Living in Spain - THE RED TAPE Explained

Property law & Legal papers required.

What you need to buy a property in Spain & costs involved

Planning regulations in Spain

Renovation Work

Residency

Health

Importing your car

Changing to Spanish Plates

Driving in spain - the laws

Schools

This is just a quick, at a glance guide to some of the bureaucracy that you may need to deal with in Spain . There may seem like a lot of red tape in the beginning but once you are registered here and there you'll find life very simple.

Property law

The steps of the sale

When a vendor has agreed to sell you their property you will go through the following stages

1. Reservation contract – this is where you the buyer pay the seller a deposit to hold the property whilst a contract is drawn up
2. The private sales contract ( Compraventa) is drawn up and the buyer pays the seller 10% of the purchase price at this stage.
3. The appointment is made at the Notary and the new owners sign to take ownership of the property and pay the remaining balance.
4. The details are then sent to the land registry to register the change of ownership and change the Escrutura ( title deeds) in to the new owners name.

Legal papers required.

The vendors must provide the following documents for the buyers lawyer at the reservation stage

•  Escritura ( Title deeds)

•  Nota Simple – Certificate with full details of the property including the following

•  Size & boundaries

•  Classification of land ie rustic/ urban

•  full name of owners ,

•  Rights to property ie is there public right of way, waterway etc

•  Outstanding debts attached to the property

•  IBI – Copy of property tax bill charged by the Town hall

•  Latest Electricity bill

The lawyer will then begin by checking the condition of the paperwork. For example the escritura must be in the sellers name and the property details match the house in terms of build size and boundaries. If there are debts attached to the property ie mortgage this must be cleared and proof received Most important is that the property is registered at the land registry. If they don't have an escritura then it is likely that it is not. This is not rare and is not something that cannot be solved only sometimes it takes some time to do. If you do not have an escritura you will not be able to get a mortgage on the property. In the small villages in Spain they have been selling via compraventa (on the basis of a private sale contract) for years mainly as a way to avoid paying transfer tax ( 6%) on the property but this is changing as it no longer becomes acceptable.

What you need to buy a property in Spain & costs involved

• Spanish bank account

It is very easy to open a bank account – just take along your passport and they will do it there and then. Most offer telephone and internet banking also.

• NIE number – your Spanish Identification number

Most lawyers will assist by doing this for you. The application has to made to the police station and normally this can be collected within a couple of days. You will need this if in the future you wish to purchase a car or apply for a loan etc

The costs involved in a property purchase

• Transfer tax at 6% on a resale ( second hand) property / IVA at 7% on a new property
• Legal fees vary but should normally be around a minimum of 1000 up to 2000 max or 1-1.5% of property purchase price.
• Notary fees . These fees are fixed by law and range from 300 – 840 depending on price of property
• Property registry fees are around 60% of the notary fees.

(Optional)

• Mortgage set up fees will be payable if you source a mortgage. For an accurate calculation click on to www.solbank.com

and use the mortgage simulator – this will give you an accurate figure for the costs involved in the mortgage based on the value of the mortgage you are looking for .Just click on

PRODUCTS ? FINANCE ? MORTGAGES ? MORTGAGE SIMULATOR .

Building regulations in Spain

 Before we go any further ….

Do not buy a plot of land in Spain with a view to building on before you have assurance from an unbiased professional source that you have permission to build .

In Spain there are many properties without title deeds. Families for generations often built properties for their children on their land but never registered this with the land registry. This was especially common in the country for those who worked in the fields and were in every respect very poor. By not declaring the new dwelling they avoided paying tax. This still happens and still for mainly the reason of tax evasion and avoiding paying for licences to build etc. Later on should they wish to register the property as perhaps they wish to sell, they would have to pay a ‘multa' which means a fine and is for having built without permission. As after five years the property is classed as legally allowed therefore can be inscribed. This was very common and somewhat accepted by the authorities. Now in Spain especially in the light of increasing interest in purchasing property here the laws are being tightened to the point where the authorities may not grant an illegally built property title deeds after the event. It is for this reason very important to ascertain the condition of the paperwork before placing a 10% deposit on any property. In the same respect if purchasing a plot, It must be ascertained if a licence to build will be granted and for what ie a tool shed/ dog house of 50sqm or the 4 bed, two storey house with pool you had in mind! Without this when the property is built if it is without permission what could happen although this is extremely rare is that the authorities have the right to have it pulled down. The lawyer will also check that the house size and details match what is on the escritura to check any changes have been registered.

Renovation Work

Even if you are only having a new bathroom installed, having the builders in means telling the local authorities. You will need to fill in a form with where the work is being carried out and a description – normally your builder can do this with a breakdown of costs and a drawing. Major work will sometimes require a certificate from a technical architect. But you will be informed of this. You then submit the request to the town hall and wait to hear by letter. From personal experience this can be hurried along somewhat. You have to pay tax on top of the cost of the work normally only around 3%.

Residency

If you intend to spend more than 90 days in Spain you must apply for residency.This is very simple to do at the office of extranjeros in your province. They will give you a form for a ‘tarjeta de residencia' ( residency card ) and you must provide the following documentation.

