Elina Sivankova, partner and director of InvestPravo Property, c.e.

In the last article (Sea House: Is it worth buying real property in Spain on 1 March 2013) we briefly described how attractive the Kingdom of Spain is for those who are planning or already watching a second home on the coasts of Costa del Sole, Costa Blanca, Costa Brava or Barcelona.

We have decided to devote the most frequently asked experts of InvestPravo Property to taxation and costs of maintenance of apartheid or home in Spain.

In an effort to find a way out of the difficult economic situation of recent years, the Spanish Government has periodically undertaken incentives in the real estate sector. At the end of 2012, the Government of Spain submitted to Parliament a draft law on the granting of a residence permit to foreigners without the right to work (NW) purchase of real property I'm over 160,000. Despite the fact that the law has not yet been ratified by Parliament, the real estate market has already responded to increased demand for the price category. Although the Rossians have so far virtually no refusal to obtain a passive residence, when they acquire real property in Spain and declare their legality.

What are the costs incurred by the buyer when the property is in place?

In addition to the value of the facility specified in the contract of sale, the buyer pays public taxes (at the purchase of the primary real estate from the VAT developer is 10 per cent, at the purchase of the secondary market 8 per cent) and the processing costs (2 per cent to 3 per cent of the cost of the facility).

What's the matter with mortgage lending?

The crisis reduced the number of banks providing Russian mortgages. InvestPravo Property ' s partner banks, in providing an agreed set of documents confirming the capacity to pay of the borrower and the legality of the funds, are now providing mortgage loans to our clients on terms of 50 to 60 per cent of the value of the facility at 4, 5 to 5 per cent of the annual 20 to 25 years. On the other hand, interest and body allowances per month should not exceed 25 per cent of the declared taxable income. The age limit of the borrower is between 65 and 75 years, depending on the requirements of the bank.