Legal Considerations
Because this issue is so important when you are considering buying
property in Olvera, Spain, we would like you have some benefits
from our insights into the Spanish legal system regarding purchasing
property in Andalucía. What you see here is not definitive,
it is more of an outline and is no substitute to legal recommendations
from your lawyer. On this understanding please accept this offering:
An outline of the legal issues you have to consider when purchasing
property in Olvera, Andalucía :-
You are advised to get help from a (local) Spanish lawyer when purchasing
property.
Pre-purchase
A 10% deposit is some times required, although often less is acceptable,
to hold the property from the market for 4 to 8 weeks depending.
This allows a breathing space so that all relevant documents can
be brought together for scrutiny. This is a good time to check that
NIE and bank accounts are in order while the property is Under
Offer. If the completion of the sale does not take place
the deposit is non-refundable and it becomes the vendors. Conversly
if the vendor accepts another offer during this time period they
are obliged to refund double the deposit.
Often property in Olvera is in need of some renovation and you
need an idea of what you are prepared to do. We highly recommend
that a survey be done, by a
registered surveyor, to ensure that the structure is
sound and that you are buying what you expect. This costs in the
region of 300€ to 400 €.
In order to start negotiations you will need a local bank account
and (although this seems to differ in different provinces and even
different districts) a "Numero Identificacion Extrañero"
(NIE) or a NIF if you are resident in Spain. The
Notaria in Olvera insists on this identification number for all
house purchases - on its own, a U.K. Passport will not do.
Opening a bank account in Andalucía :-
All you need is a passport or NIE.
Obtaining an NIE :-
Allow a week, minimum, to have this legal process completed.
You will need a passport and a completed application document with
a finger print. A lawyer with power of attorney can do this for
you.
Buying
There are 2 ways of purchasing a property in Olvera, Spain :-
Private contract:
This is a "quick" way of transacting the sale.
This method can have difficulties if all the legal niceties are
not followed.
Paperwork (such as the "nota simple" and the "escritura")
is essential if you want to have a problem free purchase.
Ensure all parties concerned are in agreement.
Registered contract:
If you wish to get a mortgage on the property you have to complete
your purchase this way - we advise buying with a registered document.
The Registry´s office ("La Oficina Notaria") will
require all paperwork and will sign-off all legal aspects for a
fee. All paper work must be checked by your lawyer before being
submitted to the Notaria.
Tax :-
There is a 7% government tax on a house purchase price.
The notary, registration and lawyers fees are usually around 2%
of the purchase price, so allow for a total of 10% of the house
price for various taxes and fees.
On this site we include all agency commissions - you receive no
further overheads when buying a property through Olvera Properties.
Yearly Outgoings :-
Compared to the UK your average outgoings are likely to be low -
Around 100 euros a year for IBI, the equivalent
of the community charge, for a 3 bedroom house.
About 50 euros a year for basura, rubbish collection.
Electricity, water and phone
are all private companies. while the first two are likely to be
cheaper, phone bills are typically higher than in the UK. Shop around
or use a "Voip" application on your computer.
Internet access is readily available in Olvera
and Pruna - depending on your requirements and the company you go
with - charges from 25 euros a month and upwards can be expected.
Other considerations :-
Please note that we are constantly updating our web pages in order
to provide an accurate as possible description of any property listed.
Property availability and their prices however can be subject to
changes that are outside of our control.
There are excellent lawyers, translators, architects and builders
available in Olvera who can facilitate you in every step of your
purchase.
Selling
As a non-resident of Spain:-
you have to pay 35% capital gains tax at this moment, however, this
is due to change due to a European Commission ruling.
As a resident:-
If this is your primary residence in Spain you have 2 years to reinvest
in another house, when the appropriated amount will be returned
upon purchase (i.e. the sale is efectivly tax free)
Spanish Residency -
This couldn´t be easier as we are part of the European Union and
we can help and advise in this matter:
Once you have bought the property you go to the town Hall and register
("empatronada") requiring deed of the purchase ("copia
simple") and your passport.
Registering with the police provides you with an NIE and all they
require is your passport. There are many things that you need this
NIE for such as buying a car or sending you children to school and
making a will.
All these papers are then needed to obtain residency which provides
you with an NIF:- proof of address, employment details and tax records
along with your NIE and a few days wait will complete your residency.
We would also like to take this opportunity to
underscore our business position: Olvera Properties is an estate
agent, and we keep our costs to the clients at a minimum while
providing the best service that we possibly can. We ensure that
all the paperwork on a property, prior to the sale, is as up to
date as the Spanish authorities can provide, and inform our clients
about any processes that may be outstanding at the point of exchange
of contract. We strongly suggest that all of our clients use the
services of a structural surveyor prior to purchasing, so that
there are no hidden surprises. If builders are required, we have
a list of local builders and recommend that you use local companies,
that are fully insured and professional (i.e. all the workers
are legal and paying social security). We strongly advise that
architects, translators and site managers are used for larger
jobs, and in all cases that more than two itemised estimates are
obtained for any job and that a visit to work done previously
by the chosen builders is granted and viewed in detail. We also
can provide a list of architects, people who will do site visits
and translators.
Olvera Properties is NOT in the construction
or building proffession and we do not take on or reccommend any
building work.
Legal Disclaimer
Please note, as we indicated at the beginning of this page, the
suggestions here are meant as a guide. Please, always consult your
lawyer for advice regarding property purchase in Spain as
Olvera Properties cannot accept liability regarding advice issued
on this website.
Legal Disclaimer
Please note that all the property details on this website are correct
and accurate to the best of our knowledge and abilities. Prices
can vary from those represented as this is ultimatly beyond our
control. Square meterage and hectarage is always an estimate and
not of catastral accuracy.
Olvera Properties cannot accept liability for any inconsistancies.
Privacy Statement
Please note that personal information used by Olvera Properties
is only obtained with the clients´ consent and that this information
is used within the terms of the Data Protection Act 1998 (UK). The
standard web technology refered to as a "cookie" is not
used on this site.
It is your responsibility to run an
anti-virus program on all material downloaded from the Internet.
Therefore, we cannot accept responsibility for any loss, disruption
or damage for your data or computer system which may occur whilst
using material derived from this website.
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