We live in Andalucía and over the last 25 years have bought/sold 12 different properties ... Taxes and charges are (usually) fairly transparent but as a general rule add 10-12% onto the property purchase price. Major "reforms" require architects approved "projects" and can be expensive - but once the work is "underway" it can be possible (although not strictly legal) to make a few "alterations to plan" without bothering for new permissions. Our best advice when buying old property to renovate is ALWAYS to chose one that still has current electricity and water contracts. Taking over existing contracts is easy - trying to renew contracts (which may have lapsed for several years) to an old property can be a nightmare! Plus we have NEVER used a solicitor in Spain as all relevant "searches" should be done by the Estate Agents - who in Spain charge three times the amount of English estate agents! A good estate agent will save you both money and worry!

Good advice👍 getting the permissions to do work vary from town to town so its even more of a minefield.

Some excellent info there guys, very useful, well done for that. So many potential pitfalls but I think Portugal is even worse from the info I’ve seen. I heard a tale of a couple who bought a property and turned up on day one to start work…and there’s an old boy sitting in their house. Turned out that he owned one room in the property and no one had told them, imagine!..still, as you say, due diligence and the dream is possible 😀🙏🏼

@FincaLife

Жыл бұрын

Wow, that is totally crazy - the craziest ever!

All good advice but needs to be looked at in context. Like you pointed out this relates to a formerly uninhabited rural property that needs a full renovation and is a permanent home for both of you who have full residency. I have bought a small casita in a village in inland Andalusia. Taxes lowest region in Spain. Paperwork in order, no debt or outstanding bills etc. Yes there were the 7% property sale tax, notary fees, land registry taxes to pay which I knew upfront about. I also hired an interpreter from a local language school to translate all the docs for me beforehand and came with me to the notary meeting as well. All went smoothly and no other hidden costs. I have bought as a holiday home and continue to be a non-resident of Spain using it 90/180 days Schengen rules. I wanted a window size changed. Went to town hall, completed building licence application. Work cost under €1000 so licence cost me €12. So like you both said don't be put off buying. By the way I didn't use a lawyer either - most Spanish people don't. However this was because it was a simple house to buy without any complexities and I did all the due diligence leg work. I would use a lawyer for any purchase where this was not the case. Depends what and where you buy. Love your down to earth vlogs.

@FincaLife

Жыл бұрын

You're absolutely right and not all purchases are horror stories and the biggest problems do lie with older properties. We just wanted to share the potential issues, based on our experience

A very useful video!

Thank you for sharing

Great show and really useful advice.

You two are excellent

Very useful information! Thank you very much

Both Spain and Portugal seem similar when it comes to taxes, fees, restrictions and bureaucracy. it could ruin someone if they did not have the money to pay 'surprise' fees, fines and taxes. I'd be too nervous to move to Spain or Portugal. Portugal properties are expensive IMO. Thanks!

Thank you for your experienced and well informed advice

Thanks for the sound advice, I’ve got a lot of catching up to do.👏🏿🍷

Same in Greece, bought a house at one price from the previous owner, but the house was valuated by the government at twice the price than the agreed purchased price; therefore we had to pay the taxes to the government at government valuated price not the actual purchased price....

@FincaLife

Жыл бұрын

Sorry to hear it's a similar situation over there

thnx and keep strong

Great Info,indeed it's depending on the region. The important one Is ( certificado habitual ). Cheers 🍻

In our part of Andalucia we average buying costs work out at 20% mas o menos

@FincaLife

Жыл бұрын

Sounds about standard, thanks

Helpful video. For what it is worth We purchased a property in portugal 4 years ago as a permanent residence. Property was lived in and only needed some cosmetic work. Our lawyer researched that the property was free and clear to buy. It was a straightforward process with no surprises. Received the 3 year abatement of property tax and taxes kicked in this year. Very affordable.

@FincaLife

Жыл бұрын

Excellent. There are happy endings too - it's not always a struggle :)

As we heard horror stories while in caravan of people loosing money on new builds, old builds, illegal builds, hence we rent

I am a bit confused by extra fees because in the USA we have disclosures requirements that pretty much lets you know what you're going to end up paying and exactly what needs to be done and the total cost is usually off set by any major repair costs .. but then again your not in the United States and the rules are not the same .. Thank you for sharing the process

@FincaLife

Жыл бұрын

Unfortunately not the case in Spain. Nobody seems to know in some cases, it's as if they make it up as they go along

The correct name is “catastro”

We are just wandering if the locals get stuck with all the fees.

@FincaLife

Жыл бұрын

Yes, they don't discriminate with taxes here

HELLO SHARON & ANDY...47 F. & SUNNY IN VANCOUVER TODAY...THANKYOU FOR THE HEADS UP ON ALL THE EXTRAS...ALFIE, WHAT'S IT ALL ABOUT, LITTLE SWEETHEART?...ALL THE BEST...PRAYER HANDS (EMOJIS DON'T WORK FOR SOME REASON?)...;)

Good advice and great video. May I link it on other media platforms?

