Purchasing Property  |  Living in Spain   |  Steps in Purchasing  |  Fiestas and Local Holidays

 

PURCHASING PROPERTY

 

The decision to purchase a property in a foreign country obviously needs much thought. 

In other parts of this Directory we have tried to provide information on some of the practical aspects of living in Javea and provide facts and nearly 100 web sites on local businesses covering a multitude of subjects such as building services, removal companies, Spanish lessons, children’s schools, dentists, currency exchange, computer services, book shops, insurance and much more 

Also we have sections on the activities ranging from sport to the theatre and churches to bridge clubs. We have listed over 50 restaurants of  the thousands that exist in Javea or within driving distance. 

In the main Javea Online site you can look at a gallery of photographs and the current weather. 

However in this section of the Directory we try and give you more information on a range of topics which may answer some of your questions or concerns. 

 

 


The procedures for purchasing a property are completely different from that you are probably familiar with. 

This section of the web site takes you through your introduction to us a client through, if appropriate, to the purchase of a property here in Javea. 

This information is sent automatically to all potential clients who contact us and it can be printed as a Word document from this site if you so wish. 

It covers our initial contact with a client, through to viewing and selecting a property, obtaining a Numero de Identificación de Extranjero (NIE), opening a bank account, mortgages, the additional costs of purchasing a property over and above the purchase price , currency transfer, attendance at the Notary, Escrituras, change of services and local taxes.

This Steps in Purchasing is probably the most important read on this web site. 
Printable version of the "Steps in Purchasing" in a .pdf file

Professional Assistance 

As you can see, the Steps in Purchasing document strongly recommends the use of a lawyer. Some agents may say it is not necessary. We disagree strongly. 

Our recommended lawyer is Maria José Garcia Garrido and she has offices in Javea and Denia and her web site is www.garciagarrido.com  

 

Taxes 

There are few places where you can legally avoid taxes and Spain is not one of them. The UK tax authorities are working closer and closer with the Hacienda here in Spain and we strongly recommend that you keep your tax affairs in order. 

Maria Jose our lawyer provides a taxation service and we also recommend Tony Monkerud an Australian Chartered Accountant who has lived in Spain many years and provides an excellent service. Tony’s web site is www.taxespain.com/index.html

 

Wills 
As everywhere having a legal will is essential and this perhaps especially in Spain where the inheritance law is decidedly different from Britain. Having a Spanish will to cover your assets in Spain is we consider an essential and cheap requirement which your lawyer can easily handle for you.

 

Javea Civic Society

To keep abreast of what is happening in Javea we strongly advise you to join the Javea Civic Society. The cost is only €30 p.a. and they issue 10 newsletters a year. If you live most of the time away from Javea you can receive this through the internet. 

Please find the society on http://personal.telefonica.terra.es/web/wynne/

You will find frequent mention of the Society below as they are a fund of information on all aspects of living and working here.

 

Padron and Residencia
Other than the essential NIE (see the Steps in Purchasing document) that you require to purchase a property or a car here, there are two other papers of which you need to be aware.

Padron 

It is hoped that all property owners visit the Town Hall and sign on to the Padron. All you need is your NIE and Escritura to prove you own property here. 

Unfortunately many people do not take the effort and we all suffer because of this. We quote from the Javea Civic Society

It is most important for all property owners to sign onto the Padron because Madrid pay 195 Euros per capita back to the municipality per head registered.

It is also important to sign on the electoral roll (The Censo electoral) here for two reasons:

1. You may exercise your right to vote in the local and European elections.
2
. In practise Madrid pay a sum between the number of people on the padron
    and the censo electoral.

They argue that this more accurately reflects the number of people who are domiciled here. 20 years ago there might have been some truth in this. Nowadays it's simply a dodge for shortpayment. They are fully familiar with the realities of Javea.

To be able to vote in the council elections, you must be enrolled on the Padron, and also ask to be included on the Censo Electoral (Electoral Roll).

In order to register go the Office of Statistics, Calle Roques, 13, which is across the road from the CAM bank, at the end of the indoor market. Office hours are 09:00 until 14:00, Monday to Friday.”

Residencia 

As regards Residencia the system has changed in 2007. Previously when you were living here more than 180 days a year you were obliged to apply for Residencia. This using your NIE number gave you a Residencia card. This card was useful as it had your photo (and thumbprint) and could be used for identification at supermarkets, hotels etc in Spain to support a credit card purchase. Also as an identification document when requested. 

Unfortunately the gnomes, or whoever they are in Brussels, determined that Spain had to follow other countries and Residencia cards will run out and not be replaced. Now you apply for a Certificado de Registro de Ciudad de la Union.  This is a one page document with no photograph which is virtually useless. It cannot be used for identification and most people are now using their Driving Licences as proof of identity. 

We can advise you how to apply for this paper at the Denia Police station.

