Helpful information and details for buying a new build villa or a re-sale property in Spain. Practical Tips Building Off-Plan We strive to keep these pages and information as up to date as possible. This is not always possible, especially now that governments are constantly changing regulations and laws. Before using our tips, make sure that the information is still valid and fits in the context. Call or e-mail us for any specific questions you may have. Why new build? You are more likely to have a buyer at resale. Newer properties sell quicker than older properties. You are assured of a perfectly situated plot of land which is in a location of your choice. You can be confident that you will have access to professional guidance throughout the whole process. You are assured of top quality construction, workmanship and materials from start to finish. You will have an energy-efficient property with an extremely low EPC rating. You are assured of appreciation in value of your property by using the most modern construction techniques and materials. You have the experience and knowledge of a specialist in property development in the Costa Blanca. There are no unpleasant surprises as is often the case with older houses, we guarantee all our work. You can choose the finishing touches, inside and out, such as wall tiles, flooring, kitchen design and bathroom design. At Mycostablancavilla you are a very important client and also an ambassador for our work. We do not invest in expensive advertising campaigns but in quality and knowledge through which our ambassadors spontaneously advertise. We are with you every step of the way We try to document everything as much as possible on our website and keep things up to date. Photos and videos give good visual information, but in our view it is still necessary to come and visit us in Spain. Allow at least 3 full days for your visit with us, less time is too intensive. Together we will visit different plots of ground within your budget. We also visit showrooms to see the materials used and get to know your personal style requirements. We will visit one of our current projects which is under construction or one of our villas which is already inhabited. We will go over the administrative matters and important aspects and answer any questions that you may have. Mycostablancavilla distinguishes itself from the rest by providing that extra personal service for our clients every step of the way. How much does it cost to buy a property in Spain? 'Transfer tax' (ITP) Impuesto de Transmisiones Patrimonials When buying an 'EXISTING' property in Spain, (also known as 're-sale' property), the transfer tax is a part of the 'buyers' costs. It is based on the 'declared value' of the property. Each autonomous region in Spain sets its own transfer tax rate. For properties located in the Murcia region, the transfer tax rate is 8% of the declared value of the property. For properties in the Andalusian region and with a price of up to €400.000 the transfer tax rate is 8% of the declared value of the property . Higher value properties are taxed at a higher rate. For properties located in the Valencian region, the transfer tax rate is 10% of the declared value of the property. A good rule of thumb to help calculate your budget when buying a property is to allow at least 15% on top of the asking price. This should cover all the taxes and expenses that you must pay – even the solicitor´s fees. 'VAT/Sales tax' (IVA) Impuesto sobre el Valor Añadido When buying a ‘NEW-BUILD’ or 'OFF-PLAN' property in Spain, the VAT/Sales tax is a part of the 'buyers’ costs. A 'new-build' is a property that is being sold for the first time. You’d normally buy this kind of property from a developer or a bank. For New-Build or Off-Plan purchases, the VAT element will be payable to the developer and will form part of the purchase price itself. It will appear in the purchase contract, so you will be aware of it from the outset. The amount of VAT/Sales tax is fixed at 10% of the purchase price of the property. 'Stamp duty' (AJD) Actos Juridicos Documentados AJD is only payable on 'land' and 'new' property sales and is part of the 'buyers' costs. This tax is in addition to the above VAT/Sales tax and is calculated at a rate of: 1.5% of the declared value for properties located in the Valencian & Andalusian regions. 