Category: Economy

Modification of the Impuesto sobre Transmisiones Patrimoniales (ITP)

Modification of the

Impuesto sobre Transmisiones Patrimoniales (ITP)

Impuesto sobre Transmisiones Patrimoniales (ITP)

Modification of the Impuesto sobre Transmisiones Patrimoniales (ITP) in the purchase of a home

Law 11/2021 on measures to prevent and combat tax fraud, published on July 10, 2021, modifies the concept of the tax base of the Impuesto sobre Transmisiones Patrimoniales (ITP), creating a new concept that is the reference value.

From January 1, 2022, the Impuesto sobre Transmisiones Patrimoniales (ITP) of real estate will be calculated and settled at its reference value or at the purchase value, using the highest amount that will be determined by the General Directorate of Cadastre and will be informed by the Notary before the sale of the property.

New air route from Valencia to Vienna

Austrian Airlines

New air route from Valencia to Vienna

Since this past Saturday, June 4, 2022, the airline Austrian Airlines, belonging to the Lufthansa Group, connects the Valencia International Airport (VLC) in Spain with the Vienna International Airport (VIE) in Austria, with two weekly frequencies, Tuesday and Saturdays.

Julia Hillenbrand, general director of the Lufthansa Group for Western Europe, has assessed that, with the arrival of Austrian Airlines, Lufthansa Group consolidates its commitment to the Valencian Community, where for the first time, all the group’s companies will be operating this summer with a total of 140 weekly flights to/from Valencia.

Austrian Airlines offers between 160 and 198 seats, depending on the aircraft model, for this new direct flight and seeks to offer a “differentiating service” for the Valencian passenger through its ‘Business Class’ and also its ‘Economy Class’ offer, which includes a new gastronomic concept, «Austrian Melangerie», which allows you to taste traditional and regional Austrian cuisine before landing.

Lufthansa Group offers many connections to destinations around the world through hubs in Frankfurt, Munich, Zurich, Geneva, Brussels, Vienna, Athens, Bucharest, Copenhagen, Stockholm, Prague, Warsaw…

This means that the north of the Costa Blanca from its Valencia International Airport (VLC) is connected to: Germany, Algeria, Austria, Belgium, Bulgaria, Denmark, France, Greece, Hungary, Ireland, Italy, Latvia, Luxembourg, Malta, Morocco, Netherlands, Norway, Poland, Portugal, United Kingdom, Czech Republic, Russia, Romania, Serbia , Switzerland, Turkey, Ukraine.

Much more demand for new build properties than there is supply on the market on the Costa Blanca

New build houses and villas Costa Blanca

New build houses and villas Costa Blanca

The housing market is experiencing a moment of growth in terms of the sale of homes, second-hand properties continue to dominate the market, with more than 450,000 operations, while new-build properties reached 20, 3% of total sales in 2021 and the situation continues along the same path so far in 2022.

Since January 2021, the sale of new-build housing, almost all purchased off-plan, has not fallen below 8,500 units, figures that have not been repeated regularly since 2014.

The supply of new construction will continue to be lower than what the demand asks for

Despite these outstanding numbers of new construction homes, the current housing supply does not satisfy all the demand of national and international clients looking for a new home, especially towards new construction.

According to the Association of Builders Promoters of Spain (APCE Spain), which estimates that between 120,000 and 150,000 new units per year are needed until 2030 to cover the structural demand of the market.

Developers / builders have already warned that the current uncertain economic environment will cause visas to fall compared to the previous year. “The works started before the crisis will be finished, but 43% of the promotions that were still pending the granting of the new construction license will wait for the economic environment to improve”, due to the fact that the costs related to the energy are the ones that are affecting the sector the most, products such as steel, aluminium, copper, zinc or cement are the materials with the highest price increases.

For now, new builds are experiencing their particular boom in prices, according to the latest Euroval report the absolute average price is already +33.3%.

