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Property Sales Andalusia

nov 2018 housing sales Spain

Property Transactions November 2018

Transfers up 9.4% Sales up 2.8%

The Spanish Statistics Institute has released figures for November 2018 Housing Sales. Nationwide, the Land Registries have been more active than the same time last year. Up by 9.4% on figures for November 2017. Of this number, sales have increased by 2.8%.

Winners and Losers

The highest number of transfers of ownership / title, (measured per 1,000 inhabitants), were in Rioja (723), Castilla y León (718) and Valencia (610). Whilst the highest variations in rates occurred in Madrid (21.7%), Cantabria (19.6%) and La Rioja (19.4%). Conversely, Aragón (-11.7%), Illes Balears (-6.0%) and Extremadura (-4.4%) registered the lowest annual rates. With respect to registered housing sales, the Autonomous Communities with the highest number of transfers per 100,000 inhabitants were Valencia (168), Rioja (144) and Cantabria (128). The Balearics (-7.2%),
Andalucia (-5.9) and Extramadura, (-5%) all performed lower in November 2018 compared to the same month in 2017.

Andalucia November 2018 29,318  properties transferred
Andalucia November 2018 29,318 properties transferred

Stats for Andalucia – Gifts and Inheritances

Overall transfers were up 10.6 % in Andalucia compared to November 2017, but as this includes all transfers including gifts and inheritances as well as life interests and such, the increase is to be expected.

Andalucia November 2018 4,323 rustic properties acquired
Andalucia November 2018 4,323 rustic properties acquired

Changes in Inheritance Tax exemptions introduced in January 2018 created a sea change where beneficiaries could afford to accept their inheritance.
Statutory Succession Laws apply in Spain for Spanish nationals – both intestate estates and for those who leave a Will. Spanish law assesses the estate of the individual who will receive the post humous gift. Unlike in the UK, for example, where it is the state of the deceased that is assessed.
Andalucia has increased its exempt threshold for beneficiaries closely related – for example children. In such cases, the first million euros of personal assets are exempt now when assessing tax liability for the inherited asset. This, unsurprisingly, has led to many more individuals taking on their bequests.

Andalucia November 2018 24,995 urban properties acquired
Andalucia November 2018 24,995 urban properties acquired

Andalucian Property Sold November 2018

The figures for sales in Andalucia are down 5.9% on November of last year. Some of the absolute bargains have been mopped up – although there are still more out there. The most likely reasons for the fall in sales are Global rather than National. Uncertainty with the tariff import wars between the US and China and, of course, the UK leaving the European Union (Brexit). However, in general terms, the outlook is positive. The month of November 2018 saw 13,202 sales of land and urban property and 1,774 in rural areas of Andalucia. The total number of dwellings sold was 7,950, of which 1,516 were new builds.

This property in Jimena village comes complete with furniture and is a real bargain. This rural country home is also a fantastic opportunity.

Andalucia November 2018 15,322 dwellings acquired
Andalucia November 2018 15,322 dwellings acquired
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withholding tax

Non Resident Withholding Tax on Sale of Property

retencion 3%

3% Withholding Tax for Non Residents

Non residents selling a property in Spain are not always easy to track down after the sale. For this reason the government makes the Buyer withhold 3% of the Purchase Price and pay it to the Treasury. This has to be done even when the Seller has made no profit from the sale.

Naturally, the Seller then gets to reclaim this amount.  In a nutshell, the Buyer pays using Form 211 and deducts this amount of what is owed to the Seller who reclaims at end of calendar year (Jan 1st – 20th) using Form 210.

The Seller passes the Buyer a copy of the Form 211 so the Seller can deduct this amount from the amount to be paid resulting from the declaration of the gain. If the withheld amount is greater than the amount payable, the refund of the surplus can be obtained.

The tax has to be made by the Buyer because otherwise the property will be subject to the payment of the smaller amount of the withholding tax.

There are 3 main scenarios when deductions can be made: No gain, partial gain and a gain but the property was your permanent home and you’re rolling the gain into another permanent home. Naturally, this last example is a tad unusual for a non resident.

Tax return form

Form 210, approved by Order EHA/3316/2010 of 17 December, declaring income type 28. However, when the exemption for reinvestment in a permanent home is applied, the type of income will be declared as 33 or 34, as corresponds.

Filing methods

  • on paper, generated as a result of printing the PDF form contained in the web portal of the Tax Agency.
  • online, via Internet.

When the property is of shared ownership by a married couple in which both spouses are non-resident, unlike normal requirements, you can make a single self-assessment for both or you.

Term: three months from the end of the period which the purchaser of the property has to deposit the withholding retention (this period is, in turn, of one month from the date of the sale).

Refund of the withheld surplus

In the case of capital losses, or if the withholding made is greater than the liability which should have been deposited, the taxpayer is entitled to the refund of the withheld surplus. The refund procedure starts with the filing of the tax return form.

Treasury Accountability – Late Refund

The Tax Agency may apply a provisional settlement within the six months following the end of the established period for filing the return. When the return is filed late, the six months will be counted from the filing date. If the provisional settlement is not made within this six-month period, the Tax Administration will refund any surplus paid above the self-assessed amount. If you still haven’t got your refund back after six months from filing date and it is not your fault, you will get a late payment interest added to the amount pending refund.

