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February 21, 2018

Property tax and bills in Spain – What you need to know

So, you have bought that wonderful bit of paradise where you spend as much of your downtime as possible. There are financial obligations for owning a property in Spain and here are some pointers to get you started:

Utilility Bills – Water, Electric & Gas (where applicable)
If you have used a lawyer for your conveyancing, as part of their service they will have transferred the utility bills in to your name – there may be a slight overlap with the previous owner and if so, the lawyer may have kept a retention to ensure funds for any outstanding financial commitment from the previous owner. The water and electric bills are usually around every 2 months, but not exactly and a direct debit should be in place – make sure this has been actioned. With the electric bill, check your consumption is in line with your usage as sometimes the previous owners may have been heavy users and you are more conservative with the level of power you require. You can request your lawyer to ensure this is at the right level or by contacting the provider to inform them direct. Gas is usually in bottles as mainline gas is only available in major cities in Spain. It is certainly cheaper than electric but not as convenient. ***Very Important Point*** Always make sure you have sufficient funds in your bank account to pay your utilities as if there is a failure in collection of a direct debit the utility provider will cancel the direct debit and take steps to cut off supply.

There are plenty of providers offering different services including or excluding WIFI but we recommend you shop around and get what´s best for your lifestyle – you may want a fixed line, then Movistar is the main provider, but there are other services on offer if you require cheap calls to your home country or want a plug and play scenario for you and your guests.

Community charge (where applicable)
Community charges vary, depending on the facilities within your community and are usually paid quarterly or monthly. Check with your administrator to ensure you are meeting your commitments and some communities offer a slightly reduced rate if you have set up a direct debit. Failure to keep up to date with community payments could result in loss of using communal facilities, such as the swimming pools, spas, gym, tennis courts etc.

Council tax – Impuesto Sobre Bienes Inmuebles (IBI)
(Impuesto Sobre Bienes Inmuebles) is like the British council tax and usually includes refuse collection although this is sometimes charged separately either with your water or your community payment. It is a yearly bill paid in August, but you can set up a payment to come out monthly.

Property income tax (IRPF/Renta)
Impuesto sobre la Renta de las Personas Fisicas (IRPF if your Spanish property is not rented out or not your primary residence (i.e. a holiday home), you will be liable for the “deemed rental income tax” even if you do not let out your Spanish property. They will assume you are making 2% of this value each year from letting your Spanish property and charge you 25% of that “income”, which equates to a total of 0.5% of the valor catastral (rateable value) of your Spanish property. For example, if you own a Spanish property with a valor catastral (rateable value) of €100,000 and you are not renting it out, you will still be liable for 25% of €2000, which equates to €500. It is important to keep on top of this tax on a yearly basis as you can be charged interest and fined if not paid on time.

Home Insurance
Shop around – the banks will offer insurance when you are completing on a property, but see what other providers can offer and always when it comes to renewal – check your renewal timeframe as some ask for 90 days’ notice if you are changing to another provider.

Car Ownership
If you own a car you are responsible for ensuring the car is roadworthy and if the car is over 4 years old, the car will require a yearly ITV (MOT). The test centre is based in Estepona in the industrial area (Poligono) and an appointment is required so it is best to ensure you make it in advance of the expiry date. Insurance papers, details of the car, driving licence must be with you at all times when driving in Spain because if you are stopped by the police or Guardia civil and fail to produce the correct documents, can result in a fine. Whether you are buying a new or second-hand car, it is very important as the new owner you ensure the address details are correct as soon as possible and not rely on the person or business who has sold you the car to complete the paper trail.

This information is purely informative and only from our own experiences, but we highly recommend if you are unsure of your commitments, get an independent lawyer to check all is correct.

