SPANISH PROPERTY TAXES

The purchase of a property in Spain involves - both for residents and non-residents - a series of fiscal obligations which must be met: TAXES ON CONVEYANCE OF ASSETS AND DOCUMENTED LEGAL PROCEDURES (ITP-AJD in its Spanish acronym) AND/OR IVA (Spanish equivalent to VAT): The IVA tax (equivalent to British VAT) is applicable to the purchase of newly built properties and urban plots which are immediately available for building. It amounts to 7% of the purchase price to the purchase of newly built properties, and 16% to purchase of urban plots which are immediately available for building. This tax must be paid on each instalment. In addition, the obtention of the title deed is also subject to Taxes on Conveyance of Assets and Documented Legal Procedures, 1%. It is necessary to pay the ITP-AJD taxes (taxes on Conveyance of Assets and Documented Legal Procedures), when IVA (Spanish VAT) is not applicable. The rate of ITP is 7% of the property purchase price. Remember the costs associated to a property sale transaction are normally 10% of the purchase price, and one of the mentioned taxes is included in this 10%. TAX ON REAL ESTATE (IBI in its Spanish acronym) The IBI tax must be paid every year, in one payment to be made between September 15 and November 15. Failure to pay this tax may result in the initiation of sanction procedures. We can ensure this payment is made by direct debit from your Spanish bank account, so you can rest assured you will not encounter any problems. WEALTH TAX If you are not resident in Spain, you must pay Wealth Tax (in Spanish, Impuesto sobre el Patrimonio), which is applicable to all the assets you have in Spain. Among these assets are real estate, bank accounts and other goods of a certain value. The rate of this tax is very low, usually around 0.20% (one fifth of a percentage point) of the total value of your assets. PROPERTY INCOME TAX Non-residents who own properties in Spain must file their tax return with the tax authorities. Spanish authorities are only interested in the amount earned by non-residents through their activities in Spain, rather than their global income. Non-residents must pay a single tax rate on any income generated in Spain. A typical example is the interests generated by deposits in accounts held in Spanish banks or the income obtained from renting properties. Any person who owns a property in Spain, but is not resident there the entire year, should designate a "fiscal representative" who will carry out all the procedures necessary before the tax authorities. We also offer this service. CAPITAL GAINS TAX Capital gains tax is payable based upon the increase between the original purchase price of a property and the selling price. This tax applies to the seller is levied at 18% to non-residents. Anyone purchasing a property from a non-resident must withhold 3% of the purchase price which is then paid to the tax authorities on account of any liability by the vendors. The vendor then has around two months in which to pay the Agencia Tributaria (spanish tax authorities) the rest of this tax. However, there are factors that can be taken into consideration to reduce the amount paid such as the costs incurred with the original purchase, and time elapsed between the initial purchase and the new sale etc. Source: Manzanares Abogados – Lawyers http://www.manzanares-es.com

50% REDUCTION ON VALUE ADDED TAX DERIVED FROM NEW PROPERTY PURCHASES

Starting from 23rd May 2012 until the end of the year, the Government shall apply a 50% reduction on all value added tax derived from the purchase of a property, according to the Council of Ministers. This measure was announced 4 days ago at a press conference by Ana Pastor, Public Works & Development Minister, following the Council of Ministers. This implies that whoever purchases a property starting from today will receive a 50% reward bonus for any eventual value added tax generated by the sale of the same. The reduction applies to both individuals and corporations. The tax cuts therefore affect both individual as well as corporate tax returns. However, purchases made between parents and children will not be entitled to benefit from this measure. The change in policy is focused on revitalizing the anemic Spanish housing market as well as facilitating the sale of stock accumulated in the banks’ balance sheets, which is currently eroding their profit and loss accounts. Anyone who purchases a property as a second home will be able to benefit from this measure. At present, individuals are subject to 100% exemption on value added tax upon selling their main home. This will therefore optimize a stock clearance of all second homes (apartments on the coast etc.) and will aid large investors, speculators or profit-seeking property purchase bonds. SOURCE: MARTINEZ ECHEVARRIA I PEREZ I FERRERO ABOGADOS www.martinezechevarria.com