 

Local Council

There are local elections every four years and the results of the 2007 elections are as follows – information from the Javea Civic Society 

Bloc-Centristes:  7 Seats   2965 votes (30,8%)
PP:                     5 Seats   1982 votes (20,6%) 
Nueva Jávea:     4 Seats   1749 votes (18,2%) 
PSPV/PSOE       4 Seats   1585 votes (16,5%) 
CpJ:                   1 Seat       639 votes ( 6,6%) 
GIX:                    0 Seat      242 votes ( 2,5%) 
GdX                    0 Seat     144 votes ( 1,5%) 
Esquerra Unida  0 Seat     92 votes ( 0,96%)

Our comment is that throughout Spain it would appear the PP had a resurgence against the ruling PSOE party. 

Locally some of the parties or actual individuals, best un-named here, are none too popular with forward thinking people (Spanish and English alike). 

The main concern locally is the over-development of Javea and prior council ties with property companies and past corruption scandals make many people uneasy and suspicious. 

There is a general mood that matters are improving slowly and of course all the parties promise keen control over development. Promises can be broken. 

At the moment there is a split in the Council which may achieve some checks and counter balances. Although the current feeling is that probably nothing much will change. 

However the most interesting development in the elections was the performance of the new party Nueva Javea who achieved 18% of the vote and 4 seats. This from a standing start. Their web site is of interest www.nuevajavea.org and without showing any bias (?) we suggest that you look at what they have to say. 

Remember you cannot vote without registering on the Padron which costs nothing. Postal votes are possible if you are not in Javea at the time. 

 

 

Land Grab

The Land Grab problem has received much comment in the UK press and so it should. 

The situation in Javea is a little different at the moment but the future is uncertain. 

This is what the Javea Civic Society said of the situation in June 2007

LRAU/LUV

Latest Update:- March 19th 2007

A recent visit by Euro- MPs may raise doubts about the authority and influence of European legislation not only here in Valencia but also as it applies to Spain. The visiting team from the Petitions Committee of the European Parliament had a new chairman and this time included a member of the UK Conservative party.

This tour of the area on 8th and 9th of March included visits to several other places in the Costa Blanca area which were not included on previous occasions. While well attended these evidence gathering tours appear to have made not the slightest impression on Valenciano politicians or the arguably illegal LUV legislation. Quite the opposite, press reports from Valencia reporting on speeches by state politicians indicate clearly that they are not welcome, not wanted and irrelevant to Valencia.

Hereabouts in Jávea we have been shielded from these laws by the introduction of the PGOU, the preparatory period of up to two years during which all development is frozen except for certain licenses granted prior to that period. Of great concern is the fear that many projects granted under the LRAU will be implemented under those suspended laws once the PGOU has been approved. It has been stated that projects granted licenses under the old LRAU (Ley Reguladora de Actividades Urbanisticsas) and the previous LUV (Ley Urbanistica de Valencia) legislation will be exempt from later regulatory legislation. Even the new proposals put forward to amend this law fall, according to statements made by the Petitions Committee members, far short of minimum European legislative requirements.

There is still no sign that the legal challenges through European Human Rights legislation, to which Spain is a full participant, have yet reached judicial review and the language now being used by the euro politicians does not appear to mention or convey legal redress or financial restitution to the victims. We are informed that a statement is due sometime later in March.

La Ley Regulardora de la Actividad Urbanistica – 
Nobody LUVs it.

The LRAU, law 6/94 of the Valencia Autonomous Community, was introduced with bipartisan support (PP and PSOE and their assorted affiliates) in an attempt to put an end to supposed land speculation which, it was claimed at the time, was preventing young people from finding affordable housing. The intent might have been to underpin this verbose and complex Law with a series of administrative procedures and instructions providing clarification regarding the application of the Law and resolving some internal contradictions, but those never emerged.

Whilst the basic purpose of the law was arguably honourable, the way in what that end would be met was problematical. And the basic tenet of the Law was that building for the sake of building was self-evidently A Good Thing.

(But first a digression. Land law in Spain is not a matter for the central government, but rather responsibility lies at Autonomous Community level: and Madrid is unable directly to intervene politically to challenge Autonomous Community legislation, or the application of that legislation (although a case might eventually be filed by the victims of those laws with the Constitutional Court). The powers held at AC level are much greater than those held by, for example, the parliaments of Scotland or of Wales.)

In the Valencia AC, devolution of town planning law was taken a stage further and devolved to town hall (municipality) level and then town halls could themselves devolve responsibility to an agente urbanisador, a builder or property developer. This might have been a way of handling the criticism made in a 1988 report by a delegation from European Parliament that most town halls lacked the technical ability properly to supervise and control most aspects of development and construction – but the result has been to give the construction industry in the VAC a license to print money, and to allow them to do so using somebody else’s paper and ink.

For the Law allows an agente urbanisador to agree a building plan (a plan parcial – a re-drawing of the boundaries between plots or ‘parcelas’) with a town hall covering a designated area, and then go on to demand that those who own property or land there surrender land to allow the ‘development’ – a swathe of terraced houses (chalets adosados), perhaps, or a golfing and hotel resort – to take place. The agente urbanisador did not even have to own a single square metre of land within the agreed area of his plan.

