On 1st June 2013 a new law will be introduced that makes it compulsory for property owners to obtain a Certificado de Eficiencia Energética (CEE) in order to sell or rent a property. Basically, selling or renting your home will be no different than buying a fridge freezer, certified information must be provided to the prospective buyer or renter about how energy efficient the property is. All flats and houses built after November 2007 should already have a certificate stating how efficient they are in terms of energy use. However, for those built before that date it will be necessary to contract the services of a professional company that will carry out the study and produce the certificate.
This certificate presents the information graphically via a colour-coded scale from A to G, similar to the labels that you can find on electrical appliances in stores. The certificate will be valid for a period of 10 years, however a homeowner can voluntarily decide to request a new certificate before the 10-year period expires. If you want to sell or rent your home then you’ll be requested to provide the certificate. Your home won’t be required to meet a certain standard (there is no fail level , just different grades).
We have interviewed several companies and our recommendation is Mayka Mira the Architect who is based in Frailes. She speaks English, is local, she is known to many of our customers and her prices are better than the other quotes received. The average cost is expected to be approximately 250€ plus IVA.
She can be contacted on
Mayka Mira Architect: Tel: 667 429 419
(You are of course free to use which ever company you wish to and we will pass you details of other approved companies should you wish).
The survey takes about one hour to conduct and includes the full measurement of the property, orientation of the property and the measurement of all windows, construction qualities and heating and cooling systems. This information is then entered into a government system which awards you a grading between A and G. There is no fail grade. The report will also include assistance in raising your grade by two levels if possible.
A CEE must be obtained before a property is marketed and the information must be included in all advertising and agents websites . The certificate must also be produced at the signing of the contract of sale at the Notary. No property built before 2007 can be sold without this certificate. Rentals, including holiday lets, must make a certificate available to tenants. Agents cannot legally offer properties for rent or sale without a certificate.
The following information has been provided by our accountants for the purpose of informing our clients regarding their fiscal responsibilities if resident in Spain. If you require more information, please let us know and we will put you in touch with our accountants directly.
As of the 2012 financial year and in accordance with Law 7/2012 and Royal Decree 1558/2012, legal entities or individuals residing in Spain will be obliged to submit a yearly statement of any of the following assets held overseas:
1.- Bank accounts, savings accounts, bonds, credit accounts and any other financial accounts or deposits, even if they provide no income. Any account from which it is possible to make a withdrawl as the account owner or under the owner’s authority must be declared.
2.- Securities or rights representing shares in any type of company. Securities representing the transfer of equity to third parties. Securities submitted to any legal entity for their management or administration.
3.-Property or property rights
This statement must be submitted when the total assets of each of the previous groups has a joint value greater than 50,000 euros. In subsecuent years it will only be complusory to submit this statement when there has been an increase of over 20,000 euros on the last yearly statement submitted. It must always be submitted when ownership of the asset is terminated, either through sale, cancelation, or any other reason.
The fine for failing to submit this statement will be 5,000 euros for each unsubmitted data (minimum fine 10,000 euros). Fine for late submission of the statement will be 100 euros for each data submitted late (minimum fine 1,500 euros).
The following information must be provided for each group of assets:
1.– Accounts held in financial institutions.
- Name and address of financial institution.
- Full account number.
- Date the account was opened or cancelled, or the date of authorization was transferred or revoked.
- Balance at 31 December and average balance during the last quarter.
2.- Securities, rights, insurance and income.
- Name and address of legal entity.
- Balance of securities and rights at 31 December. Type and value of securities.
- Net asset value of shares in companies at 31 December.
- Surrender value of life and disability insurance policies.
- Capitalization value of temporary or life annuities.
3.- Property and property rights
- Identification of the property and its location
- Date and cost of acquisition
We now have a Facebook page......
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Whilst the trees in Northern Europe are bowning under the weight of snow, the Almond trees in the valley are covered in pretty blossom. 24'C at the end of January !
A view of the Hondon Valley in January looking North east to the Sierra Algayat mountains and Elda and Sax ranges in the distance.
Happy New Year !
Unfortunately the new year also brings in the promised tax rises that came into operation on 01.01.2013.
1. New Build Property: The tax (VAT/IVA) has risen from the reduced rate of 4% to 10% nationally.
2. Resales: The tax (transfer tax) has risen from 7% to 8% with the exception of Murcia which remain for the time being 7%
3. Stamp duty is 1.5%
These increases come into effect immediately.
We have just taken on an exciting sales prospect. This luxury fully furnished Hondon Villa with 3 double bedrooms, 3 bathrooms a large lounge/diner , fully fitted kitchen, utility area, 2 balconies, large walled plot, 10x5m private pool and 85m2 underbuild.
The exciting aspect is that the owner is willing to accept a sale based on a Rent 2 Buy contract.
This allows a prospective purchaser to pay an initial deposit of 15% and then an agreed monthly rental for 12 months and then pay the balance with the rental and deposit deducted from the agreed sales price.
In this instance the sales price is 210.000€
15% deposit is 31.500€
12 monthly rentals of 750€ = 9.000€
This leaves a final balance of 169.500€ at the conclusion of the sales contract.
For more information on this property and for a full explanition of the rent to buy contract please contact Steven email@example.com
During the festive period we will be closed between Thursday 20th December and Monday 2nd January for a much needed break. We will still be accessing emails on a daily basis should you need to get in contact.