@FincaLife

Жыл бұрын

Thank you and of course, please do with the obvious caveat that the content is original and credited to Finca Life. Thank you very much

Sounds like America, pretty much.

Hola, cuando se compra una propiedad en España, lo primero que hay que mirar antes de escriturar en la notaría es la valoración de inmuebles que cada comunidad autónoma tiene. Si escrituras por debajo de ese valor, al cabo del tiempo te llega una "paralela" que significa que tanto el comprador como el vendedor tienen que pagar lo que en su día no pagaron y puede sumarse una sanción. Normalmente los notarios suelen informar de esto. Otra cosa es que el traductor o persona que les ayudó no lo entendiera. Y en cada comunidad autónoma al comprar se paga el ITP impuesto de transmisiones patrimoniales. Madrid es de las baratas un 5%, en Murcia no lo sé. Siento mucho su disgusto. Espero de corazón que su vida futura en su casa les sea tan agradable que les haga olvidar los demás disgustos. Un abrazo fuerte y ánimo

@FincaLife

Жыл бұрын

Gracias María José. El impuesto aquí es del 8%. Estamos bien con todo y muy felices aquí. La mayoría de nuestros obstáculos ahora están superados. :)

In one of your previous videos you went to visit a property a couple were thinking of buying.Did they ever proceed any further or was it too big a project for them on reflection ?. Keep up the good work.

@FincaLife

Жыл бұрын

Thanks. I think they thought it was too much to take on, especially not living in Spain.

I imagine like the states there are written regulations and specifications for all different work, roof, house, kitchen, baths….?

@FincaLife

Жыл бұрын

Not at all. The only potential requirement is to get the electrical installation checked and signed off.

Is insurance higher for an isolated property? Can you give an idea of the cost of what the insurance for your home might be? Thanks for sharing your knowledge.

@FincaLife

Жыл бұрын

Not sure to be honest but there doesn't seem to be a lot of difference. Ours is around 300€ per year

@cathconnolly5742

Жыл бұрын

@@FincaLife Thanks

Is the surprise tax from the new assessed value of 55K something you have to pay annually?

@FincaLife

Жыл бұрын

No, fortunately it's just a one off. We have an annual property tax (rates) tax but it's very reasonable

How do the minor/major fee percentages work out if you're doing the work yourself? is it just based on materials?

@FincaLife

Жыл бұрын

Sorry not exactly sure but it doesn't cost a lot. I think someone said in the comments to get a license for new windows was 12€. Other people have said it's not expensive at all

Thanks for the useful information. I have a similar issue with a Habitation Certificate. I've found a house that was built in 1968. It was abandoned 10 years ago, but is still in great shape. Electricity and water used to be connected. The house is located in an area of a National Park. So in the city hall we were told we would be allowed to renovate it without any major changes, but the household utilities will not be connected because we would need a Habitation Certificate. How did you end up getting that certificate? In our potential house, we are planning on setting up off grid Solar Panels, and there is a river running 5 meters from the house. We would fill the reservoirs and use water pumps. Once we have the electrician and plumber properly install the systems, does that give us a change to get the certificate? And would we be able to get a permit for renovation if we don't have the certificate in the first place? Does having a cistern or 1000L water reservoir in a shed with a water pump, and an independent Solar powered electricity in the house, would that be enough to prove for the engineer, that the house is Habitable and therefore apply for the certificate? What did you do in this case?

@FincaLife

7 ай бұрын

Thanks for your comment. It's quite common for utility companies to require a habitation certificate. It's pretty straightforward (it was in our case). If the house has previously had a habitation certificate, I think it's easier to get it reinstated. In our case, our architect prepared all the reports and filed them with the ayuntamiento. As I understand it, you need to have basic facilities, bathroom and cooking facilities etc - just the basic living stuff. We weren't even going to bother getting one (we don't need utilites connecting), until we discovered that you need the certificate to register on the padron, which you need to register with a local medical centre etc. Speak with the ayuntamiento or your architect, they should be able to advise you. We got renovation project before anything else, so you should be able to do that without the habitation certificate. Hope that helps.

Pardon me for saying so, but I think when it comes to these matters, I think Sharon is the better orator. Not knocking, just mean it as constructive criticism/feedback. Andy, your skills as a craftsman are second to none, and your explanation of matters of workmanship are great, but just on these things, for the benefit of your subscribers, both present and future, Sharon should do the explanations. Thank you.

