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Number of foreign tourists visiting Spain this year increases. The sun and beaches continue to attract foreign tourists to Spain. In the first 6 months of this year the number of foreign tourists visiting Spain went up by 2.6% to 26.6 million compared to figures for the same period last year. According to the Survey on the Movement of Tourists published by the Ministry for Industry, Tourism and Commerce Spain received 5.7 million foreign tourists which is 0.7% less than for the same month in 2007. Catalonia is the most popular destination for foreign tourists and received 6.6 million tourists between January and June this year which accounts for 24.8% of the total followed by the Canary Islands which received 4.7 million tourists (15.6% of the total). Andalucía was in third place with 3.7 million foreign tourists (14.1% of the total). The Comunidad Valenciana received 2.6 million foreign tourists (10.1% of the total) and the Comunidad de Madrid received 2.3 million foreign tourists (8.7% of the total). The survey found that 7.3 million tourists were from the United Kingdom (27.5% of the total) which is 1% more than for the same period last year. Germany is in second place with 4.7 million of its citizens visiting Spain during the first 6 months of this year which is 2.8% more than for the same period last year. French visitors numbered 3.6 million and Italians visiting Spain number 1.5 million. Out of all the foreign tourists visiting Spain this year between January and June 18.4 million tourists visited independently (7% more than for the same period last year) and the number of tourists visiting Spain which were not on package tours continued to decrease. In fact the number of tourists coming on package tours went down by 6.8% during this period. Arriving by air continued to be the most popular form of travel with 20.9 million tourists arriving this way (78.5% of the total) an increase of 2.8%. The preferred type of accommodation continues to be a hotel (65.9% of the total) which is an increase of 3.8% while the number of people not staying hotels remained the same at 8.8 million which is the same as 2007. Why Invest: There is a changing demographic of new resident, with the younger entrepreneurial influence now becoming apparent along with the continued investment by the older resident looking for a sunny retirement. This all translates into a healthy property investment climate for sales, re-sales and rentals. The best reason for investing in Southern Spain can never change; the weather. In Conclusion: There is a continuing high demand from other countries, as well as resident Spanish buyers, and it is expected that Spain, and the Costa’s in particular, shall remain a favourite of investors for many years to come. With the unchangeable weather, the low crime levels and the high standard of living at a comparatively low cost, all add to the allure of investing in Spain. Legal Guidelines Prior to Visiting/Viewing: Most importantly, prior to coming to Spain, is the analysis of your financial situation and making sure that you have funds at your disposal for making a reservation deposit. The sum normally required is a minimum of €6,000; however this may be higher for more expensive properties. Cash or credit cards are the most commonly accepted forms of payment. Should you not have these funds at your disposal, you risk losing that dream home to someone that does! Negotiation on Purchase Terms: Once you have chosen your property, you can negotiate the terms and conditions of the purchase. Sale subject to mortgage, payment terms or handover dates are some of the issues that may need to be discussed. In order to comply with all legal criteria, we may recommend that a lawyer assists in this process. This protects all parties in the negotiation and may ease the transfer at a later date. Appointing your Legal Representative: We can guarantee that we can recommend a Spanish lawyer that speaks your English & Spanish! A lawyer is necessary to provide the legal guarantees that the property being purchased is free of debt, embargos or charges and has fulfilled its obligations with regard to payment of taxes, local contributions or community charges. Debts remain attached to the property, not the individual, so it is crucial that a local lawyer conducts the necessary searches and checks to ensure a property is debt free before transfer to your name. Formal Offer: Once the negotiations are complete, it is time to formalize the offer in writing. It is standard practice to include the reservation deposit with the formal offer, until private contracts are exchanged. The reservation deposit must never be given directly to the vendor. It should be given to your lawyer to be held in a protected, bonded account until completion of sale. Exchange of Contracts: Once the owner has accepted the offer, the next step is to exchange private contracts or sign an option to purchase. This takes place within two weeks after the formal acceptance of the offer to purchase. Your lawyer will have completed all his investigations into the property and arranged with the owner to settle all outstanding debts. The private contracts shall set out the details of the agreed offer to purchase and set a date for final completion at the notary. At this stage, you are expected to pay between 10% - 30% of the purchase price, depending on the type of property and mortgage granted. Final Completion: The sale is formally completed when the public property deeds are signed in front of the notary, the final payment is made to the seller, and possession of the property handed to the buyer, with the keys. Registration: Once the property deeds are signed, the notary will advise the local land registry of the changed title deed. All the relevant taxes on the purchase will then be paid by your lawyer on your behalf and he shall register your title deeds. Your lawyer should also assist with the transfer of the local utility suppliers accounts to your name and arrange their payment through direct debit from a local bank account in your name. Costs Involved As a guideline, estimate the total costs of transferring the property to your name to be 10% of the total purchase price. The Fees: As a guideline, the fees and taxes are normally approximately 10% of the purchase price. All fees quoted are approximate fees only. Please consult your legal advisor regarding each individual purchase. Legal Fees: € 1.200 - €1.800 or 1% of the purchase value, whichever is the greater, plus IVA charged at the standard 16%. Notary Fees: This scale is fixed by law; however the costs range between €300 and €1.000. Property Registry: Approximately 60% of the notary fee. Taxes: These taxes are specific to the type of property purchased. Commercial property, plots of land and garages attract IVA of 16% Promotion, Developments or property purchased from a habitual trader – 7% plus 1% Stamp Duty. Standard Purchase – 7% ‘Plus Valia’ tax is usually paid by the vendor. Should the vendor wish for this to be paid by the buyer, it must be stipulated in the terms and conditions of the private contract. This tax can range from a few hundred euros to several thousand on larger properties with a lot of land. Who pays this tax must be discussed with your lawyer prior to signing the transfer of the property. |
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