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Marbella’s administrative certificate for touristic rentals

Tourist dwellings, known as VFTs, are properties owned by a private individual who decides to rent them out to tourists for short stays in order to earn additional income and where only an accommodation service is provided in exchange for a price. These properties are advertised through tourism platforms, i.e. travel agencies, companies that arrange or organise tourism services and websites where bookings are made.

The requirements for tourist dwellings are set out in Article 6 of Decree 28/2016, of 2 February, on tourist dwellings, one of which is that the dwelling must have a first occupancy licence.

However, in some cases, the dwelling does not have this licence, either because it was not obtained when the construction was completed, or because the dwelling does not have it due to the age of the construction.

 

Since the first occupancy permit must be applied for by the developer of the complex – except in the case of a private development, where the permit is applied for by the owner – the permit is applied for and issued for all the dwellings in the complex. It was therefore not possible for a private owner of a property within a complex to apply for a first occupancy licence only for his own property.

 

However, in view of the massive increase in tourist rentals and the legal vacuum that existed for those properties that did not have a First Occupation Permit due to the age of the residential complex to which they belonged, Marbella, following in the footsteps of other Town Halls such as Malaga, Mijas or Estepona, has recently created a channel to obtain an administrative certificate that equates properties that meet the requirements of the Fifth Transitional Provision of Law 7/2021, of 1 December, to promote the sustainability of the territory of Andalusia, to buildings with planning permission, so that these owners can rent their homes for tourist purposes, even if the complex, due to its age, does not have an occupancy licence.

 

In order to obtain this administrative certificate, it is necessary to submit with the application the certificate of completion of the works or the certificate of the age of the building, a simple note from the Land Registry or a document accrediting the ownership of the property and a copy of the self-assessment of the corresponding tax.

 

Due to the recent introduction of this channel by the Marbella Town Council, we recommend that you contact our office for an analysis of your specific case in other to get further advice.

 

Thank you Gemma Fuentes Romero at Franke de la Fuente, for this great text.

Jingle All the Way: Experiencing the Magic of Christmas in Spain!

Christmas is perhaps the most traditional, family-oriented celebration in the whole world, and in Spain it lasts until 6th January. Visiting the country between the middle of December and the start of the New Year is a time that’s always full of lovely moments for sharing. We are sharing the top five popular Christmas traditions here in Spain:

 

 

1.“El Gordo” Christmas lottery
The Christmas time festivities kick-start in Spain on 22nd December with the National Christmas Lottery. The first prize is popularly known as “El Gordo”. Participation is massive and the draw is closely followed throughout the morning. It has a peculiarity that makes it very special, the winning numbers are sung by children in an unmistakable chant. The prize money is very well spread out and the winners usually celebrate their glory in the street.

 

 

 

2. Meals bursting with Christmas flavours and lots of sweet treats
Christmas is a time to enjoy meals with family and friends. The most special night is 24th December, Christmas Eve, when restaurants and hotels offer extraordinary menus to celebrate it in a big way. The meals normally include several starters, for example, Ibérico ham, seafood and delicious cheeses, followed by dishes such as soups, roast meat, fish or stuffed turkey. And to finish, sweet treats and desserts, the true stars of the Christmas dinner table. Turron, marzipan, Spanish sweets, shortbread and naturally, Epiphany cake are all delicacies not to be missed.

 

 

 

3. Colourful Christmas lights
The festive lights in Spain are a delight for children and adults alike. Cities like Madrid, Barcelona, Malaga and Vigo have perhaps been the most eye-catching in recent years, but from the end of November, it is usual for all towns and cities to light up their streets with colours and Christmas motifs. In fact, a great idea to enjoy Christmas is to take a night-time stroll through the Christmas markets and Nativity scenes, wrapped up warm and with a handful of roast chestnuts from a street vendor.

 

 

 

 

4. The 12 most festive grapes of the year
This tradition promises luck and an original way to see in the New Year. It consists of eating 12 grapes as the clock strikes 12 on New Year’s Eve. The idea is to eat one grape for each chime to welcome in the New Year. You can follow the chimes of the famous Puerta del Sol clock in Madrid on television, live at the Puerta del Sol or in the iconic landmark where this tradition is celebrated in your destination. Any of these options are perfect for ringing in the New Year Spanish style.

 

 

 

5. A magical night full of excitement
On the night of 6th January the Three Wise Men arrive from the East and bring presents to all the children. It is traditional for every child to write a letter to the Wise Men beforehand telling them how they have behaved all year and requesting gifts. Special mailboxes are placed in shopping centres and leisure spaces for posting these letters and the ‘royal pages’ make frequent appearances to collect them by hand. Finally, on the afternoon of 5th January, the Wise Men arrive in all the cities in fun processions and parades through the streets to the delight of all the children. Then, after an early night and waiting excitedly for the morning to arrive, they finally get to open their presents. Their names are Melchior, Caspar and Balthazar and they magically enter all the houses through the windows, balconies and chimneys during the night.

