Välkommen

COSTA DEL SOL AREA.

Estepona

San Pedro de Alcántara

Puerto Banús

Benahavis

Istan

Marbella

Monda

Coín

Mijas

Fuengirola

Benalmádena

Torremolinos

Málaga

Rincón de la Victoria

Torre del Mar

Frigiliana

Nerja Torrox

Almuñecar

ASPECTS TO BEAR IN MIND BEFORE ADQUIRING A PROPERTY IN SPAIN.

Property Purchase in Spain is different!

Search right channels, find correct location/ fit your budget.

Have legal assistance; be informed about purchase procedures advantages/disadvantages, favor/risks-consequences.

No language barriers (by lawyer, Real Estate, notary).

Obtain cadastral+L.R.P updated certificates to confirm surface, description, boundaries, ownership, charges, etc…

L.R.P. information and notary ownership title deed prevail over cadastral-technical, town hall info.

Obtain NIE (open bank acc, pay taxes, purchase, buy a car, etc…) .

PROPERTY PURCHASE & EXPENSES.

Reservation contract with promoter.

1,5% A.J.D. TAX.

VAT 10%

NEW PROPERTY

Reservation down payment.

Private contract 10%

Public notary deed 90%

Property registration not obligatory.

2º HAND PROPERTY

Set up Ltd co.

Tax reduced 2% if professional co.

Resale within 5

years time.

LIMITED CO

Notary/Land registry fees.

ITP/AJD purchase tax. Real Estate commission 3-5%

Legal fees 1-3% ITP Tax 8-10%

11-14% extra add to price.

APROX EXPENSES

PUBLIC AUCTION-BANK REPOS.

Vendor being a bank.

Banks not interested in formal repossessions.

Possibility of subrogation in bank creditor position.

Possibility of negotiation with Bank during court file.

Negociate with Bank before formal assignment to thirds.

Take part in auction need previous deposit of 5%.

LAW 1 / 2013, 14.05.2013

BIG PROPERTY INVESTORS SOURCE /S.A.R.E.B.

Since November 2012 helping banks to clean toxic actives.

Sweden had a similar entity in early 90s.

Previous AAB authority and Compañías de Administración de Activos

(CAAs), Securum and Retrieva. All of them part of the National Tax

Department, taking care of administration of banks and its costumers.

107.000 stock properties valued in 50.000 Mill/euros.

2015 turnover aprox 3.900 Mill/euros/11.250 properties sold.

Previsions for 2016 to increase activity and reduce debt.

TAX OBLIGATIONS DURING OWNERSHIP.

Every year before Dec 31st present 210 form

(1.1% of the property cadastral value 19%).

NON SPANISH TAX RESIDENT

Impuesto de Bienes Inmuebles I.B.I. Tax/Garbage.

I.B.I/Garbage (garbage municipal tax).

I.R.P.F. (yearly income tax declaration before end of June for previous year).

“Informative” Form 720 about assets, accounts, shares abroad.

SPANISH TAX RESIDENT

REAL ESTATE SALE IN SPAIN.

Applicable 3% retention from recorded public sale price. Municipal plusvalue tax. Reference ground floor value. 19% capital gains tax.

NON SPANISH TAX RESIDENT VENDOR

Municipal plusvalue tax max 20 years. Capital gains can be reinvested in first domicile within 2 years even abroad. Capital gains exempts when 65.

Municipal plusvalue Tax. 25% capital gains.

SPANISH TAX RESIDENT VENDOR

SPANISH LIMITED COMPANY

UPDATES OF SPANISH ECONOMY.

POSITIVE

Spanish economy is passing through a good moment.

Economic growth 2,6% in 2016, 2,3% in 2017, higher than rest of EU.

Export is good and tourism are reaching record levels.

Euro/Dolar prevision 1,1. Swedish Crown now 9,27 (quite unstable during the last year).

NEGATIVE

Unemployment 21,2% still a problem for the Spanish economy and a threat for the economic recovery.

Political instability.

Uncertain scenario with the UK not forming EU membership.

GDP GROWTH

CURRENT SPANISH BANKS SITUATION.

Economic growth 2,6% in 2016, 2,3% in 2017, higher than rest of EU.

Reduction from 60 entities to 14 banks forecast to 7.

Savingsbanks dissapeared like in Sweden in 90´s.

Santander, BBVA, Caixabank, Bankia, Popular and Sabadell 2014 gained 10.800 M EUR.

1st quarter 2015 Spanish Banks 65% increase of capital gains.

December 2015

MORTGAGE STANDAR CONDITIONS FOR NON RESIDENTS.

Bank % reference EURIBOR (-0.012).

Max 70% lower, purchase/bank valuation.

25-30 years, max 75 years of age.

2,5 – 3,5% interest rate.

1% opening fee.

Home and life insurance linked to loan.

Debits cards free.

MORTGAGE SIMULATION (0,54 FORMULA).

SCANDINAVIAN RESIDENTS IN MÁLAGA (2005 - 2015).

0

1750

3500

5250

7000

2005 2010 2015

FINLAND SWEDEN ICELAND NORWAY DENMARK

SCANDINAVIAN BANKS IN THE COSTA DEL SOL.

SCANDINAVIAN REAL STATES IN COSTA DEL SOL.

Fuengirola, Marbella, Nerja.Nueva Andalucía, P. Rosen.

Marbella, K. Hummelgren.

Nerja.

Marbella.

