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Manx, not sure how you got that info. about 5%
The Patrimonio tax, for tax residents, which was suspended for a couple of years but reintroduced last year, had existed for many years before that. It starts at 0.2% of the value over 700,000.
Note though that a tax resident, over 65, who has been resident in property for three year or more is exempt from CGT on the property.
I am pretty sure that if one gives a property away, then the taxes are still due on the 'sale' for the ‘seller and buyer’ and the person receiving the gift would also be liable to gift tax.
I think that might be a rumour,.
If it was possible we would all give our property away just before we died to avoid inheritance taxes.
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Manx
we have done something similar. Wanted to do every thing by the book but received different views from different Spanish offices.
So have rented a nice villa in Sotogrande and all the utilities and other agreements remain in the name of the owner. We just pay for every thing in cash including the staff wages on a monthly basis.
We went down this route as I intend to return to work in France after by sabbical and since I'm on long service leave (1 year on full pay) and pay my taxes in France where I have a home, certainly dont see why I should declare my earning and assets to the Spanish government.
Happy with my stay so far.
Rossetti.
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As several have said already, a major concern for me is in the sudden changes to laws at government and regional levels that can introduce large increases in costs pre and post sale. VAT is now 10% on new property and wealth taxes etc... just adds to the uncertenty.
Retiring to Spain or anywhere requires careful planning and a reasonable estimate of costs. Retiries already have to contend with wildly varying currency exchange rates which have blighted many UK pensioners living in spain. It is very difficult to know what its going to cost you to buy and live in a particular Spainish property in a particular region until you do it.
Even if you budget for and can afford all the variables associated with a purchase you are still faced with a multitude of ongoing costs of ownership. IBI, utilities, cleaning, maintenance, insurance, transport costs(car, taxi, flights etc..), owners income tax, complex fees, etc... etc... and then CGT and inheritance taxes ... it goes on and on.
At the end of the day even if a property looks cheap as chips, the owership costs could end up being prohibitive. Renting out your property seems to have a whole range of problems and costs of its own so if you are thinking that the income will cover all the other costs then perhaps you might find it doesnt. The stress involved might make it not worthwhile anyway.
So that is where I am at the moment, I want to buy but I just dare not, the risks seem to high. So I will probably rent until the Spainish government sorts out all the crap associated with buying in Spain. Might be a long wait.
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I'm about to complete an apartment purchase in Turre (Coast Almeria). I was originally looking in the Palomares area as Nigela suggested and there's plenty of choice.
Just a note of caution. The apartment I'm buying was on sale at less than a third of the original asking price - a bank reposession.
I went through the correct channels, and up to now I'm pleased with the progress, except for one major hiccup. The local council are still valuing the property at its 2008 value and are expecting me to pay the tax on that amount. It appears that I may have 6 - 12 months in which to pay the extra, but it's still going to hurt.
So a word of advice if you are buying a drastically reduced property - check it's value with the local council.
Nevertheless, if the sale goes to plan I'm happy that I have a good value bolthole in a lovely area.
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Love all the stories going around about taxing assets etc. More Chinese whispers and the man up the pub told me.....etc etc. Bit like the expat I overheard telling someone that if he died his wife would have 48 hours in which to pay the CGT and IHT or they'd take the house off her. I'd really love to know where all these stories come from. Johnzx is correct on the patrimonio tax on something like your worth being over 700 grand and you can also get the first 350 grand or so off your family home so only millionaires pay this. France has a similar thing, again with loads of assets to qualify, Labour in UK want to introduce a so called mansion tax and the Libdems are talking about adding your property, jewels, cars and everything else together and taxing you on that. I think I'll wait until my finance guy tells me what's happening. Listening to rumours can be bad for health. Glad I'm poor and can sleep at nights. Oh, and if you are charged tax on a purchase based on more than you paid for the property, you can appeal against it and, if you prove what you paid was the actual price (no black money, taking the furniture off the price to makeit seem cheaper and other little fiddles) then you will more than likely not end up paying it. Or so a bloke up the pub told me.
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I am pleased that some folk have found their utopia here in Spain – but buying into a Brit community or a coastal managed development may not be for everyone and in any event, many of these communities have proved to be a disaster zone and still many buyers are fighting to get what they paid for.
Don’t you think these unfortunate people have every right to complain and deserve our sympathy after losing their life savings instead of a smug ‘I’m all right Jack – stop moaning’ attitude?
In the last 7 years here I have known many people who have lost money and/or ended up with a demic or part finished home having fallen foul of:
Amateur unqualified Estate Agents.
Unregulated Financial ‘experts’
Self-serving Lawyers
Dishonest, maverick Developers.
Corrupt ayuntamientos who will grant licences for cash that are later overturned by the junta
Uncaring banks who refuse to honour their obligations
Corrupt investment rules
Anomalous building regulations
Notorious Land Grab rules
Lavatory tissue insurance and contract documents
Now we have another pothole in the road – the Banco Malo (SAREB). This make-work organization has taken a few thousand properties off the National Banks in order to dispose of them to ‘ease’ the situation. What have they done? Nothing at all – the properties that they ‘acquired’ have been left on the respective banks websites for sale at the same price they were selling at before SAREB took control.