More Information from Spanish Tax Office

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July 2018 Housing Figures INE

Property Sales Registered July 2018

Property Sales Nationwide Buoyant

The national statistics for all of Spain are again positive news for the ongoing recovery of the property market. In July, 169,683 properties were registered at land registry, 14.5% up on the same month of 2017.

Of these the number of property conveyances was 89,092, which is an annual increase of 13.5%.

Sales registered at Land Registry

The breakdown of rural and urban properties shows a high percentage of urban property sales in July of 87.8% and 12.2% for rustic properties. Among urban properties, 58.7% were housing sales.
In July, the number of rustic property sales was up by 8.3% year on year, while that of urban properties rose by 14.3%. This was an annual increase of 16.2% for urban property.

Council Owned and Private Property

In July, 90.5% of the dwellings transferred by sale were free-market dwellings and 9.5% had protected affordable housing status. In annual terms, both the number of free-market dwellings transferred by sale and that of protected dwellings increased by 16.2%.

New and Resale Properties

In July, 16.9% of the dwellings transferred by sale were new and 83.1% were used. The number of transactions on new dwellings increased by 11.4%, while that on used
dwellings increased 17.2% as compared with July 2017.

Figures for Andalusia July 2018

There were 27,743 property transfers recorded in the land registries for July 2018 and of these, 8,730 were free market sales. In percentages, this shows an increase year on year of 20.4%. This equates in Andalusia to 132 transfers per 100.000 inhabitants for sales. And 421 per 100,000 for transfer of title as a result of inheritance, free market sales, and other changes in property title. Andalusia came just a little above the national average, significantly below Aragón (32%) but only 6 – 7 percentage points lower than the next top performers Galicia (28.6%) and Castilla–La Mancha (27.1%).

July 2018 Housing Figures INE July 2018 Housing Figures INE July 2018 Housing Figures INE July 2018 Housing Figures INE

The figures for June 2018 are available here:

Source INE

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property sales June 18 Andalusia

Land Registry Figures Spain June 2018

June 2018 Property Transfers Spain

Nationwide, in June 2018, there were 172,265 properties registered at the land registries in Spain, that is 3.6% up on the same month last year. Of these, residential property sales were up by 1.8%

As we are based in Andalusia, our focus is on this autonomous region. Naturally, the figures taken from the INE are there for all to see and extrapolate as they wish for all areas of Spain.

The graphs below show a combination of rustic and urban properties, (STPR1), then a break down of only rustic, (STPR2), only urban, (STPR 3), and finally the figures for residential property, (STPR 4).

property sales June 18 Andalusia

Property Transactions June 2018 Andalusia

As we can see, in June 2018 in Andalusia, of the 30,356 property transactions, more than three times as many were in the urban sector compared to rural. Andalusia recorded the highest figures for urban plots of land transferred with 1,624. This compares with Cataluña in second place showing 1,366 transfers of land. In third place, with 624, lies Castilla & León – a long way behind, relatively speaking. In Andalusia this rush for buildable plots coincides with the hunt by constructors and promotors of new off plan projects – such as The Pier. This is a new off plan development in Sotogrande Port by a famous UK company with a stalwart reputation. Nationwide, 18.2% of properties sold were new builds – a clear indicator of the confidence returning to this sector.

property sales June 18 Andalusia

Rustic Property Conveyances Andalusia

The number of rustic properties transferred to new owners reached 4,650 in Andalusia. For the second consecutive month there was a high acceptance of inherited property in Andalusia. As commented last month, this will be heavily influenced by the relaxed rules on taxation of inheritances when between close blood relations. Per stirpes succession laws operate for intestate estates in Andalusia and throughout Spain. So, 1,727 inherited rustic properties were claimed and this amounts to almost 40% of the total for Andalusia. This compares with 1,850 sold on the open market which is a healthy balance to guarantee a fluid property market. The nationwide figures for sales of rustic properties were around 35% so sales for Andalusia were above average. This is not hard to understand when we see properties such as this, with a quarter hectare, 2 beds 1 bath on sale for only 190,000€ There is real value to be had there.

property sales June 18 Andalusia

Urban Residential and Commercial Andalusia

Looking now at urban properties, it is clear that this pattern repeats itself with healthy property market sales. More than half of the property transmissions, residential and commercial, were on the open market with 14,745 out of a total of 25,706 in Andalusia. There is healthy interest in investment opportunities such as land and property to convert to rest homes. This offering here would be ideal.

property sales June 18 Andalusia

Residential Sector Sales June 2018 Andalusia

Finally, focusing on the residential sector in Andalusia for June 2018 compared to the same month year on year. 9,165 properties were bought and sold at arms-length trading on the open market. This accounts for almost 60% of all activity and inheritances amount to around 17% There is growing interest in properties that require moderate reforms especially where they are well located in the centre of popular villages. For example this one in Jimena de la Frontera

With savings in bank accounts still not yielding investment income, it seems for those that have the ability to buy Spanish property, now would be a great time to do so.

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