Villas Valencia Property News

DEAL OR NO DEAL

2007-06-18T12:46:00.000+02:00

With so many having their say about what is going on in the Spanish property market we would like to join in. Perhaps our view may also be worth something more than those sitting in press offices or television studios in London or elsewhere. For a start we live here, and have done for nearly 40 years and we have a practical knowledge of the property market. We also have seen many fluctuations in the Spanish and UK markets which is a natural phenomenon (as nowhere remains static except perhaps Germany! And even there things are on the move, albeit slowly). What has been extraordinary have been the continuing high price surges of the last few years in Spain. Many properties ended up with a high price tag in relation to their location and quality of build.

So, now at last things are slowing down, or as some would have it – even come to a full stop, or heaven forbid, dare we say it, even dropping!!! We all know about the so called `overbuilding´ in Spain which could be a factor, as well as, the rise in mortgage rates, add to that the `drop´ in foreign buyers as they rush to buy in Estonia, Goa, etc. and there you have it.

Does this mean that those who have invested or who wish to invest here are doomed? Far from it! Since when has property investment abroad been such a short term policy? Yes, it is a shame that the people we saw on the TV the other night (Trevor McDonald Tonight) were upset that they were not going to get back 25%-50% profit on their properties that they had bought last year or the year before on the Costa del Sol that they would have done a couple of years ago. But as always it depends on where and what you buy.

With regard to `overbuilding´ we have all seen the cranes and new builds going up all over the place and we all wonder if they are needed, but bear the following in mind. That in certain parts of Spain there is actually a shortage of housing – Valencia city is one of these places. So, what about mortgage rates? I can remember quite a few years ago (showing my age!) when rates were 16% and people still bought, including foreigners! And as to people moving away from Spain, well that will always be. People come and go, but Spain will always remain the most accessible county for northern Europeans looking for the sun.

I heard today on the Spanish news that a luxury property in Madrid has just been sold for the record price of 17.000 € per square metre! But back to Valencia; on the 25th May, Coperfil a leader in logistics development announced that Valencia needed a 64% increase in commercial development within the next 4 years to keep up with the current needs. The company sees the new port of Valencia as the commercial gateway of the Levante coast. They went on to forecast that the current population of 2 million will reach 7 and a half million in 2015. With the newly spruced up city, and the glamour of the formula 1 set now confirmed, not to mention the soon to come fast train from Madrid, I would say that the future is rather bright for Valencia.

For those of us who are already here our advice is sit it out. If your property is in a good location and reasonably priced, and you can´t hang on to sell, then aim it more at the Spanish market as we have noticed they are still buying. And for anyone thinking of buying then now is the time; our tip would be, if you see a property you like, then go in with an offer and chances are you could be lucky and get the bargain of a lifetime!

Villas Valencia offers Title insurance on your Property purchases.

2007-05-08T18:48:00.000+02:00

Through one of the Worlds largest Title insurance companies, we now offer buyers an insurance policy covering you on the ownership of your property.
Safeguard your property investment with a name you can trust.

Title Insurance
Since purchasing property is possibly one of the most significant investments you will ever make, you can now protect it. Insuring the ownership of your property (referred to as “title”) can be just as important as insuring your property and its contents from physical loss or damage.

Title insurance safeguards you against the loss or damages arising from matters such as:

• Someone else owns an interest in or has rights to your Property
• A document is not properly signed
• Forgery, fraud, duress, incompetence, incapacity or impersonation
• Defective stamping or registration of any document of Title
• You do not have legal pedestrian or vehicular access to and from your Property
• There are registered restrictive covenants which adversely affect your use and enjoyment of the Property
• Someone else has an easement over your Property
• Your Title is unmarketable which allows another person to refuse to perform a contract to purchase, to lease or to make a mortgage loan

Without a policy and in some of these cases, you would have to remedy the situation costing you time and possible legal expenses. Ultimately you may still suffer a loss if a court decision does not result to be in your favour. It is now more important than ever to obtain the peace of mind and protection that title insurance provides.

What is the value of the cover?
Title insurance is available for a one-time premium. The Policy is good for as long as you own your property. The amount of cover is normally equivalent to the purchase price paid for the property. Should any improvements be made to the property, The insurers can increase the cover to insure that you’re fully protected for the fair market value of your investment.

