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PANORAMA RENTALS Here you will find a small selection of properties that Panorama has available for rent. Our team has a vast amount of experience in the rentals market in the Marbella area. Whether it is a practical, centrally located apartment or a family villa for long-term rent, we can offer you the right property to suit your needs. 105



Rentals Department Our rentals team offers clients a fully comprehensive service, delivered in a professional, caring and personalised manner.

Panorama Rentals specialises in long-term property lets in the Golden Mile, Puerto Banús and Nueva Andalucía areas, although our extensive database has properties covering the region from Calahonda to Estepona. We offer quality properties, from apartments and townhouses to villas and luxury homes. Shortterm lets are also available during the summer months. Our multilingual team is highly experienced, with excellent product knowledge on all the best residential areas and developments. We offer you a fully comprehensive service to ease you into your new lifestyle, from finding the right property to moving in and settling down. Once we have a full briefing of your requirements, we make a short list of properties for you to view. When you have chosen the property you would like to rent, we negotiate the terms and draft the contract to approved Spanish Law standards. Our efficient “settling-in” service takes care of applying for telephone and Internet connections, satellite TV and utilities. During the tenancy, we are at hand to help out with any queries or concerns. Long-term renting is a perfect option for those who wish to purchase in the future, as it enables them to get to know the area and to take time to find the right property to buy. Please contact us for our terms and conditions on (+34) 952 90 10 15. To view a selection of properties currently for rent, please visit the Panorama website: Or, pop in to see us at our head offices located opposite the Marbella Club Hotel, on Marbella’s Golden Mile.


Rentals Direct Tel.:(+34) 952 90 10 15



Embrujo de Banús BRAND


Selection of luxury apartments for rent. Located on second line beach close to Puerto Banús. Brand new, designer furnished, 2 bedrooms and 2 bathrooms, guest toilet, fully fitted and equipped kitchens, contemporary design. Also available unfurnished. Indoor heated pool, gymnasium, Jacuzzi, sauna. Gated, 24-hour security entrance with concièrge. Parking space and storeroom. Prices from 2,300 Euros per month.

For more information call our Rentals Office on (+34) 952 90 10 15



Marbella Club, Golden Mile Luxury villa for short-term rent in the grounds of the Marbella Club Hotel, the best address on Marbella’s Golden Mile. Built on 2 levels, 4 bedroom suites, 2 receptions, fully equipped kitchen, private garden and swimming pool. Private parking. Maid service.

4 bedrooms, 4 bathrooms Ref V-230 For more information call our Rentals office on (+34) 952 901015

Puente Romano, Golden Mile Luxury second-line beach villa, located next to the Hotel Puente Romano and a short stroll to the hotel and its amenities. Built on 3 levels and fully enclosed, with a large underground garage. Stunning terrace with plunge pool and sea views. July and August rental.

4 bedrooms, 4 bathrooms Ref V-224 For more information call our Rentals office on (+34) 952 901015

Jardines de DoĂąa Maria, Golden Mile Lovely, spacious furnished townhouse situated in this immaculate complex, just opposite the Puente Romano Hotel and with easy access from Marbella centre. The property has a nice private garden with barbecue and a large solarium. A/C and heating. 2-car parking. Long-term let.

3 bedrooms, 2 1/2 bathrooms Ref TH-159 For more information call our Rentals office on (+34) 952 901015 108

Rentals Direct Tel.:(+34) 952 90 10 15



Puente Romano, Golden Mile Beautiful apartment situated in the second phase of Puente Romano, surrounded by pools and tropical gardens. Newly furnished, the property has a sunny west-facing terrace overlooking the pool. Direct access from the beach. Long and short term.

2 bedrooms, 2 bathrooms Ref A-468 For more information call our Rentals office on (+34) 952 901015

East Marbella A fabulous, brand-new apartment in the prestigious complex of Incosol, a fantastic property for relaxing holidays, with the possibility to use the Incosol Hotel facilities. Two bedrooms, one of which with en-suite bathroom. Beautiful terrace with magnificent partial sea and mountain views. Absolute privacy!

2 bedrooms, 2 bathrooms Ref 00042 For more information call our Rentals office on (+34) 952 901015

Guadalmina Alta Beautiful bright townhouse on the golf course in Guadalmina Alta. Built on 2 levels, 3 bedrooms with en-suite bathrooms. Nicely furnished terrace. Lovely, spacious garden. Situated in a tranquil area but close to all amenities. 2,500 Euros per month.

3 bedrooms, 3 bathrooms Ref 00085 For more information call our Rentals office on (+34) 952 901015

Rentals Direct Tel.:(+34) 952 90 10 15


The Property Buyer's Guide A step-by-step guide for property buyers

The buyer's problem in finding the right property, negotiating its purchase and closing the sale is much more difficult than in one's own country. As in most resort areas, everybody seems to be in the business, from the taxi driver to the hall porter in the Hotel. Property is everyone's favorite subject of conversation. And almost everyone has an opinion, many of which can easily confuse a potential buyer. Where to start?


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B U Y E R ’ S

Finding a property Some people spend years looking for a property. Others are lucky enough to find a property and have the confidence to purchase on their first visit to Marbella. Yet others need to take their time and view properties during three or four trips, until they feel really comfortable with their eventual decision.

What type of property are you looking for, and in which area?


Good agents will really listen to you and interpret your requirements. They will share their market knowledge and experience with you and, if they exhaust the properties suitable for you from their direct portfolio, they will work with properties from the portfolios of collaborating agencies to find the right properties to offer you. Key qualities to look for in a good agent are: experience, professionalism, product knowledge, sincerity, good communication, a friendly desire to help you in any way possible in your property search and, above all, not pushy!

Key qualities to look for in a good agent are: experience, professionalism, product knowledge, sincerity, good communication and a friendly desire to help.

Many potential buyers think they are looking for one type of property and end up choosing something totally different. Unless you are very clear about what you want and are equally sure that it exists, look at various types of properties in different residential areas with an open mind. This exercise will also help you build up your knowledge of market values in the area, a major advantage in negotiating and ensuring that you are getting fair market value for your money when you buy.

