Madrid cuts taxes to encourage investing in flats and homes

Effective on January 1st 2014, a tax reduction in the Madrid region will basically benefit the second-hand home buyers.  However, in the municipal budgets of the city of Madrid, a possible increase of the IBI (equivalent to what in the UK is called the Council Tax) of 6.4% is being established.   With the brilliant idea of reactivating the current sluggishness of the housing market

Avoid surprises when buying a “bargain”: the trap of the ITP Tax

  First and foremost, despite the tax system in Spain not favoring investors and buyers, the tendency of prices does, and to this extent, there are always legal paths for reducing the charges in a “generous” way.   Let us go to the point: When a person buys a second hand home in Spain ( no a newly built which will be applied the Spanish VAT instead of the ITP), he or she

New Spanish property laws (+taxation) strangle the market a bit more

Spanish policy makers are really working hard in order to make a much more difficult framework for the already declining property market. 2013 is probably the year in which the Government is trying to lock up the domestic property market to overseas investors. Not only is the Energy Performance Certificate becoming compulsory for sellers and landlords at the worst ever possible time (it is immi

The most significant recent fiscal changes for 2013 that affect home buyers and investors

This is an article by Raymundo Larraín Nesbitt, Lawyer – Abogado, about the most significant fiscal changes in Spain already into force in 2013.   Additionally to the list of Mr Larraín, we must mention that there is a special 3% tax on property ownership through foreign companies that still into force, but the Government will revise to encourage overseas buyer and investors. It would b

Foreign buyers keep buying homes in Spain as regulations change in 2013

  Foreign buyers are increasingly more attracted to houses on the market in Spain because of the possibility of having a second home in a warmer area that will only cost more or less half or even a third of the original asking prices that were seen in 2008.   The Public Works Ministry stated that 8,803 houses were purchased by foreigners in the third quarter, a jump of 18 percent from

Can you get non paying tenants out in 10 days?

By Andrés Díez Bronzini (Abogado & Rechtsanwalt)     The Spanish law maker has changed the court proceedings with regards to non paying tenants. Does this new law mean that the landlord can get his non paying tenant out in just 10 days?   Suppose your tenant is defaulting. It will take approximately 2 weeks from the day your lawyer files the claim for the overburdened cou

If you don’t pay the rent, your deadline is 10 days

Well...this is an important step forward for landlords and direct owners in Spain. The Spanish rental market is getting closer to what everybody needs: a more reliable market with a framework that makes renting safer for landlords in terms of payments from tenants. From Monday 31st October, tenants who do not pay the rent and economic duties with the landlord have 10 days in which to reply t

I can’t afford to pay my mortgage any more. What can I do?

This is an enquiry from one of our readers early this week. We think that it may be of your interest. Cheers, The Spanish Brick team We purchased a property in Spain three years ago using a mortgage from a Spanish bank. Our circumstances have now changed and we are unable to continue the repayments. If we stop paying, we assume the bank will re-possess the property. We would like to know th

How to get ridd off your defaulting tenant (without losing cash)

By Andrés Díez Bronzini, Lawyer CASE ONE: John has rented his apartment to Ángel who has stopped paying the rent. John wants to recover the unpaid rent amounting to € 3,000 and get Ángel out of his apartment. How can John proceed?   Firstly, John should claim the money in out of courts summons via registered and certified burofax (this is a letter you send by Correos, the Sp

Full costs breakdown of purchasing a house in Spain – three cases

Our legal adviser, Andrés Díez Bronzini, has prepared an exceptional document about the total costs of purchasing a house in Spain. This is a 16-page document which is very useful for both professionals and home buyers, with cases to study and full cost breakdowns in rigorous detail. The intention of the guide is to describe two cases (firstly, purchase of a new apartment; secondly, purcha

First keys hand over to a bank in Spain to get rid off mortgage

HAND OVER THE KEYS OF YOUR REAL ESTATE PROPERTY TO YOUR BANK AND GET RID OFF YOUR SPANISH MORTGAGE LOAN ? By Andrés Díez Bronzini, Lawyer CASE: A Spanish bank, BBVA, granted a mortgage loan to a homeowner in Spain of approximately € 71,000. At the time the bank granted the mortgage loan, BBVA itself valued the real estate property on which it issued the mortgage loan at approximately €

How to buy an apartment in Spain in Court Auctions

By Andrés Díez Bronzini, Lawyer Many Spanish banks and  particularly Cajas are in a dilemma: a relatively large number of their customers have not been able to pay the mortgage debts. To limit these losses, the financial institutions are looking for new homebuyers for those bad mortgage loans. But this is a very difficult task, because many people in Spain are offering real estate proper

Quick guide on how to recover down payments for home purchases

Imagine somebody buys a Spanish apartment which has still not been completely built. When signing the purchasing contract the buyer pays to the developer a down/ advance payment of several tens of thousands of euro. Several months after the agreed upon delivery time the developer has already finished building the apartment but he has still not obtained the first occupancy license (authorization is

Quick legal guide before you buy an apartment in Spain

  If you are willing to buy an apartment in Spain, here you have a quick legal guide. Spanish property legal framework gives all the security and guarantees to the buyer, but you should contact a lawyer to help you. Por Andrés Díez Bronzini, Lawyer First, you will visit the home you want to buy. You should visit it several times, not only once. And you should visit the apartm