How does one apply for a policy?
The process to apply for a policy is simple. All you need to do is complete our online form. Please enquire here: http://www.villasvalencia.com/contactus.htm

How does one make a claim?
You need only provide in writing that you have suffered a loss as a result of a defect covered by the policy. The claims department will then propose the method best suited to resolve your claim. There is no deductible, and a title policy also provides cover for the costs, attorney’s fees and expenses incurred in defending title against a covered claim.

As a UK insurance company, the insurers are regulated by the Financial Services Authority.

For a small one-time premium, wouldn’t you rather obtain peace of mind than pay large sums of money to correct covered title defects?

Young people more cautious property purchasers

2007-03-26T18:22:00.000+02:00

It takes the under 30´s on average a total of 130 days to view and finally occupy their property - one month more than the over 40´s! On average the under 30´s will visit 4.3 new constructions before purchase and their priorities are; location, followed by distribution of living space, orientation of the property, conditions of payment, services in the area (published by Observatorio Edival). The over 40´s act more on the spur of the moment and with less consideration of the above. Who said that the young are impetuous!

FOR LOWER PROPERTY PRICES PRACTICE BIRTH CONTROL!

2007-03-15T20:22:00.000+01:00

Sr. Eugenio Rodriguez Cepeda (President of the Colegio of Registradores de España) said this week that that the latest tendency to see less first time buyers for properties in large cities in Spain´s interior such as Madrid is due to the effect of the low birth rate of the 1980´s/90´s. It did indeed surprise many that Spain with its once large families of 30-40 years ago went on to be the country with the lowest birth rate in 1980.

Analyse the potential profitability of any property type

2007-01-31T13:04:00.000+01:00

A new online tool to check the potential profitability of any property type has been published. It costs nothing to use and could save you thousands!

More information here:

Tourist exhibition in Madrid

2007-02-02T11:19:00.000+01:00

VALENCIA – FITUR – Europe´s largest world tourist exhibition was opened in Madrid by King Juan Carlos of Spain on 31st January. With 187 countries taking stands in an area covering 89.000m2 there is a lot to see, and judging by the TV news reports it all looks great fun with a real holiday atmosphere. Obviously Spain has a large presence in the exhibition which is not surprising as last year a total of 58.8 million tourists visited Spain, 4.5% more than in 2005 which has broken all previous records with Brits at the top of the list. Valencia has gone all out and put on quite a show with stands taking up 5.500m2 (more than one acre of space)! It was good to hear the King make a special reference to Valencia in his speech regarding how wonderful it is that the America´s Cup will be held here. Of course, we have to remember that sailing is his main hobby!

Multiple property owners escape extra taxes

2007-02-02T11:17:00.000+01:00

EAS (Estate Agent Speak): Those of you who have come to settle in Spain and have got to know some of the local people may find it strange to find, as we did many years ago, that most of them are the owners of more than one property. One of our workers had four properties but the others mostly just two! Alot of these properties are inherited or bought for investment and many are not rented out but just left and used on occasion by the owner´s family and friends. This of course means that for much of the time these dwellings are vacant. You also must have noticed the vast amount of building that continues going on and scratch your head in wonderment when the newspapers tell us that there is a shortage of accommodation!
For some time the government has been pondering on how to address this situation and then came up with a tentative solution: There should be an extra tax on every property which is not occupied. This tax could be added to the IBI receipt. What a great solution! All those unable or unwilling to pay the extra tax will release these properties onto the market and therefore put a halt to the excessive amount of building work.
But just a minute, isn´t this political suicide? To make it work the tax would have to bite. And if it did the market could be flooded, and for a left wing government who has a lot of supporters in the building trades those in construction would be none too pleased to be out of work. Also, don´t forget that many of those on the lowest income have a second home!
It therefore came as no great surprise when Sr Solbes speaking of behalf of the government on the 24th January decided against adding any tax onto the IBI receipt for an unoccupied residence as it would be in his opinion too `legally complex´ to decide when a dwelling is unoccupied or not ie. `As in the case of when the occupants are temporarily away for reasons of work etc.´. He went on to state that in his opinion a vacant property is `a legally inconclusive concept´. Sr. Solbes stressed that this was the central government´s decision and that every autonomous region could take their own!

