It is clear that with the fall in mortgage rates, it is the ideal time to invest in property on the Costa Blanca or Costa Calida. Spain already offers several advantages, among them the proximity to the French-speaking countries, which favours it fully. Therefore, it is the ideal place to establish a second home.
A few hours by plane, you will enjoy the mild Mediterranean climate. For a main residence, Spain also attracts many European Union citizens, as the cost of living is lower. A French or Belgian employee would have a 30 to 50% higher purchasing power than in France, a Swiss employee 100% higher as well as a Swedish or Norwegian employee! Although prices have been rising steadily since 2013, they are still very affordable. Those who want to invest in Spain today are likely to get good deals.
THE COST OF LIVING IS CHEAPER ON THE COSTA BLANCA AND THE COSTA CALIDA!
More and more foreigners want to invest in Spanish property because the purchase price is still very attractive. Buying a property in Spain is relatively simple.
J&L REAL ESTATE will put you in touch with its privileged partners who will assist you administratively throughout the whole process of buying and selling.
Here are the different taxes and fees related to the purchase of a property as well as the taxes related to its possession:
- Taxes and fees related to the purchase,
- Wealth Tax (Suma-IBI),
- Non-Resident Income Tax (NRI),
- Residents’ income tax,
- Garbage tax,
- Community expenditure.
What are the taxes and fees that apply to buying a home on the Costa Blanca?
As far as taxes are concerned, first of all you should count 10% of the price of your property, to which you should add the notary’s fees, lawyer’s fees and real estate agency fees, which are regularly included in the selling price.
If you buy a new property, you will have to add the 1.5% new construction tax (ADJ), this tax will not apply if your purchase becomes your main residence.
This ADJ tax will also not apply if you buy a property for resale, you will pay in this case, only 10% which are the costs of transfer of the Estate.
Notary fees vary slightly depending on the property, but the cost will be around 1100-1500 euros (including the costs of registering the property domains).
The lawyer’s fees depend, of course, on the fees charged but you will benefit from Inmosolcosta’s advantageous prices with its associated lawyers who specialise in the field of real estate.
Summary of fees and taxes related to the purchase:
- Buying a new property: around 13-14% of the purchase price.
- Buying a property for resale: about 11-12% of the purchase price
Property tax (IBI or SUMA)
This tax is collected by the municipality in which the property is located and represents a fixed percentage of its cadastral value. Its amount varies according to the city and the Autonomous Community, but in general it is between 0.3% and 1.3%. This tax is the only one linked to residence and its amount is much lower than the amounts charged in countries such as France, Belgium or the United Kingdom, which are approximately 40% cheaper.
Non-Resident Income Tax (NRI)
The tax (IRNR) is an annual tax that must be paid by foreign residents, for example, if you are French and do not live in Spain all year.
Income tax for residents.
If you are a foreign investor and wish to reside in Spain for more than 183 days a year, you can apply for tax residence and be subject to Spanish Resident Income Tax. The Spanish tax authorities will take into account the income generated by your professional activity, income from real estate, tax benefits, etc.
Tax on waste, community fees.
You will be subject to community fees if you are part of a building, subdivision or any other complex that has common areas. These fees, which are paid monthly or quarterly, vary according to the common areas (pool, elevator, garden, parking, etc…) of your complex.
DISCOVER YOUR FUTURE LIFE UNDER THE COSTA BLANCA SUN!
The Costa Blanca, a place where it is good to live all year round.
With more than 300 days of sunshine a year, you can enjoy all your favourite activities all year round. Due to its location in southern Europe, Alicante offers very bright and pleasant days. Its climate is temperate during the year and dry in summer. This time of year is ideal to enjoy the coast and the good weather to practice your favorite sport outdoors.
According to the World Health Organization (WHO), the city of Alicante has one of the healthiest climates. The average annual temperature is 18 degrees and it only rains 20 days a year. The winters are very mild thanks to the protection offered by the mountains and its proximity to the sea.
The Costa Blanca is also very accessible thanks to its international airport with more than 50 airlines flying to the biggest cities in Europe. Public transport is not far behind, with the Alicante train station and its high speed trains.
In addition, the mild temperatures will allow you to practice your favorite sports all year round: water sports, golf (with no less than 20 golf courses), hiking or walks for nature lovers.
The Southern Costa Blanca is a special market, the strong foreign demand makes this region a very popular destination. The modern architecture develops strongly here, the contemporary aspect is presented especially by the new constructions that are multiplying there.
REASONS TO INVEST IN REAL ESTATE ON THE COSTA BLANCA
Today, it is possible to buy a new property at unbeatable prices and with bank guarantees. The market still offers a good selection of properties for “resale”, usually at lower prices, sometimes with larger spaces, but often of much lower quality.
The average price of new homes on the South Costa Blanca is between 130,000 and 180,000 euros for apartments and between 200,000 and 280,000 euros for villas. These prices are still lower than before the crisis of 2008.
It is undeniable that rental investment can be an interesting business and easily exceed 4% profitability.
Thus, investing in Spain means combining business with pleasure. Buyers are interested in the main or secondary residence, thanks mainly to its prices. Spain is today one of the cheapest countries in Europe.
