Over the past 12 months, the Spanish government has made important changes reducing significantly the cost to consumers of borrowing money secured against Spanish property, and equally important changes to the amount of inheritance tax and gift tax to be paid in Spain, irrespective of one’s country of residence.
The Camposol development in Murcia, Spain, is an area known to have been plagued by difficulties during the build and in its early years. As the situation has improved and stabilised British buyers have been tempted by the plentiful supply of property at reasonable prices and so we are seeing more buyers keen to purchase a place in Camposol.
As specialists in Spanish succession law we are frequently asked by clients “Do I really need to make a Spanish will?” as it seems that there are a lot of mixed messages about this issue on the Internet. The answer, as with so many legal questions is; “It depends,” but there are a number of compelling reasons why it can benefit you to have a Spanish will in place if you own assets in Spain.
In England & Wales it is impossible for buildings and land to be registered in the name of a minor (someone under 18 years of age according to English law). Instead, property is held in trust for the minor, whereby the legal owner of the property is an adult who holds the beneficial interest in the property for the minor. There may be more than one trustee and more than one beneficial owner. The duties of a trustee in those circumstances are established clearly by law in England & Wales.
In 2016, immediately following the referendum of 23 June, we considered the possible effects of Brexit on Brits in Spain, Brits intending to move to Spain, and those who intended to purchase property in Spain after Brexit.
We intended, as the negotiations progressed, to write regular updates as the terms for the United Kingdom leaving the European Union were agreed. Since 23 June 2016 we have been watching and waiting. It has been extremely difficult to put anything in writing when the position has remained undefined. We are now in April 2019 and it seems that the Brexit position is no clearer.
The fact that a Brexit deal that can pass through Parliament has not yet been reached does not, however, mean that the position is entirely uncertain. In some ways Brexit will not have any discernible effect on day to day life for individual Brits in Spain. In some respects Brexit will have a minor impact and in other areas we will see significant change to the status quo.
The Spanish government, aware that there are significant numbers of Brits travelling to, investing in and residing in Spain, has put initiatives in place so that the position in the event of a no deal Brexit is clea
While it is an unfortunate certainty that we will all be subject to tax if we own property in Spain, what is uncertain are the different types of taxation and the level of that taxation, depending upon whether the person liable to the tax is resident in the EU, the European Economic Area, or neither.
The process, costs and pitfalls of buying a place in Spain have been well documented. However, what follows the purchase receives less attention, despite being equally important. Being a property owner in Spain attracts the same risks and responsibilities as owning property in any other jurisdiction, but there are some quirks that are unique to Spain. Here we guide you through the steps you ought to take and matters you should be aware of when you become a property owner in Spain.
If you own property in Spain and you do not live in Spain you may not be aware that you are liable to pay Spanish non-resident income tax. This is not unusual. Many people own property in Spain for several years without being aware that they must pay non resident income tax.
It can come as no surprise to those familiar with real estate in Spain to know that a number of rural properties throughout the country, particularly in Andalusia, were built without planning permission. The issue of how best to deal with these properties has plagued the Spanish authorities as well as causing anxiety for buyers and sellers of Spanish property for many years.
While it is certainly fortunate to be able to purchase a primary or secondary residence with funds that you already have in your bank account, many people who are able to do so opt to finance the purchase in part by borrowing from a lending institution, often a bank, secured against the property that they are purchasing. Applying for a mortgage in the UK is relatively straightforward. Many of us have done so at least once, if not multiple times.
E&G Solicitors in Spain could not have done more to put my mind at ease. The fact that they have solicitors in Spain and the UK who are bi-lingual and have knowledge of the legal system over there is great. I couldn’t recommend them highly enough.