 

The City everyone is talking about – Málaga

Why is the world coming to malaga for technology? Not many people know but Malaga opened its Tech Park in 1992 and over the past couple of years Malaga has pushed a huge amount of investment into creating the ‘Tech Hub’ for Europe. And so far it is succeeding.

 

📲 Firstly, the infrastructure is already there with over 600 technology companies present.

🚍 Transport is great, high speed trains from Malaga to Madrid as well as direct flights all over the world makes travel easy.

👩🏼‍💼 Lifestyle is a massive plus and incentive for foreign employees moving abroad. On top of this, Nomad Visas, Start up and business incentives are taking away barriers to entry for businesses.

🎓 The pool of talent is large as Malaga university has partnered with the initiative to sustain the Tech dream.

 

 

Who is coming?

The Americans are coming …
Since Google announced their relocation of Cyber Security to Malaga there has been a huge increase in similar moves. For Americans the last 10 years have been financially very good if you look at exchange rate against the Euro and historically speaking, it is cheap to buy in Spain. With an increase in foreign investment, large corporations and movement of people comes a need for more supply …So what does this mean for the property market on the Costa del Sol and Malaga?

 

What about Property? Thinkgs are looking up.
Spain and in particular Malaga region has profited from the house price increases over the past 18 months. The key reason house prices have gone up is the high demand and low supply. Despite the interest rate hikes in the EU, UK and US, it is not deferring from certain individuals and corporation from moving to Malaga.

 

The combination of a strong housing market (foreign investment) an increasingly inpressive tech park and influx of large corporations is making Malaga one of the most sought after cities in the world!

 

Source: Blue Dawn Development 👉

 

The Spanish real estate market slowed down in 2022, but what happened on the Costa del Sol? Read our analysis of the current market and predictions for 2024

The housing market in Spain started to cool off during 2022 because the increase in interest rates and inflation effected people’s private economy. However, the slowdown wasn’t as bad as people had anticipated. The experts say it will keep slowing down for a few more months, but it’s unlikely the market will crash as we experienced back in 2008-2013. ( Source )

Let’s shift our focus to the Costa del Sol. How accurate were these predictions for the real estate market and is investing in a property in the south of Spain still a wise choice? Our data reveals a remarkable 27% increase in sales from January to August compared to the same period in 2021. The demand continues to be strong, with prime locations being snapped up very quickly. However, we’ve observed a slight shift in our clientele. In previous years, 80% of our clients were Scandinavian, but this year we have seen a shift, with Scandinavians making up 50% of our client base.

We have also noticed a change in our clients’ behaviour—they’re more informed and ask us more questions, ranging from power consumption and solar panels to additional costs in Spain. This is a positive trend as it reflects a desire for well-informed decision-making when purchasing a property, discouraging hasty decisions.

However, the real estate market on the Costa del Sol is still thriving. While the trend towards more informed decisions may lengthen the process and demand more from us as agents, we’re delighted to witness our clients making purchases they are unquestionably confident about.

Predictions for 2024

Acquiring a property in Southern Spain not only represents a sound long-term investment but also offers the advantage of year-round use and enjoyment. When contrasting this with investments in stock, gold or funds, it may prompt you to reconsider your next investment decision.

The conflict in Ukraine, the ongoing incidents of violence in Scandinavia and various political development continue to impact the daily lives of many individuals. We’ve observed that those with the means to move on from these challenges are increasingly turning their attention to Southern Spain. Demand for properties in the region has reached record high demand, with expanding clientele that extends beyond residents from the UK, Sweden and Norway.

We will reach the top of inflation and interest in the next few months and upcoming reports will be extremely important to determine whether we will witness the initial shift in interest during the first half of 2024 or if we will need to wait until the latter part of the year.

We anticipate that this shift will likely occur in the first quarter, prompting more individuals to resume their investments. If you are considering purchasing a property in Spain, you may find that the upcoming months may be an opportunity to secure a good deal, especially when dealing with property owners who have benefited from currency fluctuations over the past year.

If you bought a property in the last 2-10 years and consider selling, is now a good time?

The demand for properties remains high, particularly in good locations where transactions continue to be swift. We have confidence in the Euro’s enduring strength in the coming months, making this a perfect opportunity for those contemplating selling their property or converting the proceeds to their local currency. It might also be an ideal moment to explore the purchase of a larger or smaller property but it’s also important to remember that there is still the option and wait until you find an even better opportunity.

When is the right time to buy a property?

This question is one of the most common questions we receive as Real Estate Agents and there are many answers to this question.

With over two decades of experience in the real estate sector, I have encountered various factors such as crises, inflation, interest rate fluctuations, conflicts, pandemics and financial insolvencies. All of these factors have influenced the Real Estate market. Surprisingly even through many years none of these circumstances have prompted any client to take the opportunity of acquiring a property at an exceptionally low cost, thus securing an extraordinary deal.

