Catalonia property news round
Hello again and thanks to everyone who’s asked if I’m still around and OK — it’s been a while since I’ve found time to write! By the time you read this, the delicious autumn sunshine will probably be over and Spain could well have a new presidente. If you follow Spanish politics at all, you’ll know that centre-right Partido Popular leader Mariano Rajoy is widely expected to win by an ample majority. How could this affect you in property terms? One likely change is the return of the tax deduction for acquiring a primary residence in Spain. At the end of 2010, Rodríguez Zapatero’s PSOE government restricted the deduction to those earning under 24.000 Euros a year, causing a rush to complete property sales by the end of the year. Rajoy has said that if his party wins, he will remove the restriction and backdate the tax break for those who bought properties during 2011. This affects Spanish nationals and fiscal residents of Spain. IVA (VAT) tax on the sale of Spanish new-build properties is likely to stay at the superreducido rate of 4% for some time. However, it seems inevitable that IVA on other products and services will rise — whoever wins. Another Partido Popular proposal is tax reductions for owners who need to let their properties and then rent elsewhere in Spain for work reasons. The PP also want to make rental contracts more flexible, providing better legal security for landlords and tenants and speeding up the legal resolution process for conflicts. With regard to the ever-increasing number of property repossessions, if elected, they pledge to introduce online property auctions and to increase the percentage of the valuation price for which a repossessed home can be sold. Unsurprisingly, and despite growing calls for its introduction, the Partido Popular has no plans to force Spanish banks to offer dación en pago to struggling mortgage debtors. This is the process —common in the US— whereby a borrower gives the keys back to the lender, who then discharges the borrower from the whole debt. Whoever wins, let’s hope there is some hope on the horizon for Spain’s many distressed property owners. Proposed quality certificate for new properties Generalitat housing minister Lluís Recoder has announced that Catalonia will introduce ‘in the near future’ a ‘guarantee of quality’ stamp for new-build properties, with a view to reassuring and encouraging overseas buyers. According to the Minister, overseas buyers have been petitioning for legal and consumer assurances and
guarantees that properties meet town planning and construction-quality regulations. Better late than never I suppose. It’s a shame that this kind of guarantee is probably only practical for new-build properties and not resale and rural ones… Cédula de habitabilidad Since I last wrote the process for getting the cédula (occupancy certificate) for rural properties in the Terres de l’Ebre area seems to have remained much the same: The house needs to be registered in a certain way at the Registro de la Propiedad and on the Catastro tax register. An architect or aparejador (technical architect) has to certify that the building is habitable. And crucially, the local council has to issue a municipal certificate; some of the key points it has to certify are: - that there are no demolition orders or fines for planning offences - the house is a dwelling - it was originally built with a licence for a dwelling (unusual in rural areas), or that it was a dwelling before 1984 Some ajuntaments seem to have no problem certifying the last point, but others either can’t – or won’t. But there are indications that the Generalitat finally plans to ease this problem, by modifying the law to allow a simpler municipal certificate. If approved by Catalonia’s autonomous parliament, the modification could come into effect early next year. If they do, expect a lengthy period while the local administration work out just how to apply the changes. We may also see more cédula applications, so whether you are thinking of selling soon or just want peace of mind, now is the time to get your paperwork in order in case you do qualify. Remember that to apply for a cédula your house has to be correctly registered on the land registry and on the Catastro tax register. I will be happy to organise this so please feel free to get in touch for a no-obligation consultation. As always, I love to hear your comments and feedback. Right now I have Spanish and European clients looking for realistically-priced fincas with habitable houses, preferably with nice views and less than 20 minutes from the coast, so please email me at jeff@fincasdirect.com if you are thinking of selling. I will be happy to help organise the cédula application if you qualify for one or find an alternative route-to-sale if you don’t. Look forward to hearing from you! Jeff Greensmith runs www.fincasdirect.com and is a registered estate agent and experienced Spanish/Catalan translator and interpreter. He has lived in Catalonia since 1986. While the points contained in this article are true to best of our knowledge, they do not constitute legal advice on the part of Fincas Direct or The Olive Press. Please use this information responsibly and seek professional legal advice if in doubt.
www.theolivepress.eu
29