Senior Andalusian politicians agreed on 20th September to significantly reduce Spanish Inheritance Tax (IHT) in the autonomous region of Andalusia. This landmark tax reform is without a shadow of a doubt the most important tax milestone in the autonomous region of Andalusia in the last 35 years (since its inception in 1982).
The change will mean 95% of inheritors in Andalusia will no longer need to pay inheritance tax on inheriting assets from their parents or spouse which is a welcome respite.
This bold move allows Andalusia to finally jump onto the band wagon of other autonomous regions in Spain which are applying reductions on IHT to such an extent which in practice translates to almost suppressing it i.e. Madrid, Basque Country, La Rioja, Navarre, Catalonia, Valencia, Balearic, Canary Islands and now Andalusia as well.
There was an ongoing trend throughout Spain over the last decade to supress or greatly reduce inheritance tax to the point of negating it. Andalusia finally joined the trend yesterday. Better late than never. Notwithstanding yesterday’s agreement, there are still political forces vying to completely abolish it (Partido Popular).
Mrs Susana Diaz (PSOE) and Juan Marin (Ciudadanos) agreed that as from the first of January 2018 these changes would come into effect. No law has been enacted yet with these changes.
To benefit from the new tax allowances, taxpayers must be EEA/EU-residents.
In a nutshell, the changes are:
Spanish Inheritance Tax
On average, every day 19 inheritors turn down their inheritances in Andalusia in order to avoid paying steep inheritance taxes. Following this new regulation, this will no longer be the case. 95% of taxpayers will benefit from this change as from next year.
The Taxes and fees payable in Spain when purchasing a property are as follows:
If you are purchasing a resale home, you will have to pay the following property transfer tax on the purchase price of the property that you are buying:
Up to 400.000 euros you pay 8% transfer tax
From 400.000 euros to 700.000 euros you pay 9% transfer tax
From 700.00 euros onwards you pay 10% transfer tax
You will also need to pay the following approximate fees (as they vary) :
Notary fee 600 euros
Registry fee 500 euros
Legal fee 1% of the property price.
Finally, if there is a mortgage needed you also have to pay:
2% approx tax on the amount borrowed
Notary fee (again)
Registry fee (again)
Opening fee 300 euros
Survey 300 euros
If you are purchasing an off-plan property (i.e., a new property, direct from the developer) the relevant taxes and fees are approximate as they vary:
Stamp Duty: 1,5%
Notary fee 600 euros
Registry fee 500 euros
Legal fee 1% of purchace price
The outlook for Spain’s housing market is now upbeat, with house sales expected to rise by between 10% and 15% to reach about 520,000 to 545,000 transactions this year, according to TINSA.
The boom ended abruptly in 2008. The housing slump battered the Spanish economy and brought spiraling unemployment. Developers were left with blocks of unsold properties and massive debts. Uncertainty engulfed the market.
Despite the price rises of 2016 nationwide house prices are still 39.4% below the peak levels seen before the global crisis.
Spanish house prices increased 2.67% during the year to end-Q1 2017 (0.38% inflation-adjusted) to €1,385 per square meter (sq. m), the fifth consecutive quarter of y-o-y house price rises, according to TINSA. Quarter-on-quarter, house prices rose by 3.2% (4.1% inflation-adjusted) during the latest quarter.
Spain's housing market finally returned to growth in Q1 2016. Spanish house prices had fallen by a total of 41.9% (46.8% inflation-adjusted) from Q4 2007 to Q3 2015, based on figures from TINSA. There were 31 consecutive quarters of y-o-y declines.
Demand is now rising strongly. In 2016, the total number of home sales in Spain increased 14% to 457,689 units from the previous year, according to the Instituto Nacional de Estadistica (INE). This rise in transactions was mainly driven by foreigners buying homes on the coast and in cities like Barcelona and on the Costa del Sol, one of the country’s most popular areas with overseas purchasers. Most foreign homebuyers are Britons, French, Germans, Belgians, Italians, and Swedes.