“The sustained growth in demand and the upward trend in prices have made newly built homes one of the most profitable options in the real estate market”

The sale of homes in the Valencian Community to foreigners increased by 44.9% in the second half of 2021

The sale of homes in the Valencian Community to foreigners increased by 44.9% in the second half of 2021

The sale of homes in the Valencian Community to foreigners increased by 44.9% in the second half of 2021

The sale of homes in the Valencian Community to foreigners increased by 44.9% in the second half of 2021

The sale of free homes by foreigners increased in all the autonomous communities. The increase in the Valencian Community (44.9%).

The average price per square meter of the operations carried out by foreign buyers in the Valencian Community in the second half of 2021, referring to free housing, stood at €2,481/m2. This meant an increase in prices of 10.0% year-on-year.

By nationality, the group of foreigners who acquired the most homes was British nationality, with 11.8% of the total operations (7,560), followed by Germans (10.4%) and French (8.3%). The group of nationalities that includes the rest of foreigners from outside the EU accounted for 11.4%.

Purchases and sales made by foreigners of all nationalities increased, but they did so with greater intensity by the Dutch (104.1% year-on-year), the Irish (99.3%) and the Germans (84.9%).

The Costa Blanca, the first tourist destination in the Valencian Community

The Costa Blanca, the first tourist destination in the Valencian Community

The Costa Blanca, the first tourist destination in the Valencian Community

The Costa Blanca, the first tourist destination in the Valencian Community

The Costa Blanca has been the first destination in the Valencian Community to exceed the hotel occupancy data for 2019, according to information compiled by the Benidorm hotel association (Hosbec). Specifically, Benidorm is still seven points away from a complete recovery, while Valencia city remains five.

foreign recovery

The report indicates that international markets are recovering: 57% in Benidorm, 41% in Costa Blanca, 47% in Valencia and 14% in Castellón.”

Hyperinflation in the price of construction materials

Hyperinflation in the price of construction materials

Hyperinflation in the price of construction materials

Hyperinflation in the price of construction materials

At the end of 2021, construction costs in residential buildings increased by 23.5%, according to the Direct Construction Cost Index prepared by ACR.

In addition to this, in the few months of the year 2022, there have been events that put even more stress on direct costs in the construction sector.

The conflict between Russia and Ukraine prevents the import of materials that are highly demanded by the sector (according to the Ministry of Industry, Trade and Tourism, Spain had imported 28.5 tons of aluminum from Russia and 85% of the imported clay comes from Ukraine, according to ICEX). Transport strikes and work stoppages have caused a breakdown in the distribution chain, delaying the delivery of many materials used in construction. Lastly, the rise in prices in the energy sector also influences the production cost of some materials, which are subsequently translated into a higher cost of these.

With this panorama, there are many construction entrepreneurs who find themselves before contracts for the execution of works signed prior to the occurrence of these circumstances, in which a fixed price is established, and which have become impossible to fulfill without incurring losses.

The property market on the Costa Blanca after the coronavirus

How will the property market on the Costa Blanca be affected after the coronavirus?

In these difficult times, many of our clients ask us how the coronavirus will affect the property market on the Costa Blanca in 2020-2021.

Although there are more urgent problems such as people’s health and the terrible number of daily deaths from Coronavirus worldwide, people cling to something positive and continue to dream of buying a property on the Costa Blanca.

Finally good news, the Spanish Prime Minister announced that from next July 1, 2020, international buyers and tourists will be allowed access to Spain with all security measures.

The initial economic impact this coronavirus is having is important for most of our real estate and tourism sector and the relationship with how the pandemic will affect the real estate market and house prices in the north of the Costa Blanca / Marina Alta .

When talking to other real estate agents and following the different economic reports published about our sector every day, all experts agree that the prices of newly built homes are not going to rush down in coastal areas, the current proportion of homes New construction is below demand.

The current supply of plots is scarce and we do not have a large stock of newly built homes, the product that is under construction corresponds to the 2020-2021 plans and the builders have started to send us the information of the promotions for 2021. 2022.

All the builders continued with the planned works, they only stopped working two weeks by order of the government.