I’ve observed the individuals who gain the most significant profits are those who engage in real estate as a long-term investment strategy. These investors continuously buy, rent, and sell properties, going beyond the idea of a single perfect time to buy.

Real Estate stands out as a premier investment avenue. Unlike funds, stocks or traditional savings accounts that yield minimal interest or potentially substantial returns depending on market performance, real estate offers the unique advantage of both personal utilization and rental income generation until a suitable time of sale. This feature is unparalleled among other asset classes.

Even in the least favorable scenario, one would own property in a region that boasts over 300 days of sunshine annually making it viable for personal enjoyment or rental income while waiting for a market resurgence.

A growing awareness of these benefits has engendered a more stable real estate market, defusing the volatility that characterized it in the past. Consequently, investments in real estate have become more secure and predictable.

Keep in mind that our dedicated teams in various offices are available to assist you in locating your dream property. However, an unchanging principle remains paramount for enduring investment success: Location, location, location!

See you in the sun!

Fredrik Serneholt, CEO

It is time to join the property market in Spain

The world has been far from normal in recent years, and just as we started to recover from the effects of Covid, the war in Ukraine started, leading to high
inflation, increased interest rates, and a tougher reality for many people. However, it’s often during tough and challenging times opportunities arise,
especially when finances are limited. That’s why I believe there is no time to wait and it’s essential to act now.

 

Although crises often have a bad impact I’m confident that we’ll emerge from this one stronger and more prepared than ever for good times ahead.

 

Over the past year, I’ve been keeping an eye on property markets across Europe, and I’ve noticed a significant drop in prices and slower market activity in many countries. However, it’s interesting to see that properties along the coast in Spain have experienced a vast spike in demand unlike anything we’ve seen before.

 

In the past year buyers from different demographics such as Eastern Europe have shown an increased interest in investing in Spain and at the same time, we have found a decreased demand from our traditionally strong markets.

 

After some research, I have identified several factors that contribute to the stability of the Spanish market. Based on this analysis, I strongly believe that investing in Spain over the next few months is a wise decision, and below I will share some interesting facts.

 

From 1996 to 2007, Spain’s national average house price rise by 197% (117% inflation-adjusted), one of Europe’s highest house price increases.

 

Despite the price rises in recent years, nationwide house prices are still about 17% (-36% inflation-adjusted) below peak levels. As a buyer you still have a potential to find properties below market value and as an investor, we can see that there is room to buy, renovate and sell in a short-term relation with a profit.

 

4 reasons to invest in Real Estate

1. Potential for long-term appreciation: Property values tend to appreciate over time, especially in desirable locations.

 

2. Cash flow from rental income: Rental properties can provide a steady stream of income through monthly rental payments, which can be used to cover the property’s expenses and generate passive income.

 

3. Diversification of your investment portfolio: Investing in real estate can diversify your investment portfolio and potentially reduce your overall risk exposure. Real estate investments tend to have a low correlation with other asset classes, such as stocks and bonds, which can help protect your portfolio from market volatility.

 

4. Control over the investment: Investing in real estate gives you a certain level of control over the investment, such as choosing the location, the type of property, and the rental rates. This level of control can help you make informed decisions and potentially increase your returns.

 

If you need help with finding your home we can now help you from one of our 8 offices across Spain.

 

 

 

Fredrik Serneholt, Founder Serneholt Estate

We are expanding into San Pedro de Alcántara

Why San Pedro?

San Pedro is only about 3-4 minutes by car from Puerto Banus. It has a population of 35.500 people today with majority being Spanish but we are seeing an increased interest from our international buyers as San Pedro has a lot to offer. The town is built 1-2 km from the beach and the reason for this is that Spanish people don’t like to live by the beach because of the damage the sea, sand and wind can make to a property. San Pedro has in recent years built up their infrastructure and invested into making the town centre pedestrian and cycling only. It has a beautiful beach walk/promenade which connects San Pedro to Puerto Banus and continuing to Marbella town centre – you can easily walk or cycle20 km enjoying fantastic costal views along the way. The location of the office is absolute key and it took us a long time to find what we were looking for. We have now found the perfect location and work is currently in progress to renovate the current space which used to be a Beauty Salon! We will also be able to help our client finding suitable properties in and around San Pedro as you as a client get more value for your money. We are also close to our Partner Mariposa Energia who helps our clients to be more energy efficient with energy switch and solar panels to help you save money on your electricity bill. We are happy to make introductions so you can explore the best way for your property to be more energy efficient.

How long have you worked as an agent?

Around four years

What languages do you speak in the office?

Spanish, English, Swedish, German and Russian

Where are your clients coming from?

Our clients are coming from all over the world but of course we have many clients from Scandinavia where our roots come from.

Can you give us a sneak peak of the new office?

We will try to give it a touch of Scandinavian touch and feel and it made it easier that we found a corner office space with large windows making the office feel very light and airy. We wanted to invest in making the new office feel warm and welcoming to our clients and I think we will achieve exactly that.