Valencia Property Prices 2007

2007-01-12T12:04:00.000+01:00

The official Spanish property news bulletin stated the other day that Valencia remains the second favourite city for investors in the property market despite the continuing price rises. And while those price rises have been spectacular in 2005 and 2006 we should bear in mind a few of the following facts:

For those who think that Valencia is now an expensive city – think again. The average price per sq. metre in Barcelona is 4.192 €, Madrid 3.870€, San Sebastian 3.807€, and Bilbao at 3,076€. Yet, with all its increases Valencia now comes in as Spain´s 3rd largest city at 2.211€.

The thing is that the above cities also saw price rises, not such spectacular ones as Valencia it´s true but then they started at a higher base level. If the much talked about America´s Cup has been the catalyst for the city´s make-over (and what a make-over, few cities could afford the cost of 500 million euros to secure the cup!) then all well and good as the effect will last long after the Cup eventually sails away and we - the residents – all benefit from a much more glamorous and cleaner city which has finally been put on the map.

The NEW VALENCIA

2006-12-14T12:43:00.000+01:00

It has been a very busy month for us all trying to leave our desks as clear as we can before we dig into our turkey, hence the delay with the newsletter. We also managed to stagger around the Urbe Desarrollo which was the large Mediterranean real estate fair which we found interesting if not exhausting! The display put on by Valencia city of `before/after´ left us all impressed and was well worth the visit.

Property rentals set to grow

2006-12-14T12:40:00.000+01:00

Apart from the typical tourist destinations and holiday lets, long term rentals in Spain have never been a high priority for estate agents. The average Spanish national usually owns more than one property but is cautious about renting and would rather leave property empty. Until now rentals have only represented 5% of the average estate agents earnings here in Spain with property sales making up the other 95%, but within two years this 5% is set to grow into 30% if Sr. Jose Juan Muñoz general secretary of PFAG (Programa del Formento del Alquiler Garantizado) is correct.

And why shouldn´t he be correct? Last year saw a national increase of 5% on rents according to the Spanish National Institute of Statistics. With new laws which protect the owner from age old problems such as sitting tenants and unpaid rents combined with a shortage of long term rental property in and around places such as the city of Valencia investors can clearly see the advantage.

Notaries in Spain

2006-11-08T17:01:00.000+01:00

Here in our neck of the woods we are still busy running back and forth in and around Valencia with sales of properties and overlooking refurbishments with runny noses to match. Yes, sorry to say that colds have run through our office with a vengeance, but you can now get close to us again as coughs and sneezes have left us.
For those of you who like statistics, here are some good ones which landed on my desk not long ago:
In Germany you would have to pay a notary 600 € on a 100.000€ property for the paperwork on the purchase, whereas here in Spain the average would be 264 €.
The Spanish government have brought out a new price list for notaries reducing the cost which will come into force in 2007 i.e.;
30€ per page of escritura, 341€ for the purchase of a 250.000 € property etc.

Valencia golf Clubs

2006-11-08T16:58:00.000+01:00

There always seems to be an answer for everything doesn't there? While the green party will downcast, as estate agents we should be celebrating as will anybody lucky enough to have properties close to where new golf courses which once were just projects could now become reality. Those in our areas which have now been approved on 19.10.06 are – Náquera, Pobla de Vallbona, Lliria, Picassent, El Puig, Burriana, etc.
For yet another slant on the topic Sr. Ramón Dávila, president of Promoter in Andalucía was on 2nd Nov. responding to critics in Almeria on the amount of Golf courses in the south of Spain and their effect on the environment and their excessive use of water on Spain's low water reserves. Sr. Dávila answered that in Andalucía there are 100 Golf clubs which use a total of 250.000 cubic metres of water. This amounts to 0.3% of the water consumed in Andalucía. If the Golf courses were closed its workers would be out of work which would affect the economy much more. He went on to state that golf is not only a sport, but that it is also a serious tourist attraction for mainly British golfers followed by Scandinavians from between October to April which is when their own climate changes. This means that hotels can stay open for the winter period which in turn means yearly contracts for employees instead of seasonal ones. The obvious knock on effects of more business for the surrounding areas were also pointed out by Sr. Dávila, as well as, the fact that golf tourists also stay longer than the average tourist, spend more, and of course golf courses do not have to be near the sea taking up valuable coastal land.
So there you have it – those with properties or land near the new golf courses can start counting their profits as the prices start going up!

