Blanca´s South there is a lot of property available for under 150.000 €. With Capital Gains Tax (Kapitalerstragssteuer) set to drop in Spain from January 2007 for non-residents (from 35% to 18%) there should be extra profits to be made.
 
All in all, if you are thinking of buying an apartment on the Costa Blanca this may be the perfect time to take a look and maybe get your foot on the bottom rung of the Spanish property ladder.
 
With the help of the right real estate company, you will be able to sort out all your problems you are facing closing real estate deals overseas (language barriers, difficulties to find information on the properties available for purchase, poor access to real estate market tendencies, etc.) and accelerate the closing of the transaction. By delivering efficient, specialized services, overseas real estate companies can help you find the Spanish property you are looking for and that best fits your needs and requirements, accelerating a series of processes and looking after things in your place.

Posted by Properties Costa Blanca at 4:09:05 PM in Properties Costa Blanca (8) | Comments (0)

Hiring a car in spain

Requirements
 
The minimum age for renting a car in Spain is 21, although this might vary by car category. Persons who want to rent a car also must have their license for at least one year. It often happens that drivers under 25 have to pay a young driver surcharge, but this depends on the company.
 
The Spanish roads
 
Spain’s highways are called “autopistas” and most of them are toll roads. The speed limit on this kind of roads is 74mph/120kmh. On the open roads the limit is 55mph/90kmh and in the city it is 31mph or 50kmh.
 
Parking zones are indicated by the sign “Zona azul” or blue zone. In this area you can park for 2 hours with a parking disc. When the side of the pavement is painted yellow, this indicated that parking is restricted. Parking discs are available in most bog hotels and in town halls, but most of the time you will find one in the car you rent.
 
Insurance for rented cars
 
Insurance is extremely important when renting a vehicle. Of course this might differ from one company to another.
 
In Spain car rentals are required to have fire insurance and third party liability insurance coverage. Fire insurance generally provides an unlimited amount of coverage if the rental vehicle is damaged because of a fire. Third party liability provides and unlimited amount of coverage to people and property outside the rental vehicle that may be damaged or injured because of the rental vehicle

Some forms of optional coverage are available at most rental companies: collision damage waiver (CDW), theft protection, personal accident insurance and super CDW.
CDW and theft in most cases will have a deductible that you are still responsible for in the event of an accident or theft. Super CDW will reduce the amount of the deductible you are responsible for, but not all companies offer this. Personal accident insurance is offered locally and will provide death and disability coverage to the driver and passengers.

More Spanish property
 

Posted by Properties Costa Blanca at 3:50:33 PM in Properties Costa Blanca (8) | Comments (0)

Thursday, January 04, 2007

More information

Posted by Properties Costa Blanca at 1:19:04 PM in Properties Costa Blanca (8) | Comments (0)

Assigment of rights and contract of purchasing a real estate

In the context of property transactions it is very often that a purchaser of a real estate under construction wants to sell the rights and contract through an assignment contract to a third party before completion.
 
Which are Tax implications?
 
Firstly, we have to quote article 7.1 of the Ley del Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentales (upwards LITPAJD), says that will be subject transmission of ownership when are made onerous transmission by inter vivos acts regarding any asset and right incorporated on the assets of the individuals or companies.
 
This kind of transmission where is conveyanced a right and contract to a third party will be considered and subject as a “Transmisión Patrimonial” (ITP), being the subject party the purchaser/assignee of the right. Taxable income of the Tax will be the real value of the property which rights are being assigned, and the results will be 7% of that value.
 
This is very important, as normally assigner party and assignee party just determine the value on their own autonomy, which normally is the same amount that the assigner has paid at that time to the Builder/assigned. So if the Building works has a higher value than the assignment contract Tax Institutions could revise the amount paid to the legal one. This point has been confirmed by the Dirección General de Tributos on a binding enquiry made on March 23th 2005, adding the any payment left to Tax Institution by the assignee party also, will be responsible the Builder to pay.
 
