New Property
Property that is owned by a developer/builder. All
properties are sold freehold and carry a minimum 10
years structural guarantee. Your Home In The
Sun has several contracts with local developers
in countries all over the world and we will show you
a range of developments best suited to your needs.
Resale
Property
A resale property is owned by a private individual,
family etc. Your Home In The Sun
has a wide selection of resale properties available
to view for a variety of tastes and budgets. However,
the golden rule is that before you make an offer you
should be in a position to buy. Therefore, you need
to be certain that you can raise the finances before
making the offer.
Placing
a Holding Deposit
Once you have found a suitable property a holding
deposit is required to reserve a property and remove
it from the market. While the amount can vary from
purchase to purchase, it is normally in the region
of €3,000 or £2,000 or $3,000. If you are
interested in a property, you have to open a local
bank account and lodge this sum. The Holding Deposit
is paid to the vendor of the property on signing a
reservation/holding contract. The remainder of the
purchase price together with all fees has to paid
on completion (see below).
Signing
a Reservation/Holding Agreement
When putting a deposit on a property you must sign
a reservation/holding agreement thereby reserving
the property. This agreement will also act as a receipt
for monies paid.
Appointing
Your Legal Representative
Your legal representative will carry out all the necessary
searches and will handle all payments on your behalf.
It is generally advisable to engage the services of
a local solicitor to look after your purchase. Your
Home In The Sun has a relationship with an
experienced bilingual legal representative in all
the major countries and will always offer you a choice
of representation of ofcourse you are free to research
and choose you own.
Completion
Date
This is the date on which the balance of the purchase
price must be paid together with all fees and the
title deeds are signed over to the new owner(s). This
date should be set when signing the reservation/holding
agreement.
Signing
of theTitle Deed
This is done on completion in front of the state appointed
legal representative, by you
or by someone (usually your legal
representative) with power of attorney from you
to sign on your behalf. Full payment less the deposits
given earlier together with all fees
(see below) is required before the title deed can
be transferred into the name(s) of the new owner(s).
Notary
This is the most commonly used term but this does
vart from country to country. The Notary is a lawyer
appointed by the local government to ensure that the
change of title is properly executed. It is the Notary's
job to make sure that the seller is legally entitled
to sell and the taxes are paid. The Notary will register
the change of ownership in the
Land Registry Office (see below).
Land
Registry Office
This
is where all Title Deeds
relating to property transfers are registered after
taxes have been paid and where the title and any charges
against the property can be checked. All properties
promoted by Your Home In The Sun
wil require registeration in the local Land Registry
which details who owns the property, the exact size
of the property and if there are any mortgages etc
on it. Only the people named on the title deed have
the right to sell the property.
Fees
All fees are due on completion and a typical example
follows but please remember to check the most up to
date figures for fees in the country of your choice
simply by clicking Contact Us.
-
7%
- 10% of the value of the property for local tax
for new properties or for transfer tax for resale
properties
-
1%
- 2% of the value of the property for legal fees
-
1%
- 3% of the value of the property for Notary fee,
Land Registry, changing of water & electricity,
wills and local identity registration such as the
NIE in Spain.
In
total you should allow 10% - 15%of the purchase price
for costs but this does depend on the country you
are buying in.
Taking
Possession
The handing over of the property and the keys will normally
take place only when the full purchase price and all
fees have been paid on the completion date.
Transfer
of Services
Having completed the purchase, it is necessary to connect
or transfer services. For example, electricity and water
need to be in your name.
Insurances
Fire
Fire
insurance is compulsory by law when taking out a mortgage.
Comprehensive household insurance is available to protect
your home and contents. But make sure you always read
the small print carefully so that you understand exactly
what is covered. Life insurance can be taken out to
guarantee payment of a mortgage in the case of death.
Building
and Contents
This is your responsibility upon taking possession of
your property, however,Your Home In The Sun
can advise you on this matter. For details register
for our FREE Factsheet on
Buildings insurance.
Community
Fees
If you purchase a property within an apartment block
or complex, you will become a voteing member of a community
of co-owners, which administers the general maintenance
of the areas of common ownership, such as gardens, hallways,
lifts swimming pools, exterior lighting etc. An annual
budget is calculated to cover these costs, which is
divided between all the owners according to the size
of their properties. All owners have a vote to agree
the budget at the annual general meeting.
Property
Guarantees
Most countries have laws that state that all new properties
must be guaranteed for a period of time. For details
register for our FREE Factsheet
on Buildings insurance. During this Guarantee
period the architect and the builder being legally responsible
for design or build defects. Most new developments also
include a bank bond within the terms of their contract,
guaranteeing each stage-payment and frequently a no-later
than completion date.
Making
a Will
As international inheritance-laws vary vastly from those
in the UK or Ireland. Complications can arise if you
do not have a separate local Will handling local assets.
We, therefore strongly recommend that you take legal
advice on this matter when you acquire or transfer foreign
assets. For more information please Contact
Us.
Capital
Gains Tax
A tax that is paid on the gain made on a property when
it is sold; the rate of the tax can vary. Your Legal
Representative will be able to provide accurate
& up to date information.
Become
resident or keep tourist status
Legally
any foreigner can stay in EU Member countries as a tourist
for up to 90 days. Anyone staying for over 183 days
is considered to be a fiscal resident (I.e a resident
for tax purposes) and is obliged to apply for a Residence
permit unless they meet the Residencia permit exemptions.
The requirements and exemptions for EU members are continually
changing to simplify the process.
Tax
implications
When you stay in an EU Member country for 183 days
or more in one calendar year, you become legally liable
for local income tax, whether you are a formal resident
or not. When you take out a residency, you become liable
on your total world wide earnings, although international
agreements prevent double taxation.
Annual
costs
Annual taxation charges vary greatly from country
to country so please Contact Us
for details of taxation in your chosen country.
Tax
advantages for resident property owners
Imputed income tax - is an annual tax on
the ratable value of the property and is on average
charged at 0.5% of the Land
Registry value. If you are a resident you will not
be charged this on your principal home.
Wealth
tax - is a tax on all assets inmost countries and
is typically charged at 0.2% of the title deed value
of any house owned. Residents are usually given and
allowance befor wealth tax is due i.e.in Spain the first
£108,000 of valuation is exempt. Fof a joint ownership
this would apply to each partner. These
two taxes are paid annually for as long as you own the
property.
Non-Residents
do not receive any relief so therefore have to pay 0.7%
of the catastral value every year.
When
you come to sell the property, capital gains tax will
be charged on any profit you have made. This is again
varies from country to count so please Contact
Us for details ofCapital Gains Tax in your chosen
country. Also if you are over 65 and want to find out
how to avoid capital gains tax altogether please Contact
Us or register for our
FREE Factsheet.
Importing
possessions
European Union citizens are exempt from all duties
on importation of household effects to other EU Countries.
However the import laws outside the EU are very different,
for more information please Contact
Us.
If you have
any further questions that are not answered here please
Contact Us and we will do
our best to help.
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