BUYING AND SELLING REAL ESTATE IN SPAIN BY NON-RESIDENTS

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1 BUYING AND SELLING REAL ESTATE IN SPAIN BY NON-RESIDENTS Euro Economics Group Barbara Ingenbleek Lawyers, Tax Advisers & Accountants

2 ENOUGH REASONS ENOUGH REASONS TO BUY A PROPERTY IN SPAIN

3 REAL ESTATE AGENT Free profession No exclusivity no file Commission: 5% of purchase price plus VAT Reservation contract / deposit: between E 3,000 and E 6,000 Contact a lawyer!

4 STEP 1 Reservation contract + E 3,000 and E 6,000 Check urban matters / town planning Check debts / charges Spanish fiscal number: NIE

5 STEP 2 Advise: buy or not buy Sign sale / purchase contract + 10% deposit Seller decides not to sell: return deposit + same amount as damage restitution Buyer decides not to buy: loss of 10% Opening bank account Proposal buildings fire theft insurance

6 STEP 3 Preparation title deed Cancellation mortgage Notary: to record Payment by bankers draft Ownership - responsibility

7 STEP 3 Charges & Taxes: seller Plusvalía Municipal Commission real estate agent Capital gains tax: 21% for non residents - 3% retention

8 STEP 3 Charges & taxes: buyer Notary charges Land registry charges Lawyer: 1% of the purchase price + VAT Purchase from developer - 10% VAT plus 1.5% stamp duties Andalucía Purchase: 2 nd transfer transfer tax Andalucía - until E 400,000: 8% - between E 400,000 E 700,000: 9% - as of E 700,000: 10%

9 STEP 4 Payment: charges and taxes Arrange utilities: electricity, water, gas, telephone etc. Arrange direct debits: rubbish collection, community of owners etc.

10 STEP 4 Yearly obligations Town hall: property tax Town hall: fee rubbish collection Income tax: 1,1% or 2% of the cadastral value is taxed at 24.75% Wealth tax: assets minus debts ej. properties minus mortgages, bank accounts, cars, boats Exemption: E 700,000 value assets > 2 million = tax declaration Scale: 0.20% to 2.5%

11 NOTES Tax on rental income: 24.75% deduction of: property tax, rubbish collection fee, fee community of owners Crisis? Buy a property in Spain!

12 CONTACT Euro Economics Quality Partner since 1996 Consell de Cent 373, Barcelona Tel: Calle Mayor 10, Getxo, Bilbao Tel Rambla Vidal 16, San Feliu, Girona Tel: Calle de Corona 1, Ibiza Tel Principe de Vergara 73, Madrid Tel: Avenida Ricardo Soriano 5, Marbella Tel: Pl. Alfonso el Magnánimo 1, Valencia Tel:

13 QUALITY PARTNER IN SPAIN... Everyone we recommend this firm to, just swears they are the best [John H. Brigs, World Wide Consulting, USA] Jan Hendrik van Houten Partner Barbara Ingenbleek Partner Jeroen Oskam Managing Partner Dick Roest Partner Euro Euro Economics Tax Barcelona Legal Accountancy Bilbao Girona Spain Ibiza Barcelona Madrid Bilbao Marbella Girona Valencia Ibiza Madrid Alliances: Marbella Mallorca Valencia Tenerife Alliances: Lisbon Mallorca Tenerife Lisboa EuroEconomics.com 2013

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