2012 has been a record year for Hondon Valley Homes, with clients from as far afield as Australia and New Zealand buying properties online!
2013 has exciting prospects and will will inform you of these developments in the new year as and when they happen. There are many changes in the property sales laws comming into effect during 2013 and you will hear about them first here.
So a big Thank you to all our past, present and future clients and roll on 2013.
01.01.2013 - PROPERTY ENERGY EFFICIENCY LAW CHANGES
From the 1st of January 2013 will enter in force a new law which will affect ALL the sales of properties. This is a National law and nor regional and will cover, New and resale properties in both Urban and Rustic (countryside) area.
The new law will necessitate the notary requesting as part of the paperwork prepared for the sale of a property a certificate supplied by a certified Spanish company confirming the classification of the efficiency of the property. The production of this certificate is the obligation of the vendor to supply.
It is common now for all household electrical goods to be classified in accordance with their energy efficiency and now this is the case with the properties themselves. The aim of this nerw regulation is to inform the purchasers of properties of the energy efficiency of the property. The law will be of a benefit to owners of efficient properties, it will benefit the buyers who will be better informed and it will benefit the environment in the long term as homeowners as well as builders will build more efficient properties.
- How obtaining the Certificate of the Energy Efficiency?: An independent certified company has to go to your property to inspect it, and to check the way in which the property uses and consumes the different energy sources.
- In which consists the classification?: As result of the inspection from the certified company, your property will classified in A, B, C, in relation to the efficient use of the energy, when A is the best, and G is the worst.
So, properties classified with A, or B, will be easier to sell, and more attractive to buyers than properties in lower classifications.
VERY IMPORTANT: There will not be properties classified below G. These properties will not obtain the certification Properties below G will not be acceptable, and will not obtain the certificate.
-For example, if my property is classified with “C”, what I can do to obtain “B”?: The same company must guide you in this case, as they are the specialist on this, and they will have the essential information of your property as result of the inspection.
But, it will be normal that it can be requested to change the all the lights of the property “led” lights, to take care that the white goods are changed into higher classifications of efficiency (buying A products instead of B or C will help), etc.
So, if you are buying a property in Spain after the 01/01/2013, pay attention to the fact that the vendor must provide you with this certificate to confirm the classification of the property in terms of energetic efficiency.
In other way, if you are thinking to sale your Spanish property, we recommend you to contact with a specialist company to help you to obtain assistance on this matter as soon as possible, in order to have all the documentation ready to complete the sale.
At present we are vetting certified companies that we would be happy to recommend to our clients.
If you think you will be effected by this change in the law, please do not hesitate to contact us and we will be more than happy to help you with this new process which should hopefully benefit everybody in the long term.
In collaboration with our lawyers (TLA Corp) Hondon Valley Homes have put together a quick guide for clients looking to sell their property, to help them in organising their paperwork to ensure a trouble free sale. When we come to value your property we will enquire about the availability of this paperwork and will need to have it in place in order to sell your property. If you need advice regarding the information below, please feel free to call Steven on 663797187 who will gladly explain why we require this paperwork and how to go about obtaining it if you do not have it.
1. CHECK THE DESCRIPTION IN THE PROPERTIES DOCUMENTS.
The Property Deeds.
Check in your property deeds that your property is accurately described. Any additions or external modifications should be shown in the deeds. Commonly in this area swimming pools, terraces, garages, built BBQ area and pool houses. These should be shown on the deeds. Interior modification does not need to be shown on the deeds, however construction size of the property and additiopns and the overall size of the plot show be shown
Property In Catastro.
Your property must be registered in Catastro (Suma). You should receive each year a IBI tax (council tax) bill for your property. Check this invoice as it will describe the property, size and any taxable improvements (pools etc.).
2. PROVE THE LEGALITY OF THE CONSTRUCTION.
The CH is a document that shows that the property has been constructed respecting and fulfilling the Spanish construction laws. The document is also needed by the purchasers in order to have the water and electricity connected in their names. Typically a CH only lasts for 5 years and will need to be renewed. Check your CH to ensure that it is in your name and still in date. The CH should be obtained in advance of a sale.
No Infraction Certificate. (CNUI)
This is called the certificado de no infraccion urbanistica. It is issued by the local town hall to confirm (or not) that the property is free from fines. This certificate is ESSENTIAL to the sale of the property. This CNUI is usually applied for once the sale has been agreed and is done by the lawyer.
3. PERSONAL TAX SITUATION - CAPITAL GAINS TAX.
Do you pay your taxes in Spain as a Spanish resident or are you paying your taxes in country of origin (Belgium, Holland, Germany , UK)? In order to reduce the need for the Spanish tax authorities to retain 3% of the sales price (refundable) you need to demonstrate that you have paid the applicable taxes. Please seek proper tax advice when considering selling your property to avoid extra costs.
When selling your property the list of paperwork you will be asked to provide is below:
The above may seem a bewildering array of paperwork to provide, but it is not that difficult or complex to arrange. My strongest advice is to start to collect the required paperwork now as any prospective buyer will be more confident knowing that the property is 100% in order. If you would like advice on getting your paperwork in order, please call Steven or Brigitte on 0034 663797187 for advice.