3 Tips for buying a villa in Javea
So, how do you buy a villa in Javea and what do you need to know?
Tip 1: Work closely with your agent to find the villa you want to buy
Having constant contact with your sales agent means you’re the first one they’ll call when a good villa for sale comes on the market.
As your agent goes about their real estate job on a daily basis, and see new villas for sale in and around Javea – you’ll be at the top of their hit list.
If you show real interest in working together, they will too.
Tip 2: Get a lawyer and mortgage approval
Get a lawyer, it will give you peace of mind. They will sort out necessary documents you’ll need for buying the villa of your dreams.
Whether you need a loan from the bank or not, don’t chance losing the villa you want to buy because you didn’t get mortgage approval before you start house hunting.
It takes time for Spanish banks to approve you.
Tip 3: Make an offer, pay a reservation & know purchase costs
Once you’ve found your dream villa, don’t hang about – make an offer and start negotiating.
If your offer is accepted, lay down a reservation (usually 5,000 euros for property under 500,000 euros) because more often than not, other agents will have it for sale too.
After the property searches come back ok, you’ll sign a pre-sales contract paying the outstanding proportion of the 10% deposit.
Eg. If you’re buying a villa for 300,000 euros, you pay a 5,000 euros holding reservation first.
The 10% deposit is 30,000 less the 5,000 euros you’ve already paid so, on signing contracts you only pay 25,000 euros.
Re-sale purchase costs are approximately 12% on top of the agreed purchase price. To cover 10% stamp duty, Notary and Registry fees.
New build purchase costs are 21% IVA tax.
What are the running costs of a villa?
Yay! You’ve found a villa to buy.
You know how much it will cost to buy but do you know how much it will cost to keep?
It’s a good idea to make calculations of how much regular and periodic bills for your new villa will be, taking into account obvious bills like electric and water.
IRNR Non-resident income tax (Impuesto sobre la Renta de No Residentes)
A yearly tax applied to owners of Spanish property, even if they a non tax residents (not official residents of Spain).
Assuming no income is made from the property or is made on Spanish territory. Tax is calculated on the value of your villa at 24,75% of a given percentage of the cadastral value, between 1-2% depending on when the value was established.
For example: If the cadastral value of your villa is 200,000 euros, the IRNR would be 24,75% of 1% = 495 euros.
The exact value depends on your villa’s cadastral value which is shown on a rates (IBI) bill from Javea town hall or Suma in Benitachell and other areas.
IRPF Personal Income Tax (Impuesto sobre la Renta de Personas Físicas)
If you are a Spanish tax resident, in this case you have to pay the IRPF and file a tax return like a Spanish citizen, based on your annual income.
IBI tax for immovable real estate assets (Impuesto Sobre Bienes Inmuebles)
Resident or non-resident of Spain, everybody has to pay this property tax once a year, and in Javea it’s paid to the town hall.
It’s a yearly rates or council tax, calculated on the cadastral value which is usually below market value, and means you’ll pay in the region of 600-2500 euros per year for a villa and anywhere from 250-1000 euros for an apartment or townhouse belonging to a community.
Additional expenses for owning a villa
Rubbish collection (Recogida de residuos sólidos)
Each property owner, whether you own a villa or an apartment, has to pay a contribution towards rubbish collection.
This is 125 euros per year in Javea.
There are payment schemes which can give you a small discount.
Don’t forget to organise and calculate home insurance. Make sure it’s for home and contents; for any eventuality.
Spanish home insurance will be in the region of 180-400 euros a year, depending on the size and value of the property and its contents.
Call +34 966 461 643 now to compare your house insurance quote
Residents association fee (Quota de asociación de propietarios)
This fee could be a one off payment or yearly and is not applicable on all urbanisations.
Community charges (Gastos de comunidad)
Is paid for maintaining shared, communal spaces, pools, gardens, gyms, tennis courts etc.
A budget, voted each year during a residents meeting which you have the right to be a part of as a property owner, is divided between all home owners. Calculate anywhere between 60-150 euros a month.
Property administrator (Gestor)
If all the above is too much, whether you’re here full time or not, you can employ somebody to do all the necessary paperwork for you. Charged at around 100-150 euros a year.
A property manager will be your eyes and ears whilst you’re not here, and if you are here; they’ll keep your home clean, well maintained and in fully functioning order.