SAYINGS AND THEIR STRANGE ORIGINS

Always a Bridesmaid, Never a Bride This phrase, surprisingly, was used to sell Listerine mouthwash! To promote their product, the manufacturers of Listerine employed the personal experience of girls at the time, who desperately wanted to settle down but seemed always to be left on the shelf. First used in the 1920’s, it portrays a situation and a possible explanation for the lack of success these girls had. Here is the transcript of the ad: Poor Edna was getting on for thirty and most of her girlfriends were either already married, or about to tie the knot. How she wished that, instead of being their bridesmaid, she could be the bride! However, any romance of hers invariably ended quickly. There was a reason. Unbeknownst to her, she suffered from bad breath and no one would tell her, not ever her closest friends. The advertisement sold millions of bottles of mouthwash and also gave the English language a new saying! Bark up the wrong tree Originating back when hunting was still a major sport, this phrase came from when animals were used to track, catch or retrieve prey. This applies, not least, to dogs. Dogs were used in the chasing of raccoons, which was chiefly undertaken at night and were trained to indicate the tree in which the animal had taken refuge by barking at it. Of course, even dogs can err and, at times, barked up the wrong tree. Be on a good footing A pleasant relationship with other people, not least those in a superior position, is portrayed as being ‘on a good footing’ with them. There are two thoughts as to where this saying came from. Some say the phrase goes back to a practice of early apprenticeships. It was the custom, on the first day at work, for apprentices to invite all their workmates for drinks. The new apprentice ‘footed the bill’. If proved a generous host, he made friends for keeps. The hospitality would never be forgotten. Recalling how much it had cost, it was said the novice gained ‘a good footing’. A second derivation links the phrase with an early and bizarre interpretation of human anatomy, the importance given to the length of one of a person’s digits. At one time, the dimension of the middle toes determined a person’s ‘standing’ in the community. Thus, the measurement of their foot decided their status in the eyes of others. Those whom nature and genes had endowed with large feet were lucky to be ‘on a good footing’. Draw your own conclusions on this one! Beat around the bush Someone who doesn’t get to the point is said to ‘beat around the bush’. The origin of this phrase is, undoubtedly, from hunting, and more specifically from the hunting of boars. A ferocious animal, it often hid in the undergrowth and beaters were employed and ordered to go straight in to chase it out. But very much aware, and afraid, of the animals’ sharp tusks, they much preferred to merely ‘beat around the bush’ a practice strongly disapproved of by their masters. Best foot forward When you are trying to make a good impression it is said that you should put your ‘best foot forward’. There are many options as to where this phrase came from, one being that it was believed that ‘the left’ was the realm of the devil, of evil and misfortune. After all the Latin word sinister means left, and in English sinister has kept its ominous meaning. Hence, it was advisable to keep the left foot behind and step forward with the best, the right, foot first. But this phrase seems to have come from the fashion world, rather than the occult. The saying can be traced to male vanity, particularly apparent in the late eighteenth century, the period of the dandy. His desire to attract people’s attention and admiration took strange and elaborate forms. At the time, people imagined that their two legs differed in shape and that ‘normally’ one was more becoming than the other. To draw attention to it they kept the worse one in the background, literally putting ‘their best foot forward’, and with it, of course, their leg. Bite the bullet A person who ‘bites the bullet’, without any sign of fear, acts with great courage in the face of adversity. The phrase recollects a dangerous army practice in the 1850s. Soldiers were then equipped with the British Enfield rifle. Prior to using it, they had to bite off the head of the cartridge to expose the explosive to the spark which would ignite it. The procedure was fraught with danger, particularly so in the heat of battle. It needed firmness and courage, as even the slightest deviation or hesitation would endanger the soldier. Blow Hot and Cold People who waver in their opinions and quickly change from being enthusiastic to showing disinterest are said to ‘blow hot and cold’. The saying can be traced to one of Aesop’s Fables. It was a cold winter’s day, and the freezing traveler was blowing on his stiff fingers. Mystified, a satyr wanted to know what he was doing. The man explained to him that, with his breath, he was warming his chilled fingers. Taking pity on him, the satyr invited the man to his home for a hot meal. This time, he watched him blowing on the food, which intrigued him all the more. Inquiring why he did so, his guest explained that he was blowing on the stew to cool it down. There and then the satyr told the traveler to leave at once. He was not prepared to entertain, or even mix with, someone who could ‘blow hot and cold from the same mouth’. Break a leg To wish an actor prior to his going on stage to ‘break a leg’ is a well-known practice. A pretty strange wish, actually it is meant magically to bring him luck and make sure that his performance will be a success. From the superstitious age it was thought that jealous forces, always present, are only too anxious to spoil any venture. A good luck wish would alert and provoke them to do their evil work, whilst a curse will make them turn their attention elsewhere. The underlying principle is the belief that if you wish evil, then good will come. I’m sure it’s called reverse psychology these days. Bury the hatchet To bury the hatchet means to create peace. With hostilities at an end, the hatchet was no longer needed, and therefore could be disposed of. Now a merely figurative expression, the phrase is based on an actual practice of North American Indians. When negotiating peace, they buried all their weapons; their tomahawks, scalping knives and clubs. Apart from showing their good faith, simultaneously it made it impossible for them to go on fighting. By hook or by crook The achievement of a goal with determination, by fair means or foul, is described as getting things done ‘by hook or by crook’. The origin of this phrase is linked with an early British practice, at a time when forests were still the exclusive property of royalty. For any unauthorized commoner, then, to gather firewood in them was a crime, poor people being the only exception. Though they were not permitted to cut or saw off branches, they were free to remove withered timber from the ground or even a tree, doing so by means of either a hook or a crook.