Many potential buyers think they are looking for one type of property and end up choosing something totally different. Choosing a reputable estate agent can save you time and there are many highly qualified agencies on the Costa del Sol, alongside more opportunistic and less qualified ones. In the past, qualified agents have either been APIs (Agentes de la Propiedad Inmobiliaria) or GIPEs (Gestores Inmobiliarios), but recent legislation allows anyone (!) to open a real estate agency. It is therefore extremely important to look for an established, experienced agency with an excellent track record and good recommendations from non-interested parties. A recommendation from your lawyer or a long-time resident should point you in the right direction. MARY DUNNE, SENIOR SALES CONSULTANT AND BOARD MEMBER

Tel.:(+34) 952 863 750


B U Y E R ’ S


If you do not feel comfortable with your agent you shouldn't hesitate to move on. But when you find one who is easy to work with and understands what you are looking for, stay with that agent until you find the right property, or until you are satisfied that you have been offered all the properties available through that agency and its collaborating agencies. Sticking with an agency motivates the agent you are working with to pull out all the stops and come up with the right property, as well as saving you from having to tell the same story to every new sales agent you approach.

A few points of advice Compromise always pays dividends It will be almost impossible to find exactly what you want, even if you build it yourself and if you do find it, don't be sure your partner will agree with your choice. Find a property that you are both happy with (even if this means compromise!) Do you mind being a pioneer? If you want to buy in a new or not fully built-up area, remember that empty land plots will be built on one day and that you may find yourself in the middle of an ongoing construction site for many years to come.


Protect your investment Make sure you have enough land around you to protect your privacy and views from a prospective building project. Ensure the protection afforded by the law is given to you If you are buying property under construction, the developer is legally required to provide an insurance policy or bank guarantee to protect your payments in the event of incompletion. The developers must also provide proof of ownership, as well as planning permission and licenses, and since 2002, an insurance policy against building defects. A lawyer experienced in property transactions will anticipate these items. Buy for your own use first and foremost Unless you are absolutely sure that your children or grandchildren will visit you, it is generally a mistake to buy with their use as the main consideration. Time and MARJUT NORDSTRĂ–M, SALES CONSULTANT


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B U Y E R ’ S

again, people end up selling their enormous homes when their family doesn't visit as often as envisaged. Purchase primarily for your own use, taste and objectives. Realistically analyze the potential costs of modernising an older villa or apartment that has romantically taken your fancy Reforms and unexpected repairs can be expensive surprises. That said, second hand properties will often have a better location and may be less expensive than newer properties. Look at comparables The best rule for determining the value of a property is to take real sales prices of comparable properties recently sold. To enable you to do this your agent must have very good market knowledge. It will also help to have seen enough properties yourself to get a basic knowledge of the market.


Think ahead to the day you sell A property bought today is an important part of one's assets. It is therefore advisable to take into account not just personal preferences but also general investment criteria, such as location, design factors, quality of finishes and facilities.

Take into account not just personal preferences but also general investment criteria, such as location, design factors, quality of finishes and facilities. LOUISE BOWSER, SALES CONSULTANT


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B U Y E R ’ S

Negotiating the purchase Your agent may not be as skillful in negotiating the price of your offer as he or she was in helping you find the property in the first place. Don't hesitate to seek out the Sales Director or Managing Director of the agency to help you negotiate your purchase. Experienced estate agents are generally better at handling the commercial elements of a sale (this is their job) than lawyers are, and will do their best to bring what are often opposing viewpoints


(yours and the seller's) together in harmony, as any good negotiator should do. Your lawyer can always be consulted during the negotiation to ensure that the offer meets his or her legal criteria, and become actively involved in more complicated negotiations. In making an offer it is important to feel out the bottom price of a seller but at the same time qualify yourself as a serious bidder. Too low an offer will not engage the interest of the seller, and might prove counter productive.

Try to get all your negotiating points together at one time rather than negotiate piecemeal. Try to get all your negotiating points together at one time rather than negotiate piecemeal: this saves time and often, unpleasant surprises. If your offer is too low, your strategy can boomerang and it may simply insult the seller, and you may not even get a response. It's important to know how much property is really worth in the market, and to you. Find out if the seller has rejected other offers and what they were. What is the minimum offer that will engage his interest? Make your offer in writing if possible (of course, subject to contract), and include not only the price, but also the deposit amount, when you are prepared to pay it, when you are prepared to complete, what you understand to be included in the price (for example furniture and fittings if applicable), and an often neglected point, that all machinery equipment and installations should be in good working order. Show the colour of your money to the seller. He will certainly take your offer more seriously if you have a healthy deposit ready for immediate action in a bank account in Spain. This is normally in the area of 10% of the purchase price. Many agents today also offer credit card facilities, wherein a small deposit from €5,000 to €50,000 can be taken to “seal a deal” with a seller, and the deposit remains in the agent's client account during the week to ten days it can take the lawyers to prepare the private contract and a transfer of the 10% to arrive. Municipal Added Value (Plus Valía) tax (the increase of the index value of the land since it was last purchased to its present sale). This tax corresponds, by its nature, to the vendor who is responsible for its payment, unless otherwise negotiated.



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B U Y E R ’ S

Measure the land you purchase. If you are looking to buy a plot of land and no topographical survey exists, it may be advisable to negotiate a “Euro per square metre” price subject to survey, to avoid any unpleasant surprises. Good psychology dictates that you should leave room to improve an initial offer. However, if you believe your offer is realistic and perhaps have a second choice in mind, it can be a wise strategy to let the seller know that if he doesn't accept your offer, you will be offering on another property before considering any counter offer from him. When an offer is accepted, always get a lawyer to check the land registry (the last word on property ownership, where any liens and encumbrances will show up). He will prepare a private contract that will bind both parties to the deal, and eventually prepare the public deeds for signature in front of a Spanish Notary, when the balance of the purchase price is paid and vacant possession of the unencumbered property is granted, thereby completing the sale. There are excellent lawyers in Marbella, most speaking fluent English and other languages. The best way to find one is by personal recommendation, or by asking your agent. Of course, many of the above comments are more intended for the purchase of resale properties, as new developments have a fixed price list and payment schedule, often with very little room for negotiation, at least with respect to price. Sometimes some extras or modifications can be negotiated within the purchase price, depending on the policy of the developer.