• Passport
• NIE Numbers
• Escritura /Rental contract
• Passport photos

If you are making national insurance contributions to the Spanish system then you will be entitled to health care. Otherwise you will need to take a copy of private medical insurance or if a pensioner a form E121 which entitles you to state health care. You can be asked how you intend to support yourself but state pension is sufficient to satisfy this.

Health

Health care in Spain has a great reputation. Apparently there are 2.5 times more doctors per head of the population than in the UK . I Have a number of clients who have required health care in Spain – two for heart attacks who said the care they have received has been first class – well Spain is ranked the sixth best in the world for health care! E111 are fine for holiday s but if you plan a permanent life in Spain you need to make provision for health care.

Retirement

Requirements here differ depending on what you are intending to do in Spain .

If you are retiring to Spain but are not of pension age then you will require private health insurance if you are not intending to work and make national insurance contributions to the Spanish system. If you are of retirement age you will require an E121 form which will entitle you to state health care. In Spain however district nursing/ home carers is less common as it is often the family that are responsible for looking after their older relatives in times of sickness, but these services can be sourced.

 Working

If you are going to Spain to work you will need to be paying sufficient national insurance contributions in to the system to receive state health care.

To obtain an E121 or any further enquiries regarding your entitlement to state health cover abroad contact: Contributions Agency International Services,Department of Social Security, Longbenton,Newcastle -upon- Tyne NE98 LYX

Importing your car

If you wish to bring your EU registered car to Spain you can happily do so. If you intend to reside permanently in Spain or spend more than 180 days there it is expected that you replace the plates with Spanish plates and pay the special vehicle registration tax (impuesto municipal sobre circulación de vehículos).

You will also note that in Spain la matricula ( vehicle plates) are by area . (communidad) so CA for Cadiz , BA for Barcelona , etc so the guardia know by the plate if you are not a local....

Changing to Spanish Plates

To register your vehicle in Spain and get Spanish plates you need to do the following

First you need to gain a ‘CERTIFICADO DE EMPADRONAMIENTO' (Registartion certificate)

To obtain this you will need

• Copy of your Passport
• Copy of your NIE Number
• Copy of your Escritura /Rental contract

To then complete the transfer ‘Transferencia de Vehiculo'

You will need

• Copy of your Passport
• Copy of your NIE Number
• Copy of your Escritura /Rental contract
• Copy of the certificado de empadronamiento
• Latest Receipt for Impuesto Municipal (tax on car)

Driving in Spain – THE LAWS

Less Speed cameras – hurrah!!! But take care driving in Spain - some motorways have some very sharp bends so be careful and don't go overtaking the Guradia Civil – it doesn't normally go down well. In general some great roads, well signed and loads of great service staions and restaurants on the way where you can get a coffee for less than a euro (50p)

! You should always wear a seatbelt whilst driving in Spain

! Drink driving is as serious as in the Uk in fact even stricter in terms of the number of milligrammes of alcohol permitted whilst in charge of a vehicle.

What you should have in your car

• 2 red triangles in case of a break down or accident to alert approaching traffic.

• A luminous overjacket - very fetching we know but it is the law and on very dark motorways could save your life. Purchase one from a local service station or nic nac shop for around 5-10 euros.

• Spare tyre and spare set of bulbs and tools required to replace them.

Police checks 

It is quite common for the local police ‘Policia Local' and the ‘ Guardia Civil' - Civil Guard to carry out checks. So if you are driving along and see a bright shining light in the distance that looks like a light sabre with a hand directing you to pull over sadly it is not Luke Skywalker nor the Messiah but the police. They will normally ask to check you vehicle and see your documents. If you haven't got your jacket, triangles etc then you could receive a fine and these fines are payable on the spot. The best approach is to be polite and cooperative. I hear lots of people who try to frighten people about the Guardia Civil with stories of how fierce they can be. I have never had a problem – I have found them to be helpful and understanding. Help yourself by having all your documentation ready or at least your identification even if all you have on you is your passport.

Schools

A lot of my clients ask me about schooling in Spain. Initially many wish their children to attend an International school where English is spoken and they can continue studying for their UK school qualifications. Private schools are not cheap in Spain compared to everything else you will be paying for but all parents know what is best for their children.

If your children are very young there is no doubt I would recommend that you put them in a Spanish school at the earliest opportunity. It does depend however where you are in Spain . If you are settling in a very typically Spanish area your children will benefit from learning Spanish at the earliest opportunity so they can communicate with their non English speaking friends. If however you are moving at the start of your child's GCSE year it would be wise to help them achieve this qualification after having worked towards it. For more details on British schools in Spain contact http://www.nabss.org/

Requirements for registering at a State Schools

• NIE/Residencia Ideally you would have gained residency but this is often overlooked if you do not at the time of registration.
• Full Birth Certificate (including both parents names)
• School Reports
• Medical Vaccination/Card
• Passports
• Photographs each child (Not Digital)

The Health/Immunisation Card is to show that your child has received the normal modern immunisations and confirming the child is in good health. It is advisable to gain Anti-Tetanus prior to departure to avoid them having to receive jabs in Spain . Obviously the most information on your child studies that parents can provide from the previous educational establishment will help the new Spanish school to help your child.

If you need any further information on any of these points or have a query on any subject regarding your move to Spain please don't hesitate to call. We are happy to help!