STOCK OF UNSOLD HOUSES IN SPAIN (450.000).

15%

2,4%

5,9%

19,3%

2,6%

0,7%1,8%

1,3%

4,3%

0,4%

6,2%

1,7%

7,4%

7,8%

5,7%

0,5%

16,3%

>10%5-10%0-5%

(85.000)

STRONG INVESTORS MARKETS.

UNITED KINGDOM 18,62% RUSSIA 5,8%SCANDINAVIAN 9,57% GERMANY 7,25%BELGIUM 6,9%

CURRENT PROPERTY INVESTORS.

Scandinavian; Swedish, Danish, Norwegian and Finnish buyers. Powerfull economies not in recession. Attracted for South European low property prices and huge property offer.

Chinese: searching for “Golden Visa” with a 500.000 Euros investment. Big cash buyers. Focus in main Cities (Barcelona-Madrid).

Russian: «leaving» due to economical and political reasons.

French & Belgium: getting stronger due to local new tax regulations over fortunes and investing abroad (Spain and Portugal).

British & German: still remain among the most important markets in the Málaga Coast.

INVESTORS PROTOTYPE.

44 years old and a median household income of 86.000 $.

83% bought a detached single-family home.

67% are married couples. 15% are single females. 9% are singles males.

Expected tenure is 14 years.32% are first time buyers.

88% of buyers would use their agent again or recommend their agent to others.

87% of buyers recently bought their home through a real estate agent or broker.

SCANDINAVIAN PROTOTYPE.

MOTIVATED BY

Reduced price, Climate, Beach and Good connections.

MAN & WOMAN

55 years old.

ANNUAL INCOME

+90.000 €.LEVEL OF EDUCATION

High.

TOTAL NUMBER OF REAL ESTATE TRANSACTIONS.

0

2500

5000

7500

10000

2006 2008 2010 2012 2014 2015

MÁLAGA MARBELLA FUENGIROLA TORROX NERJA

1/3 properties sold in Málaga goes to foreigner 2015

FAQ.

IS IT NECESSARY TO SIGN A TESTAMENT IF I PURCHASE A PROPERTY IN SPAIN? It is convenient, not obligatory World wide validity or just about Spanish assets Able to choose applicable law of nationality or residency (since August 2015) To be signed at notary office

INHERITANCE TAX IN SPAIN?

TAX RESIDENT IN SPAIN

Applicable Personal Worldwide Taxation Progressive tax rate Marginal tax rate 7.65 - 36,50% Madrid have NO inheritance tax 400.000 will pay 80.000

NON TAX RESIDENT IN SPAIN

Real taxation only for assets located in Spain acquired by inheritor Progressive tax rate. First 175.000 euros tax excluded. Couple alive will pay very low amount.

FAQ.

TAXES CAN BE QUESTIONED BY AUTHORITIES?

Any tax in Spain, of any nature, can be questioned by competent authorities within 4 years.

Due to Real Estate low prices, purchase undervalue for tax authorities.

“Complementaria” could be settled with tax authorities.

WHO IS CONSIDERED TAX RESIDENT?

Tax resident person reside in same place more 183 days per year.

Where the base of professional-economical activities, directly or not, is in Spain.

Double taxation is not applicable to anyone.

Tax residency will affect income taxes, obligations, finance, etc…

On May 12th a new Andalusia decree is applicable for properties intended for tourism purposes. Obligation to register them with Andalusian authorities. The following properties are excluded from the register:

Where there is no exchange of money. Properties rented an individual for more than 2 months. Properties within tourist apartment complexes, submit to regulation from 2010. Rental Activity needs to be “frequent.”

Located within residential land. Tourist oriented/advertised in tourism distribution channels” (Travel agencies, web sites, tourist platforms). Property services must have:

Have issued the First Occupation Licence. Be furnished and equipped with appliances ready for their immediate use. Be air conditioned from May to September and heated from October to April. Have a first aid kit available. Provide a complaints book. Only VAT applicable if cleaning service provided. Provide tenants with information on the use of communal areas, regulations, pets, smoking restrictions, etc…

FAQ.

NEW HOLIDAY PROPERTY RENTAL LAW

FAQ.

PURCHASE AS INDIVIDUAL OR SPANISH LIMITED COMPANY?

INDIVIDUAL NON RESIDENT

Selling property generates regular ITP tax.

Renting out property 24% tax on the profit.

Non resident seller will pay 19% on capital gains, some expenses can be deducted (improvement works, RE and other professionals expenses).

SPANISH LIMITED COMPANY (S.L.)

3% retention as non resident is not applicable.

Transfer part of the shares does not generate regular transfer ITP tax in case shares majority remains.

Renting property out, 25% tax on the profit, some expenses can be deducted (Improvement works, RE and other professionals expenses) limited co will pay 25% company tax.

REASONS TO HIRE WELT LEGAL SERVICES.

Long experience in property conveyancing, litigation

and other law fields.

Local people with multilingual staff.

Long experience with foreign investors.

Clear, honest and qualified professionals.

Offices in strategic locations.

Connections with Real Estates and public organisms.

Experience with scandinavian investors.

We are ready to help you

THE SPANISH REAL ESTATE MARKET IN YOUR HANDS.

invest erty

Mauricio Martínez León

Welt Abogados S.L

+34 610 766 290

mauricio@weltabogados.com

www.weltabogados.com

Tack så mycket

för att ni kom !