In summary, finding and buying a property in Spain can be as simple, or as complicated a procedure as one wants to make of it. The old rule of Caveat Emptor, (Let the Buyer Beware!) always holds true. And a final tip: listen to your intuition! It is often one's best guide!


Property Purchase Costs


Payable by the buyer for the purchase of any Real Estate (villas, flats, land, commercial premises, garages), provided the vendor is not a developer or normally trading in the business of resale properties.

7% + 1%

For any villa or apartment, or garage that is annexed to an apartment, where the vendor is a developer, promoter or habitual trader in these generally new properties.

Vat and Stamp Duty

16% + 1%

For parcels of land, commercial premises or commercial garage spaces, where the vendor is a developer, promoter or habitual trader or a company. This covers virtually all newly urbanized land parcels and newly built commercial premises. This only covers resale properties when the vendor falls into one of the above categories.

Notary and Property Registry Fees

Approx. €2,000 for both

The cost increases according to the number of pages or complexity of the title deed, and value of the property.

Lawyer’s Fees

1% Approx.

Lawyer’s fees are in the order of 1% of the selling price, more or less, depending on the lawyer and the price of the property.

Transfer Tax (I.T.P.)

Vat and Stamp Duty

Municipal Added Value Tax (Plus Valía)

The Plus Valía tax (described earlier) can be as little as a few hundred Euros or as much as many thousands of Euros on a property with a lot of land that hasn’t changed hands in many years. This tax corresponds, by its nature, to the vendor who is responsible for its payment, unless otherwise negotiated.

Summary By Christopher Clover Copyright © 2007 Panorama Properties S.L. All rights reserved

Tel.:(+34) 952 863 750

The total official costs involved in purchasing a constructed residential property should be less than 8% for resale properties, or less than 9% if VAT is paid on the purchase price, plus lawyer’s fees.




Marbella A City of the Future By Ignacio Perez de Vargas, Lawyer

During recent years, we have experienced a sense of uncertainty in Marbella with respect to building licences granted by the City Hall for construction that did not comply with the last Master Plan approved in 1986, but which were in line with Master Plans under review and never officially recognised by the Junta de AndalucĂ­a (the Regional Government). For this reason many legal claims have been filed in court by the Junta de AndalucĂ­a, challenging these licences granted by the City Hall of Marbella. This dispute between the Junta de AndalucĂ­a and the Marbella City Hall has inevitably found its way into the media, both in Spain and abroad.


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M A R B E L L A :

This complex situation in Marbella has generated a sense of unease, an insecurity that has steadily and decisively contributed to a decreased level of new construction in the area. Many investors and developers lost faith in Marbella due to the lack of legal guarantees, obviously a result of the ambiguity with respect to the legality of the building licences for over 30,000 living units granted by the City Hall that were not in compliance with the Master Plan of 1986.

The new City Council of Marbella reached unanimous agreement and initially approved the new Master Plan. The urban situation in Marbella returns to normal The Municipal elections held on May 27th 2007 culminated in the turning over of the leadership of the city on June 16th to a new City Council which incorporated three political groups: Popular (16 seats), Socialist (10) and Izquierda Unida (1). This election was decisive to enable the beginning of the normalisation of the urban situation in Marbella. As a result of the election, the Junta de Andalucía restored the authority for urban planning issues to the City Hall of Marbella on June 26th 2007, which had been previously taken away in an

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extraordinary move when the City Council was dissolved in 2006 and substituted by a caretaker government until the elections. Subsequent to giving the planning issue authority back to the City Hall, the Junta presented the new Master Plan of Marbella, drawn up by the architect Mr. Fustegueras, under the guidance and direction of the Junta’s own Planning Office in Marbella. On July 19th 2007, the three political parties indicated above comprising the new City Council of Marbella, reached unanimous agreement and initially approved the new Master Plan. This plan was presented in August for public comment for a period of two months and later to be provisionally approved by the City Hall. The final step will be a submission to the Urban Commission of the Junta de Andalucía for definitive approval. In stark contrast to the past confrontations between the two political entities, the City Council of Marbella and the Junta de Andalucía have initiated this normalisation process, working together in a coordinated and unified effort, with the top priority of granting Marbella, as quickly as possible, a new Urban Master Plan. The final approval of the Master Plan is calculated to take place around mid-2008, and will definitively close an unfortunate chapter in the history of Marbella, thereby ending the situation of legal insecurity with respect to planning matters that has been experienced in recent years.


The Future City of Marbella Given Marbella’s unusual urban circumstances, the new planning has two main objectives: firstly, the legalisation of already completed construction where the building licences do not comply with the Urban Plan of 1986 (the last applicable General Plan of Marbella) and, secondly, the definition of the pillars and framework of the Marbella of the future. With respect to the first point; the legalization of already built living units and other types of buildings, the following should be noted: • About 18,000 of these already built units will be legalized. • 750 remaining units have been left out of this normalization process, more than half of which are presently occupied by third-party buyers in good faith, which nevertheless will most probably become legalized one way or another. • Regarding around 11,000 living units which have received irregular building licences but where building has not yet commenced, many of these licences will be normalized within the context of the new Plan, and others will not.

The framework of the new plan provides a brilliant new vision for the city of Marbella, and the quality of life for its residents.


M A R B E L L A :






With respect to the second point, the framework of the new plan provides a brilliant new vision for the city of Marbella, and the quality of life for its residents will certainly improve as a result: 500 hectares or over 1,235 acres of open spaces are foreseen, a ratio of 60 square metres per inhabitant, as well as 321 hectares (793 acres) of public facilities, a ratio of 20 square metres per inhabitant (5 basic points above the European average).

