Up next in 10
Legal Opinion: SPANISH VISAS, tax obligations & buying a property with HIDDEN DEFECTS or TERMITES!
Oct 29, 2024
Another captivating interview on BayRadio as Moody chats to Ignacio and Antonio from Pellicer and Heredia Lawyers!
They delve into the complexities of Spanish visas in 2024, covering everything from property matters to tax obligations. Then they discuss buying property in spain, how things like termites and hidden property defects can impact on you as a buyer and what legal steps you can take if you encounter them. From treatment options to navigating claims against sellers, this discussion sheds light on crucial considerations for property buyers in Spain.
Whether you're considering relocation or already reside in Spain, this interview is a must-watch for staying informed and compliant.
Tune in on the radio, on www.bayradio.fm or watch back the the YouTube channel as Ignacio joins Moody every other tuesday at 10am C.E.T. talking through various legal issues, VISAs and updates to legislation.
Like and Subscribe to our YouTube channel for more insights from BayRadio Spain, and follow us on Social Media:
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www.pellicerheredia.com
Show More Show Less View Video Transcript
0:00
Uh current business and quite the
0:01
collaboration with Billy Porter and Lady
0:02
blackbirds at Bay radio International
0:04
end uh just gone 25 to1 Mainland Spain
0:07
10 UK Andy canaries so ignio in from p p
0:10
and already and Antonio as well uh we've
0:13
talked property alone we'll come to some
0:15
more of that in just a moment here but
0:16
just to reminder about the webinars
0:18
because there isn't one today there was
0:19
two weeks ago um but T Pedro's away
0:22
Pedro goes to Poland yeah that's right
0:24
he's he's going to do a seminar about
0:27
buying a property in Spain oh wow there
0:29
you he's going with
0:30
as well so then I I decided to cancel
0:33
today and probably pass it on to next
0:36
Wednesday uh or if not possible the
0:38
following one sure okay but the previous
0:40
one as always with the webinars was
0:42
recorded it's able to you're able to
0:43
watch it back on the website which
0:45
alakan lawyers. is the easiest bit go to
0:47
the live TV bit and um it was the first
0:50
one of the Year wasn't it relocation to
0:51
Spain for 2024 big subject yeah how did
0:54
it go it went very well uh a lot of
0:56
interest uh I think we have 70 devices
1:01
at least at that time live um then
1:05
obviously some people could watch here
1:07
through the Facebook and uh different
1:10
platforms they could watch it back and
1:12
it was very interesting about all the
1:15
issues that when you decide to relocate
1:17
to Spain you should look into uh not
1:20
only the Visa situation the tax whether
1:23
you buy or rent P of attorney and
1:27
wills inheritance taxes yeah so a lot of
1:31
a lot of things you may think you've
1:32
thought of everything but there's
1:33
probably always going to be something
1:34
else that comes up yeah quite so it was
1:36
good because it was Pedro Michael and
1:38
myself trying to just answer but we were
1:41
inundated with with hundreds of
1:43
questions hundreds of questions and and
1:45
then well obviously when it gets too
1:47
deep and you need specific advice is
1:50
always better to have video conference
1:52
and we have in the system they can get
1:54
in touch with you afterwards do do it
1:56
one-onone I guess I did recommend them
1:58
because you know we were running out of
1:59
time
2:00
to watch them back as you always say uh
2:02
we've got probably a hundred already in
2:04
the website and I think it's a lot of a
2:07
lot of information for you to still have
2:09
in your head before you have the
2:11
appointment or you commit yourself with
2:13
something you know some people are are
2:15
interested to buy in this area but some
2:17
in the South some in the North and the
2:20
laws change and but yes it was a very
2:23
good very popular one we'll just uh and
2:26
we'll just jump on next time about 720
2:29
okay oh yes yes the model 720 the form
2:32
so that's coming up that's that soon
2:33
comes around isn't it yeah do you want
2:35
to mention that now yeah sure I'll send
2:37
them Myer I mean if anybody have a
2:40
resident in Spain so first requirement
2:42
you need to become you need to be a
2:43
resident in Spain then you need to have
2:45
more than 50,000 EUR either in your name
2:48
or joint names abroad and he will be
2:51
divided in three categories one will be
2:53
bank accounts two shares stocks uh
2:58
Investments and three
3:00
properties properties purchase price not
3:04
just the real price now if if if you
3:06
bought it many years ago and it was
3:08
£20,000 then there is no need to declare
3:10
it really yeah that's correct okay you
3:13
if you go into our website you will see
3:15
questions and answer about 720 you need
3:17
to click on what we do taxes and
3:20
720 and uh we've got a lot of videos as
3:23
well I mean another popular question is
3:25
do I need to do every year no unless you
3:29
have can sell one of the products let's
3:32
call it this way selling cancellation of
3:34
products um um
3:38
inheritance okay so that you need to do
3:41
it there been any change in your
3:43