Amazing Currency Exchange rates offered - Pounds to Euros

2006-10-05T20:02:00.000+02:00

Our preferred Currency exchange Company is currently offering clients GBP - EUR rates around 1.48.
Last time GBP - EUR was at these levels was June 2005 - 15 months ago.
1 month later in mid July they were trading at 1.42
This equates to a swing of over 4% in just a month. This information can be used in 2 clear ways:

(1) If you have payments to do now or in the very short term you should take advantage of this rate whilst its at these levels.

(2) If you have payments coming up over the next few months then its worth considering the possibility of reserving this rate now.

If you require any more information let us know

Valencia property market rising

2006-10-05T20:01:00.000+02:00

For those of you who like facts and figures then here are some to ponder – according to Aidico (Spain’s construction institute) the second trimester of 2005 saw property price rises of 17% for new builds and 11% for re-sales in Valencia. They go on to say that while Valencia has shown the largest property price increases in Spain it still remains comparatively low regionally.
On 12th September the Ministry of Housing published a report on their plans for state aid up to the year 2008. Anybody who has any kind of physical disability and would benefit from the installation of ramps or hearing aid devices etc. in their home can apply to the ministry of housing for a grant. This also extends to those who are over 65 years of age and have mobility problems. To qualify, the property must be your primary residence, you must also be resident in Spain, and the property must not be put up for rental.

EU Nationals and Residence Cards

2006-10-05T19:53:00.000+02:00

It seems that summer is going on and on, and with the fiestas in our village in full swing the promised rain of October hasn’t got a chance! We have had a lot of feedback from the last couple of newsletters re. residence cards when I wrote that they were no longer necessary, and that Spain was actually in breach of EU regulations by asking for them. It does seem that the news has now filtered down, as a couple of weeks ago when presented with an out of date residence card for a house purchase the notary told our purchaser there was no need to renew the card as they are now obsolete!
Thank goodness we made sure she had her passport! But the notary just said make a note of the first digits of the number on the old card (this is the NIE no.). Anyway to continue the saga here follows a translation of the official paper which we obtained from the police station in Valencia this summer:

ROYAL DECREE 178/2003 (BOE 22/02/2003)
The following people who are holders of an identity card or a national valid current passport will be allowed to reside in Spain without the necessity of a residence card extended by the Spanish authorities;

Nationals from member states of the European Union or other states who have an economic agreement with the EU, who are employed or self-employed workers, students, or beneficiaries with the right to reside permanently.
Family members of the above, as well as family members of Spanish as established in article 2 of the present Real Decreto (cónyuge, descendientes o ascendientes), as long as they are nationals of a member State of the EU
Nationals from member states of the EU and of the states who have an agreement with the EU who work in Spain maintaining residence in the territory of another one of these states who returns daily or at least once a week.

Notwithstanding, to perform any economic activity, paid employment – self-employed or any other service, student, etc... the corresponding documents would have to be obtained under equal conditions as Spanish citizens.

So there you have it! However, if you don’t want to be bothered to carry around a copy of your passport (make sure you have your original for legal matters etc.) you can still get a residence card if you wish to do so. The thing is that other nationalities have their own identity cards but we Brits don’t!

18.9% increase in foreign buyers!!

2006-09-13T20:42:00.000+02:00

USEFUL EAS (ESTATE AGENT SPEAK) – SECRETS!