2% of the declared value for properties located in Murcia Community. ‘Notary fees’ These are between 0.6% and 1%. Please note, however, that a notary in Spain does not carry out checks of the property that you purchase as you are used to in your country, for example, whether the property has an outstanding mortgage at the time of purchase. This information can be found at the Land Registry, the Registro de la Propiedad. We carry out all of these checks for our customers, of course! ‘Inscription fees’ For the "Registro de la Propiedad", the Spanish Land Registry amount is approximately 0.3% to 0.7% of the purchase price. If you take out a mortgage on your villa, you will need to pay costs to the bank, the notary and the Land Registry. The costs of the mortgage could amount to 1% - 1.5% of the mortgage amount. The costs for the civil-law notary, the registration in the land registry and the layout of the documents together, amount to approximately 2.5% of the mortgage amount. ‘Construction tax’ Impuesto sobre construcciones, instalaciones y obras. For the application of a building permit, you pay up to 2.5% tax, calculated on the value of your future home as indicated by the architect. Of course, you also need to pay the person that assists you in the purchase, such as a broker, lawyer, etc., hired by you for their services. The amount of this cost should be determined in advance with the person appointed. It is very common in Spain to pay a lawyer or (and) a Solicitor to assist in the purchase of a villa. We can also do this process for you! You can see that the overall picture of "buyers costs" consists of many parts, all together you can say that it is still a lot cheaper to build your dream home on the Costa Blanca than in your own country. Fixed on-going charges for your property After you have purchased or built a villa in the Costa Blanca, you have to pay taxes and other fixed charges for the villa and services every year. Here is an overview of the taxes and other additional fixed costs you could have to pay. ‘Property Ownership Tax’ (IBI) Impuesto sobre bienes inmeubles. You may pay between 0.4% and 0.9% property ownership tax. The percentages will vary between municipalities. ‘Spanish wealth tax’ Impuesto sobre el Patrimonio. Wealth tax is an annual tax, payable on the total net value of your assets as at 31st December. If you are resident in Spain you are liable for your worldwide assets. Non-residents only pay wealth tax on assets located in Spain. This was abolished in 2008 but was re-introduced during the financial crisis. ‘Community Fees’ Cuota de communidad. This concerns joint costs of the complex or of the (flat) where you bought your home. For example, maintenance costs for common areas, a communal swimming pool, street lighting, surveillance, etc. This only applies in urbanisations and apartments. ‘Cleaning fees’ Basura. This amount differs per municipality, but usually amounts to around €400 per year. ‘Building and contents insurance’ Seguro de construcción & seguro de objetos domésticos. Household insurance will vary according to the circumstances of the owner and the type of property. However it should be born in mind as a cost that all property owners will face. Personal Income Tax (Impuesto sobre la Renta de No Residentes – IRNR) Non-residents who own property in Spain have to pay an annual personal income tax that varies according to whether the property is rented out or not. If you don’t rent out your property in Spain , then the personal income tax rate is fixed at 25% of 2% of the "valor catastral" for the property. The “valor catastral” for a property in Spain is an important estimate of its "capital value". Example: To calculate the personal income tax on a property with a "valor catastral" of €700,000 would be as follows; The "capital value" of the property for tax purposes is €700,000 The taxable base is (2% of €700,000) which equals €14,000 This means that the personal income tax for the property is (25% of €14,000) which equals €3,500 If you rent out your property in Spain , then you must pay 25% income tax in Spain on the rental income. PLEASE NOTE: Every effort was made to check the accuracy of the information contained within our “Legal Advice” articles at the time of writing, but it may have been superseded over time. Mycostablancavilla cannot accept responsibility for any errors or omissions, nor for the authenticity of any claims or statements made by third parties. We therefore strongly recommend that readers of our articles make their own thorough checks before entering into any kind of transaction or contract. Prices and figures were correct at the time of writing but may now vary due to circumstances beyond our control. How to buy in Spain Back Living in Spain All details, photos, videos and prices are shown for your guidance only and do not form the basis of any potential contract. Unless stated otherwise, prices exclude IVA/VAT, service connection charges, registration and legal fees. Properties are sold unfurnished unless stated otherwise.