IBI, Electric and Water Bill in Spain


February 13, 2018

Manilva, Duquesa and Casares Costa – The place for investment in 2018

Filed under: 101 reasons to love Manilva,News,Property,Useful Information — Barrington Homes @ 3:54 pm

Property prices have increased throughout the Malaga Provence and show no sign of slowing down. According to Kyero, the median asking price is 330,000 Euros with an annual trend of plus 7.7%. When I reviewed their stats, they focused on 10 destinations within Malaga – Marbella came out top with an average price of 650,000 Euros to Torrox with an average price of 149,000 Euros.

Mijas Costa had the highest annual trend of 28.9% with Estepona area not far behind. This is due quite heavily in the new development surge at the end of 2016 and 2017, with a lot of focus in Mijas Costa – particularly La Cala and areas surrounding Fuengirola. In Estepona, there are many new developments around La Resina, Selwo, Estepona Golf and frontline towards Casares Costa.

Demographically, the highest investment groups are within the 45 – 64 age range – Nationality is 61% European, 29% British and 15% International. The main investors are English speaking with a high percentage of Dutch, Flemish and French investment.

The most interesting figure for us as an Estate Agent in Manilva is the comparison between property available for sale versus buyer´s enquiry patterns. Investors are still looking for bargains and demand for property between 100 – 150,000 Euros is the focus when 2 years ago, it was below the 100,000 Euro mark. In comparison the budget of 250 – 500,000 Euros is the price bracket of new developments, but not a high investment at this time. We have heard of Scandinavian investment within this price range but long term this is not sustainable due to their smaller populations. The British buyer is still the strongest and most consistent on the coast.

Demand for apartments out-weighs villas and townhouses, so perfect for Manilva and Casares Costa with all the wonderful established developments we have in close proximity to facilities and the beaches.

This information is very encouraging as growth may have spiked in certain areas of the Costa del Sol, but Manilva and Casares Costa is showing a positive healthy increase and property sales are buoyant.

In summary, Manilva, Duquesa and Casares Costa are the areas who have the supply for the demand of the current investor and if the start to 2018 is anything to go by, the future is very promising indeed.


February 6, 2018

Bitesize Property Review with Barrington Homes

2017 has been a good year for the real estate market with interest and confidence growing due in part to an improvement in the European economy. House prices have increased in the second-hand housing marketplace with an average increase of 5.1% over the previous year. This is the largest annual increase since 2006 when it was an increase of 7.7%. The highest increase is in the Balearic Islands with a staggering 15.1% and Catalonia of 10.5% showing even with the recent political climate, it is not putting a damper on investment.

Malaga has had an increase of a very healthy 4.5%. This supports our successful year with sales of property in Manilva, Casares and Estepona. According to Tinsa (leading independent valuation experts with over 30 years’ experience), the average timeframe for selling a property in Spain is 8.6 months and in Malaga 7.2 months. Barrington Homes averaged for 2017 at 5.7 months and we are extremely encouraged by our strong start this year with an impressive January, historically a quieter month.

Manilva, Casares and Estepona are certainly providing the best investment opportunities with new developments both east and west of Estepona offering new contemporary, modern living. Good news for those already invested in this area as prices are moving in the right direction albeit not to the values achieved prior to the economic crisis. According to Tinsa, the residential market maintains moderate price growth but it is still 38.3% below the maximum reached in 2007.

In 2014 and 2015, the average sold price of a property was approx. 15.6% below the marketed price and in 2017 this percentage shrunk to an average of 10.2%, demonstrating demand and quality has improved.

Mortgage applications are highly sought after with all nationalities being approved and processed quickly. Savvy British buyers realise the potential in applying due to the weak pound against the euro and are securing up to 70% mortgages, (this will change to 60% for non-EU residents when Britain leaves the EU) and the average monthly mortgage payment for Malaga province is 555 Euros.

Barrington Homes wanted to provide you with a summary of 2017 and not bombard you with pages of stats and percentages. We hope this blog is helpful for those investing or selling, but please feel free to get in touch with the team if you require further information.

Manilva Municipality Spain

Manilva Municipality Spain