The Law then piled insult on top of that injury and allowed the builder to demand that those existing owners contribute to all aspects of his costs, from the planning of the project through to the infrastructure needed to make it viable. Elsewhere in Europe, governments, after lengthy public consultations, can acquire land and property to enable major infrastructure projects such as dams, or motorways or railways, but to do so they have to pay full and fair compensation at pre-blight valuation. In the VAC, and under the LRAU, the planning process was far from transparent, no compensation was paid and existing owners were handed unsubstantiated and unaudited bills for their supposed ‘share’ of development costs. Owners were given just 15 days to respond, with drawings and a financial counter proposal, to a plan which might have been years in the hatching.

All of this was justified by spokespeople from the Generalitat and from the construction industry who claimed that existing owners should welcome the development of their, usually, rural areas and the improved infrastructure that would be put in place. Indeed, in the longer term – or so it was claimed – they would see the value of their properties increase because of this. Those spokespeople ignored the fact that many chose to move to rural areas for the tranquillity and special quality of life offered, and that few, if any, of those owners had bought property as a speculative investment: they had simply chosen to buy in to a rural lifestyle. One is tempted to wonder why, if the purely economic arguments are so persuasive, the developers did not simply make owners offers they just could not refuse… And the cynics point out that few, if any, of the plans from agentes urbanizadores actually include social housing, the provision of which was the reason for Law 6/94.

In November 2003 a public meeting was convened in Javea which clearly demonstrated the depth of the anguish caused by the perverse application of the LRAU. The organisers expected 70 to 100 people to turn up. Between 5 and 6 HUNDRED did, overflowing from the main meeting room of the Parador in to the gardens whilst many others, unable to find parking, simply turned round and went home. This meeting catalysed the formation and growth of an action group whose efforts and organisation in the past 3 and a half years have been a model of how to use the Internet and an ever-expanding network of contacts to raise awareness of the impact of the LRAU and the property market uncertainty and instability which it caused. (See www.abusos-no.org - Link at bottom of this page - The Powerpoint presentation there is especially good.)

The Valencia Autonomous Community’s own Ombudsman, the Sindíc de Greuges, subsequently publish a damning report on the LRAU highlighting 13 major areas where the rights of, especially, small property owners were not being protected.

The Generalitat creaked in to action and over a period in excess of a year claimed that a new land law, to be called la Ley Urbanistica Valenciana (LUV), was being drafted. This was introduced in early 2006, prompting a number of late night, smoke-filled room, meetings in town halls to push through new plans under the predecessor law, the LRAU. They need not have rushed, for the promised improved protection and fairer treatment for small property owners simply did not materialise. There were token improvements, including a small extension of the time granted for those wishing to appeal against the loss of their land, but nothing of substance. The Sindíc again issued a highly critical report: and again the underlying philosophy of the law is that construction for the sake of construction is A Good Thing..

What does the future hold? Construction has become the motor of the Spanish economy, especially in the VAC, replacing agriculture, shoe and toy making as major employers. Northern Europeans, mainly but not exclusively British people, flock in to buy their dream homes in the sun. The process is clearly unsustainable in the long term: there is not enough land, and above all not enough water. And Spain should be deeply worried that those seeking to develop ‘residential tourism’ in the Balkans – and even further afield – swear that they will do everything possible to avoid repeating Spain’s mistakes.

The few glimmers of hope come through a recognition in Madrid (and elsewhere) that immense environmental damage is being done by all this building work – see, for example, the recent Greenpeace report (click on the box below for details)

Greenpeace report  www.greenpeace.org

  

That gives Madrid a tiny window of opportunity to intervene, as the environment is an area of central government competence, not the responsibility of the autonomous regions

from the European parliament, whose Petitions Committee have visited the region and who have identified probable breaches in the Community’s rules on government procurement in the way in which agents urbanisadores are ‘selected from the readiness by a major London (and international) law firm to mount legal action (similar to a class action law suite in the US) on a no win, no fee basis

But, as always, prevention is better than cure. Rural properties are especially vulnerable to the predation of the LRAU (and now the LUV), but even existing urbanisations can be at risk, if a developer-friendly town hall decides that they are just phase 1 of a continuous process of development. Buyer beware. Get a good lawyer before you even look at property, and take your time to learn about the mirage of land tenure in the VAC.

And on top of the legal nightmares created by the LRAU and the LUV, there is the problem, in many parts of the Valencia Autonomous Community (and elsewhere in Spain), of illegal building. Property built without planning permission and sold to unsuspecting foreigners who believe the estate agents and promoters who tell them, as part of a pressure sell, that ‘they call do it all for you’ and so you don’t need the expense of an independent lawyer. That alone should cause warning bells to ring.

Juan de la Luz.

As recommended by the Javea Civic Society and endorsed by ourselves the best authority of what has happened and what is currently happening we suggest you log on to

Abusos Urbanisticos - NO

 

 
 

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