Costa Blanca Property Buyers Guide

A Guide for Buyers of Investment & Retirement Properties in Costa Blanca

Costa Blanca Property Buyers Guide

By Colin Scriven
See Colin Scriven's Bio

ARTICLE 4 - After the Purchase of your Costa Blanca Property
 

INDEX - Costa Blanca Buyer Guide

Costa Blanca Property | Search for property for sale in Gandia (Costa Blanca) Costa Blanca property | Search for property for sale in Denia (Costa Blanca) Costa Blanca Property | Search for property for sale in Javea (Costa Blanca) Costa Blanca Property | Search for property for sale in Moraira (Costa Blanca) Costa Blanca Property | Search for properties for sale in Calpe (Costa Blanca) Costa Blanca Property | Search for property for sale in Jalon Valley (Costa Blanca) Costa Blanca Property | Search for property for sale in Albir (Costa Blanca) Costa Blanca Property | Search for property for sale in Pego (Costa Blanca)

This article is Copyright © of Hamiltons of London SL and protected under Spanish and international law.

INDEX TO ARTICLE 4. After the Purchase of your Costa Blanca Property

Post Completion

Banks Accounts

Exchanging/Transferring your money

Insuring the property

Inheritance tax

Renting your Costa Blanca property

ARTICLE 1:  Locating a suitable Costa Blanca property.

Your first steps.

How much will it cost?

What type of property?

Searching for and viewing properties.

ARTICLE 2: Legal issues for Costa Blanca property buyers.

The NIE number

Bank accounts

Legal representation

Duties of your lawyer

ARTICLE 3. Buying your Costa Blanca property

Financing the purchase

Making an offer on a property

Formal Acceptance

Exchange of Contracts

Final completion

Registering the property
 

 

After the Purchase of your Costa Blanca Property | POST COMPLETION

At this point you will need to change all utilities into your own name. If you have no or little experience dealing with utility companies in Spain, we would firmly suggest you ask your lawyer to carry this out on your behalf to avoid any unwanted frustration and stress.

You should also check your bank account to make sure the amounts are being deducted and that you are receiving the bills for the relevant utilities. If not, ask your lawyer to call them and ensure that everything has been changed correctly. You won’t be the first and you certainly won’t be the last person where the utility companies, which are notorious for bad customer service, have not carried out the job correctly.

After the Purchase of your Costa Blanca Property | BANKS

Spain has an abundance of banks and those in areas with large populations of foreign residents will generally have English-speaking staff.

There are also several English banks in the coastal resort areas, including the likes of Barclays and HSBC, all with English speaking staff.

Service tills are located at most banks and when using a credit card will usually ask which language you would like to use. Be careful, though, because they do charge and this will vary from bank to bank, so it may be worth going into the bank to find out what charges will be incurred prior to making withdrawals.

Many Spanish banks now also offer internet banking in English which could save you a lot of headache and worry, as most of these sites will offer you transfer services online for utilities, taxes and town hall charges.

After the Purchase of your Costa Blanca Property | FOREIGN EXCHANGE

Buying property abroad is often the realisation of a personal dream and probably represents one of the greatest expenses of your life.

As part of the purchase process, you will inevitably need to transfer a Sterling sum into Euros in order to pay for your property. This vital element of the purchase process – one that is often overlooked and one that can make a huge difference to the price in Sterling that you will have to pay for your dream home.

Exchange rates change constantly and 10% fluctuations in a relatively short space of time are not uncommon. This could effectively increase, by 10% or more, the Sterling amount that you will have to pay.

Not only could you save a large sum of money by using a commercial foreign exchange company when buying your property but also these companies can go even further.

You can even set up a regular payment plan if you are making regular currency transfers. Such payments might include overseas mortgage payments, pension payment transfers, or any other regular currency payments.

This removes the worry caused by exchange rate fluctuations when making currency payments over a period of time.

After the Purchase of your Costa Blanca Property | INSURING THE PROPERTY

Once you have purchased your home you will need to insure both the buildings and contents. There are many Insurance companies in Spain that can offer you this service but for peace of mind we would suggest you contact a company that has English speaking staff with policies written in English so that you are certain what is and isn’t covered on the policy. At least, that is, until you are able to understand the language a bit better.

Several companies have set up shop in Spain dealing mainly with the British ex-pat market so you can still shop around for a competitive quote.
Most provide a reliable, personal, face to face service through their multilingual Insurance Brokers and Intermediaries, a 24 hour emergency helpline for all policyholders, and with their English speaking support team based in Spain they can provide a fast, efficient service to all of their customers.They not only offer home insurance but can also offer other insurance services to the ex-pat in Spain.

Car
Motorbike
Pet
Holiday Apartment
Marine
Travel
Medical

After the Purchase of your Costa Blanca Property | INHERITANCE TAX

This subject is not particularly a pleasant one but we feel it is essential to inform you of the inheritance tax laws here in Spain and how to deal with them.

