AFTER many months of legal wrangling in Brussels, the Spanish government was finally 'persuaded' to pass a new tax law which puts non resident buyers on equal terms with their Spanish counterparts. Before the new law (introduced in January 2007) a non-resident in Spain would be required to pay capital gains tax at 35% on profits earned from the sale of their property. A local resident, up to then, would only have paid 15%.

The new law sets an 18% capital gains tax across the board, whether resident or non-resident. We welcome the new law and regard it as another positive sign that the Spanish authorities are genuinely intent on setting strict standards in the property sector. In 2006 we saw how the Spanish authorities began clamping down on rogue operators - determined to put an end once and for all to the scandals that have in so many ways tarnished the image of the property sector in Spain. At last developers and indeed local city councilors are being jailed for non-compliance of licensing terms and abuse of power. It sends a clear message to those tempted to bend the rules for a quick profit

With the implementation of the new capital gains tax law, we have seen our business expand from mainly dealing with the second home property market in Valencia to clients purchasing properties off plan as investment vehicles.
We would always recommend using a reputable independent property service for any purchase abroad. That way you know you aren’t going to be unduly influenced by an agent or developers commission structure.

This is a quick check list on what a property service should offer;

- Presales client assessment to ensure property choice is correct (By phone or in person). Check if they have an office in your country.

- Inspection trip to view property(s). If the property service pay or discount an inspection trip, think why. There could be a hard sell at the end of it!!!

- Full assistance and advice during the actual sale. They should recommend a reputable lawyer, Mortgage Company, Check it’s not an in house operation.

- Full "start up" assistance to help buyers move in. You have just moved in. Now what. What about utility services, banking services etc. They should offer an after sales service, even after the contract has been signed

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