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A gestoría is an intermediary in your relations with the various official bodies. The “gestor” (a general purpose consultant) can make your life much easier, as he knows the workings of many council and local government and is usually able to obtain an official permit or document much quicker that you could on your own- even if you are fluent in Spanish.

Gestorías are necessary part of Spanish life because government and council official are notoriously slow and meticulous and bureaucratic procedures are complex.

It is always a good idea to leave a provision of funds with your lawyer in case you have unexpected expenses (payment of taxes, a new power of attorney, a payment to the notary for wills, additional community payments etc.) A provision of funds with your lawyer will enable you to make payment for anything unexpected without delays caused by extra transfers, authorization forms etc.

It has to be pointed out that this account is not a personal account, but a client holding account and if the lawyer have financial difficulties creditors would be restrained to the personal accounts of the members of the firm. Moreover, clients are protected against legal wrongdoings from their lawyers, by means of a professional indemnity insurance.

The amount you can borrow will obviously depend on the value of your property. As a general guideline, non-residents can borrow up to 60% of the property value, while for residents this figure raises to 80% of the value, depending on the age of the borrower.

It will also depend on your income. As a rule, banks will usually lend up to three times your gross annual income, but they rarely authorize a loan that will result in monthly repayments that exceed 33% of your net disposable income per month.

This tax is paid to the local administration and is based on the increase in the value of the land since it was last sold.

The Law states that the seller is responsible for paying the Plus Valía when there is a profit in the sale, if there is no profit this tax is not payable.

The Impuesto sobre la Renta de No Residentes (Property Owners’ Imputed Income Tax) is a tax that must be paid by non-resident property owners every year. Resident owners who can prove that their property in Spain is also their principal residence are exempt.

Non-residents are taxed on income received in Spain at a flat rate of 19% for residents in a EU country and 24% for residents in countries out of the EU (like the UK). Where no actual income exists the Inland Revenue will impute an income usually based on 2% of the value of the property (valor catastral) which is registered at the Land Registry (Catastro). On new properties which have recently had their value revised, this is usually reduced to 1.1%.

This tax is paid to your local authority to cover the costs of rubbish collection and disposal. It is paid twice a year and it is advisable that non-residents arrange payment by standing order from a Spanish bank account.

If your property is newly constructed your local town hall may not immediately bill you for the tax. Sometimes it can take up to a year for them to send you notification, at which point they will backdate your payment to the original purchase date.

You should make a Spanish will to distribute your assets to avoid time-consuming legal problems for your heirs.

Spain has strict rules applyed to inheritance. Even if you have a will in your home country, it is also wise to make a Spanish will that distributes of your property here. Spanish succession law is quite complicated and may differ greatly from what you are used to at home.

The Spanish law regarding wills is designed primarily to protect heirs within the family. A number of restrictions are therefore placed on the testator’s freedom to dispose of his estate as he wishes. If a foreign resident dies intestate his property will be distributed according to Spanish succession law. (For further information, please see our Conveyancing Guide).

As foreign will may cover your Spanish assets but it will be a slow and expensive process (translation, obtaining the probate of will in the jurisdiction of the will, legal assistance…) to get it recognised in Spain.

For your heirs to transfer your Spanish property to their names, the process is much simpler if there is a Spanish will. If there is no Spanish will registered in the central registry of wills, then in the worst case, your property will pass to the local and regional government.

Building insurance is, by law, obligatory. Article 20 of the Edification Act. stipulates that no public deed of new works will be authorised or registered in the Land Registry unless the developer and the contractor in one case, have taken out three insurance policies.

These insurance polices cover the following:

The policy beneficiaries will be the developer and any subsequent purchaser of the property.

Yes, you should. If your property is mortgaged the bank will require you to do so.

A standard insurance policy for an apartment worth about €300,000 with contents valued at €48,000 costs in the region of €280 a year.

In an apartment block or housing complex the residents’ association (Comunidad de Propietarios) is required to insure the whole property for the cost of rebuilding. However, it is always advisable to also take out your own buildings insurance in case the Comunidad de Propietarios insurance is not comprehensive. For a villa with a rebuild value of approximately €500,000 and contents worth €180,000, the insurance premium would be about €1,550.