Firstly, the same old boring answer is - get a lawyer and draw up a will. This is a step that should be high on your agenda once you have purchased a property in Spain.

We will try to explain the basics of inheritance tax in this section but for full and accurate advice, please speak to your lawyer at the earliest opportunity.

Who pays: If you are a resident in Spain and you are paying tax you will be liable to pay Spanish Inheritance tax regardless of which country the inheritance will be in. If you are a non-resident, you are only liable to pay inheritance tax on assets in Spain. Please remember that there is absolutely no exemption on Spanish inheritance tax.

There are four categories of inheritors. These vary on your relationship with the deceased and your age. The younger and closer you are to the deceased, the less you pay.

The amounts to pay will vary as the government of the day decides to decrease or increase them, so we won’t add them here as they are likely to fluctuate, but your lawyer will be able to advise you on these matters.

There are also ways to avoid paying inheritance tax, and once again, a chat with your legal representative will help discover what you will need to do, if anything, to avoid your next of kin paying taxes.

We have only given you a brief and very rough guide on inheritance tax as it is a very complicated matter, but one that is a must for you to explore prior to purchasing a property in Spain. A good website to visit for a more in depth look at inheritance tax is http://www.taxationweb.co.uk/taxlaw/article.php?id=18 

After the Purchase of your Costa Blanca Property | RENTING THE PROPERTY

With the credit crunch and falling property values, meaning that more and more long term visitors are deciding to rent because they cannot buy, holiday and long term renting is looking good.

It should be understood that Spanish tourism has not increased in the past 10 years – yes, that’s right, not one single iota, in spite of what you might read!  It is a fact hat tourist entries across Spanish frontiers have actually increased by 50% during the last decade. On the other hand the current trend is for shorter holidays in smaller groups and the number of properties available for renting has increased.

However, it is not at all bad news! Obviously when times are hard every household has to cut back but holidays are the last thing to go, in fact they become more important than ever. Recent poor summer climate in the UK has probably helped and self-catering holiday companies & direct-booking Internet sites are receiving an unprecedented number of enquiries.

The best advice for new and existing renters of holiday properties – Obviously it is vital to “get on sale” as early as possible. Clued-up holidaymakers know to book low fare airlines as soon as they go on sale and that means October to December (latest).

Also important is to keep all options open and increase advertising, if possible without spending a fortune.

1. Internet Advertising Sites: Currently the Internet produces around 80% of all self-catering reservations and advertising sites are “coming out of the woodwork”. Advertising this way is not expensive, £90 to £150 for a year. Some sites are absolutely enormous, with 100,000’s of properties advertised but take care, as business can be very localised.
Check that your chosen site features well with search engines (Especially Google.co.uk). Test first! The way to do this is to search the area with the right keywords e.g. “villas moraira” “holiday rental moraira”. If the site is not on page 1 (better 1st 5) they simply won’t produce many enquiries.

2. You Own Website: This is vital because you would want to direct clients there from your advertising and most won’t wait to receive a leaflet through the post. If you are not a complete “Computer Dum-dum” then Google provide a small website complete free.
Alternatively lots local advertising site provide inexpensive mini-webs.
PLEASE NOTE: There is absolutely no mileage in going to the expense of setting up your own domain name these days because, unless you also pay for expensive SEO (optimisation), the site will never be seen.

3. Write about you Holiday Property: An easy way to do this is to join a holiday or local forum (like this one).  Lots of them allow you to place live links in your signature directing clients to your mini-web or even in the text of your forum posts.
It is surprising how much business this produces – and it is FREE! 

4. Register with a Local Rental Agency: They probably won’t pay you what you could earn directly but the important thing is to fill as many weeks as possible.
An important service offered is “meet and greet” and they should do this for your clients as well. Can you imagine how off-putting it could seem if clients are sent a key through the post or have to resort to those awful key-boxes?
Also important is that they have an online booking service so that you can see all bookings in your property and make reservations for your own clients without having to phone continually.

If you follow this advice you should have online enquiries coming from 4 directions. You could add to this with a classified in your local paper. Only a few lines are necessary because you can direct enquiries to your mini-web where they can see your property in glorious colour.

Author’s Bio 

Colin Scriven has worked as an estate agent for 17 years, the past 5½ years of which have been in Spain. Currently he is the General Manager of Hamiltons of London SL with 4 offices covering the Costa Blanca North area, from Benidorm to Gandia (Costa de Azahar), with headquarters in Jalon.
Colin lives near Denia and has two young children who attend local Spanish School.

Buying or selling Costa Blanca property? – Consult Hamiltons of London, the Costa Blanca estate agents, with over 2,000 properties listed, and offices & affiliates in all Costa Blanca areas.
Hamiltons Homepage for Properties for Sales in Costa Blanca or the Costa Blanca area offices for -
Albir Properties | Calpe Properties | Denia Properties | Gandia Properties | Jalon Properties | Javea Properties | Moraira Properties | Pego Properties