|
|
Q. How much do I account for legal fees and taxes?
A. Usually between 8.5% and 10% of the purchase price. |
| |
Q. Is the buying process the same as in the U.K.?
A. No it is different from the U.K. but is the same as Europe and the U.S.A. in that a price is agreed between buyer and seller, a legally binding contract is signed with a deposit paid by the buyer, usually 10% of the purchase price with completion set to suit, usually 4 weeks. Then the buyer and seller (or an agent with power of atorney) meet at the Notory (Government employed) (only one in each area) to sign the documents.
The Notory translates the Spanish documents in English and makes sure all bills (electric, water, community fees etc.) are up to date and that there are no outstanding liens on the property guaranteeing your home is free of all debts. |
| |
Q. Do I need to become a resident.
A. Only if you stay more than 3 months. To purchase a property you need a National Identity Number. We can obtain this for you as part of our service. |
| |
Q. Can I obtain a mortgage?
A. Yes for residents up to 80%, non residents up to 60% from Spanish Banks, alternatively you can arrange finance from U.K. banks against property in the UK. |
| |
Q. When I find my dream home what next?
A. You will sign a contract and pay 10% deposit. The balance becoming due in about 4 weeks when you or your Power of Attorney will visit the Notary to finalise the purchase. |
| |
Q. I have seen bars advertised as "Starter Bars" from 10,000 pounds up. Would I be able to live from the proceeds of one of these?
A. In a word NO you need to invest over 35,000 pounds to make a good living. Bars less than this need "building up" and you would need money to live on till it was built up. |
|
Q. I've heard of people that have bought a home or business and inherited a lot of debts.
A. There have been horrific cases of this happening, it usually does if someone buys directly with the owner or an unscrupulous agent, or someone met in a bar. This cannot happen if you use qualified agents like us. We ensure you receive the property free of all debts, correct title and all necessary paperwork up to date. |
|
Q. I speak little or no Spanish, will this be a problem?
A. No by far the majority of businesses in the Canary Islands is tourist based. Over half of more than 5 million tourists are English and most of the others speak English as a second language. |
|
Q. I don't understand Spanish rules and regulations and I am worried about making a mistake.
A. Regulations are not complicated but we will introduce you to an Gestore who will look after all your paperwork and legal requirements. |
|
Q. I've heard tax is low in the Canaries.
A. Yes very much so. V.A.T. is 4.5% many small businesses use the modular tax system where you pay a flat rate of tax around 80 pounds per month, regardless of how much money you make. |
|
Q. How much will I need to invest to make a good living for me and my family?
A. The more you invest the more you will make, but with our advice you should make a comfortable living with an investment of 35,000 to 50,000 pounds. |
|
Q. What about health care?
A. As a resident you can join the Canarian Health Service currently 143 pounds per month for a family. This covers all the usual social security benefits including health. Alternatively you can take out private health insurance. |
|
Q. Do I need a residents work permit?
A. You will need a combined residents and work permit. This normally presents no problem to E.C.C. member states. |
|
Q. Why do you recommend the Canary Islands?
A. Because the weather is always Spring and Summer. There is a 12 month tourist season, tourists increasing by 11% per annum. Low taxation, good quality of life, safe family lifestyle, etc. |
|
Q. When I find a suitable business what next?
A. You will need to pay a 10% deposit, sign the contract and we together with your Gestore will check paperwork is legal and up to date, obtain necessary work permits and residencias etc. This usually takes 2/4 weeks then the balance is due and you are free to start being in business in the sun. |
|
Q. What are the Schools like?
A. Your child can be educated in the Spanish state system. Children very quickly pick up a foreign language. Alternatively, there are both English and Spanish private schools. These are inexpensive compared to private schools in the U.K. |
This information was current when updated.
We however accept no liability for changes of law and regulations
and recomend you to take the advice from the professionals we introduce you to. |
|