1. The open spaces indicated above, covering around 5,000,000 m2, including also existing areas, are divided as follows:

5. New general public facilities with an assigned area of 1,894,206 m2. The following are some of the projects foreseen:

• Municipal parks: 1,276,593 m2 (315 acres) • Riverside parks linking the coast with the mountains: 3,204,782 m2 (792 acres) • Coastal parks that will promote public use of beaches: 545,290 m2 (135 acres)

• A new court house centre • The expansion of the current Regional Hospital • A new Convention Centre in Nueva Andalucía • A major University project and Educational Park in San Pedro

The new Planning contemplates 27,643 new living units to be built over the next eight years.

The General Plan foresees considerable improvements to the current road network: • A new connection link between the toll road and the Elviria and Cabopino area, making for easier access • A new link between the toll road to the Regional Hospital • A new road network between the different urbanizations that will facilitate access to them without the need to access the old Coastal Road • Creation of urban motorways to improve traffic flow in the municipality

The new General Plan defines Marbella as a city with an economic and business foundation that is not just focused on tourism, but also on the economic activities surrounding education and the development of new technologies. That is why the new Plan considers land as one of the key production factors on which the future model of Marbella’s economy will be based. The project contemplates reserving land for a network of training, technology and research centres in areas relating to leisure, health, design, hotel management, and so on. The Plan encourages the creation of decision centres focusing on strategic activities for the city, mainly related to tourism. In this way, Marbella will be perceived as an international reference centre for tourism and leisure activities.

The new General Plan defines Marbella as a city with an economic and business foundation that is not just focused on tourism.

2. Road infrastructure:

The railroad link will make 7 stops: Calahonda, Las Dunas, Regional Hospital, Marbella Centre, West Marbella, Puerto Banús and San Pedro. 3. Costa del Sol railway link between Málaga and Estepona: The scope of this territorial project goes beyond the municipal level, and its completion will be in the hands of the Junta de Andalucía. The railroad link will make seven stops in Marbella (Calahonda, Las Dunas, the Regional Hospital, Marbella Centre and West Marbella , Puerto Banús and San Pedro).

In summary, the approval of the New Plan and its later implementation will not only resolve the “legal limbo” of the current situation as indicated earlier, but even more importantly, will turn Marbella into a city of the future, as noted above, creating major new green zones and leisure parks, additional economic activity through the educational and technological parks, important new public facilities and installations and a moderate, controlled growth. The big question is if the Junta de Andalucía is willing to fund the many projects that correspond to it. For the Junta de Andalucía to have sponsored a plan in which all these improvements have been proposed in the first instance, would certainly lead us to believe that this will be the case.

Copyright © 2007 All rights reserved Ignacio Perez de Vargas, is a very respected lawyer specializing in all matters relating to real estate, including Urban Law and Planning, with offices comprising nine lawyers and ten auxiliary staff in Estepona and Marbella. He graduated from the University of Granada in 1971 and has been practicing law in Marbella since 1973.

4. Port facilities: The new Plan also makes a significant effort to plan and guarantee the necessary infrastructure to overcome current problems and shortfalls and, at the same time, serve the needs of new growth areas, including the following elements:


The Plan will consider: • Expanding Puerto Banús • Building a new port directly in front of San Pedro • The expansion of the current Fishing Port in Marbella and turning it into a large Marina with 2,500 mooring places.

Perez de Vargas Abogados Tel: (+34) 952 778 848 Fax: (+34) 952 825 159

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Arranging a proper insurance policy for a prestigious home is a complex process, which requires specific knowledge, experience, attention to detail and above all SERVICE. Because we specialise in arranging insurance for clients with significant assets to protect, we can generally arrange cover for risks which many companies find too complex or unusual to cover. Our flexible approach also allows us to tailor policies to our individual client’s requirements, meaning that you only pay for the exact cover that you need. Some of the key benefits we can offer include : • “All risks” cover which protects your possessions wherever they are in the world, including accidental loss or damage • A plain and simple, English-written Policy wording with no restrictive clauses • No “under-insurance” penalty following a loss • Higher levels of cover for fine art, antiques and jewellery • A realistic approach to security–no onerous conditions which could unnecessarily hamper your lifestyle • Worldwide public liability cover and liability to domestic staff • Over 30 years experience insuring high value homes We can also assist you with any other insurance requirements you may have, including motor, yacht, health, travel, commercial etc. Guadalmina : C.C. Guadalmina 4, Local 97 – 98 29670 San Pedro de Alcántara Tel : +34 95 288 22 73 Fax : +34 95 288 42 26

Marbella : c/ Ramón Gómez de la Serna 22, Oficina 201 29602 Marbella Tel : +34 95 277 25 71 Fax : +34 95 277 25 82

Nº Registro DGS : J2503, tiene suscrita póliza RC profesional y capacidad financiera según legislación vigente



Legislative News Important Tax Reforms By Mauro Cruz-Conde Lle贸, Solicitor

In the previous issue of The Marbella Property Magazine, we published an article explaining the legislation for non-residents in Spain on personal income tax and company tax and the changes to these laws. On November 28, 2006 that bill became Law 35/2006 without any significant changes to what we already said in that article. Also, on November 29, 2006, Law 36/2006 was approved and published, which outlines measures against tax evasion and which went into effect on December 1, 2006. This law introduced measures that we should take into account in our future real estate transactions, even if some of them do nothing other than obstruct procedures for the issuance of public title deeds and hinder access to the Land Registry, as we will see later on.


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Law 35/2006 introduces significant changes applicable to tax periods which began on January 1, 2007. These changes affect the 2004 legislation on non-resident income tax and mainly seek to come in line with EU regulations on Community Freedom of Movement as set out in the Founding Treaty of the European Community – especially those stating that taxation of non-residents, particularly EU residents, will not be more than the internal taxation on Spanish residents in similar situations. Some of the most relevant changes are as follows:

non-residents who are affected by an agreement establishing the rate at 15% must prove their tax residence with a certificate issued by the relevant authorities in their country of residence.

