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• What is the best way to sell a property in Mijas?

Spain is one of the most popular places in the world for expats to buy and to move to. Lots of people buy to have a second home in the sun and there are those that look for an investment abroad. Investing in property in Mijas has proven to give an excellent return.

This means the housing market on the Costa del Sol is very active. However, like with most things in Spain, having a professional to guide you through the process is one of the most important things you can do when selling your home.

From dealing with the legalities to translating for you, helping to ensure that your buyers are able to complete the transaction, and keeping your sale going within the time frame you want, a reputable estate agent is the absolute best way to ensure a smooth and problem-free sale.

• What is my property worth in Mijas?

Mijas is one of the most popular areas in Spain and the housing market is currently booming.

Properties are worth approximately 140.000.- €  for a one-bedroom apartment, 190.000.- for a two-bedroom apartment, 350.000.- € for a townhouse, and a villa usually starts at around 800.000 up to millions of Euros.

Speak to an estate agent to get an accurate valuation of your property and move your sale forward.

• How quickly can you sell your property on the Costa del Sol?

Spain’s housing market is booming and many homes are selling faster than they used to.

The paperwork and process can take some time, once these are sorted; expect to sell within a period of around three to four months depending on the property and your asking price. Do leave room for a bit of negotiation.

– What do you have to pay when selling a house in Mijas?

1) Plusvalia – sellers have to pay a tax based on the incremental value of the land which the property occupies over the number of years you have been the owner of the latter.

2) Community Fees: Make sure your Community Fees are up to date – usually, you will have to present a Community Certificate to the buyer when signing the Title Deed.

3) IBI & Utilities – make sure your utility bills are up to date as these will need to be settled up to the date of sale. You will need to provide the original proof of payment at the signing. Sellers have to pay the IBI or Council tax for the whole year they are selling.

4) Mortgage Cancellation Fees – Your bank will most likely have from a 0.5 percent to 1 percent cancellation charge on the balance of your outstanding mortgage

5) Mortgage Cancellation & Registration Fees at the Notary – In addition to point 4) as a seller, you will have to make sure that your mortgage is canceled at the Notary and Registry. This may cost anywhere from 600 Euros to 1000 Euros and is an amount that will probably be held by the solicitor to ensure this is done.

6) Non-Resident Retention 3 percent: If you are a non-resident in Spain, the buyer of your property will also have to retain 3 percent of the sales price stipulated in the “Escritura” (Title Deed) to pay to the Spanish taxman (Hacienda) on your behalf towards your Capital Gains Tax. Fiscal residents do not have any retention made on them, but they might need to pay tax on the sale in the following year when doing their tax returns.

7) Agents Commission – If you have used an agent to sell your property, then you will also have to pay the agent’s fees.

8) Legal fees: A good legal office should prepare utility contracts, community charges, and “Suma” invoices, speak with the purchaser’s representatives and the Notary, prepare the Notary appointment and all related paperwork, accompany the seller to the Notary and translate, calculate the 3 percent retention, calculate and advice re Capital Gains Tax and give fiscal representation throughout the process.

– What documents do you need to sell a house on the Costa del Sol?There are many documents you need when selling a house in Spain. The best and the safest way to ensure you have everything in order is to sell through an experienced real estate agent, who can help and guide you through the whole process. Caribasolproperty offers you a complete service. When we list a property we ensure that all documents are in order. We offer you a professional valuation of your property and give you tips on how to present your property to our clients.  

The main documents you need may include:

• Preparation of Utility contracts, Community charges, and “Suma” invoices.
• Liaison throughout the transaction with Purchaser’s representatives and Notary.
• Preparation of Notary appointment and all related paperwork.
• Translation at the Notary.
• Calculation of 3 percent retention.
• Calculation and advice re Capital Gains Tax.
• Fiscal representation throughout the process.
• Calculation of Goodwill and a letter of “Good Standing” with your community fees from the administration of your community.

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The purchase of housing by foreigners has played a decisive role in the recovery of the Spanish real estate sector. While in 2009, in the mids of the global financial crisis, real estate transactions by this group totalled only 17,940 homes purchased or 4.2% of total sales, these have since increased rapidly, reaching 13% of the total, while the internal demand remained stagnant until the end of 2014.

In 2018, foreigners bought 65,300 homes in Spain. 

The most recent data, analysed by the research service Caixa research, confirms the good progress of foreign demand: in 2018, foreigners bought 65,300 homes in Spain, or 7.3% more than in 2017, reaching thus a figure very close to that of 2007, before the explosion of the housing bubble. It is curious to note that each nationality has its favourite tourist destinations, with certain areas where up to 40% of purchases correspond to nationals of the same country. Thus, the British have a predilection for the coast of Alicante and Andalusia, and the Germans, the Balearic Islands and the Canary archipelago. The French and the Portuguese choose Catalonia and Galicia respectively, because of their proximity. The Italians, on the other hand, prefer the Canary Island, while the Nordics prefer the Community of Valencia and Andalusia.

The British lead.

The British are at the top of the ranking of nationalities who bought a house or an apartment in Spain in 2018, with more than 10,000 purchases, or 15.5% of total foreign demand. Germans and French completed the podium, with around 5,000 homes, followed closely by Belgians and Swedes. Without the uncertainty generated by Brexit, there would certainly have been more than 10,000 homes acquired by the British, since purchases made by the rest of the nationalities have increased significantly during the same period. With regards to the UK, it should be noted that the exchange rate plays an important role in the decision to buy. As the uncertainty surrounding Brexit dissipates after Johnson´s election, an appreciation of the pound, which had declined significantly, should boost British purchasing power and, therefore, “boost” real estate transactions.

But do foreigners buy a house in Spain only for the holidays? There is a high degree of coincidence between the nationality of international tourists in Spain and that of buyers. This correlation suggests that these tourists, many of whom have retired, after repeatedly spending holidays in Spain, decide to acquire a second home. The main reason for choosing Spain are the climate, quality of life, perceived security and good air transport links to their countries of origin. Over the past decade, these factors have been joined by attractive investment from the Spanish property sector, following the sharp drop in house prices during the recession. In other words, for foreign citizens whose country was less affected by the crisis than Spain, buying a home had become more accessible and an excellent investment opportunity.

The number of foreigners who settle in Spain to work there is increasing.

But, beyond the purchase of accommodation for tourist reasons, in recent times the number of foreigners who establish their residence on Sapin to work there has increased. This demand is generally much more linked to domestic economic conditions, so it is not surprising that it was reactivated following the recovery of the Spanish economy that started in 2014. In addition to the traditional forecast of economic variables, there is a very useful tool for analysing the intention that foreigners may have of buying a property: this is the Google search for a house in Spain from third countries. So Google trends show that buying a property in Spain is still a very popular search in the main buying countries. Google search of Dutch, French, Belgian and, above all, Moroccans, are very important so that purchases from citizens of these nationalities could increase in the coming months.

With a longer-term view, it is important to understand whether the increase in foreign demand is a passing phenomenon or whether there are still the conditions to continue to progress. It will depend on the good functioning of the economy and the capacity to attract workers internationally. As regards to tourism demand, the growth potential will be determined in large part by adopting policies aimed at positioning Spain not only as a tourist holiday destination but also as a residential destination for the retirement of Europeans. in the end, the progressive ageing of the European population and a climate, culture, enviable security and quality of life put us in an advantageous position. IT REMAINS TO BE SEENS WHETHER SPAIN WILL REALLY BECOME EUROPEAN FLORIDA.

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