Foreclosures fell by 31.3% to 41,129 dwellings in 2016 from a year earlier, based on figures from the INE. Foreclosures dropped 33.6% for new dwellings and by 30.9% for existing dwellings.
In the first quarter of 2017, the economy advanced 0.8% from the previous quarter, the same as in the same period last year, making it as one of the fastest-growing economies in the European Union. On an annual basis, Spain’s GDP expanded by 3% in Q1 2017. The economy is expected to grow by 2.8% this year, after growth of 3.2% in 2015 and 2016, and 1.4% in 2014, and contractions of 1.7% in 2013, 2.6% in 2012 and 1% in 2011, according to the Bank of Spain
On the Mediterranean Coast, house prices increased over the past year by1.9% to an average of €1,413 persq.m.according to the INE.
In Andalucia, land prices rose over the past year by 15.7% to an average of €167.1 per sq. m.according to the INE.
So let us start from the beginning... Just so you are aware of the basic buying process before you go any further. I will be helping you with your search for a property. Once you have found a property that you like and decided that you want to go ahead and make an offer on a property I will forward the offer on your behalf. You can offer whatever you feel is comfortable for you and your personal circumstances but I will advise you based on feedback that I already have from the vendors. Be aware that Spanish vendors are not normally as open to offers as other nationalities. Some vendors may have mortgages on the properties and will need to cover their costs. Due to the crisis from 2007 onwards, many vendors will already have reduced their asking prices by up to 50% of the price that they may have paid. A general rule of consensus is to offer between 5-10% less than the asking price. Though every case is different. Some vendors will only accept the asking price. At this point, it is normal to state any requirements as to what is to be included in the purchase such as furniture etc.
After negotiations and on the agreement of a figure for the purchase between yourselves and the vendor it is normal in Andalucia to sign a reservation deposit that is first checked by your lawyer and to then place a reservation deposit of either 3000 or 6000 euros depending on the price agreed and the requirements of the agents involved. In most cases, this money is transferred or paid to the lawyer acting on your behalf. It will then be held in an escrow account or passed on to the agent or developer when your lawyer is satisfied that the paperwork is correct. Once the vendor has signed this contract they are obliged to remove the property from the market. Some contracts have penalties in place others do not you will need to check with your lawyer. You can request that the contract is subject to certain conditions such as: subject to a mortgage approval or subject to a survey etc.
When the property is reserved for you then your lawyer will start all the searches and check the documents to make sure that the property is owned by the said vendor, is duly registered and legal. That there are no debts or charges on the property, the catastral value and the services that are in place.
It is often helpful for you to provide the lawyer with as much information about the property as possible such as information sheets from the agent and photos.
An inventory of what is included in the sale can be drawn up at this point and added to the contract.
In many circumstances, little things come to light at this stage that can in most cases be rectified between the lawers. It is important to use a reputable lawyer that is experienced in the type of property that you are purchasing. This process takes about 2 weeks in general. If a mortgage offer is necessary it can take up to 6 weeks as a bank valuation will be required.
Once the lawyer is content with everything he will prepare a private purchase contract to be signed at the notary. This is the binding contract in which both parties agree to the sale/purchase of the property. Both parties agree on a date of completion - which can be anywhere between 1 to 4 months in general. At this point, the purchaser pays the vendor 10% of the agreed purchase price minus the reservation deposit.
Finally, on the agreed date for completion, the new title deed is signed upon completion in front of the Public Notary and the keys are handed over. If you have applied for a mortgage the mortgage title deed will also be signed in front of the Public Notary upon completion.
You lawyer will then ensure all of the following:
The above information is just a general idea of what happens from my experience. For full legal advice, you will be able to have a consultation free of charge in most cases with the lawyer of your choice before you make any commitments or sign anything.
The annual Malaga Feria in August is an exuberant week-long street party with plenty of flamenco and 'fino'(sherry). The fair commemorates the re-conquest of the city by Isabella and Ferdinand in 1487 and traditionally runs from Saturday to Saturday on the third week in August.