1. A tax reduction, down to 30% (general rate) for foreign companies operating in Spain and permanently established here, for tax periods beginning on January 1, 2008. For companies currently paying 40% tax, rates will be 37,5% for 2007 and 35% for 2008.

3. A reduction of the capital gains tax to 18%, compared with the previous rate of 35%, which also applies to dividends and other profits derived from equity, as well as interest and other profits derived from capital transfers to third parties.

Regarding the additional tax applicable on money transfers to foreign countries on returns obtained by a non-resident company permanently established in Spain, the rate goes up from 15% to 18%, in line with the rise in tax rates for dividends obtained in Spain by non-resident individuals. However, as a result of the law against tax evasion, this additional tax will not apply to income obtained on Spanish territory by non-resident companies that are permanently established in Spain, as long as these firms are residents of another EU member state or a country that has an agreement with Spain to avoid double taxation, and as long as they are not residents of a country considered a tax haven.

2. Tax levied on income obtained by a foreign company without permanent establishment in Spain is fixed at 24%, down from the 25% applicable up to now, in order to comply with the EU Treaty. The EU Commission considered that the previous rate contravened provisions on the free movement of workers.

4. A reduction from 5% to 3% on the tax retained on the purchase price of property when the seller is a non-resident.

5. There is an important change to the previous law, as well as to the bill that later became Law 35/2006. The new law eliminates the exemption from retaining and paying over that 5% (now 3%) when the owner of the transferred property was an individual and the property had remained in their possession for more than 10 years by December 31, 1996 without any renovations to said property in all that time. Under the new law, all non-resident sellers, regardless of when they acquired the property, are subject to a 3% retention of the sales price, paid to the Tax Office by the purchaser on account of the seller, and applied against the seller’s capital gains tax.

A reduction of the capital gains tax to 18%, compared with the previous rate of 35% …

In the case of dividends paid out by Spanish companies to non-resident taxpayers, it is important to keep in mind that most agreements on double taxation signed by Spain and third countries set down a maximum rate of 15%. Since the new legislation has raised the rate to 18%,

…changes affect the 2004 legislation on non-resident income tax and mainly seek to come in line with EU regulations…

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…all non-resident sellers, regardless of when they acquired the property, are subject to a 3% retention of the sales price … In the case of capital gains derived from the sale of property acquired prior to December 31, 1994, the new law introduces further complications by distinguishing between the gains obtained before January 20, 2006 and those obtained after that date, wherein the capital gains tax of 18% is applied on the proportional time of the ownership from the date of purchase and the time elapsed since January 20, 2006 to the date of sale. In other words the part of the profit obtained from January 20, 2006 will be taxable proportionately to the number of days that elapsed between this date and the sale date, at a tax rate of 18%. This means that non-residents considering selling old property, especially if the profit is considerable, should sell as soon as possible in order to pay less taxes. With respect to Law 36/2006 introducing measures to prevent tax fraud, in addition to what I wrote in my article in the previous issue of this magazine, it is worthwhile noting that these measures seek to prevent tax evasion through the use of: a) countries considered tax havens, b) countries that do not levy taxes, or c) countries with which there is no effective exchange of tax information. Following is a summary of the most relevant changes: 1. The new law introduces the possibility for tax authorities to presume that any entity based in a country considered a tax haven or with no taxation can henceforth be considered a tax resident in Spain, when its main assets, either directly or indirectly, are made up of property located on Spanish territory or rights exercised on Spanish territory – unless it can be proved that their management is in fact conducted from that other country.



2. A system of responsibility as established in article 9.3 of the General Tax Law (to demand tax payment without the need for a prior administrative act assigning responsibility) is applied to the trustee or manager of assets or rights not attached to a permanently established foreign company and belonging to individuals or entities residing in countries considered tax havens. 3. In the case of capital gains proceeding either directly or indirectly from property located on Spanish territory, or from rights derived from the same, and which originated in the transfer of rights or shares in entities residing in countries that do not share information with Spain, the transfer value will be proportionately determined by the market value at the time of transfer of the property on Spanish territory or of the rights attached to them. The property located on Spanish territory will be subject to tax payment.

…it seems more logical in principle to acquire property in the name of a private individual. 4. Companies and individuals who own property or rights in Spain and are residents of countries considered tax havens or in countries that do not share tax information with Spain are obliged to appoint a representative residing in Spain. In the case of non-compliance, the authorities may consider that the person named in the Companies Register is the representative, or lacking this, representation will fall on the manager or trustee of the property and rights, independently of the applicable fine for failing to appoint a representative. 5. Countries who sign information-sharing agreements with Spain to avoid double taxation will no longer be considered tax havens. There are other changes that, for now, do nothing more than hinder real estate transactions, such as:

1. The public title deed must specify the means and method of payment used by the parties, as well as their fiscal ID and, if applicable, that of the individuals or entities in whose name they are acting. Failure to provide this information is a rectifiable omission, so that access to the Property Register will be denied until all the information is provided. The problem here resides in the nightmare that foreigners go through to obtain their Fiscal Identification Number (NIE), which involves long queues at the police station and which could delay the signature of the deed. However, the new law mentions a future system that will enable people to obtain this document via the Internet, perhaps even with the assistance of the Notary. 2. The legal obligation to declare the property’s catastral reference on all deeds, lease agreements and electricity contracts. These two new laws are important and must be taken into account in future real estate deals, especially when it comes to how non-residents choose to purchase property in Spain. Since “patrimonial” (holding) companies have been phased out, and with them the 15% tax payment on capital gains, it seems more logical in principle to acquire property in the name of a private individual.

Copyright © 2007 All rights reserved CRUZ CONDE ABOGADOS, established in 1979, is a well-known Law Firm, considered among the most prestigious and experienced in the south of Spain. The Law Firm covers all areas of Law, but is specialised in Property and Tax Law, with a multilingual team of professionals.

