When you purchase a property in Spain you have to pay tax on the purchase, currently in Valencia for new and used properties the tax is 10%, in fact it is 10% on new property all around the country. In Madrid for example the cost on used property is currently 6% having been reduced at the start of the year. The cost in other areas varies from 7-10%. However you may be in for a nasty surprise unless you take certain precautions when finding yourself a bargain. Let’s look at an example.
My head is hurting today. It has been for two days to tell the truth. It’s not hurting because I have a headache it’s been hurting because I have spent the last two days banging my head against a brick wall not believing how stupid the Valencian government has been. (What? I hear you ask. A government being stupid!! Never)
This is the last week where you do not need an Energy Efficiency Certificate (EEC) to sell or long term rent your house in Spain. If you haven’t got one then you need to get one, no excuses, no “well, the dog ate it” and big fines for those who don’t in theory.
A report has just been leaked to the Cadena SER radio station that the black economy in Spain now makes up 23.3% of all transactions. This means that a quarter of the economy in Spain doesn’t show up on the official figures for the size of the GDP for example. The figure is 5% higher than a decade ago and it is getting higher due to the famous “Crisis”.
Looking into the reasons why Real Madrid can buy players for ridiculous amounts of money and why those players want to come to Spain.
Thanks to an article I was pointed to by the excellent Barry Davys at Expat Financial I asked myself this question over the weekend, what type of person can keep their job in the UK but live in Spain? (You can find the original article here) Obviously those who earnContinue reading