Helpful financial information and details for buying new build villas and re-sale property in Spain. Financial Information VERY IMPORTANT: NIE NUMBER The SOLICITOR will act strictly on your behalf throughout the entire transaction of purchasing or selling a home. He/she will obtai n the NIE number for you. Without the NIE NUMBER you can NOT buy a house in Spain. The NIE NUMBER is obtained via the Spanish Police Station, or, if you are abroad, through the Spanish Consulate. Calculate your budget Working out how much you have available to you has to be the first consideration when you’re planning to purchase a new property Once you know what you can afford, you can disregard any areas or properties that are too expensive to save yourself the pain of falling in love with a place that is out of your price range. Think about the total amount you have at your disposal and then reduce it by an estimated 10-15% for taxes and fees. If you will be opting for a mortgage, make sure you have the cash available for monthly repayments as well as other ongoing costs of maintaining a property in Spain. Opening a bank account You will need to open a Spanish bank account if you plan to take out a mortgage from a Spanish lender, as well as to pay water and electricity bills, community fees and council tax. This can be done through any of the banks but make sure you do your research as charges and services can vary greatly. To open a bank account, you must be over 18 years of age. You will also need the correct paperwork: • Proof of ID • Proof of employment status (eg. employment contract, pension payment confirmation, unemployment documentation) • Proof of address within the last 3 months • Your Número de Identificación de Extranjeros (NIE) number Tax issues Living in another country can be confusing when it comes to financial affairs. You may be entitled to tax free allowances so should make sure you’re not paying more than you should be. It could be beneficial to find an accountant or Gestor who can help you deal with any bureaucracy and apply for your NIE as well as doing your annual tax return. Tell the correct government department in your home country that you’re moving abroad. You’ll need to understand where you stand in relation to taxation rules for pensions and other income. Tax residence (i.e . whether you are a resident in Spain for the purposes of paying certain taxes) is a large, complicated subject. Rest assured though: while you may be required to declare tax in both Spain and your home country, due to Double Taxation Treaties you will usually be able to offset one payment against the other meaning you should not be taxed twice. Currency exchange Rate Don’t underestimate the impact that the exchange rate can have on your property purchase. Fluctuating exchange rates can affect the price you will pay for the property almost by the minute. We advise that you contact a currency exchange specialist for advice. They will be able to help you lock in an exchange rate for a future date, meaning you know exactly what you’ll pay for your purchase. Exchange rate calculator Deposit Once you’ve found the property of your dreams, which you decide to purchase, you may be asked to pay a small deposit – usually around €5,000. At this point you will be offered to sign a 'Reservation Contract'. Make sure that your solicitor checks the contract over before you sign it. You are not committing to buying the property at this point, simply taking it off the market. If you decide to withdraw from purchasing the property after signing the 'Reservation Contract', you will lose your deposit. Once a 'Full Purchase Contract' has been arranged and signed, you will be liable to pay around 10% of the cost as a further deposit, making it clear that it is your intention to purchase. You are now committed to buying the property. Additional costs of buying a property You will be liable for a number of taxes and fees on completion of your property purchase, many of which vary from region to region. You should factor in at least 10-12% of the value of the property into your budget to pay fees and taxes. Notary fees (including title deed tax and land registry fees) (1-2.5%) ITP or transfer tax (8-10%) – For property resales only. This has to be paid within 30 days of signing the title deed. Stamp duty (1.5%) and VAT (10%) – This will apply where the property is being sold for the first time, or for the sale of a plot of land, in which case VAT would be 21%. Municipal plusvalía tax – A tax based on the increase in land value since the property was last sold. This is usually paid by the seller but can be negotiated to become the buyer’s responsibility. You can also expect to pay around 1-2% (including VAT) of the property cost in legal fees. It’s worth noting that estate agent’s fees are usually paid by the seller. If your seller is a non-resident of Spain, you as the buyer will be required to pay 3% of the purchase price to the tax office to cover their tax liabilities. This will not affect the price you pay, it will simply mean that the seller receives 97% of the money. If the property you purchase is part of a development with communal areas, you will be liable for community fees. These charges will be determined by the Community of Owners and could cover anything from upkeep of green spaces to water charges for the swimming pool and sometimes even satellite TV charges. You will need to check that these have been paid up to date before you make your purchase. The cost of living in Spain has increased in recent years. Common expenses will vary greatly depending on things like whereabouts in the country you plan to live, whether you have school age children and whether you prefer to shop in supermarkets or small local shops. If you need assistance to negotiate a mortgage we have excellent long term contacts with some of Spain's leading banks and financial institutions. You can use these contacts to help you obtain competitive quotations. The same contacts are available for money transfers to and from Spain and English bank accounts, investments, etc. We will make the introductions for you to negotiate your requirements, personally and remain available to you if you need any assistance. Back All details, photos, videos and prices are shown for your guidance only and do not form the basis of any potential contract. Unless stated otherwise, prices exclude IVA/VAT, service connection charges, registration and legal fees. Properties are sold unfurnished unless stated otherwise.