C/ Santa Ana, 1. Edificio City Center 29600 Marbella - Málaga – Spain Tels: (+34) 95 277 10 45 / 30 31 Fax: (+34) 95 277 10 12 E-mail:

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Your bedroom specialist on the Costa del Sol 3 Quality beds 3 Wide range of styles 3 Mattress specialist 3 All sizes mattresses 3 Bedlinen packages

3 Polígono Fuengirola: showroom 1.000 m2 Monday - Friday: 10.00 - 20.00 Saturday: 10.00 - 14.00

3 Polígono San Pedro: showroom 1.000 m2 all d ay open

Monday - Friday: 10.00 - 20.00 Saturday: 10.00 - 17.00


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Polígono Estepona: OUTLET 450 m2 Monday - Friday: 10.00 - 14.00 / 16.00 - 20.00 Saturday: 10.00 - 14.00

The Property Seller's Guide Selling one's property is an art. The property market in Marbella has always been quite competitive and many sellers without local experience should take expert guidance as to how to go about selling their property in a realistic manner.


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S E L L E R ’ S


The first and most important thing to establish is a “sales strategy” - a plan! The backbone of this sales strategy is establishing the asking price. In other words, if you ask too much for your property, people will not even bother to view it and the result is that you won't even reach the market place. Ask too little for your property, and you are potentially giving away part of your assets! The right asking price is perhaps the most essential ingredient in the art of selling real estate and is the result of thorough market research. Don't settle for the figure you would like to hear, find out the true market value. What sales of comparable properties have been accomplished, and at what price? And what are other owners with similar properties asking? Is your property unique, which will allow you to ask a higher price as it cannot easily be reproduced, or are there many similar properties being offered?

The right asking price is perhaps the most essential ingredient in the art of selling real estate and is the result of thorough market research. The most experienced agents will of course be an extremely valuable source of market information, and will help you reach a conclusion as to a proper valuation and a correct asking price for your property. However, it is important that you insist that your agent share his or her market knowledge (and the market comparables) with you. At the end of the day you must be convinced that you are asking as much as you possibly can, without the property appearing overpriced in the market place. If, after having investigated the market as recommended above, you are not satisfied with an asking price that the current market would suggest, you can always set a higher price and hope that its market value will eventually increase towards your expectations. But if you decide to take on this strategy, you must be prepared for a lot less interest from both agents and clients, resulting in

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fewer showings of the property and a sometimes frustrating waiting game. You always have the option to lower the asking price in order to generate viewings.

will be less difficult. But it's easier to refuse a low offer if you are showing your property frequently.

Build in a margin for negotiation Beware of agents who tell you what you want to hear: too many agents purposely overvalue homes to get a listing and let their sellers down over a period of time. Consequently, there are too many overpriced properties on the market, sitting there with no viewings whilst the seller has assumed that the asking price was reasonable. Providing market conditions are favourable, and there are an abundance of clients looking for property similar to yours, a successful sales strategy should result in at least two or more showings per month of the property. Finding a buyer is, in many respects, purely a numbers game: the more people who view the property, the more the likelihood that one of them will fall in love with it and put in an offer. Some buyers will negotiate with sellers to the very end of their string, and others

An asking price is not necessarily going to be the sales price at the end of the day. It is considered suicide for a seller to ask his last price, due to the fact that most buyers want to be perceived as winning in a negotiation to purchase, regardless of the asking price. So, experience dictates that intelligent sellers should build a reasonable margin for negotiation into their asking price.

If you ask too much for your property, people will not even bother to view it and the result is that you won’t even reach the market place..


S E L L E R ’ S


Experience dictates that wise sellers should build a reasonable margin for negotiation into their asking price. Get a good agent Remember that Marbella is not a big city like London, Dublin or New York with a captive market within 50 miles of the centre, but a city of only 135,000 registered residents (about double that if we count the part-time residents) and a market spread out all over Europe and the rest of the World. This makes networking essential in any sales strategy to ensure proper market exposure. Good agents will network your property with other colleagues, both local and foreign, and will share their commission with their colleagues, sometimes up to 70% of it, resulting in better exposure and more viewings. When your agent networks your property correctly, he or she becomes more like the Sales Director of your property, giving out the lion's share of the commission to the agent who brings the eventual buyer.

Avoid quoting a “net” price One thing to avoid, if you intend to use agents in offering your property, is listing on a net basis, that is, “I want so much net to me and you agents add on your commission”. What will happen is that you will end up with a property on the market at several different prices. Agent A will show your property to Mr. Smith at €450,000. Mr. Smith then sees your property announced by Agent B at €445,000. Confusion and mistrust sets in. Then, Mr. Smith returns to your property to have a look at it from the outside and happens to meet your neighbour, who tells him your net asking price is €425,000! (But maybe you might accept €415,000!) Result: before the prospective buyer has even thought of making an offer, and with an outstanding obligation to pay a commission to your agent who (continued on page 126)




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Have you recently purchased a property in Spain? Do you understand the exorbitant tax implications in Spain for Spanish Inheritance Tax? (IHT) Do you want to release some capital from your property and at the same time protect it from IHT in a Trust? Do you want your children or beneficiaries to inherit your property and avoid having to pay up to 82% IHT tax? Kevin Neal Associates have a joint venture with an ‘AA’ Rated UK Bank to help solve all these problems and still allow you to release some tax-free capital too! We have locally based regulated professionals who can provide guidance on IHT, financial and other investments.

Contact Kevin Neal Associates on to request our IHT brochure, or call Neil Ashford on (+34) 696 874 368 or in the UK on +44 (0)1438 822922, to arrange for a FREE consultation Kevin Neal Associates, Independence House, Centro Comercial Mar Y Sol, CN-340, Km 131, 11310 Sotogrande, (Cádiz), Spain. Tel. (+34) 956 796 589. Kevin Neal Associates Limited is regulated by the Financial Services Authority in the UK and passported on insurance and mediation in Spain. Kevin Neal Associates Limited also have £1,000,000 of professional indemnity cover.

S E L L E R ’ S


brought you the client in the first place, your asking price has been reduced considerably and your sales strategy shipwrecked. If you list your property with your agents on a net basis, you are also telling your agents “I'm not interested in your commission”, and obliging your agents to negotiate against you and the buyer in order to protect an eventual fee. Wise sellers will form a team with their agents and protect them, as they expect to be protected and advised by their agents, and fix one sole asking price for the property. Also: beware of agents who encourage you to list with them on a net basis. They will only be looking after their own interests and not necessarily yours.