situation yeah or if the increase is
3:45
being more than 20,000 EUR from any
3:48
product I see okay so now the good thing
3:52
after the European commission uh given
3:54
the fines to Spain for for the high
3:56
fines they were giving now we talking
3:59
about
4:00
reasonable fines you know not lodging
4:03
but I always say is worth that you doing
4:05
it now let's say you sold the property
4:08
in in the UK or wherever and you're
4:11
going to just declare the capital gain
4:13
tax now is the right time to report on
4:16
the 720 that is that property is gone
4:19
and then it's very important you just
4:21
have all the numbers in place all the
4:23
expenses of the file as well because the
4:26
more expenses you have on the file the
4:29
less capital gains you end up paying
4:31
right and uh so it's good building it up
4:34
in advance and I think from January to
4:36
March 720 is great for that to update it
4:39
to uh April to June you'll have to
4:42
declare the income that you have your
4:45
tax time corre so it's it's March isn't
4:46
it the deadline for 720 30 30 end of
4:49
March yeah yeah yeah sure but so
4:51
reminder that if you don't have that
4:53
amount of assets abroad you don't need
4:54
to even fill in the no if you have it in
4:56
Spain some people get confused they've
4:58
got it here here it the bank is going to
5:00
declare it anyway to the tax man that
5:01
you are holding this product so so
5:05
that's the bottom line you is like
5:07
disclosing yourself the information to
5:09
the tax
5:10
office yeah people get worried don't
5:14
they think you're not going to be
5:14
immediately taxed on that as soon as you
5:16
declare it no the 720 is not about
5:18
paying taxes it's about declaring and
5:21
whatever effect has in the future that's
5:25
second but once you do the 720 you could
5:27
calculate what impact you're going to
5:29
have now if it's about declaring nothing
5:31
else if you are going to have only
5:33
interest you'll pay the tax on the
5:35
interest but eventually yeah when you do
5:37
your income tax return so it's always
5:39
about self declaration so it's a form
5:42
that you will do yourself and the income
5:45
tax return especially experts or
5:47
International clients they are doing
5:50
themsel like a self declaration they if
5:53
you go to the tax man and say oh I want
5:56
you to do my tax return I do not
5:59
recommend you to do that for two reasons
6:01
one they don't have all the information
6:03
around the world and two a lot of draft
6:06
boror right they're wrong okay because
6:10
because what they're doing doesn't mean
6:12
that is what what they have the
6:15
information they have doesn't
6:17
necessarily matches with the information
6:19
that you have right that you've shown
6:22
yeah so it's very important people some
6:24
say oh no I'm going to go there and
6:25
borrow door one probably the clerk that
6:28
deals with it is not used to it two
6:31
they're not used to International things
6:33
so I've got clients who went through
6:35
this procedure and it was an IM they did
6:36
it wrong and and they said no because
6:38
they're they're not advising they're
6:39
just putting information
6:42
together and um and there's the thing uh
6:46
and some people cannot advise on that so
6:48
it's good they go to proper proper uh
6:51
professionals sure to do it and do tax
6:55
planning in advance and have it all
6:57
everything under control okay so yes
6:59
it's model 720 time now then uh let's
7:02
change things up a little bit here's
7:04
something I never thought I'd say as dur
7:05
an interview let's talk about termites
7:08
you mentioned this during the song there
7:10
that should make an interesting subject
7:11
so did as soon as you mention termites
7:13
to me it reminds me of the old cartoons
7:15
where there's a big old mountain you
7:16
know the sort of ant hill and something
7:19
happens but um a pest menace to in
7:22
properties especially if there's wood
7:24
yeah what's what's happened is there a
7:25
case going on at the moment well uh I
7:28
think Antonio could tell you bit about a
7:30
case he had actually myself I deal with
7:33
one and there is a way to have treatment
7:37
to them okay and avoid issues but
7:40
Antonio could could tell what what
7:42
probably happens if you find out like
7:44
hidden defects going back to the come
7:47
full cirle yeah that's right is is goes
7:50
back all the way back to the hidden
7:51
defects what let's see you buy a
7:54
property you've checked it maybe
7:56
yourself maybe with an expert yes for
7:58
you know structural damage the classic
8:00
things you've checked the utilities you
8:02
buy the property the property is
8:03
beautiful it has wooden beams and the
8:06
whole thing and then you realize after a
8:08
few days that there's a small powder
8:12
from yeah like a um saw dust on the on
8:16
the bottom of the or or below these
8:18
Gooden frames or the Gooden beams then
8:21
what you've got are termites and there's
8:23
signs that you can notice but maybe the
8:25
seller has been you know a little bit
8:27
sketchy Dutchy about it and has clean
8:29
thoroughly before every visit so you've
8:31
never noticed the signs because if you
8:34
don't know it looks like if you don't
8:35
know what you're looking for or if has