LAURO GOLF COURSE

Lauro 27 Golf can be found in the middle of beautiful pure nature in spectacular surroundings. The course counts with 27 holes that can be played in three different combinations, all par 72. From the beginning the design and function of the course has been based on respecting the nature and the environment that surrounds it by not only saving and caring for the already existing trees but also by planting thousands of new trees, most of them indigenous andalucian species. In Lauro Golf the nature is everywhere. Within the whole complex the direct contact with the nature is constant and whether you are playing golf, living in the residential or just enjoying a stroll in the surroundings you can see that we are not the only visitors at Lauro Golf. You can often see rabbits, ducks, partridges, herons and even eagles on and around the golf course, our friendly neighbours who are enjoying the micro-climate of the course created by the thousands of trees and the fourteen lakes of the golf course. The course was designed by the late Folco Nardi and the idea was to create a course that was technically challenging yet not too difficult. With a good concentration and the correct election of the clubs the player can end up with a good score in one of the 50 competitions played every year at Lauro Golf. The extension of the course with the holes 19-27 designed by Mariano Benitez follows the same line and equally requires concentration and skills. The course is moderately flat and can be played by foot though there are two holes located on the side of the mountain and from which we can enjoy some spectacular views over the valley of Guadalhorce and the Mediterranean. The club house is located in an old Andalucian building, Cortijo el paredón, where you can find the restaurant, changing and locker rooms, pro shop and the caddy master office. On our premises and the surroundings you can also find a swimming pool, a padel tennis club, lawn bowls club and an equestrian centre. In the middle of the cortijo there is a fabulous patio, with an enormous rubber plant in the middle which offers shade to the players enjoying their food and drinks after a game of golf. http://www.laurogolf.com/

NEW RULES FOR NIE APPLICATIONS

The rules regarding NIE applications have once again been revised. Local police stations are once again accepting applications on behalf of third parties from representatives with power of attorney. The last revision to the rules on 3rd January 2012 made it mandatory for individuals applying for a NIE number to personally attend the local police station to make the application. It was no longer possible to engage the services of a representative with power of attorney to carry out this process. The process of acquiring an NIE is not simple. The lack of conformity in what documentation is required is staggering as are the queues at the local police stations. It is therefore good news for those people who are daunted by the whole process of applying for an NIE number that they can now hand it over to someone else who can battle their way through the bureaucracy and queues on their behalf.

Country Codes

This article by Peter Edgerton was in the SUR IN ENGLISH recently and I thought it was very amusing.

For anyone thinking of coming to live in Spain there are a few dos and don’ts which are of the utmost importance if the transition is to be a successful and happy one.

The first detail to note is that as new arrivals we are, indeed ‘coming to live in Spain’ not ‘coming to live in a transportable version of our home country under a sunnier sky.’ A healthy acknowledgement of this basic fact will help no end. It’s a good idea, therefore, to learn a couple of phrases in Spanish before you arrive in order to avoid the classic ‘red-faced pot-bellied bloke/woman yells at bewildered waitress in thick Yorkshire/Geordie/Scouse accent scenario.’ This is always mightily embarrassing especially if what’s being bellowed involves the vocabulary ‘Dear’, ‘Darlin’ and an adjectival swear word.

In the same vein, it’s also good to try to respect local customs, especially if they have been woven into the fabric of society down the centuries. This means for example, not complaining to the town hall about the noise during Holy Week, as one legendary British couple in a white Andalusian village did a few years ago. The loud drumming and deafeningly mournful music is all part of the cultural and religious experience. Rumour has it they were annoyed because they couldn’t hear a repeat of ‘Only Fools And Horses’ properly, but this may be an urban myth.

Do try the wonderful Mediterranean diet (except the salads, obviously; they’re equally useless whichever country you’re in). When I first arrived, I couldn’t bear olives or cured ham and now they’re two of my favourite snacks. Do not – as I’ve seen happen on more than one occasion – take your own pot of mint sauce to restaurants to slap on your leg of lamb. It’s rude.

If you’re thinking of starting a business, you simply must employ someone to do the paperwork. Those hoping to save a few bob by dealing with the bureaucracy themselves usually end up in one of two places: Alhaurin prison (for lamping the twenty third person to tell them that they’re not in the correct office and the one they want is three miles away but is just about to shut for two days for no apparent reason) or a lunatic asylum, rocking and drooling in a darkened corner, endlessly repeating the same speech, ‘But, I brought nine photocopies of my mother’s driving licence just as she asked. No-one mentioned my dad’s golf club membership card. I only wanted to open a cake shop.’