Wise sellers will form a team with their agents and protect them, as they expect to be protected themselves by their agent. Exclusivity or not? Should you give an exclusive sales agreement to an agent? If you are an absentee owner of a property, or if you don't feel like playing a co-ordination role among various agents of varying ability, granting a sole agency can make your life a lot easier. You first have to meet an agent (if you don't already know one) with whom you can develop a good relationship of trust and confidence.



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S E L L E R ’ S



Your lawyer or close friends may be able to introduce you to someone of that caliber. The motivation factor that you give to an agency by granting them the sole agency makes them much more responsible to you as a seller in a way that they are not with their non-exclusive listings. Obviously you must ensure that both you and your agent agree to a specific sales strategy that makes sense, and that he or she take a series of steps to market your property effectively, including

The motivation factor that you give to an agency by granting them the sole agency makes them much more responsible to you.

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advertising, producing a brochure and networking your property with other agents. It is especially important that they report to you regularly on sales activity. In other words, you have the right to demand a lot more service and effort from an agency with whom you have signed exclusivity. A good agent, whether he or she works with you on an exclusive basis or not, can be extremely helpful in dealing with the sale in an objective and analytical manner, helping you to reach the right decisions at the end of the day. Many sellers do prefer to spend the time and effort working with several agents and others will find that they prefer to try to sell their properties themselves, directly and without getting agents involved. Sellers should obviously choose the course of action with which they feel most comfortable.

Rates of Commission Agents in a resort area such as Marbella will usually ask between 5 and 7% commission, which they will really earn if they are top negotiators. This amount is generally limited to 5% for properties in excess of â‚Ź1,000,000. As indicated, a good agent will network your property, brochure it, advertise it, promote it on the Internet, show it frequently and communicate well with you. Agents don't give keys out to clients, as for instance in London, but instead they spend an enormous amount of time and energy in their efforts to find the right buyer for a seller. At the end of the day, the commission can often be negotiated along with the other variable factors in an eventual sale (sales price, form of payment, number of agents eventually involved, the skill of your agent in negotiating on your behalf, and so on.)


S E L L E R ’ S

A good agent can be extremely helpful in dealing with the sale in an objective and analytical manner.


• If you are frequently travelling, it often makes sense to leave a power of attorney with your lawyer enabling him or her to sign a private contract on your written instructions. You can negotiate the details of the sale with your agent by telephone and e-mail and the power of attorney allows the “first step” towards the sale, the signing of a private contract, to take place without delay.

Essential tips for selling your home • Get your main agent to put up their “For Sale” sign. This always results in enquiries. • Facilitate viewings on as short a notice as possible. If you leave your keys with a neighbour who plays golf three times a week, you are losing a vital chance to show the property at the client's convenience. Bear in mind that the first properties that agents tend to show are the ones they have the keys to. Properties that need appointments set up will generally be shown less.

• Make sure that you are fully aware of your tax obligations when you put your property on the market. Meet with your lawyer and tax advisor, and find out the options open to you to ensure there are no surprises when you eventually enter into negotiations to sell your property. • Remember that selling a property in a resort area is not usually a rapid procedure, even in good market conditions. Properties can stay on the market from three months to well over a year depending on the market, the location, the condition and general desirability

of the property, the effectiveness of your sales strategy and, of course, the asking price. • Let your agent form a team with you with respect to handling the negotiation in an eventual sale, checking points with your lawyer and tax advisor when necessary. This is your agent’s job and one of the reasons you pay the agency’s fee. Once this is accomplished, your lawyer should take the lead role (in coordination with your agent when necessary), draft the sales contract and supervise the eventual completion of the sale.

Get your main agent to put up their “For Sale” sign. This always results in enquiries.

• Ensure that curtains and shutters are open and that lots of light floods the property when it is shown. • If there are any small repairs or repainting that would enhance the overall appeal of the property, it's well worth getting this work done now to eliminate any small “objection factors” from buyers. Although it goes without saying, a clean house is a desirable house, and many buyers are put off if the property is grubby or untidy. Make sure the place is spotless and you will instantly create a favourable impression. Selling a property, in this sense, is like selling a second hand car: fix the dent and polish it up, and you will always facilitate the sale, and maybe at a better after-negotiation price! • If you intend to sell your property with some furniture, it is most important to make an inventory right at the beginning and give it to your agent. Many sales have been on the brink of falling through when a buyer thought, for instance, that the painting over the fireplace was included in the sales price and felt that the seller was “too mean” when he learned that it was not! Negative energy during a negotiation can be avoided by having a clear inventory in writing from the outset. ULLA-RIITTA LAMMERVO, SALES CONSULTANT


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S E L L E R ’ S



• Points to consider when a negotiation is taking place: Is the buyer expecting a counter offer from you or has he or she given you a one-and-only, take-it-orleave-it offer? Do they have other properties in mind if they don't buy yours? Is their offer a fair one? Are all details included in the offer – price, target contract date, deposit, completion date, precise understanding of what is included in the sale in the way of fixtures, fittings and furniture, etc.? These items should be agreed upon at the outset and before lawyers are instructed. To avoid unpleasant surprises, under no circumstances should these items be negotiated "piecemeal".

Competent, honest, professional help by agents, lawyers and tax advisors can go a long way to help you manage your sale objectively and easily. PANORAMA’S WEBSITE, THOUSANDS OF VISITORS AND HUNDREDS OF EMAIL ENQUIRIES EVERY MONTH

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S E L L E R ’ S


• Don't allow yourself to be pressured by your agent or anyone else in making up your mind to accept an offer! A good agent will simply point out your options and support any conclusion that you reach. But once you make up your mind to proceed, and considering the “emotional factor” of many buyers of second or retirement homes where they can change their minds abruptly, make sure you move quickly (but surely) to close the deal.