Spanish Ministry of housing on 29.8.06 there was an increase of foreign property buyers of 18.9% in the first three months of this year compared to the same period last year who have bought a total of 31.342 properties in Spain. Leading this increase of foreign sales was the Valencian Community with 8.879 representing 24.02%, which was followed by Cataluña with 5.778, Andalucía 4.028, Madrid 3.899, and Murcia 2.219, (Murcia is another region which is on the move as it has just released a vast amount of land for industry, to attract 6.000 industrial businesses to the area) etc.. More than two thirds of the properties sold were re-sale with the rest made up of new builds. As these figures are published by a government body then surely we should take the following quote by Benjamin Disraeli with a pinch of salt?

“There are three kinds of lies: lies, damned lies, and statistics.”!

More statistics: According to new independent research from HIFX Spain remains the top getaway destination with 46% of Brits aiming to buy here for its lifestyle, which comes as rather a surprise. Does this mean that we Brits place more importance on lifestyle than investment? As estate agents we are always asked for a good investment!

ARE PROPERTIES FREEHOLD ?

2006-08-02T21:13:00.000+02:00

Is it Freehold, we are sometimes asked? – Yes it is freehold. It should go without saying that every residential property is freehold, as leasehold property does not exist in Spain. Having said that, it is common practise to sell business/commercial premises here in Spain on a leasehold, although the terms and conditions are rather different than we would understand them in the U.K. Such properties would come under the word Traspaso, and you would be expected to pay quite a large amount for the lease, depending of course on the type of business/location etc. and then continue to pay a monthly rent.

NO MORE RESIDENCE CARDS !!

2006-08-02T21:09:00.000+02:00

No more queues, no more finger prints as if you're on the wanted list! It appears that Spain is in violation of European law by continuing to issue residence cards to European Union citizens, as according to the EU ruling 2004/38/EC they should not be issued after April 30th 2006.

When buying property in Spain, who should the buyer pay?

2006-07-03T16:08:00.000+02:00

Extract from our translation of the OFFICIAL SPANISH GUIDE TO BUYING PROPERTY—Released by the Spanish Property Registry Office.

WHO SHOULD THE BUYER PAY; - To the estate agency. It is important to bear in mind that whoever has contracted the services has to pay their fees. Normally, vendors place their properties with estate agents and therefore their services are paid for by the vendor, never by the purchaser. So, buyers should be aware of these extra "charges" which in most cases are purely to cover 2 lots of commission (as most of the time they involve the Spanish agency and their English "partner"!)

For our full 10 page translation of the official guide to buying property in Spain, come and collect it from our office or we can send it out by email.

JOIN OUR CAMPAIGN AGAINST THE CON OF THE DOUBLE COMM.... (Contact us for more details)

PROPERTY GUIDE TO BUYING IN VALENCIA, SPAIN

2006-07-03T16:04:00.000+02:00

CLIENTS – Who exactly are our clients, is it the purchaser of the property or is it the vendor? Does it make any difference? This sounds like a complex question for any estate agent, and yes it does make a difference. We have always thought of our purchasers as our clients, and I am sure that in most parts of Europe estate agents also consider their purchasers as their clients, although I understand that in the USA the vendor and purchaser have their own separate agents! So, we are shop keepers, we set out our stall (on sale or return in our case), if the customer likes what he sees he buys it, doesn’t he? Well, not really, in the end we are agents and we have been instructed to sell a property for a certain price. We have no leeway over the price of the goods, we pay for marketing the property, and we receive our commission from the vendor upon the sale. Our purchasers who also instruct us to look for certain properties do not pay us commission and why should they? They are our clients! …….
This is confirmed by the Property Registry office - Guide to Buying a property in Spain.

For the full 10 page translation, come and collect it from our office or we can send it out by email.

Considerations when buying in Spain

2006-06-07T18:19:00.000+02:00

`We are cash buyers´ or `We have the deposit´ should bring a glow to any estate agent's heart once the property has been found, but there's many a slip………Always expect a delay even if you are a cash buyer or you have your deposit ready, and you may not be disappointed! When Spanish buy a property in Spain they obviously don't have to transfer funds from abroad, they don't use a solicitor, and they don't use a surveyor, so the purchase is much quicker. It is therefore understandable that sometimes our Spanish vendors are bewildered and can get a little impatient when the sale takes longer than they think it should. The first steps of the purchase; i.e. paying the deposit once the search and paper work has been completed, is usually the most nerve-racking. If you want a search of future plans of the area from your future town hall (which we would strongly recommend) then often the person we (or your appointed representative) would have to speak to, is only there on certain days. Also, the sad fact is that banks still work in the dark ages and transfers of funds from the UK to Spain will take at least 2/3 working days, when we all know that it can be done in a matter of seconds at the touch of a button!