What is important to think about as a client?

• Realistic budget – having a realistic budget in mind and look at properties within this range

• Financing – it’s important to know and understand how you are planning on financing your property purchase either in Spain or your home country

• Act fast – you will need to act fast when you do find a property, as all the good properties goes sometimes before they are officially on the market

• Location, location, location – Make sure the Urbanisation is well managed and maintained as well as confirming the pool is well managed.

What additional costs can you expect?

• A community fee if you buy an apartment. Make sure you check what you get for the money i.e. maintenance of the urbanisation, security, heated pool etc.

• IBI – council tax which is based on the size of the property

• Basura – Rubbish collection

• Transfer fee (Stamp duty) of 7% which used to be 9%

• Lawyers fee – approx. 1% of cost of purchase

We recommend you count for about 10% of additional costs above the purchase price if it’s a resale property or 13% if it’s a New Production.

Please drop by our new office and we can talk you through the process of buying or selling a property here in Spain!

/ Danilo Gonzalez

Partner & Real Estate Agent

The Spanish property market is still looking strong despite financial challenges in other parts of Europe

There is still no sign of the property market taking a down turn in Spain. We find property prices are still going up and more and more people decide to relocate and take advantage of remote working and at the same time enjoy the many days of sunshine southern Spain has to offer. We have seen a decline in buyers from the Northern part of Europe due to interest rates being hiked up and the usual Swedish majority of buyers have dropped significantly from being in the top three down to tenth place amongst foreign buyers in Spain according to the Spanish registration authority Registradores.

The statistics we see is very clear, the Swedes are no longer the top foreign buyers in Spain. There is a lot of concern and nervousness of increase in interest rates and stock market down turn which supports the current plunge in property prices in Sweden.

After the property boom in 2021 and with the war in Ukraine earlier this year, the general feeling was that the property prices would be likely to stagnate or drop especially after the announcement of increase in interest rates and high inflation across Europe, but instead we have seen an increase in demand for properties on the Costa Del Sol and also rising prices, says Fredrik Serneholt, CEO at Serneholt Estate. He also mentions Serneholt Estate has always had a high activity amongst Scandinavian buyers but have seen the demand shift to Eastern Europeans such as Ukraine, Poland, Rumania, Bulgarien and Estland who has strong rent and purchase power along the Coast. Holland, Belgium, Denmark, France and Italy are other European countries where we have seen an increase in demand.

Increase in Property prices

The increase of property prices and number of completed property purchases across Spain is on the up, according to recent analysis released by Registradores. To share some statistics, 640 082 property completions have been registered in 2022, which is the highest number since 2008, which makes it a yearly increase of 19.8%. We can still see an increase in property prices, however it has stabilised somewhat to 1.59% in the 3rd quarter and 7.59% on a year-on-year comparison. Looking at the price per square meter, the average is roughly around 2000 Euro per sq m.

It is still seen as a good time to invest in a property in Spain, there is a high demand in rental properties and can be cost neutral if you rent your property out between 10-15 weeks per year and enjoy your property the rest of the time. If you are looking to sell, your property has most likely increased in value says Fredrik Serneholt.

Introducing our partnership with Mariposa Energia – the green energy revolution company based in Costa del Sol

There is a green energy revolution taking place right in the heart of the seaside town of San Pedro de Alcántara on the Costa de Sol. Born out of the UK, CEO Martin Tye’s passion for the environment and his own experiences in Spain, Mariposa Energía is a company on a mission to help protect the future of our planet, while helping home owners to save money with its green energy mix.

Launched just over two and a half years ago, the company has gone from strength to strength as its reach has spread from the Costa del Sol initially to right across the entire country. Look out at the rooftops in many of Spain’s popular locations and you will see the shiny solar panels installed by Mariposa Energía, taking in the sunlight and converting it to electricity to power consumers’ homes. Solar panels used to be a rare sight in Spain, which is hard to imagine in a country that can boast more than 300 days of sun per year. This was due to the infamous ‘sun tax’ which was previously levied on those choosing to generate their own solar electricity, but that tax has been abolished and now, thanks to the work of Mariposa Energía, solar-powered homes in Spain are most definitely on the rise.

“We live in the perfect location for solar energy,” Martin Tye explains. “By installing solar panels we can harness this free and plentiful source of energy, generate our own electricity and reduce our carbon footprints by lowering the amount of carbon dioxide that is pumped into our atmosphere.” The effect that global warming is having on our planet and the need to take action was one of the main factors that prompted Martin to launch Mariposa Energía. “Climate change is a very real and immediate problem, which we are all facing. Our planet’s temperature is rising at an alarming rate and the effects can already be seen, with an increase in weather-related disasters across the globe, increased forest fires and flooding and the shrinking of polar ice caps. “It’s vital that we take whatever action we can and by making the simple move to green energy we can make a big difference to the future of our planet.” While many home owners install solar panels to reduce their carbon footprints, there are also many more reasons that are compelling consumers to go solar, as Martin explains: “Home owners and businesses alike can make huge savings and with the recent sharp rise in the wholesale cost of electricity, our clients are finding that their solar installation has paid for itself in just two to three years. “Many also like the freedom that solar power gives them. By generating their own electricity they are no longer at the mercy of fluctuating energy prices and they can use the electricity as they wish throughout the day, without the need to wait until the night time or weekend to run the washing machine, when electricity prices are cheaper. “What’s more, a solar panel installation can increase the resale value of a property, which is a big deciding factor for many people.” As well as offering solar panel installations, Mariposa Energía also offers energy switch and, as you would imagine, all their energy tariffs are 100% green.