Helpful legal information and details for buying new build villas and re-sale property in Spain. Legal Information We want you to have confidence in the legal advice you need in the house purchase process. We are very happy if you want to use your own contacts but, if you need help, we can introduce you to a selection of independent law firms who will work exclusively on your behalf. VERY IMPORTANT: NIE NUMBER The SOLICITOR will act strictly on your behalf throughout the entire transaction of purchasing or selling a home. He/she can obtain the NIE number for you. With out the NIE NUMBER you can NOT buy a house in Spain. The NIE NUMBER is obtained via the Spanish Police Station, or, if you are abroad, through the Spanish Consulate. Paperwork associated with buying a house in Spain Número de Identidad de Extranjero (NIE) Put simply this is an identification number for foreigners. You will need it for anything that involves an official process in Spain so it’s worth applying as soon as possible to avoid delays. You will need the NIE number before signing the 'Title Deed' for your property, which in practice means applying at least one month before you expect this to happen. Nota Simple This is a simplified version of the 'Title Deed' outlining what is registered at the Land Registry, who owns the property and whether there are any monies owing on it. The Nota Simple should be available from your estate agent, and you (or your solicitor) must review it before signing a Reservation Contract and paying the associated fee. Reservation Contract (Documento de Reserva) At the point you make an offer on a property you may be asked to sign a Reservation Contract. This will mean the property is taken off the market and the seller is bound to sell it to you at the stated price. You will be asked to pay a deposit which you will lose if you pull out of the sale, unless the sale cannot proceed for legal reasons. The deposit is usually around €5,000. At this point you will sign the ‘Reservation Contract’. Make sure your solicitor checks this over before you sign. You are not committing to buying the property at this point, simply taking it off the market. Private Purchase Contract (Arras) Once all checks have been completed and details of the sale have been finalised, a Private Purchase Contract will be drawn up. By signing this contract and paying a further, more substantial deposit of around 10% of the cost you are making it clear that you intend to purchase. You are now committed to buying the property. If the seller pulls out after this stage, they will be liable to return twice the deposit you paid. Power of attorney (Poder Notarial) This gives your legal representative permission to act on your behalf in terms of making payments and signing deeds. This is particularly useful if you currently live in a different country. The Title Deed (Escritura) The signing of the Escritura completes the sale and must be done in front of a notary. This will include the payment process and details of all final arrangements. After making this payment you will receive the keys to your new property. The Land Registry must be informed of the change of ownership within 10 days. Your notary will be able to arrange this if you request it. Appointing a notary As the purcha ser you have the right to choose which notary you will use but it is worth making sure they are local as you will need to visit in person unless you rely on Power of Attorney. A notary is employed by the Spanish government to certify legal documents, in this case those associated with the property sale. The notary will not normally get involved until the end when they will carry out a few basic checks, arrange the signature of the title deed (or Escritura) and sometimes register the property. Legal status of holiday lets If you plan to let out your home on a short-term basis you must make sure that you are acting in accordance with Spanish laws. There are restrictions in many areas, not just on letting a private residential property but also marketing it to tourists. Rules will vary depending on the region in which the property is located and fines can be significant if you are found to be acting illegally. If you plan to buy a community property, make sure you check whether there are any rules that might stop you from letting the property out. Things to remember: • You are required by law to obtain an energy efficiency certificate. • You should notify your insurance company of your intention to let the property. • You must declare your rental income to the Spanish authorities. You can find out from the local town hall or tourist department of the regional government what the laws are for short term lets in your particular area. If in doubt it is always worth seeking independent legal advice. Insurance You will need to bear in mind the cost of insuring your property in Spain on an ongoing basis. The cost of this will vary greatly depending on the type of property and what you plan to use it for. Important questions to ask BEFORE handing over any money: These questions are not as scary as they sound – you, your agent, or most likely your lawyer can get all this information from the Land Registry. Does the person that owns this property have the right to sell it? Are all planning permissions in order, particularly if this is a new build? Are there sitting tenants in the property? Are there any building restrictions on the plot? What’s the cadastral value (the council’s valuation) of the property? This will inform the purchase tax you will need to pay. If the home is new or off-plan, is there insurance in place in case of structural defects? Is there any money owing against the property, i.e. - Mortgage - Utilities - Court judgements - legal proceedings or annual real estate tax. Back All details, photos, videos and prices are shown for your guidance only and do not form the basis of any potential contract. Unless stated otherwise, prices exclude IVA/VAT, service connection charges, registration and legal fees. Properties are sold unfurnished unless stated otherwise.