LRAU and LUV: What`s the difference?

2006-02-07T19:29:00.000+01:00

After so much debate last year over the Lrau landlaw, we welcome the year with a new law called "LUV". With the new LUV, Townhalls will have to modify their existing general plans to approve any new urban project. Some of the new requirements which the LUV will have to take into account include a landscape study, affordable housing, guarantees of a large enough water supply and allow 10 m2 of green area per resident.

With the main problems with the old law being a lack of information, no fixed costs, short objection times and the unclear plans of what was in place, the new law promises to clarify these points. The solutions proposed by the new law include the following;

PUBLIC INFORMATION

It is obligatory to warn the official owners of any plans to update any area according to the new law.
New means of publishing any information have been incorporated.
Minimum amount of information given out by the builder has been set. ( A clear guideline on what information has to be available to the public )

COSTS and PAYMENT MEANS

Any benefits to the builder are limited.
The highest valuation of the land or the lowest cost of the build become the new selection criteria for any building programme.
Any building work will be auctioned off to ensure the lowest price is achieved.
Improvements in the form of payments.

IMPROVEMENT IN THE OBJECTION TIMES

The presentation of alternatives is extended by 1 month
To opt to pay by land or money changes from 10 days to 2 months

DIFFERENCE IF THERE IS A BUILDING ON THE LAND

Any land which already has a building on it will be treated differently.

The changes in the law are already in place and so far as we can see there is a marked improvement. It will clearly not be a sigh of relief to many owners (specially in the Costa Blanca) but if you are planning on buying in the Valencia area, contact www.villasvalencia.com to know how best to avoid these issues.

We´ll be happy to hear any comments or questions.

HEALTH IN VALENCIA

2006-05-16T18:05:00.000+02:00

British people who are early retirees and job seekers should get a form E106 from DWP Newcastle. This has limited validity depending on the holder’s contributions and, after presentation to the INSS (Instituto Nacional de Seguridad Social) can be taken to a health centre to obtain health care. The health card (SIP) would have to be periodically renewed up to the expiry date of the original form E106. For more details the telephone no. of the British consulate in Alicante is 00 34 965216022.

What is an Urbanization or a “Residential Area”?

2006-05-16T18:03:00.000+02:00

Often in our English descriptions we hesitate to write the word `urbanization’ which conjures up a picture of rows of identical little houses in neat lines whereas in most cases nothing could be further from the truth, particularly here in the Valencia area, where there are many different styles and sizes around. The advantages of living in an urbanization are that the land is urban (see last month’s newsletter) i.e. building land, it is protected and it has all its utilities like water & electricity at least. The disadvantages are that you will have to pay a communal charge for the maintenance of communal areas, which is dependent on the type of urbanization it is. For a normal urbanization the cost is negligible while others, which have their own country clubs, golf courses, tennis courts, security guards etc. included in the quota, the charges are of course considerably higher. Our Spanish clients always aspire to have a home on an urbanization, so therefore we actively advertise this fact in large print! Next time you see us describe a property in a `residential area’ shshh …..you now know what we mean!

WHAT ARE YOUR LEGAL OBLIGATIONS IN SPAIN - DRIVING LICENCE, TAX etc...

2006-04-18T18:29:00.000+02:00

(This information has been compiled by Advocats legal advisors in Valencia, Moraira and London.)

In this post, Advocats have answered the following questions;

Why go on the Padrón Municipal ?
Who Needs A Spanish Residence Card ? ( Tarjeta De Residencia )
Who needs a Spanish Driving Licence?
How To ITV a Foreign Registered Car ( MOT )
FISCAL OBLIGATIONS - Impuesto de la Renta (Income Tax)
FISCAL OBLIGATIONS - Impuesto del Patrimonio (also known as Wealth Tax).
Why go on the Padrón Municipal ?