CEO Martin Tye

It was Martin’s own personal experiences with electricity companies when moving to Spain that prompted him to set up this side of the business. “After dealing with the electricity companies when I moved here I decided that I wanted to launch an energy company that not only provided green energy but also provided great customer service and bills that are easy-to-understand. “At Mariposa Energía we have a friendly, multi-lingual team who put the customer first, who answer the phone and who go the extra mile to help our clients.” Mariposa Energía’s energy switch process is incredibly simple. They analyse a recent energy bill and then show the consumer how much they can save if they switch to their 100% green energy tariffs. Once a client decides to go ahead the switch is seamless. There is no need for any new cables or equipment or for any work to be done. In fact, as Martin explains, clients only notice the switch has occurred when they start receiving cheaper energy bills. And, of course as a green energy company, all the bills are sent via email to further help to protect our planet. “We know that prioritising our planet is not always easy, but with our two green energy options, consumers can go green while also saving money,” Martin added. “It really is a win, win situation.”

Serneholt Estate is very excited to partner with Mariposa Energia and by collaborating together, our clients are able to benefit from special rates when signing up to Mariposa Energia’s services. Contact us for more information at www.serneholtestate.com

Something New Something for You – New website Launch

We at Serneholt Estate with offices across Costa del Sol and Costa Blanca have just launched our new website end of last week!

It’s been in the works for months and we are so excited to present our new website with added functionality such as a newer, better, faster search function to find the dream property our clients are looking for. We hope you enjoy the more user friendly experience our new website has to offer and please do let us know if you have any feedback.

Be sure to click the link to visit our new website and find your dream home. serneholtesate.com

Wealth tax removal soon a reality in Spain

This summer Partido Popular, the Spanish right wing political party, won a historic election. Most notably, it is highly likely that by the end of this year or as 2023 commences, Partido Popular will remove wealth tax.

What does this mean for real estate?

People with the view of moving their assets to Spain will no longer face the hefty cost of wealth tax. In short, there is no better time to invest in property in the Costa Del Sol than now, as prices will inevitably increase. Especially properties with high value will be effected.

A summer full of surprises and interesting changes in the habits and the necessity of buyers

This summer has been tremendous and very interesting for us at Serneholt Estate. We have noticed that, because of covid, the needs and the habits of buyers have changed. We have observed that after lockdowns and restrictions all over the world, the demand for a garden or a terrace has been, almost always, a mandatory request.

We have also seen that more and more people have discovered that they can actually work from home, and that has opened up the possibility to buy a new home in Spain and work from there. Before the tendency was to buy vacation homes in Spain but now a high percentage is permanent.

Another interesting change that we have observed is the increase of the desire to own your own home for vacation instead of staying at a hotel.

The buying process this summer has been very different in the sense of the time before deciding about the property. Normally there is time to think if the property is really right or not but this summer it has been different, various clients have lost the opportunity of a property they liked because they took to much of time to think about the property instead of acting as a buyer.

To sum it up, we at Serneholt Estate are so grateful and thankful for the amazing and exciting collaborations this summer, we have learned so much and we are very curious about what the future will hold.

What to think about before, during and after buying a property in Spain?

Before buying a property

Financing

Before actively looking for your dream property, it’s worth considering how you’re going to finance it by doing some calculations. You may then need to apply for a mortgage offer from your existing bank or optionally a Spanish bank. This will allow you to act fast when the right property comes along. You can usually borrow up to 75% of the property’s market value from a Spanish bank.

We collaborate with MyBankFriend which specializes in helping non-Spanish clients to find the best loans in Spanish banks. They collaborate with 15 different Spanish banks and can provide a proposal within 24 hours. You can read more about MyBankFriend at www.mybankfriend.com and make an application at about here.

Legal representation

A big difference in Spain compared to many other countries, is that the buyer – and quite often the seller – is represented by a lawyer. The lawyer will help you through the whole transaction, making sure everything takes place securely and as it should do. You can choose a lawyer yourself to help you through the process or we can put you in touch with one of our partners.

NIE number

To own a property in Spain you will need a Spanish tax ID number, known as an NIE number. You will need this to take over ownership of the property when you register your title. Your lawyer can help you get one when you have found the right property.

