We have taken a new video of the village. Shot nice and early on the morning of Sunday 13th July it shows the village waking up to another beautiful sunny summers day with temperatures on the day of 30'c during the day and 20'c during the evening. Later on in the morning the cycling teams arrive for their breakfast and an enjoyable cold drink before resuming their tour. The video shows the village square, church, sports centre and surrounding countryside and is worthy of viewing on your tv if you have a smart tv as we have shot it in HD. I hope you enjoy the video.
Please click on the link below to view.
There has been a lot of talk in social media and websites regarding gazumping in the Spanish property market, so I thought I would take a little time to clarify for the confused and inform for those needing further explanation.
Gazumping is the practice of a vendor reneging on an agreement to sell a property to one purchaser in favour of accepting an improved offer due to monetary considerations , more favourable time-scale, a more secure (safe) offer.
In Spain we have a very simple and easy solution to ensure that gazumping never occurs. If you have a competent agent they should be able to explain to you how this simple system works and gazumping should be something you never need to worry about.
Unlike the UK where a handshake or verbal agreement can sometimes be acceptable, in Spain we have a much more robust solution to ensuring both buyer and seller are committed to the purchase/sale.
In order to secure the property of your dreams there are two simple steps you need to follow should you find your perfect property; pay a reservation deposit and sign a reservation contract.
1. RESERVATION DEPOSIT.
In order to secure your dream property you will pay YOUR lawyer (not the seller, estate agent or sellers lawyer) a 3000€ reservation deposit. The reason that you pay this to your lawyer is to notify the vendor that you are serious about purchasing the property. The 3000€ will only be given to the vendor when their lawyer proves to your lawyer that the property is fully legal and correct to proceed. This deposit is non refundable once paid, so if you change your mind you have lost the deposit. To avoid gazumping the vendor if they wish to cancel the sale will need to return the deposit plus the same amount again as compensation.
2. RESERVATION CONTRACT.
Again, to legally secure the villa and have it removed from the market a reservation contract will be drawn up by the lawyers. This details all parties involved, the property, location, completion dates and agreed price. This contract will be signed by all parties
With the contract signed and deposit paid you are secure in the knowledge that the property is yours and will be removed from the market.
The result of the above........ NO GAZUMPING.
Do not leave your choice of property agent to chance. Go where the informed buyers choose to go... Hondon Valley Homes.
If you are not satisfied with the advice or service you are receiving from your agent, you can be assured of a warm welcome when you come to see Hondon Valley Homes. Our young, yet experience team will guide you through the buying process in an informed, relaxed and friendly manner. We work with great lawyers, bankers, architects and financiers. Just ask around..... we don't sell more properties than any other local agents, by looking to the past as we only look to the future.
We live in Hondon, We work in Hondon, We love HONDON.
Many people think of Alicante as just an airport from which to depart North, South or East to your chosen final destinantion, however this wonderful vibrant city has much more to offer and is a real jewel in the Costa Blanca crown.
There is a new time lapse video of the city which shows many of the fascinating aspects of the city from tourism, recreation, sports, arts and gastromony. A very entertaining couple of minutes.
We recently did a little housekeeping regarding the website in the new year and I asked the designer to add a background to the website. He used a sample image to give me an idea of what it would look like, however rather than using a generic image I popped down to the best beach in the area (El Pinet near Guardamar and took the image that we used). I have received a lot of emails from clients asking where the image was taken, hence this post. The image was actually taken about 50m from the seafood restaurant that it right on the beach at El Pinet next to La Marina village close to Guardamar and Elche. A stunning beach with many km\'s of clean golden sand and sand dunes.
Thank you again to Juan Carlos Marhuenda at TLA Corp lawyers for producing this article for our clients regarding the update in the transfer tax in August 2013. For further information on all tax and legal aspects please visit their website at www.tlacorp.es
On the 2 - INHERITANCE TAX
WE ARE COMENTING IN THIS ARTICLE THE MAIN ASPECTS AFFECTING PURCHASE/SALES
VAT on NEW PROPERTIES (properties acquired directly from builders), from 8% up to This modification, initially, was not affecting RESALES (properties acquired from a particular), which are not subjected to VAT. Resales are taxed with another tax called “Transfer Tax” (Impuesto sobre Transmisiones Patrimoniales) . So, resales, in Valencia region was at 8 %, also in other regions as in Murcia.
nd of August 2013, buyers will pay the 10 % on properties based in Valencia Region (Alicante, Valencia, Castellon), and in Catalonia (Barcelona, Lérida, Tarragona, Gerona).
Stamp Duty, has been increased up to - In New Properties, together with 10 % VAT
- When there is an update of the deeds declaring a new construction, or extension, etc.
- ACQUISITION OF NEW PROPERTIES in Spain (Valencia, Catalonia, Murcia, Andalusia), pays 10 % VAT + 1,5 % Stamp duty.