In summary, selling a property can be as easy or as complicated as any task involving one's personal affairs. Competent, honest, professional help by agents, lawyers and tax advisors can go a long way to help you manage your sale objectively and easily.

By Christopher Clover Copyright © 2007 Panorama Properties S.L. All rights reserved BEATRICE PITTÁ, SALES CONSULTANT: PERSONALIZED SERVICE, ONE OF OUR MANY STRONG POINTS.

Want to sell your property? Panorama has been selling Quality Marbella Properties since 1970

Listing Department Edificio Centro Expo, Blvd. Alfonso Hohenlohe, s/n (opposite the Marbella Club Hotel)

Tel.: (+34) 952 774 266 Fax: (+34) 952 822 111


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Local and International Partnerships Panorama makes an active effort to diversify its residential client base and range of services through local affiliations and international partnerships. Panorama has collaborative agreements with the following renowned overseas companies to better serve their buyer and seller clients.

Panorama is one of the founder members of the Leading Property Agents of Spain (LPA), founded in 2002. The Leading Property Agents of Spain is an association of top real estate agents with time-tested reputations along the Costa del Sol. All members are professionally qualified real estate agencies and include some of the longest established businesses on the Coast. LPA members adhere to a strict code of ethics and are dedicated to giving highly professional and quality service to both buyers and sellers in southern Spain. The LPA's joint property portfolio can be reached worldwide through a communal database via the Internet at www.lpaspain. com. The LPA keeps its member agents up to date with events in the fast growing property market and the ever-changing planning and property regulations and legislation. Forums are organized to include lectures on every aspect of real estate life in Spain. Natural advantages such as bulk buying concepts are introduced through the existence of the association. The cost of advertising today in any media form can be greatly reduced by joint press and web site advertising, with resulting savings for each member agent. Unlike other associations led by PROFIT ONLY, the greater percentage of incoming members' fees will be directly invested into improving the image of the LPA and its advertising.

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Panorama collaborates actively with LPA members, and has full access to each member’s portfolio, in the unusual event that we don’t have exactly what a client wants in our own portfolio. Collaborating in this manner allows all of the LPA members to serve their buyers better by offering a fuller range of properties for their inspection, and their sellers, by exposing the property to many more buyers.

Panorama Properties has worked together with Panorama International in more than 20 different projects in Europe and North Africa over the last twenty-five years. The different but complementary disciplines offered by Panorama International Inc. allow Panorama to offer a whole range of services to its clients that few real estate agencies can offer. Bill Clover is also a valued and regular consultant and advisor to Panorama. For further information, please visit their web site at

Luxury Real Estate is a compendium of the finest luxury real estate brokers and firms from around the globe. Membership is exclusively by invitation and is limited to only the best in the industry. Members are working collectively as luxury specialists to serve their demanding clientele with referrals, group advertisements, multiple annual meetings and the use of their award-winning website. Luxury Real Estate has created probably the most celebrated website dedicated exclusively to international luxury properties on the internet, Members feature their unique properties on this website, which has been rated “Best of the Web” for six straight years by Forbes, among other distinctions.

I N T E R N AT I O N A L , I N C .

Panorama’s sister company, Panorama International, Inc. is headquartered in San Antonio, Texas, and is headed by Williston H. Clover, Christopher Clover’s brother, who for over forty years has led his company in the fields of resort and leisure consulting and financing, performing missions in over 60 different countries.

“The Prestige Property Group is a leading international property service provider. The Company was established in the early nineties and has experienced unrivalled growth, in particular in the now all important internet arena. It is a Company that leads rather than follows and is associated with over a hundred offices throughout the most popular destination resorts in Europe.” “Prestige Property Group focuses on a defined set of clientele and therefore offers a premium service to other organisations with which we share a common goal - we are proud therefore to be a real estate partner of Panorama Marbella.” For further information, visit the website Panorama also has informal collaborative agreements with over 60 other local estate agencies. At Panorama we are committed to finding the right property for our buyer clients, and give great market exposure to the properties. Networking, as indicated above, is an essential ingredient to the very special service we provide.



Arturo Losada Photographer


s a photographer, I have worked in many different areas of photography. Currently, I am professionally involved in Architectural and Interior photography, working freelance for a wide range of magazines and newspapers on both professional and personal jobs. My passion, however, is landscape photography, since Nature transmits wisdom through its observation and prompts enriching sensations. I have travelled extensively and have been able to enjoy the beauty of Nature in remote places, and to perceive its purist aspects. I would like to share these sensations with you with some photographs of Bali and Patagonia.


Panorama invites you to visit Arturo’s website:

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Marjut Nordström

Graham Steel

Beatrice Pittá

Cornelio Oprea

Ulla-Riitta Lammervo

Property Consultant

Property Consultant

Property Consultant

Property Consultant

Property Consultant

Pilar Larios

Katinka Clover

Michael Dolan

Louise Bowser

Inge Strik

Board Member & Accounts Director

Board Member & Listings Director

Board Member & Senior Sales Consultant

Property Consultant

Assistant to the Managing Director

Patricia Torney

Christopher Clover

Mary Dunne

Assistant Managing Director & Board Vice-Chairman

Managing Director & Board Chairman

Board Member & Senior Sales Consultant

Sarina Garber

Beatriz Garvayo

Jorge Garvayo

Rentals Consultant

Rentals Consultant

Rentals Consultant

Jaime Abrisqueta Ynzenga

Carole de Travieso Sales Coordinator

Property Listings Consultant

Jovita Vicuña de Clover

Adriana C. Méndez

Kirsten Clover

Loli Vázquez

Alexandra Escobar

Public Relations

Marketing Coordinator

Artistic Director

Assistant to Accounts Director



West Marbella

East Marbella


Covering Marbella’s Golden Mile with offices • at the Puente Romano Hotel • opposite the Marbella Club Hotel

Map of the Urbanizations in the Greater Marbella Area N

The Marbella Property Magazine 2008 Ed. - Part 3  

We are very proud to introduce the “Marbella Property Magazine” ®, which is an “in-house” production involving most of the Panorama staff.Th...

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