Choose an agent

It is important to look into the agent’s ability to find just the right property for you. Look at the agent’s expertise and commitment in representing the client’s interests. Ask about their brokerage skills, how the agent performs their role in finding your dream property etc. At Serneholt Estate we always offer clear, on-hand communication throughout the time we work with you and our biggest focus is on you, the customer, at all times. It goes without saying that we will keep you informed and updated throughout the whole process. You will find that this is not so common in the Spanish housing market.

During the process

Finding your property

Once you have got all preparations ready, you can start looking for the property and head off to Spain for some viewings. As a company, we can make a big difference for you. Send us a wish list and we’ll find the best of what the market has to offer. We’ll also plan your viewings so that you get to see the best options during your visit.

Viewing properties

A successful viewing is the result of commitment and sensitivity on the part of the agent. As agents, we focus intently on your particular wishes. In this way, you only get to view the properties that we know definitely meet your wishes. During viewings it’s a good idea to inspect the property as carefully as possible, since all property in Spain is sold in its existing condition and it’s very difficult to claim for any defects once you’ve signed the contract. If you don’t know how to go about inspecting the property you can always contract a surveyor to conduct a survey. Your lawyer will always conduct the legal enquiries and searches on the property.

Auction / Reservation

Auction is not as common in Spain as in other countries. Instead, the seller normally goes with the buyer who’s prepared to pay the asking price. The final price of the property is also often decided through a negotiation between the buyer and seller. When you have found the right property, we’ll help you negotiate the price and terms with the seller, after which a reservation contract is generally drawn up. A reservation fee (usually 6,000 euro) is also payable at this time either to your lawyer’s client funds account or to our client funds account. Around 2-3 weeks later, the private sales contract is drawn up, which is prepared by your lawyer after the legal checks have been done. A deposit of 10% of the purchase price, less the reservation fee, is usually paid at this time.

Payment

The notary receives the payment, and after paying the taxes and fees, he distributes the final balance to the seller. The seller receives 97% of the purchase price. You, as the buyer, pay the remaining 3% to the Spanish tax office. This acts as a security to ensure that the seller fulfils their tax duties and declares any capital gains from their sale in Spain. When the seller has then met all the official requirements, the 3% will be refunded to them.

Last but not least, after completing the buy

Access to the property

You will receive the keys from the seller at the meeting with the notary, after which you can move straight into your new property. The seller is responsible for leaving the property in the condition (legally and physically) and with the installations and licences stated in the sales contract. Remember, that the same requirements might not apply in Spain as in your country, e.g. thoroughly cleaning the property, and the property is usually left in its present condition for the new owner, unless otherwise agreed between the parties.

The actual costs when buying a property

The normal purchase costs of a Spanish property are estimated at between 10% and 14% of the purchase price and in most cases are slightly higher for new developments than for existing properties. We have summarised the costs linked with buying your home below:

Transfer tax
A transfer tax is payable on the sale of existing properties, which amounts to between 8% and 10% of the sale price, although this can vary depending on the region. The tax is often higher for more expensive properties. The transfer tax is payable by the buyer

Value added tax and stamp duty
Value added tax at 10% is payable on properties being sold for the first time, e.g. new builds. In addition to VAT, stamp duty is payable for the issue of the legal documents. This is normally around 0.5% of the purchase price, but can be 1.5% in certain regions. Both taxes are payable by the buyer.

Notary fee and title registration fee
The Spanish government determines the notary fees, the cost of which depends, among other things, on the property’s value and how many pages the sales contract has. In most cases the cost is between €500 and €800 and is usually paid by the buyer.

Service connection charges
When you buy a new development, you have to pay for the electricity, gas and water to be connected and a meter to be installed. This is often taken care of by the building company. This costs around €300.

Borrowing costs
If you take out a bank loan in Spain to finance buying a
property, this loan will be subject to stamp duty of between 0.5% and 1%, depending on the area the property is in. The bank granting the loan will also require a property valuation to be done. This costs around €300 to €500. Most banks also charge a startup fee of around 1% of the loan amount.

Homeowner costs
Properties in Spain are subject to a local property tax, which is paid regardless of whether the owner permanently resides in the country or not. The tax is between 0.5% and 1.2% of the taxable value. The average cost of the homeowner tax lies between €200 to €1000 a year, but can be higher for more expensive properties. All owners of Spanish properties, including those resident abroad, must submit an annual Spanish tax declaration.

Legal fees and translation fees
Legal fees vary depending on the services included in the purchase and its complexity. Most lawyers charge around 1% plus VAT of the property’s purchase price, although there is normally a minimum fee. The fee is often negotiable for more expensive properties. Some charge by the hour and others offer a set fee.

Income tax
The tax is based on a theoretical benefit of owning the property and is calculated as a percentage of the taxable value. The cost is usually relatively small for most properties, often a couple of hundred euro or less per year.

How is it really to work as a real estate agent in Spain?

