No.  However Solutions España will be pleased to arrange or recommend flights, car hire and accommodation. Payments are then usually made directly to the supplier.

Links to Airlines and Car rental companies can be seen on our 'Information Links' page. Some accomodation information can be found on our 'Holiday's Rental' page. We recommend that you discuss this with us before you commit yourself.

On top of the purchase price of your property, we suggest that you allow for additional costs of approximately 10-13% to cover your IVA tax and other charges. If you are a cash buyer this figure is likely to be at the lower end at around 10%, but if you require a mortgage the figure likely to be closer to 13%.

Yes. We can help you get a mortgage in Spain and have a good working relationship with the Spanish banks. Many of these offer good rates, and their English speaking staff will help you with your mortgage requirements. In many cases mortgages of up to 80% are available (with a deposit of as little as 20% on some properties). Terms range from 10-30 years depending on your age. Other ways of financing properties in Spain include using a UK property for a re-mortgage. The options available to you will be discussed during your consultation with us.

These can vary, as not all costs are proportional to the purchase price. A fair example based on a property of £80,000 (120,000 Euro approx) would be about:

Valuation fee £175
Arrangement fee £960
Fees for Notary/Land Registry / Doc Tax £1,450

The costs of running a townhouse or apartment on a development in Spain are relatively low compared to the UK. Costs will vary, but as an example, based on normal occupancy, annual costs for a 2 to 3 bedroom apartment are approximately:

Water charges £115
Electricity £140
Local rates £200
Community fees £265
House and Contents Insurance £200
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Total £920

 

NB: See also under Spanish Taxation on our Information Links.

Children under 6 do not need to have compulsory education; however there are many kindergarten and pre-school nurseries where they can begin to integrate into Spanish life. Spanish schools cater very well for children who do not speak Spanish, and emphasis is placed upon the child learning the language quickly. For children over 6, you have two options – state or private school. State education is free from the ages of 6-16. We will help you locate the type of schools available in your local area. There are also many English and multi-lingual private schools in the major regions of Spain, many of which follow the current British curriculum standards. Fees are considerably lower than they are in the UK.

   

See also under Spanish Education on our Information Links page.

As a UK resident, you can live in Spain and receive healthcare through the equivalent of the Spanish NHS by presenting the E111 form (obtainable at UK post offices before you travel). If you are of retirement age, you can also receive free healthcare in Spain through a reciprocal agreement with the UK.

If you would like private healthcare, you will find that private medical insurance is much cheaper than the equivalent UK policies. Spain has some of the best and most modern hospitals in the EU.

You will need a health certificate issued by a veterinary in the UK, not more than 15 days before you enter Spain. In addition, you will need a certificate of vaccination against rabies, also issued by a vet. Animals less than two months old do not require this. Animals between two and three months of age must have been vaccinated not less than one month before they are imported. Animals over three months old must have been vaccinated not less than one month and not more than twelve months before being imported. If the animal has no anti rabies certificate, it may be quarantined for 20 days.

 

Finally you will need a certificate declaring that the area in which the animal was normally kept is free from animal diseases. This certificate usually comes from your agriculture ministry.

 

All these certificates must be stamped and legalized by the Spanish consulate, for which they charge a small fee.
 
Once you have arrived in Spain, you will want to have your pet fitted with a new microchip which gives your address in Spain. Pet owners can then take their pets back with them if they return to the UK.

Since Spain’s entry into the EU, most former advantages of remaining on tourist status have disappeared. People sometimes think that a person on tourist status does not become liable to Spanish income tax and that he will not require a Spanish driving licence. It is simply not true.

A person who lives in Spain for more that 183 days in one calendar year, whether or not he holds a residence permit, becomes liable to pay Spanish income tax.

 

EU citizens can continue to use their EU national driving licence even after taking up residency, but they must have their licence stamped by the Spanish traffic department.

 

The resident property owner has a number of tax advantages over the non-resident. Consult your Financial Adviser for further details.

SPANISH PROPERTY PRICES PEAK  06/12/03

Banks forecast market stabilisation in 2004

A report issued by the BBVA bank this week forecasts a 17 per cent rise in property prices by the end of this year and a stabilisation of prices in 2004, when increases will be up by 10 per cent. The report coincides with figures released recently by surveyors TINSA, showing that property prices at the end of this year will have increased in line with 2002 - an average 14.5 per cent increase in new property prices and an 18.6 per cent in second hand property for the whole of Spain.