Don’t worry about people shouting at each other at all times, there’s no need to call the police. Full-blooded screaming matches are appropriate to any number of situations over here e.g. discussing a disputed handball decision from last night’s football match, cursing the immediate family of a neighbour in extraordinarily graphic terms or asking someone for the time. Don’t try to compete when these moments arise in social situations, you’ll be brow-beaten into submission by a combination of decibels and dogged determination. I’ve long suspected that Spanish people practice circular breathing rather like didgeridoo players in order to avoid the inconvenience of having to pause for breath when in full flight. There is no conclusive proof of this, however.

So returning to the idea of learning rudimentary Spanish before coming over, I’d like to suggest three indispensable phrases to learn before arrival.

‘Sin ensalada, gracias.’ (‘No salad, thank you.’), ‘Perdone, es que tengo que irme, no quiero perder Solo Tontos Y Caballos.’ (Sorry, I’m afraid I have to go, I don’t want to miss Only Fools and Horses) and ¿Oye, tocas el didgeridoo, por casualidad? (‘Hey, do you play the didgeridoo, by any chance?’). The last one you may have to scream very loudly.

A HOME FROM HOME FOR BRITS

I read this interesting article in the SUR In English and thought I would share it with you.

Andalucia offers the best of Britain and Spain, and those who make the move find they don’t have to go without home comforts.
Stereotypes and sweeping statements surround the idea of ‘the Brits in Spain’. It is widely assumed that British expatriates in Spain do not integrate and do not learn the language. It is implied that they don’t take any interest in Spain or the Spanish way of life, that they spend most of their time in British bars and buy British goods wherever possible.

The truth is that while this is generalisation, this scenario is perfectly possible, in an environment which welcomes Brits who wish to continue to live their British life in a new location. There are businesses whose sole purpose it is to help those who don’t speak the language to settle in and make the most out of life in Spain.

The attraction

Britons are attracted to Spain by the sea and mountain views, Spanish fiestas and food, the warm winter sun, the holiday atmosphere and the friendly people.
It is often said that the foreign public’s image of Spain is the reality of Andalucia, with flamenco, fiestas, white villages nestled on hillsides, Moorish castles, endless blue skies, olive groves and sun-soaked beaches.
The Costa del Sol offers the best of what both Britain and Spain can offer. The rise of budget airlines and last minute deals has made it easier than ever to be able to travel affordably to and from the UK, and the ability to fly back cheaply to see relatives is an important factor in the decision of those who choose to relocate to Andalucia rather than somewhere further afield.

Both residents and tourists can enjoy the proximity of traditional, rural Spain as well as the many benefits offered by a modern tourist resort. Some who settle here take trips inland to look for unspoilt Spain, while others are content to remain on the coast where British-speaking help is always on hand.

Some elderly British residents on the Costa believe that their experience of aging is far more positive than it would have been had they stayed in Britain mainly because of the weather. The higher temperatures and infrequent rainfall mean that you go out more and, because you get more exercise, you’re healthier.

Feeling valued

Those who retire to the Costa del Sol find that their new life does not mean inactivity; there is a wide range of leisure activities to take part in and mobility is eased by the warmth. Many find that they become part of a community in which they feel valued.

There are so many English speaking clubs and societies to join on the Costa del Sol that it’s a wonder anyone ever finds time to do nothing, as the stereotype suggests. These clubs incorporate all conceivable hobbies from music and dancing to flower arranging and gardening to cricket and lawn bowls to bridge and chess. And if you can’t find a club which offers what you’re interested in, then you can bet there will be a demand for it should you start one yourself.

Amenities

The close expat community incorporates British businesses, including an Iceland in Fuengirola and a Marks & Spencer in Marbella. Of course, the proximity of Gibraltar means never having to go without your favourite products from home and the internet and satellite TV allow you to enjoy British programmes abroad. There are also Spanish based radio stations and publications, including this English language newspaper, SUR in English, to keep you up to date on Spanish and expat news!
Some migrants worry about their children’s education, anxious that going to a Spanish school would leave them behind others their age and therefore unable to compete in the job market when they finish. These issues can be avoided by sending your children to an international school, of which there are many here on the Costa. However, children learn very quickly and should overcome the initial disadvantages and on leaving the Spanish school system they will be completely bilingual.

A good choice

Whether you’re looking for a beach apartment, a country cottage or a mountain retreat, or don’t care and just want to escape the drizzle and traffic queues in the UK, chances are the Costa del Sol is the place for you.

Source: http://services.surinenglish.com/virtual/20120330-special/