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In the Balearic Islands, any non-EU national wishing to purchase a property on rural land must first apply for and obtain a military permit.
After the Brexit, with effect from 1/01/2021, the British are not part of the European Union, so they must also apply for such permission if they wish to purchase a property on rural land.
At Bufete Frau, we invite you not to let this stop you from acquiring this type of property, as we are familiar with this procedure and we have more than 20 years of professional experience.
Possible exemption from the obligation to pay Wealth Tax for non-residents
The Supreme Court of Justice of the Balearic Islands has recently issued a ruling in relation to Wealth Tax.
It has opened the door for non-residents who have properties in Spain indirectly through shares in foreign companies to be exempt from paying this tax, with the Treasury having to return the amount paid in the last 4 years plus interest for late payment.
In Bufete Frau we carry out the procedures of rectification of self-assessments, and we help those clients who are in this situation and want to recover the amount paid in the last 4 years.
If you would like to receive more information on this matter, please do not hesitate to contact us and we will try to advise you immediately.
Banks will have to assume the costs of mortgage appraisal.
The Supreme Court ratifies that banks will have to assume the costs of mortgage appraisal, that is to say, that the costs of property registration, agency, appraisal, and 50% of the notary fees are to be paid by the banks. However, the other 50% and the Stamp Duty (Impuesto sobre Actos Jurídicos Documentados) will be paid by the person signing the mortgage.
Therefore, those consumers who initiate the claim procedures will be entitled to a refund.
Rental contracts with option to buy, what does it consist of?
This type of contract is a good alternative for people who are hesitating between buying or renting. It allows the tenant to rent the property for the time agreed between the parties, and once the time has expired, the tenant will have the right to buy the property.
All the monthly rental payments that have been paid may be considered as part of the final price if agreed. On the other hand, if the tenant does not choose to purchase the property, the monthly payments will not be refunded.
Therefore, the rent to buy contract is a contract that includes two subcontracts: one for renting and another one related to the option to buy. And a good choice to have the possibility to buy after having been renting for some time.
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