Being a member of this Community of Owners (Comunidad de Propietarios) means that you have certain obligations and rights. Your obligations include:

1. You must not damage the communal facilities

2. You must maintain your own property in a state of good repair

3. You must allow repairs to be carried out on your property which benefit the community as a whole

4. You must allow workmen to enter your property in order to carry out repairs related to points 1 ?| 3 above

5. You must pay your share of the service charge

6. You will be held accountable by the residents’ association (Comunidad de Propietarios) if you fail to observe any community or statutory regulations

As a member of the Comunidad de Propietarios you have the right to vote and participate in making decisions and running your residents’ association.

Sometimes developers allow a temporary supply of water and electricity that is unreliable and could be dangerous. Some problems that may arise when using these connections as power cuts due to voltage. We do not recommend occupying the dwelling until these services are officially connected.

You should also be aware that it could take some time, up to four weeks in many cases, for this to be carried out.

Yes, you are. By law, failure to pay Community fees or council rates are considered debts construed as preferential charges on the property this means that if the seller has run up debts, the new property owner will then be liable.

A competent lawyer will have these debts checked out to ensure payment or will withhold, the amount pending the amount pending from the purchase price.

The procedures in case of unpaid charges are:

IBI/BASURA: Legal action begins after the first 2 unpaid IBI or Basura bills (depending on municipality) and if no action is taken, the property is sold in at auction. The new buyer is liable for this taxes if the previous years have not been paid.

Community of Owners fees: in this case, the process is really fast. If community administration decides to proceed against the new owner, a notification on the notice board in the common area of the building or on the notice board of the community administration office will be enough to proceed with the seizure of the property and sale at public auction.

In this case, debts will go with the person who signed the contract, and therefore the seller will be liable. However, electricity and water can be cut off if they have not been paid for.

The buyer can sign a new contract in their own name with the supply company and remain unaffected by the debts. However, in practice it is most often cheaper to pay the bills and ensure supply than litigating with the company.

Again, a competent lawyer should check this.

Fees may vary depending on the water or electricity company.

For water you can expect to pay an initial amount of between 75€ and 150€. Generally, the water contract also serves as receipt for the first payment.

With regards to electricity, the first payment is normally paid together with the first bill(usually by direct debit). As with water, this figure may also vary and it will be charged by the electricity company.

Spanish law establishes three different lapses of time depending on the kind of snag involved:

1. when we are talking of minor snags, the lapse is of 1 year.

2. in case of damages caused by defects compromising hygiene and good health, environmental protection, energy saving and other functional aspects permitting a satisfactory use of the building, the lapse is of 3 years.

3. with regard to structural damages, the lapse is of 10 years.

However, we advise you to inspect the property within three months after completion.

By law, the developer and the builder have to apply for an obligatory insurance policy covering the damages mentioned above. In case of not complying with their obligations, the client has the possibility of setting up a claim before the Insurance Company, in which case he can use the services of the law firm.

In order to have snags resolved by the developer, it is usually enough to fax the snaglist to the developer.

A NIE is a fiscal identification number for non-residents, without which you cannot buy property or certain other assets in Spain.

This document is strictly for identification purposes, and does not attribute in any way the sense of residency, nor can it be taken as a presumption of residency.

It is the first requisite which we need in order to carry out conveyancing proceedings on the behalf of a non-national in Spain.

The date of Inscription of Foreigners in a Municipal register, in spite of the fact that this does not constitute proof of legal residence in Spain, may be used as the start date for calculating the 183 actual days per year, which are necessary to achieve the condition of fiscal or usual residence, or at least the presumption of this on the part of the Spanish Administration.

This date can also be used by the Traffic Agents may begin to calculate the term of six months since the start of usual residence, after which it is obligatory to change, or to register, a driving license needed in a European Community nation.

In the same way, they calculate the period of thirty days after which a foreign-registered vehicle must be re-registered if the owner has his usual residence in Spain. It is the responsibility of an individual who is not usually resident in Spain to demonstrate this to the authorities.

Assuming you do not have Spanish citizenship, you are a resident if either:

You are physically present in Spain for more than 183 days (including sporadic absences)

The main base of your professional activities or economic interests is in Spain