Just another demonstration of the total incompetence of Spanish authority.
If you are lucky enough to sneak under the radar of the system and swim through its sharks infested waters – what do you end up with? An over-priced, defective property of such low standards that would never be allowed in UK. Most property in Spain is below the standards that were demanded in the UK pre-war.
Why would anyone with an ounce of brain want to buy a defective property in such a financially unstable country at the moment?
Woodbug
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maybe because they are desperate to get out of the cataclismic depression that is the UK at the moment or at least have a break from it every now and again???
_______________________
www.taylorlandandpropertygroup.co.uk
still here after all these years!
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I think you got that wrong hasn't Spain just been bailed out by the I.M.F cataclysmic depression in the UK my arse we have got it realy good in the UK we gave £10 billion to the I.M.F to help sort the P.I.G.S of Europe out .
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No, Spain hasn't been bailed out by the IMF.
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December 3 2012 Spain formally requested the I.M.F for a 39.5 billion euro to bail out to sort out its banking sector Spain is the biggest pig in the euro zone..80% unemployment if your under 25 32% overall unemployment no one as of yet has thrown them selves of a balcony in the UK when their home has been repossessed cataclysmic is the word .
This message was last edited by windtalker on 19/02/2013.
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Amused how these treads get off track and onto some other topic. I can only assume the posters responsible have nothing to say about the topic - would be better if they started their own thread rather than detract from the origional question.
We spent Jan researching proerties, rental in our case, and managed to move in Feb 1st as planned to a nice villa in Sotogrande which meets all our needs.
Only problem we have was securing a house keeper and maintence man who spoke French. We managed to get a delightful couple who met our needs and are working out just fine.
Am amused by people who manage to live on 1000 Euros a month, must be existing cant see how that is real living. Our eating out bills are near that and fuelling the cars a similar amount.
Still each to their own. We are enjoying our stay and hoping to see more of the area as the weather improves.
Rossetti
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Rossetti
Amused how these treads get off track and onto some other topic
I hope you will excuse me for following you off thread !!!!
I am amused by people who manage to live on 1000 Euros a month, must be existing cant see how that is real living. Our eating out bills are near that and fuelling the cars a similar amount.
I have a really good pal who lives on just less than £400 a month UK pension, which is all he is entitled to. He is single.
But Rossetti, I would make it clear that like many others, he does not choose to live on that amount, he is obliged by circumstances to do.
You may find that ‘amusing’ I doubt that those in that position find it so.
This message was last edited by johnzx on 19/02/2013.
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Eating out bills at a thousand a month! Good Lord! Are there a dozen of you eating at gourmet restaurants every night? I suppose if you have housekeepers and other staff you would get over the thousand a month. And where do you drive for fuel at that amount? Even a car doing a modest 30mpg would get around 6000 miles on that.
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i was purely replying to the question asked "why would anyone buy a house in Spain at the moment?"
Spain maybe suffering financially but it is still miles ahead of the current social demise of the once Great Britain...if its not underwater its ground to a halt from half a dozen snowflakes and has very other Northern European country sniggering at it.
It costs a fortune to live there,,English is now a minority group in most cities,violence,corruption an unelected government.........
Phone tapping,MP's bribing police,police bribing MP's,expenses scandals,Barclays rate fixing.bank bailouts,not safe to walk the streets,NHS trust scandals.......................................Horse meat in everything!
and a thousand other reasons.....
Just my point of view obviously!
so my Main concern when buying a house in Spain would be.....how soon can i be there??
_______________________
www.taylorlandandpropertygroup.co.uk
still here after all these years!
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Come off it Georgia,
I am very happy living in Spain, having been here now for 25 year, but I cannot recognise the place you are describing, it is certain not the UK, which is no where near in the mess that Spain is.
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Babaol - not sure about 30mpg but my R8 is lucky to see 15. Must get a lighter right foot. My wife's Q7 (Yes we like Audi) gets about 25 she also has to get a lighter right foot.
Our typical eve out in Sotogrange for 2 is over 100 Euros.
As said before we are on a years holiday (long service leave) and expect to live like being on holiday.
With our rent and other expenditure we are putting a lot into Spain so believe we are welcome guests, that's certaintly the impression we get from the restaraunts in Sotogrande and the people we hire horses and boats from.
We are used to the prices and spend of the South of France where we live and will return too after our 12 or so months away when we hope our property redevelopment will be complete.
Live is a beach and we intend to be happy and make others happy.
We are happy with our lot and so far Spain is living up to our expectations and we hope others will join us.
We have never been to the Uk where its clear that many with large 'problems' come from. So don't really understand all the moaning that goes on.
We hope to visit England one day but the people on EoS put us off.
Off to spend another 100+ Euros on a good night out.
Rossetti
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