This is why it is always recommendable to promoters/Builders to be sure that this Tax has been done and paid correctly according of what it has been said, as they could be responsible in solidum, through article 42 of Ley General Tributaria.
 
Secondly, please find which will be taxes for parties involved:
 
Taxes for the assigner party: Capital Gains. Whatever he receives more than he paid will be subject.
Taxes for the assignee party: 7% ITP of the real value of the property at the time of signing the private contract.
 
How do I have to do this?
 
It is always recommendable in order to protect rights of the assigner and assignee parties, to bind the agreement through a private contract. After this agreement is signed:
  1. Will have to be paid 7% ITP. The assignee party will have 30 working days to pay this tax in the Bank and registry the contract in the Oficina Liquidadora at the Land Registry Office.
  2. Assigned party which normally is a promoter/Builder will have to be informed about this change of purchaser. Will have to receive correctly the contract and the Taxes paid (copy). This is recommendable to do it through a reliable way in order to be irrefutable the notification.
Pedro Heredia Ortiz
pheredia-ortiz@icali.es
HEREDIA ABOGADOS
Phone: +34 966 351 999
Fax: +34 966 351999
Mobile: +34 660336045
Reyes Católicos 26, 3º pta. 2, 03003 Alicante (Alicante)
www.herediabogados.com


Posted by Properties Costa Blanca at 1:19:04 PM in Properties Costa Blanca (8) | Comments (0)

Friday, October 20, 2006

Buying a house in Spain

The recent BIG TIME real estate scandal in Marbella (read more: http://news.bbc.co.uk/2/hi/europe/4864566.stm ), where bribes seemed to be the norm and construction activity didn’t care much about legislation on what soil should have which destination (http://www.buypropertyspain.info/spanish_property_guide/land_sale.aspx). The result is that houses have been build on agricultural land and even on land destined to be natural preservation parks. Considering the risk that houses will need to be torn down, absolute caution is recommended.

Buying a costa blanca villa still very popular with foreigners. At the same time, with all the stories about what can go wrong, it is recommendable to do some reading first. The information provided in www.PropertiesCostaBlanca.org is a must read =for free= for all those that consider buying a villa at the Costa Blanca”.

Investing a small amount of money, you could also consider to buy the book: “You and the Law in Spain” by David Searl, one of the most popular books on the subject (now in its 12th edition).

The increased aging of the Northern European population has led to a constant demand for “a place in the sun”. Where an apartment in London of 100 square meters would costs you 425.000 euros, 3 bedroom villas in Spain can still be obtained for 200.000 euros. Not surprisingly many brits either emigrate or take a mortgage on their house in the Uk, to finance their second home in Spain.

The real estate business in Spain (traditionally one of the engines of the Spanish economy) is slowing down a little (15% growth in 2004, against 10% in 2005) although growth for this industry is still bigger than the growth of the Spanish gross domestic production (3,7%).

During the last decade, the prices Spanish real estate prices have sky-rocketed. Between 1987 and 2004, prices have increased with 400%. In 2005 prices went up 10% and now in 2006 7,9%. Of course, this increase still beats inflation (now standing at 4.2%)

So, whilst there are enough places under the sun left in Spain, one DOES need to make sure to get professional advice prior to signing any real estate purchase.

Posted by Properties Costa Blanca at 3:10:23 PM in Properties Costa Blanca (8) | Comments (1)

Thursday, October 05, 2006

Costa Blanca Villa

Costa Blanca Villa: Spanish luxury villa for sale in Costa Blanca

Posted by Properties Costa Blanca at 2:04:03 PM in Properties Costa Blanca (8) | Comments (0)

Friday, September 01, 2006

More information

Posted by Properties Costa Blanca at 10:10:11 AM in Properties Costa Blanca (8) | Comments (0)

Thursday, August 31, 2006

Properties Costa Blanca

Properties Costa Blanca

Posted by Properties Costa Blanca at 1:52:04 PM in Properties Costa Blanca (8) | Comments (0)