Sleek modern designed bathrooms with a luxurious and beautiful feel. You can choose your style and finishing touches. INTERIOR DESIGN Bathrooms 1/44 Back All details, photos, videos and prices are shown for your guidance only and do not form the basis of any potential contract. Unless stated otherwise, prices exclude IVA/VAT, service connection charges, registration and legal fees. Properties are sold unfurnished unless stated otherwise.

Plots of land for sale to build on. Costa Blanca - Spain Hondon de los Frailes More Info Back All details, photos, videos and prices are shown for your guidance only and do not form the basis of any potential contract. Unless stated otherwise, prices exclude IVA/VAT, service connection charges, registration and legal fees. Properties are sold unfurnished unless stated otherwise.

Plots of land for sale to build on. Costa Blanca - Spain Jumilla More Info Back All details, photos, videos and prices are shown for your guidance only and do not form the basis of any potential contract. Unless stated otherwise, prices exclude IVA/VAT, service connection charges, registration and legal fees. Properties are sold unfurnished unless stated otherwise.

Plots of land for sale to build on. Costa Blanca - Spain La Romana More Info Back All details, photos, videos and prices are shown for your guidance only and do not form the basis of any potential contract. Unless stated otherwise, prices exclude IVA/VAT, service connection charges, registration and legal fees. Properties are sold unfurnished unless stated otherwise.

Plots of land for sale to build on. Costa Blanca - Spain Salinas More Info Back All details, photos, videos and prices are shown for your guidance only and do not form the basis of any potential contract. Unless stated otherwise, prices exclude IVA/VAT, service connection charges, registration and legal fees. Properties are sold unfurnished unless stated otherwise.

We can assist or advise with your interior design requirements and ideas INTERIOR DESIGN Other Ideas 1/32 Back All details, photos, videos and prices are shown for your guidance only and do not form the basis of any potential contract. Unless stated otherwise, prices exclude IVA/VAT, service connection charges, registration and legal fees. Properties are sold unfurnished unless stated otherwise.

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Information for buyers of our New-Build villas. The advantages of building a home using Ytong products. Our Commitment to you Building Off-Plan We guarantee impeccable NEW-BUILD, off-plan villas in the Costa Blanca region of Spain, with at least 10.000m² of land (Inland), so you can relax and enjoy the scenic mountain views and the beautiful outdoors. We can also build your dream home in coastal areas too, we have various sized plots of land (urban), close to beaches and beautiful coastal towns. My Costa Blanca Villa, works closely together with you and our architect to ensure your complete requirements are met from start to finish. Our construction company has unrivalled expertise and many years of experience in building quality homes in Spain. We have expert knowledge of the Spanish legal requirements for land and building. We can provide experts who can deal with the legal services to give you a greater peace of mind. You can either choose a suitable plot of land in the location of your choice, or i f you already own land that can be legally built on, we can assist with your design ideas and then build your dream home. You can choose your villa style, layout design, interior fittings, floorings and wall tiles. We will then build your villa to your exact requirements and specifications. We offer a wide range of interior designs and styles at very competitive prices. There are various finishing options inside and out, including landscaping if required. Your villa is built to the current Spanish building standards and we provide a very high quality finish. What's included in the price? Anchor 1 Building with Ytong We only use Ytong aerated concrete blocks for our off-plan building projects. Ytong aerated concrete offers a versatile range of flexible building materials with which you can quickly achieve a good result. The blocks, separation panels, roof plates and lintels are labour -friendly and can be processed quickly. There is a solution for every construction challenge; the possibilities are unprecedented. Aerated concrete is a natural material, consisting of sand, lime and water. The production requires relatively little energy, no harmful substances are released and the material is fully recyclable. Building with aerated concrete therefore means building with a durable material. Ytong has unique features: Optimal fire protection Low capillary action Excellent sound insulation Good thermal insulation Heat accumulation, which means that the cellular concrete is able to store heat for later release Comfortable conditions in every season In relation to the processing of the material, cellular concrete has a number of advantages. Light weight Immune to temperature influences Insensitive to moisture Frost resistant Non soaping Ytong products are used in new construction, renovation and repair work, both in residential and non-residential construction. Ytong blocks can be used for load bearing and non load bearing walls. They therefore have a versatile application range. Ytong v traditional methods In construction, EPC stands for Engineering, Procurement, and Construction. It is a project delivery model where contractors are responsible for the entire project from start to finish, managing the design, procurement, and construction phases to ensure efficiency and cost control. This model allows for a single point of responsibility, which can streamline communication and project management. A property built with a traditional cavity wall has the longest construction time. EPC has a lower value and it has a fairly long drying time. Home All details, photos, videos and prices are shown for your guidance only and do not form the basis of any potential contract. Unless stated otherwise, prices exclude IVA/VAT, service connection charges, registration and legal fees. Properties are sold unfurnished unless stated otherwise.

Plots of land for sale to build on. Costa Blanca - Spain Sax More Info Back All details, photos, videos and prices are shown for your guidance only and do not form the basis of any potential contract. Unless stated otherwise, prices exclude IVA/VAT, service connection charges, registration and legal fees. Properties are sold unfurnished unless stated otherwise.