Of course, we are currently selling fewer houses because customers cannot come … but this will not translate into a drop or a rise in prices, perhaps second-hand homes that are over 25 – 30 years old are going to go down and only in certain areas, there will be no global drop in prices unlike what happened in 2008.

The prices of all the new constructions we have remain the same as before the pandemic … and are not expected to increase … all the constructors have kept their prices …

I hope this explanation is useful to you, we always talk with reliable data and information …

Properties for Golden Visa Spain

Properties for Golden Visa Spain

Properties for Golden Visa in Spain

Since September 27, 2013, non-EU citizens also have the opportunity to apply for a residence permit in Spain, with which they can move freely in 27 countries of the Schengen area. To do this, they must invest at least 500,000 euros of capital in properties in Spain.

Amounts exceeding EUR 500,000 can be guaranteed through guarantees. The residence permit is also valid for the spouse and minor children, as well as for the parents of the investor.

How does Holidaydream Homes Costa Blanca help you?

Holidaydream Homes Costa Blanca Real Estate sells luxury real estate throughout the Costa Blanca in Moraira, Benissa, Dénia, Jávea, Calpe, Altea, Benidorm, Polop, Finestrat and surroundings.

We advise our clients on:

What real estate investment? – We will look for you and advise you in the process using our knowledge of the area and the best properties for you.

Application process: We collaborate with specialist lawyers during the complete application process for your Spanish gold VISA, while you obtain a Spanish tax number, open a bank account in Spain, transfer funds and others. Everything you will need to complete the purchase process and meet all the needs to request the GOLDEN VISA.

After-sales services: We provide continuous service or help you find reliable suppliers for the services you need.

Holidaydream Homes Costa Blanca, the trusted real estate agency for the purchase of luxury real estate in Spain.
Please feel free to contact us without any obligation.

We are eager to help you write your new chapter in Spain!

Steps to buying a house in Spain

Étapes d’achat d’une maison en Espagne

Steps to buying a house in Spain

Author: Holidaydream Real Estate

 

In Holidaydream real estate / estate agents our aim is to make your purchase as easy and hassle-free as possible.

Please be careful, many of the locals & foreign estate agents in Costa Blanca just want sale and the commissionafter sale they do not want to know anything and they ignore you, leaving you helpless.

“That’s not how we work”.  We offer and we handle all the steps involved in buying a home in Spain.

We live here, we are from here and we are professionals, we work with the best notaries, lawyers … in the area.

All without further expenses for you, we do all the management.

Control documentation homes before starting any procedure of sale

We prepare contracts of sale

We help get the NIE number and open a bank account in Spain

We prepare the public deed at the notary.

We assist and accompany the day of Notaría

We help you rent your home

We recommend the best professionals for the maintenance of your home (Builders, Gardeners, Architects)

What are contracts Arras / Reserve housing?

What are contracts Arras / Reserve housing?

What are contracts Arras / Reserve housing?

What are contracts Arras / Reserve housing?

Holidaydream real estate news

The Arras / Reserve contract is a private contract where the owner and the buyer agreed between through a document subject to the sale of goods or property through the delivery of an amount of money (signal) to ensure that such property / property is Reserve for that same buyer. It is a type of pre-contract.

There are three types of contracts:

CONFIRMATORY ARRAS / RESERVE

The buyer delivers an amount as proof of the conclusion of the contract or guarantee of its execution that will be subtracted after the final price. If one party fails, the other party may claim compliance with the contract or its resolution and compensation for damages.

PENITENTIAL ARRAS / RESERVE

Also called withdrawal. Either party may withdraw from the contract, being the only type of these contracts that allows it. If it is the buyer, you will lose the delivered amount. If it is the seller, then you must return the amount you have received in duplicate.

PENAL ARRES / RESERVE

The compliant party has the option of demanding compliance with the contract, with the corresponding compensation for damages, which must be proven by the party whose expectations have been frustrated, or resolve the contract where the damages are a penalty.

In case of non-compliance, the debtors may have to be returned doubled, but unlike the penitential ones, only if the parties have agreed.
It is very important to have these concepts clear if you sign a lease agreement, both by the seller and the buyer and both must know their rights and obligations.