A charismatic hard working project leader with great sales skills and a good listener, dedicated to work and sees Real Estate as a lifestyle and not a job. That is what defines a successful agent in Spain but how is it really to work as an agent?

First of all you will need to be a good listener and you have to be available for your clients when they need you. There is no such thing as 9-5 work being an agent. Normally our clients contact us in their spare time, early mornings, late evenings, weekends and of course during holidays and from the first contact to get an answer we have a maximum of 1 hour before the client contacts someone else. The moment they involve another agent our chances to be successful with the sale decreases a lot.

There is no cost for a buyer to hire a agent

As a buyer you can hire an agent to work for you to find your property. Most of the properties are being sold on the open market and your agent can show you all properties available, even if they are listed with another agency. There is no need to contact different agencies or agents to get the viewings you want. Most important is to find an agent you feel trust in and that will work dedicated to you! The commission to the agent is always paid by the seller.

Talk about financing

One of the most important things that many agents forget to talk to the clients about is financing. They normally spend most of the conversation about the dreams and properties and areas of interest for the client but forget the most important question “Do you have the money to purchase a property, if I can fulfill all your dreams and find you the right property“. With the answer to this question you could save time and really help clients to the next step.

Availability make a big difference

To be available for a client during all times is not always as easy as it sounds. It will affect your private life and you will need to be able to navigate and prioritize all calls and contacts in the best way to learn how to live and breathe Real Estate and still get free time.

The reward for being an active agent with lots of sales is referrals from clients. All people working with sales know how important a referral is in success rate, there is no such lead from any portal compared to this kind of client. Well handled you will sell to 90-100 percent of your referral clients and this is also proof that you are doing not just the expected, you are doing a great work!

Every search for a property is like a unique project

With all the details in place and a trip to Spain is arranged it is time to plan for viewings. High knowledge about areas, properties and your clients will be helpful to prepare for viewings and your goal is to not show your clients everything on the market, just the few units that really match their requirements and needs.

But even with just 5-7 different properties to show, you still have to make a plan, where, when and why are questions we need to answer on each property we visit before going there. A successful agent always has a plan before first viewing what the client will like and what they will sell in the end. A good agent also knows how to handle a client’s needs and requirements and can find properties outside the box and something they did not know before that they really wanted.

Close collaboration with a lawyer

In Spain you are not responsible for the legal matters as an agent. Therefore it is important that you work close to law firms that could help you and your clients to secure a safe deal. The law firm will handle all the contracts, make sure the due diligence is performed on each property and help your client with purchasing a property in Spain in a safe and harmful way. We always recommend our clients to use a lawyer to avoid problems with the purchase but they are also helpful for us as agents before even going on viewings when we can use them to find out if a property is legal or not even before we take a client there.

Last but most important is to have fun, Real Estate is a lifestyle and you have to enjoy it to live it!

KATHRINE BROWALL
Real Estate Agent, Marbella

How many years of experience as a sales agent do you have?
I have 7 years of experience.

Why did you choose to work as a real estate agent?
I choose to become a real estate agent because I really enjoy to work closely with my clients and help them in the process of finding the dream property. I worked in the hospitality industry for 25 years and I love to exceed the customer expectations.

What is the most difficult situation you have experienced in your profession?
The most difficult situation is by far when you find the dream property for a client and then someone else was faster to reserve. That is always disappointing for the client.

What is the best part of this profession?
The best part is that I get to meet so many interesting clients that I eventually can call my Friends. I like to see myself as a project manager for my clients, and I will help them in every step during and after the sale. Being a real estate agent is More a lifestyle than a job.

How many years of experience as a sales agent do you have?
More than 5 years.

Why did you choose to work as a real estate agent?
A friend of a friend offered me as position as a real estate agent. He believed I would be a good fit. He was right you could say : )

What is the most difficult situation you have experienced in your profession?
When I was with a customer and we found their dream home. We agreed on a price with the owner and everything was in order. Then, when the lawyer starts to review the home, it turns out that the owner has lied about several things. Some renovations were undeclared and not registered. This is not resolved yet so we’ll see how it goes.

What is the best part of this profession?
To see fantastic places and homes and meet interesting people who want to buy a home down here. The job offers a great variety that means you can never get tired of it. Everything from holiday apartments to investors who want to buy houses and businesses. I love it.

FREDRIK JONSSON
Real Estate Agent, Estepona

How is it to start all over with a family of five in Spain? Linda Serneholt tells you her story

In 2014 we decided to relocate our family to Spain to try to live abroad for a year and just a few months later we were on a plane down to Costa del Sol and our house in Sweden was rented out long term.

We realized early in our process that our plan to move abroad would take us to a place with more light and a better climate during winter and it took us just a few minutes to agree that we should look closer at Spain.

For the last decades most of our vacations have been spent in Spain and I probably have more weeks at different Ving Resorts around Gran Canaria than anyone else, but at the end this is something totally different and we decided to look at alternative locations focusing in areas with more activity all year around and with less season based tourism.

