Alicanteos

Since September 2006 new constructions who use hot water (houses, flats, hospitals, hotels, etc…) are required to conform to the new Código Técnico de la Edificación (CTE), installation of a solar thermal system, the system will be used to heat water and produce electricity.

Requirement isn’t the same depending on the regions and the climate of the area. As a whole, the European Union hopes by 2010 that 12 % of his consumed energy will be renewable energies.
The cost of solar thermal system is high but it last in average 25 years, except 10 years for amortization.

During a sale of new property neither the seller nor the buyer have to pay the property transfer tax (ITP 6% - 7%) , but there are 2 other taxes to pay:

1 – VAT , the tax is applied on the price depend on the type of the property sold.

7% on houses, flats
16% on garages, locales
4% on house that are legally protected

2- The second tax is the stamp duty AJD (Impuesto de Actos Jurídicos Documentados) of 0,5¨%

Example :

If you buy a new property to a developer for 60 000 euros , you will a VAT on that property of 4200 euros, in addition there is the stamp duty of 0,5 % - 300 euros

The VAT is applied directly on the sale price, the stamps duty have to be paid by the buyer within 30 days after the contract (escritura) has been signed.

Recap:

New property - taxes

VAT
Capital Gains Tax
Stamp duty

Resale property – taxes

Capital Gains Tax
Property Transfer Tax
(there is no VAT and stamp duty on resale property)

Technorati Tags: VAT, ajd, stamp, duty, new, property

FirstRung.com gives a list of 10 tips for property investors in the actual slow market.

1) Research the curve - the concept of a property market cycle existing is not myth it’s a fact and is generally accepted to be based on a price-income relationship. Check the recent historical price data for properties in the area of the country you’re considering purchasing in and try to determine the overall feel in the market for prices currently.

Prices slowly decline in certain area of Spain however prices are still increasing in the country (10% this year , 15 % in 2005)
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Buying a property off-plan (off-plan property is a property that has not yet been fully constructed) can present certain risks.
First you cannot check what is offered to you until some substantial construction have been made, secondly the developer can vanish in the air even before the date of the construction. There are a few guarantees that you should always check out when you buy off-plan.

An off-plan reservation contract starts with the deposit of a sum of money then the buyer and developer can sign agreements, the contract presented to the buyer should always be negotiable, if the developer refuses to negotiate the buyer has the right to receive a full refund of his deposit.

The buyer has the following rights:

To know the identification information of the developer and the architect

Detailed description of the property and its surface.

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I read in various place that the Spanish construction and properties market is slowing down, I even heard the story of a seller in Malaga so desperate to the point to give large discount on the selling price of his property. (more…)

Lubasa inmobiliera has housing unit to offer in Denia, in place called Residencial Dénia Nature, the units are 2 – 3 bedrooms, I haven’t more information, check out http://www.lubasainmobiliaria.com/en/promociones/costa/denia.htm (page in english)

Residencial Nova Azahara in ALICANTE/ ORIHUELA COSTA.
Some new housing units avaible there with 2 – 3 bedrooms , 70 square meters , this is supefiece doesn’t include the space for the solarium, terrace and garden. Kitchen and bathroom are furnished, security door, alarms , air conditioning are installed. Starting price at 144,000 euros ,check out for more info http://www.torreurbe.com/promocion_detalles.php?IDpromocion=2&estado= (page in English)

Second hand house located in Javea (on the Urbanisation of La Mezquida in the Montañar), 3 bedrooms, 95 square meters, equipped bathroom, Communal garden or green zone and community swimpool, price : €420.000,00 euros
More info at: http://www.atrea.com/ATREA/public/UCAFichaOfertaBasica.jsp?codOferta=471266&marca_blanca=A3&pgFrom=1001

Technorati Tags: housing, units, denia, javea, alicante, bedroom, furnished, swimpool

Smoke detector are kind of alarm that detect airborne smoke, they do are useful but they have some limitations important to know.

Using inadequate battery is one of the problem often encountered, another problem is when the battery run out and you don’t know about it, the solution is to revise often the smoke detector battery, the model on lithium battery can last up to 10 years.

Another aspect to consider is when the alarm isn’t powerful enough to be heard in the entire house or outside the house. There are also case when the alarm doesn’t start it usually happen after strong explosion such those caused by gas.

Sometimes, it is possible that the fire doesn’t produce enough smoke to be detected for that reason it is recommend to install a greater numbers of smoke detectors to ensure a faster alert.

Two of the most reliable type of smoke detectors are the ionization type and photoelectric type, it is recommend to replace them every 10 years. (more…)

Newspaper Elpais gives a few tips to reduces your 2006 tax bill.

Property to let/rent

• If the property is rent as a home to live (as opposed to an office) there is only 50 % to pay.
• If the property is let to young people between 18 and 35 years old, there is nothing to pay.
• If you want to make improvement into your property for the purpose of renting do it or end it before the end of this year so you will be able to deduce the expense of your work. If the cost of your improvement is higher than your gain from the rent, it will be possible to differ part of the revenue on the coming year thus reduce the next year tax bill.

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Residents in Spain are liable for Spanish Inheritance Tax (IHT - El impuesto sobre sucesiones y donaciones) regardeless in which the inheritance is located, you are considered a resident if you spend more than 183 days on Spanish territory during the calendar year; the main centre or base of your activities or economic interests is in Spain, directly or indirectly. (more…)

According to Spanish Property Insight, the capital gains tax for non-residents was reduced from 35 % to 18 % (and increased for residents from 15% to 18%), the legislation was approved in October by the Spanish senate. The new regulation will start in January 2007.

Withholding provision for non-resident was also reduced from 5% to 3%.