This year: 12th August to 19th August 2017
This castanet-clicking fiesta starts off with a bang, literally, with an impressive firework display in the park which can be seen for miles around. The best view is from the Port if you happen to be on a cruise ship or can persuade a sailor friend to drop anchor there for a few hours.
The following day the people take to the streets, the women in flouncy flamenco dresses, to dance, drink and, generally, make merry. The traditional dance of Andalucia is called 'Sevillanas' comprising four distinct dances with plenty of finger-clicking, foot-stomping and, above all, feeling. This is where 'dancing in the street' can be appreciated spontaneously 'en vida' which is really the only way Spanish dancing should be performed.
This city fair is concentrated around Malaga's Marques de Larios which is decorated with paper lanterns and flags. Millions of people visit the fair, although very few tourists seem to even know about this intrinsically Andalusian traditional fiesta which, in Malaga, is two distinct events, in the centre during the day up to 19.00hrs and at the fairground from around 9 pm until dawn.
LIKE an illustration from a fairytale, the Barranco Blanco will enchant you – once you find it.
But the search is more than worth it, for this serene spot (which means White Ravine in Spanish) is set in stunning woodland teeming with wildlife – including wild boars – and its river ends in a magical waterfall.
Even the Nazis were unable to resist Barranco Blanco’s enduring charm
Located in the foothills of the Sierra Alpujata between Coin and Alhaurin el Grande, it cannot be seen from the surrounding roads.
These days it’s a photographer’s paradise and a hotspot for horseriding, mountain biking, walking and river swimming. But, just like the stories by the Grimms brothers and Hans Anderson, it has a darker side, too.
This beautiful spot was allegedly used as a Nazi training camp during the Second World War, due to Hitler and Franco’s friendship.
Q1 2017 data reveals a strong start to the year for international salesNewly released data from the Spanish Ministry of Development (Fomento) has shown a 13.5% year on year increase in international purchases of Spanish property. The strong sales figures are for the January to March 2017 quarter and are a good indicator for international sales for the remainder of the year.
In total, 21,096 Spanish properties were sold to international buyers during the three month period. The figures indicate that well over 80,000 homes will be sold to non-domestic buyers before the end of the year.
1. The perfect location
Located in the mountains between Mijas and Coin and Alhaurín El Grande, is Alhaurin Golf. A magnificent golf course and urbanisation, situated in a magnificent setting and boasting spectacular views. The traditional market town of Alhaurín el Grande is just five minutes away, where you can make all of your daily purchases, pop in for a coffee or sample the local cuisine.
The La Trocha shopping centre, located on the outskirts of Coin, on route to Alhaurín offers a good selection of stores and multi-screen cinema.
Just 7 kilometres away is the white-washed village of Mijas, widely acknowledged to be one of the most attractive mountain pueblos in southern Spain, affording spectacular views over the Costa del Sol.
Mijas is a typical Andaluz village with narrow cobbled streets and terraces full of beautiful plants, red tile roofs and archways. There is also a good choice of international and Spanish restaurants and bars.
There are other numerous interesting and scenic towns and villages within an hours drive including the beautiful village of Benalmadena Pueblo, located just past Mijas.
If you fancy a skiing trip, or to see the wonderful Alhambra Palace, Granada is within a 2 hour drive en route to the Sierra Nevada.
Malaga airport is 25 kilometres away.
2. The magnificent views
From the properties and the golf course the views are absolutely spectacular with mountain ranges and at some points views to the coast and also to the Sierra de las Nieves which is snow covered at some times of the year.
3. The fantastic prices
The properties are incredible value most being nearly half the price that they were bought for off plan. with high quality interiors marble floors, and granite bathroom surfaces. They all have terraces and community pools.
5. The wonderful Golf
The impressive golf course with 18 holes designed by Severiano Ballesteros and has become one of the top 100 golf courses in Spain.
6. The great facilities
Besides the obvious attraction of the golf course, there are other activities such as tennis,. A welcoming clubhouse with public restaurant and bar, an on site shop for groceries and bread and a bus stop at the entrances.
We are urgently looking for fabulous properties to list in the local area!!! Please contact us if you are considering selling your property. Call Nikki on 654091051