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Make sure that the Community fees are paid at the time of the purchase of a property in Spain

Spanish community of ownersThis is a relevant matter, as you could be in a situation where you have acquired a property, free of charges and encumbrances, but you have to settle the community fees of a property which are due prior to your acquisition of the same.

Spanish law on community fees

This matter is regulated by the Spanish Law 49/1960, of 21st July, of Horizontal Division, but it has recently been modified by  First Final Provision of the Law 8/2013, of 26th June, of Rehabilitation, Regeneration and Urban Renewal, in force since the 28th June 2013.

By virtue of this amendment, the credit in favour of the Community of Owners corresponding to quotas for the year in progress and the previous three years, has got a preferred character for the purposes of article 1923 of the Spanish Civil Code.

This means that, in the case of existence of debts of Community fees prior to the purchase and therefore corresponding to the vendor, the proportional part of the annuity in course and the three preceding years may be claimed to you, as a new owner of the property.

Who is liable to outstanding Spanish community fees?

Donation in Spain

donation in SpainThe English speaking Spanish lawyers and tax advisers of our law firm in Marbella, Málaga, Spain are highly skilled at providing you with additional information on Donations in Spain,  “donación in España.”

The Spanish donation is regulated in our Civil Code, in Article 618, which states that the donation is an act of liberality whereby a person gives something free of charge to another person, who accepts it.

What is an Donation in Spain.

This means that it is a generous act; an asset is given without waiting for a reward, is free of charge, and must be accepted by the recipient.

 

Reimbursement of the VAT paid outside of Spain

BTW in SpanjeDid you know that you could get the refund in Spain of the Value Added Tax that you paid on invoices issued by other companies situated in the European Union and outside of Spain?

The tax advisors of the team of Arcos & Lamers Asociados, accountants and lawyers in Marbella, Málaga, Spain are pleased to inform you about the general aspects you need to take into account when requesting the refund of the VAT paid abroad to the Spanish tax office.

Remember that you cannot deduct this VAT from your tax returns you file in Spain. You must request the refund by means of Spanish tax form number 360 together with a copy of the invoices that proof you paid the VAT abroad. The form 360 will be used by businessmen and professionals who request the refund of the sums paid in the European Union for the purchase or import of goods or services.

Declaration of New Building in Spain

THE CONTENTS OF YOUR PURCHASE SALE TITLE DEED IN SPAIN

If you own a plot of land in Spain and wish to build a Villa on the same, you may ask yourself what are the necessary legal requirements, in order to legalise the property, which has just been built or is being built.

There is a Spanish legal act by which we can declare the construction of a building (or its improvements or extensions) by granting a Spanish “New Building Title Deed”.

You should register this Title Deed at the Land Registry in Spain, in order to bring the physical reality to the registry books. Basically, to provide a legal frame work of legality to the new construction.

How obtain a Nie Certificate in Spain

EMIGRATION TO SPAINThe Nie certificate is a Spanish Fiscal Identification number for non Spanish nationals (“Real Decreto 557/2011, de 20 de abril, por el que se aprueba el Reglamento de la Ley Orgánica 4/2000, sobre derechos y libertades de los extranjeros en España y su integración social”). This certification does not show or proof whether you are Spanish tax resident or non Tax Resident in Spain and is only a number that identifies you as an individual in front of National, regional or local Spanish Inland Revenue. It will be requested when:

  • By opening a Spanish bank account
  • Buying a property in Spain

3 – Granting of Mortgage in Spain

  • Buying a car in Spain, among others.

They are three ways you can obtain your Nie Certificate.

  • Spanish Embassy in your home country.
  • Personally
  • Through Arcos & Lamers Asociados your accountant and lawyer in Spain.

 

What are the benefits if you request your Nie Certificate by Arcos & Lamers Asociados?

Capital gain tax in Spain arising from the sale of a property by a non resident

Capital gain tax in SpainIn the event that you are non resident in Spain and you are going to proceed with the sale of your property, you should take into account that, in the event that there is a gain, this income is taxable at a rate of 21%.

The capital gain amount is calculated on the difference between the sale value, which is the sale price less costs and taxes paid as vendor, and the acquisition value, being the purchase price paid when the property was acquired plus taxes and disbursements settled as purchaser.

Presently, there is a coefficient applicable per Law to update the acquisition value but, it is expected, that the mentioned coefficient is removed for owners who sell property of a certain value in the year 2015.

Acquisition and rental of a property in Andalucía: Information to be provided to the purchaser

lawyer in SpainWhen you approach a real estate agent for the purchase of a home in Spain, the agent offering the sale or the rental must have an “Abbreviated Information Document” (Documento Informativo Abreviado), which must be freely delivered to any individual consumer seeking information about the Spanish property.

In Andalucía, in cases of second and subsequent transmissions of property, the offer, promotion and advertising for sale or for renting properties will contain among other details, the following information:

 

Interview with Wim Lamers, founder of the Arcos & Lamers Asociados law firm in Spain

DUTCHMAN IN SPAIN, SPANIARD IN HOLLAND

 

The Dutch have traditionally tried their luck abroad. This has made “The Netherlands” both greater and smaller at one and the same time: adventurers who travelled the seven seas in search of trade and other activities. Even to this day, our compatriots remain entrepreneurs throughout the world. We have an example in Marbella, on the sunny Costa del Sol in Spain. You can find every kind of business sector in this city, from water sports and hotel and catering to real estate and the health and fitness industry. And also companies specialising accountancy affairs and legal and tax matters. A fine example is Wim Lamers, co-founder and co-owner of Arcos & Lamers Asociados.

Legal, tax  and accountancy areas.

Expenses arising when setting up a mortgage for a property in Spain

mortgage in MarbellaIf you have decided to apply for a mortgage in Spain for the purchase of your home in Spain, you should keep in mind that in addition to the costs related to the loan that you will pay to the Credit Institution (bank), you will also have to settle the costs of formalizing the loan, the payment of taxes and the registration of the mortgage in the corresponding Land Registry.

Condition mortgage in Spain

The Bank should inform you of the following conditions of the loan, as well as of the costs mentioned below:

 

Community of owners in Spain, Frequently asked questions

 Spanish community of ownersThe rights and duties of the owners in a community in Spain is regulated by Spanish Law 49/1960 of 21 July, reviewed and in force since 28th June  2013.

We include in this article usual questions related to Community of Owners in Spain.

Can I carry out works on my property?

Article 7 of the aforementioned Law states that the owner of each apartment or premises can modify architectural elements, facilities or services of the building when not impairing or alter the safety of the building, its overall structure, its configuration or external appearance, or prejudice the rights of other owners, and must previously give information of such works to the one who represents the community.

Do I have to pay the debt of the previous owner?