BUBBLE ALERT FADES

The increasing demand for property despite the considerable rise in prices has dampened warnings made by experts and official entities that the Spanish market is suffering a 'property bubble', which they claim will see prices plummet and leave the industry in crisis.

A recent report shows that property prices in Spain increased by a staggering 284 per cent between 1987 and 2002 and by 91 per cent between 1997 and 2002, figures that The Economist magazine claims make the country ripe for suffering a crash in property prices. However, the report released by BBVA says the market will continue to enjoy a bountiful year with increases of between 6.5 and 10 per cent.

The rise in property prices in Spain is also levelling the market with other European countries, as prices are now at around 85 per cent of the EU average.

CURRENCY STRENGTH

The strength and stability of the euro, which this week reached its peak exchange rate against the US dollar at US$1.21 to the euro, is also seen as a key factor that has contributed to the increase in property prices. The pound is following the pattern and financial experts say the two currencies have become refuges for investors.

Demand is still high and promoters have estimated around five million buyers, mainly from Northern and Central European countries, will be seeking a permanent or a holiday home in sunny Spain over the next decade.

Experts also point out the housing market along the Costas follows a completely different set of rules to other markets, meaning that although prices may stabilise or drop slightly in general, the Costa figures could continue to increase above average in the next few years.  

                                                                       

The Valencian Community has put into effect a law which allows municipal councils to name private developers as official “Urbanising Agents” and compel the sale of private land or charge landowner’s stiff prices to help finance development. The law is called the Ley Reguladora de Actividades Urbanisticas (LRAU).

In brief, the issue revolves around three classifications of land - land already urbanised, land suitable for urbanisation and rural land. As in any country, when an area grows then rural land is sometimes re-classified by the local authorities as suitable for urbanisation (development). A law was introduced in Spain to prevent individual owners of rural property in areas that have been re-classified standing in the way of developments that would benefit the community as a whole, by improving services or creating affordable local housing. In recognition of the fact that the value of their property would increase significantly, the laws oblige these rural owners to contribute with cash and/or part of their land towards bringing in benefits such as mains water, sewerage, new roads etc., even though they may not want such facilities, preferring the old rural ways.

Unfortunately, in one area of Spain the law was badly drafted, allowing a small number of developers and local authorities to exploit the situation against the interests of property owners, principally in coastal areas where land is in shorter supply and values are at their highest. As in the UK, notices of intent must be published, but just 15 working days are allowed to present an alternative urbanisation plan or an objection. Since many landowners are absentee and foreign, this can cause a breakdown in the process.

Firstly and most importantly, this particular version of the law only applies to the Valencian Community, i.e. the provinces of Alicante, Valencia and Castellón. In practical terms this means the Costa Blanca and the Costa del Azahar, plus their inland areas. The rest of Spain has different versions of the law and we have not had reports of any problems, although qualified legal advice should always be taken wherever you buy.

Secondly, the law does not affect anyone with an interest in property in an area already urbanised or designated as such. This represents virtually all apartments, townhouses and other linked properties, plus a large majority of villas. The Spanish designation 'urbanised/urbanisation' does not necessarily mean a complex with a pool etc. - most streets of detached villas are in such zones. Purchases in such zones remain unaffected, although buyers should still take independent legal advice. There are nearly a million British people with an interest in a home in Spain. Only a small fraction could be faced with this problem. The large majority of owners of property in Spain have never experienced any significant problems in their many years of owning property there.

Thirdly, these cases are not an anti-British campaign by the Spanish; the small group affected has Spaniards and other nationalities as well as British.

Lastly, anyone who purchased and used the services of a good independent lawyer should have been fully informed as to any effect this law might have on them. We make it a point of principle to ensure that every client is introduced to a fully qualified independent legal adviser.

So, in summary, the use independent legal advice continues to be the best way of protecting yourself when buying a property in Spain, no matter what the property or location. Beyond that, only those considering buying property in the area of the Valencian Community AND outside of an existing urbanisation (be it of apartments, townhouses or villas) need concern themselves about this particular law, although the same principles relating to advice apply wherever in Spain you wish to buy.