Which town hall are you under? We just purchased in Murcia and are under Abanilla town hall, they haven't asked for our habitation certificate for our padron. I think every area makes their own rules though. Here our property tax was 8% but as we're are what you call a "familiar numerosa" or a large family (3 or more children) and the house is going to be out habitual home we only had to pay 3% tax which is a huge saving, like yourselves thought our cadastral value was more than the purchase price and the AT gave me the choice to pay the tax on the price we paid or in the cadastral value, I just paid it on the cadastral as I couldn't be bothered with them asking for more 🤣

@FincaLife

Жыл бұрын

We come under Jumilla. We're sure they make a lot of it up as they go along. You did right, I think, paying the higher tax and surely they would have come for the extra at some point. Even though we come under Jumilla, we aren't far from Abanilla. I understood the 3% tax was if you are under 35 years old

@Tinycamperadventures

Жыл бұрын

@@FincaLife ah yes a little further up from us but not too far, there is a club de tiro I want to join in jumilla. The 3% is because we have a card that is called a familiar numerosa, so anyone with 3 or more children get discounts on various things from property tax, Suma, electric and supermarkets, flights etc, it's quite a generous system if you have the qualifying number of children and are aware of the card. You are right though they do make a lot up as they go 😂 we had to connect our water as it had been disconnected, hydragea should have asked for a habitation cert but he never did 😂 it's just down to who you get on the day and how well you can argue with them... I've nailed the latter 😂😂😂

@FincaLife

Жыл бұрын

@@Tinycamperadventures Ah, I see. Do many animals count? :)

Sounds like a minefield!!!

@FincaLife

4 ай бұрын

It's not so bad armed with the necessary information and a decent solicitor

We've got this problem now, the cadastre and land registry don't match, but we still didn't pay the deposit, the solicitor is still checking what happened, but the owner of the house doesn't seem want to pay anything anymore, she is old and sick, do you have any idea how much that will cost to make these two things match? Thank you 🙏👍

@FincaLife

11 ай бұрын

It's a very common problem in Spain, unfortunately. We believe it cost around 1200€ to fix the two registries. This was paid by the vendor from the proceeds of the sale. Our solicitor sorted it all for us.

@jasminewindfield6838

11 ай бұрын

thank you very much, I am happy to find your videos, I learned a lot from your experiences, Our solicitor is working on the problem, but we still haven't gotten any news, our contact person is now on holiday😂, she said the registration number is not right, we've seen the Nota simple, the owner of the house is right, but in the description, the plot number is from the neighbor, we guess she bought the land from the neighbor about 30 years ago, the husband of the owner is a builder himself, they built their house themself. don't know what happened exactly about the land registry, we just can wait for the report from the solicitor now @@FincaLife

@FincaLife

11 ай бұрын

@@jasminewindfield6838 Often they never bothered to change the registries because of the cost involved - It's a common problem and best to get it all fixed now if you can. I saw another question that's not showing here... Once you get a habitation certificate you can register the property with the padron and they will give you an official address

@jasminewindfield6838

11 ай бұрын

Thank you very much again, we just refused the house we tried to buy, the solicitor found out too many problems, except the info on the Land Registry is wrong, still, they registered it as semi-ruin, and the house is illegally built without registration, plus, still a small part didn't finish, that makes it almost impossible for DAFO application, we also need a 'new built declaration ' before we can apply DAFO, the owner cheated us about the registration, she said she registered her house, but she didn't, too big risk to buy that house, it is a pity, but better stop now than getting a possible big loss later. @@FincaLife

@FincaLife

11 ай бұрын

@@jasminewindfield6838 sounds like you are definitely better walking away from that one. There will be others, possibly a not without some issue or other but we wish you all the luck in your search.

Who is the solicitor

@FincaLife

5 ай бұрын

Peñalver Abogados en Pinoso, Alicante

Spain is one of the most expensive countries for tax when it comes to buying and selling. When you sell your property you also pay a lot of tax. They check how much you bought your property for and how much you are selling it for and they want a big chunk of the profit you've made. The worst country for buying and selling IMHO. This explains why many people pay one part cash ( which is illegal)and don't register the property for the real price.

@FincaLife

Жыл бұрын

That's probably very true. So many things done 'under the radar' to avoid fees and taxes. Unfortunately it causes more problems in the future

#hit the bed, u know your keeping a piece of history going and getting stung by tax, I thought Britain was bad, but just the same, unfortunately and a bit sad, love the house

@FincaLife

Жыл бұрын

Especially as the government are trying to encourage people to move away from the cities to rural areas... You would think they would try and be more helpful when trying to save a piece of history. So many of these beautiful old building are literally falling down and zero help is available

let me guess you purchased a property without a registration with local authority or central madrid .30k for property and added .55k value when its now habitable ,they then steal the property gains value on tax and if you had actually done what the spanish did and not totally finish the property say a garage door or rendering you would have diversified teh tax costs for as long as you dont declare it finished. what id love to know is.. your off grid totally?. or are you selling excess back to the grid and do you still pay a standing charge for the privilege?. or are you in receipt of a check every year from the electric company without having to pay standing charges?.

@FincaLife

3 ай бұрын

You need to keep editing your post until we can understand it and then watch the video again without skipping the important parts....

The moral of the story - don’t buy property in Spain.

@FincaLife

6 ай бұрын

Not really and 8 million foreign born residents (17% of the population) would probably disagree with you also.

Hola cómo están? Se les ve muy bien cuídense y que Dios les bendiga un saludo desde Madrid👋👋