We started in Costa Blanca and in just 3 days we visited different areas, properties and the Swedish School there to find out if this was it but we never got the right feeling here and just a week later we went to Costa Del Sol and to Marbella to do the same thing.

It was a cloudy day but I still remember when we passed the Marbella branded bridge and all the palm trees and we both had the feeling of being in Los Angeles and we looked at each other and said, we HAVE to live here! This was even before visiting one single property!

As we both had worked in the Swedish real estate business for many years (since the year 2000), it was natural for us to also work with this in Spain. To work as a real estate agent in Spain is significantly different to Sweden, but one of the main differences is that you work more with the buyers in Spain and it suits us perfectly.

We also noticed that our experience from our work in Sweden was very useful for us, the process to buy and sell properties has so many similar steps and even if the legal part is being handled by lawyers in Spain we still have an important role to make deals go through.

We started to work as employees, but after a few months we felt that we wanted to start our own company. Since Fredrik has been running several real estate offices in Sweden and also has Swedish real estate education, it felt like a natural step for us. We also realized that there was a lot we could implement from Sweden and that would improve the way of selling properties in Spain.

Changing countries with an entire family is a process but certainly not impossible
Step one for us was to travel to Spain and look at different properties where we could feel like home. We had contact with an agent who was committed to look for properties that could suit our wishes. We thought it was very easy to only have one agent to work with. Our agent put himself in our search well and since it is not exclusive here in Spain, the agent showed us the whole market, even if the properties were not part of their company. This makes the Spanish property market more flexible and you can rely on the agent, and trust that they look for what is actually best for you and not only what is available within their company. After two days of viewings, we found our home. This was largely due to the pre work the agent made before we came and we got really inspired by the agent’s way of guiding us to find our home.

When our home was found, step two was to visit schools where the children would love to be, because if the children did not like their new country, it was just to pack up and go home to Sweden again. We decided on the Swedish School in Marbella and it was a success! One of our sons is still there. Of course there are a lot of good international schools in the area but we chose Swedish as we thought we would be in Spain one year and the school follows the Swedish curriculum.

Many things are very different here. An example is after school activities. In Sweden this meant that your kids needed a quick meal before going to a soccer training or other activity and then coming back home for homework when it is completely dark outside.

Here we often go together to pick up the kids from school, bring some picnic and then meet up with other families at the beach. The extra hours of light gives so much extra time to be with the family before going to bed.

Another example that has been an interesting, and fun experience for us is the Children’s birthday parties. Here many children’s birthday parties are at the beach clubs or in a restaurant where children are always welcome. The children are free to run around and thanks to the sound of the beach, the sound level of the happy children is not an issue.

Living in Spain is a dream for many and so for us, of course you miss the family and friends in Sweden, but they come and visit as much as they can. In our experience, us moving here has actually led to more quality time with family and friends. Of course you can see your friends everyday but on the other hand, when we see family and friends, it’s more focused and therefore more quality time. We noticed, when we lived in Stockholm, all the people around us were too busy to even have time to meet once a month. Here in Spain life is easier and you tend to live more spontaneously. For example, on a rainy and cold November day you might not feel that tempted to dress your children and go out for a coffee. Here you just put on some light summer clothes and you can go out and be social.

To sum up, moving to Spain has been life changing for us. Our relationship is stronger than ever and we got ourselves a beautiful daughter just a few years ago to complete our family which we never guessed we would have before moving here.

We also were in a position where we made a career and it was a big risk leaving this behind us to create our own company and start from nothing. But our last years with our company Serneholt Estate have shown us that we are on an extremely successful path at the moment with 5 offices around Spain and almost 30 employees up and running. We are one of the most important and influential agencies at the moment.

The Spanish market that never crashed

With a pandemic that hit the world and put large parts of Europe in a massive lockdown, we have learned new concepts and to live completely differently from before.

Almost immediately there was also speculation about how housing markets would be affected with this impending crisis and quickly the first analyses of declining demand and falling prices and other adjustments we saw a pending market initially.

There was a lot of impacts that should have affected the housing market negative, but this crisis is unlike anything we have seen before.

With an entire population spending more time in their homes than ever before, housing became a high priority and we have seen new trends in demand. Large terraces, gardens and patios combined with good indoor areas to work from home suddenly had a greater impact than the location.

We have also seen workplaces change and most service companies have offered a mobile workplace and given the conditions to be able to work from anywhere in the world. Which, of course, is also positive for the Spanish housing market in particular.

When you can choose, why not live in a country that offers sun 320 days a year and a light that Northern Europe can only dream of during the winter months.

It is easy to understand that this is just the beginning of how people will choose to live their lives and we are absolutely convinced that Spain will be an attractive place to live and work for many years to come.

The introduction of new tax reforms with lower taxation on home purchases for the remaining of 2021 is just another reason to get along with that lifelong dream you have of finding your dream in Spain. We will be here to help you find it!

Fredrik Serneholt
CEO at Serneholt Estate