By Euro Weekly News Media • 30 September 2011 • 9:44
AS most of the world teeters on the brink of a so called ‘ double dip recession’ why then are Spanish councils not helping estate agents to sell houses so that money can flow into the economy?
It’s simple maths really as when a house is sold 7% tax goes straight into central Government coffers.
Then if works are requested by the owner on the property; architects, builders and other suppliers can all earn money but only after the bloomin councils have got off their behinds and processed works licences.
One client of Findmeahome recently waited seven months for Lubrin Town Hall to process a licence which the College of Architects in Almeria had turned round in just a couple of weeks.
Money that could have been spent revitalising the local economy instead waited for someone to get back from visiting their sick relative or whatever. Expediente certificates which declare the legality of a property can by law be allowed to take 120 days to issue, and they often do. Then if they are incorrect the council has another 120 days to correct their mistake.
Clients all over the region are waiting to buy houses but have to wait for a simple piece of paper that a council worker is using to right a wobbly desk. Once an owner is in a house they contribute to the economy by shopping and using bars and restaurants yet bureaucratic hurdles delay this.
In France if a house is more than two years old then the IVA the builder charges is only 5.5 per cent. A huge incentive to have work done in the proper manner yet in Spain it is 18 per cent. Considering Capital Gains Tax (CGT) is also a similar amount there is no gain to be had by reforming a property legally and paying the proper amount of taxes so in effect the Govt.loses out.
In Spain if an architect is used and the proper 18 per cent IVA paid to the builder then at time of selling these costs can be deducted from the CGT liability. What’s the point however in paying 18% IVA to eventually get the same deducted from the CGT if and when the house is sold? Dropping the rate of IVA would encourage people to have work done on properties; restaurants only charge 8 per cent IVA after all.
Sensible owners with incorrect paperwork on their property have everything corrected before placing their home on the market. Obviously many people cannot afford to pay as it can run into thousands of Euros but Proyme for instance in Albox allow clients to start payment plans paying a part each month.
Correcting paperwork can take up to a year to complete so the sooner an owner starts the process the easier it is to convince a potential buyers solicitor that everything is in hand. The original solicitor the owner used was the one that bungled or turned a blind eye to the registration errors and still got paid a handsome fee.
So for goodness sakes in my opinion you should NEVER go back to them to correct the paperwork as then they will be paid again for correcting their own mistakes.
Finally thank you to Mary for originally looking after Luna at the kennels near Tijola and a huge thank you to Di from APSA who has managed to find room for her at her rescue centre.
After becoming homeless myself a couple of months ago the only option was to rent a property that would not allow large dogs. I have been distraught ever since having to let her go as I have re-homed many dogs since moving to Spain and she was a much adored pet.
Luna can be seen on the APSA website should any reader be looking for a docile well behaved and loving pet.
Why not follow me on Twitter – http://twitter.com/#!/ESFindmeahomeOr chat via www.facebook.com/FindmeahomeAnd read previous articles at www.euroweeklynews.com
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