If you live in Spain you must register at your local Town Hall as a resident. You also need to be registered at the Town Hall to apply for your Residence Card and a Spanish Driving Licence.
Registration with the Town Hall as a resident also offers you the political right to participate in the Municipal elections which take place every 4 years.

Who Needs A Spanish Residence Card ? ( Tarjeta De Residencia )

Spanish legislation (in particular the specific piece of legislation that rules this issue: Real Decreto 178/2003 dated 14th February Article 6 & 8, in relation with la Ley Tributaria), establishes that EU Nationals who are resident in Spain and not working or studying in this Country, must apply for such identification card if you spend more that 183 days in a year in Spain.
To apply for this card all you need is your passport, two passport size pictures, and a recent certificado de empadronamiento (official Town Hall certificate that shows you are on their records as a resident in the municipality).

Who needs a Spanish Driving Licence?

If you are an EU citizen who is a resident in Spain you are required to exchange your driving licence for a Spanish version.
This procedure takes place before the Jefatura de Tráfico: you need to bring your own Country’s EU Licence together with a photocopy, a passport size picture, your Residence Card and a photocopy.

You also need to prepare and present two written declarations in Spanish:

1. Declaration that there is no judicial resolution which stops you from driving.

2. Declaration that you do not hold another EU valid driving Licence.

As a resident in Spain you have to exchange your licence as described above, failure to do so can be punished with 300€ for improper use of your Licence.

The above information is stated in the web page of the Dirección General de Trafico , However on a verbal consultation to this official body made before closing these lines , they have confirm to us that non of the above is necessary and you can drive with no problem at all with your UE Licence.

Contact Advocats for a photocopy of the exact piece of legislation for those of you who wish to put it in the glove compartment, just in case….

How To ITV a Foreign Registered Car ( MOT )

You need to approach an Industrial Technical Engineer who will prepare the paperwork and translation required of the original documents of your vehicle.

Once this is done all you need is to approach your nearest ITV station and proceed with the test. Cars over 4 years old must be inspected.

What are my fiscal obligations as a resident in Spain?

IMPUESTO DE LA RENTA (Income Tax)

All residents in Spain (for tax purposes this means everyone who spends more than 183 days in a year here), are liable for Spanish Impuesto de la Renta y de las Personas Fisicas = IRPF .

If you spend only 175 days but you are not able to show evidence that you live and pay tax in another Country you are still liable.

The tax year starts 1st January and finishes 31st December. The tax declaration form known as Modelo D - 101, should be presented before the Spanish Tax Authority known as Hacienda / Agencia Tributaria between 2nd May and 30th June.

If any of the following apply to you for the year 2005 there is no requirement to present the tax declaration Modelo D - 101:

A) If you have received not more than 22.000 € in 2005 from only one source of income.

B) If you have received not more than 22.000 € in 2005 from two different sources of income you do not have to prepare and present a tax form, provided:

B 1) That the total of the amount received from the second source of income and other sources of income if more than two, do not exceed the amount of 1000 €.

B 2) That your income received from more than one source corresponds to your pension and that the tax retention in origin has been duly produced.

If you received more than 22.000 € last year from one or two or more sources of income you will obviously have to prepare and present your tax form before the 30th June 2006.

However there are deductions applicable in some cases that may result in a rebate from Hacienda of the total or part of the tax paid. Please contact us for advice on this subject.

The sooner you prepare your tax form and pay the sooner you will receive your rebate or devolución from Hacienda.

Residents in Spain must also declare the proceeds received from the source of income known as RENDIMIENTO DEL CAPITAL INMOBILIARIO an example of which is the funds received from renting your house.

IMPUESTO DEL PATRIMONIO (also known as Wealth Tax).

This is a yearly tax that affects resident and non resident individuals whose assets in this Country in the year 2005 amount to over 102.182, 18€ on the tax scale (after making the appropriate deductions) or whose total wealth is 601.012.,10 € or over.

Non residents must declare their property in Spain irrespective of the value of their assets.

The period of time to present and liquidate this tax is also from the 2nd May until the 30th June 2006. The tax form is normally prepared together with the Impuesto de la Renta.
(More helpful information will be published shortly)... For further information, contact us.