- In Catalonia+Valencia Region: Pays 10 % Transfer Tax
- UPDATE OF DEEDS in Murcia, Valencia, and Catalonia: 1,5 % Stamp Duty
<p style="\"margin:" 0px="" 1.5em;="" color:="" rgb(54,="" 54,="" 54);="" font-family:="" \\'trebuchet="" ms\\',="" helvetica,="" sans-serif;="" font-size:="" 13px;="" line-height:="" 19px;="" background-color:="" rgb(252,="" 252,="" 252);="" text-align:="" justify;\"="">
Thanks to our friends at TLA Corp in Albatera. They have produced an article for our clients to explain the recent changes to the inheritanace tax law in the Valencian region. For more information please contact TLA directly via their website www.tlacorp.es
MODIFICATION IN TAX REGULATIONS – AUGUST 2013-08-26
On the 2nd of August 2013, Valencian Government has modified determinate regulation in relation to:
- INHERITANCE TAX
- PURCHASE OF PROPERTIES
WE ARE COMENTING IN THIS ARTICLE THE MAIN ASPECTS AFFECTING INHERITANCE TAX
As explained in various articles on this site, there is a difference in Spanish Inheritance Tax for SPANISH TAX RESIDENTS, and for SPANISH NON RESIDENTS
This new regulation is AFFECTING ONLY to SPANISH TAX RESIDENTS WITH DOMICILE IN VALENCIA REGION (Alicante, Valencia and Castellon). So, this new regulation is NOT AFFECTING to those who are NON SPANISH RESIDENTS.
For Spanish Tax Residents, with domicile in Valencia Region, the new changes are the following:
REDUCTION ON THE TAX BASE
- Descendants, or adopted older than 21 years old, surviving spouses, and ascendants: 100.000 EUR
- IN CASE OF PERMANENT RESIDENCE: REDUCTION 95 %
In case that the property inherited was the permanent residence of deceased, there will be a reduction on the tax base of the 95 %, with a maximum of 150.000 EUR, subjected to the following conditions:
REDUCTION ON THE TAX RATE
Once the Tax base is calculated (in consideration with the eventual reductions obtained), then, the Tax base resultant will have also a reduction, when the inheritors are descendants, ascendants, or surviving spouse:
So, for example:
EXAMPLE 1: A+B own a property in Torrevieja (Alicante), Spain 50 % each for a tax value of 250.000 EUR. Both of them are Spanish Tax Residents. Both of them have “mirror wills” passing one each other the property in case of death. They are using the property as permanent residence.
A passes away, and B inherits the 50 % of the A part.
So, the Gross Tax Base from the A part to be inherited by B is : 125.000 EUR (50 % from 250.000 EUR).
- If B wants to be using the property as permanent residence with a minimum of 5 years, then, a reduction of the 95 % of the tax base can be obtained (with a maximum of 150.000 EUR). So, the Net Tax Base of the tax will be of 6.250 EUR.
Following the scale of the tax (not explained here), the tax rate to pay for a tax base of 6.250 EUR is around 478 EUR. This is the Gross Tax Rate.
Then, as B is surviving spouse from A, then, obtains a reduction of the 75 % of the Gross rate, so, the final Net Tax Rate to pay will be of around 120 EUR.
- If B does not want to use the property anymore, and wants to sell it, as surviving spouse, it can be obtained a reduction on the Gross Tax Base of 100.000 EUR. So, the Net Tax Base will be of 125.000 – 100.000 = 25.000 EUR.
Then, the Gross Tax Rate for 25.000 EUR will be of 2.200 EUR (following a scale). And, being the surviving spouse, B would have a reduction on the Gross Tax Rate of the 75 %. So, the final and Net Tax Rate to pay will be of 550 EUR.
EXAMPLE 2 : A+B have 2 sons: SON 1 and SON 2 older of 21 years old. They are also Spanish Tax Residents.
A passes away and leaves the property in Spain to B, SON 1 and SON 2 in equal parts:
So, from the A part inherited (125.000 EUR) here there is the Gross Tax Base received from the 3 inheritors:
B part: 83.333 EUR / SON 1 : 83.333 EUR / SON 2 : 83.333 EUR
- If the THREE of them want to be using the property as permanent residence with a minimum of 5 years, then:
Starting from B, as surviving spouse, it can be obtained a reduction on the 95 % of the Gross Tax Base. So, the Net Tax Base of the tax for B will be of around 4.160 EUR.
Also, for SON 1 and SON 2. They are A descendants so, they can obtain also a reduction on their Gross Tax Base of 95 %- So, they will have 4.160 EUR each.
Following the scale of the tax (not explained here), the tax rate to pay for a tax base of 4.160 EUR is of around 318 EUR. This is the Gross Tax Rate that each of the inheritors have to pay.
Then, as B is surviving spouse from A, and SON 1 and SON 2 are descendants, they obtain a reduction of the 75 % of the Gross rate, so, the final Net Tax Rate to pay will be of around 80 EUR each.
- If they do not want to use the property anymore, and want to sell it, as surviving spouse, and descendants, they can obtain a reduction on the Gross Tax Base of 100.000 EUR. So, the Net Tax Base will be of 83.333 – 100.000 = 0 EUR. As the result is “0”, no more reductions can be used in this case. So, in this case, the tax rate to be paid by each one of the inheritors will be “0”.
FOR AN AVERAGE OF PROPERTIES WITH A TAX VALUE 250.000 EUR OR LESS, THE SPANISH INHERITANCE TAX MAY BE VERY LOW, OR EVEN “0”, IF:
- THE INHERITORS ARE LIVING PERMANENTLY IN SPAIN-VALENCIA REGION- AS SPANISH TAX RESIDENTS
- THE INHERITORS ARE SURVINING SPOUSES, OR ASCENDANTS, OR DESCENDANTS
We have pleasure in announcing a new member to our team at HvH.
Pierre joins us from Belgium but is actually Italian and will now be handling the Italian side of the business. With many years in International real estate sales and marketing Pierre is already proving invaluable when dealing with customers from Italy. Pierre also lives in the Hondon Valley in the small village of Macisvenda.
Welcome.... or should I say BENVENUTO !