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New Inheritance laws come to Andalucia [2017-01-17 13:31:30]

Great news for inheritor’s – there is an  improved deal in new Andalucia Inheritance Tax Laws

 

Andalucia Inheritance Tax changes affecting your main family home

The inheritance tax threshold for main residences has increased.

.Prior to the change, there was a national maximum allowance of €122,606 per inheritor (already permanently living in the family home) and anything above this threshold was taxed. The allowance is now calculated on a sliding scale.

Scales per inheritor living in the family home at the time of death:

  • €123,000 will be 100% exempt from Inheritance tax
  • €123,000 and €242,000 will be calculated on the sliding scale from 99% to 96%.
  • €242,000 will have 95% inheritance tax exemption.

In order to benefit under these rules the inheritor must be one of the following…

  • A spouse
  • Descendent (natural or adopted)
  • Ascendants (parents, grandparents).
  • A distant relative (over 65 years) who has lived with the owner in the property for more than 2 years.

Formerly, in order to benefit from the tax exemptions it was necessary to retain the property for at least 5 years. This has now been reduced to 3 years.

January 2017 Inheritance Tax Changes in Andalucia

Here are the inheritance tax changes in Andalucia that will come into effect at the beginning of 2017. Again there is further fantastic news for inheritors… the zero-rate threshold has been increased. This means that as from January 2017 each inheritor can receive up to €250,000 before they are liable to pay inheritance tax, as opposed to the previous rate of €175,000. This is great news for those worried about loved ones being burdened with a large tax bill when they inherit a beautiful Spanish home.

And it doesn’t end there. If you are in line to inherit , for example , an  apartment in Nueva Andalucia,  worth up to €350,000, there is a new standard allowing up to €200,000. This means that you would be exempt from paying inheritance tax on the first €200,000 and will only be liable on the remaining amount.

These changes are a major step forward as it has simplified the system and leaves less room for errors and anomalies.

Exciting times ahead in 2017 [2017-01-13 09:08:20]

An exciting 2017 for the Marbella property market.

Last year was a year of many ups and down worldwide, but in sunny Marbella there was a noticeable shift in in demand for Costa del Sol property , and in particular in the Marbella Property Market.

Regardless of Brexit and the US elections, 2016 brought an ever increasing stream of buyers, eager to purchase in Spain’s most luxurious resorts.

2016 saw the return on many of Europe’s leading property construction companies, meaning that there is now a superb choice of off plan and newly constructed high quality developments offering favourable financial terms .

The trend for much smaller top end contemporary villas is much in evidence , these stylish alternatives to high end apartments, are in high demand . Most being sold off plan.

Last year saw many ups and downs, but not necessarily in the Marbella property market. We saw several shifts in markets but more often than not, this was a direct result of the world political forum. We already wrote a bit about Brexit and how it was very overrated with doom and gloom; then of course the US elections took place, and once again it seemed uncertainty enveloped the world’s pundits. But, despite politics, which will always remain just politics, the property market in Marbella, the Costa del Sol and the whole of Spain remains steadfast.

 

We are confident in our prediction that this there will be some significant  turning points in the Marbella  property market.  Considering the statistics on 2016 sales figures on the Costa del Sol,  now being released, it’s not hard to see that the property market will continue its upward year trend. In 2016 we saw a record breaking number of foreign visitors to the Costa del Sol, which in turn produces a significant number of new purchasers´ of holiday home.

Our Marbella property market prediction for 2017, which will make this the year you will want to buy property in Marbella.

  • Continuing low interest rates , a growing economy and massively increased demand for both holiday and long term rental property will continue to encourage increased sales in 2017 and beyond
  • Off-plan property will continue to be the nº 1 seller in 2017 , dominating over 60% of market share
  • Price per square metre on off-plan developments could reach as much as 7,000€ per square metre in the Marbella area.
  • The interest from Middle Eastern & Chinese  buyers will continue to increase throughout 2017.
  • Irrespective of Brexit , Brits will continue to the strong buyer’s of Spanish property in 2017.

Mortgages [2017-01-06 16:00:39]

MORTGAGES

 

As a general rule non residents can expect to qualify for mortgages of 70% and Spanish residents and National's 80 % of the purchase price or loan to value valuation,  on an urban property – that is to say a property within a town or urban area, this applies to all coastal properties as a general rule.

There are now possibilities to obtain higher % mortgages by using UK property as guarantee for your Spanish mortgage

NB. The bank will make an independent valuation of a property and the mortgage offer will be based upon the bank's own valuation.

 

100% MORTGAGES

There are a few developments advertising properties for sale with 100% mortgages .

The reason they are able to do this, is because generally speaking a bank has repossessed the development from the builder and is selling off the unsold units at cost price , ie under market value and are therefore able to offer 100% mortgages.

It is still necessary to apply for and be approved for a mortgage. The application requirements are quite tough , so be prepared to produce solid paperwork for a mortgage application.

What you need

The following is a list of documentation needed in order to process any mortgage application:

 

What you need

The following is a list of documentation needed in order to process any mortgage application:

  • Copy of passport
  • Copy of N.I.E.
  • Latest tax return (P-60 or equivalent)
  • Copy of employment contract if employed
  • Last 3 payslips
  • Bank statements (last 3 months)
  • Full credit report from Experian (Irish Credit Bureau or any other official full credit report)
  • List of assets and liabilities, with amounts owed and monthly repayments
  • Proof of income from any properties (rental contracts, etc.)
  • Reference letter from local bank

Marbella Property Solutions has excellent relationship’s with some of the leading Spanish and International Banks , and will be pleased to introduce clients to banks and reputable mortgage brokers.

Highly recommended independant mortage and financial adviser's are http://www.marbellamortgages.com/index.html   If you need a mortgage to purchas ein Spain, we recommend you contact a mortgage broker to obtain a pre approval , so you are fully aware of what you will be able to afford before you start your search .