8:36
been properly cleaned then maybe you
8:39
never know and the terit has have a
8:41
double problem they are a classic hidden
8:44
defect obviously but it is something
8:46
that's hidden from sight and you cannot
8:48
expect the regular or the average person
8:51
to notice them if again the property has
8:53
been cleaned before the visits and is as
8:57
I said it has two two effects one you've
8:59
got to kill them don't you so there's a
9:01
treatment that you can make which is not
9:04
extremely expensive although I think it
9:06
rounds on a, a couple thousand Euros and
9:09
they inject like a substance into the
9:10
wooden beams or Gooden Parts in order to
9:12
kill them you know prevent them from
9:14
spreading so that's the one but who must
9:17
pay for that either the buyer or the
9:19
seller well obviously it stands to Ron
9:22
if you if you it was a pre-existing
9:24
condition of the house and it has been
9:25
hidden from you the seller should be the
9:28
one to pay for that for the treatment
9:29
you can pay it in advance because
9:31
probably you are in a hurry to kill them
9:33
before they extend further but then you
9:34
have to go back through your solicitor
9:36
and make a claim against the seller with
9:38
the appropriate proof that of the
9:41
existence of the termites to get the
9:43
money back and the second problem is is
9:45
the damaged because obviously the
9:48
termites that are being you know running
9:50
wild ins inside the wooden parts of a
9:53
house can at the very least compromise a
9:57
door or the frame of a a good frame for
9:59
a door but worst case the stability of
10:02
the house right if they really get into
10:04
the Gooden beams and they are supporting
10:06
STS which is related to cause that a
10:10
case that that I had this year in which
10:12
there was a a very big case of termites
10:15
the seller was very very very keen on
10:19
getting their sail and as quickly as
10:21
possible particularly during winter and
10:23
later we found out that it turns out
10:25
that termites are only active on the
10:28
worm mon
10:29
and yeah and they they they do like the
10:32
like the birs and they H it they they
10:35
sleep during winter so they're not as
10:37
active so you can not really see that
10:39
much but you know the the sell was was
10:42
signed on the first day of a spring I'm
10:44
sure the seller was very happy until we
10:46
found out and obviously make a claim
10:47
against him sure so it would I mean you
10:50
know Theory it would be black and white
10:52
C it's their fault but it's probably the
10:54
sort of thing that would go to courn
10:55
would it oh yeah is is the sort of thing
10:57
that particularly if the Sal hit it in
11:00
purpose right if if the seller if it's
11:02
the beginning of a termite case and
11:03
maybe the seller is not aware then you
11:06
are more likely to get first a cheap
11:08
solution maybe just injections and
11:10
that's it uh but if they're selling new
11:12
and and and keep it hidden or then yeah
11:15
they will probably want to fight back so
11:18
your pre-trial motions your prease steps
11:21
in order to avoid going to court and
11:23
trying to settle the case in the most
11:25
fair or favorable way possible are key
11:28
is not always once you have a problem St
11:31
going to court we I think here in P well
11:34
inia will confirm obviously but I don't
11:36
think here in pidea that's our first
11:38
step our first step is to assess the
11:40
claim to see if effectively there's a
11:43
case and then reach out to the other
11:45
party to try and reach an amicable
11:48
reasonable agreement that is quick is
11:51
fast and again you know f for all the
11:54
parties involved settle out the court
11:55
yeah that's right before just you know
11:57
um er going gangho with with the Gans
12:02
and shooting to kill sure it's not the
12:04
first step presumably it's one of those
12:05
things where if it's I don't know if
12:07
insurance comes into it but it's one of
12:08
those where you'd need to before you get
12:10
the treatment done you'd need to show
12:11
them the evidence as it is without you
12:14
know beforehand yes that's right you'll
12:16
need at least a technical report of the
12:18
house from Ant before you call the guy
12:20
to kill them off that's right that
12:22
states that there is there is termites
12:24
and when they started or at least how
12:26
long have they been under property
12:28
because if the toat started after you
12:31
bought it you know or it cannot be
12:33
proven that it started before then
12:34
obviously it's the buyer problem yes
12:37
that's why there's a limit on hidden
12:38
defects which is six months in since the
12:40
moment of the purchase if six months
12:43
have passed and your opportunity to make
12:44
a claim against the seller has lapsed so
12:47
it's key obviously obviously checking
12:49
always before buying and you know doing
12:51
with a surveyor if require or at least
12:53
do proper diligence you personally but
12:55
even after you buy you have to really go
12:58
to the prop property and check it really
13:00
thoroughly because any claims that you
13:02
have against the seller they have an
13:04
expiration date R of course yeah yeah
13:06
sure and this come this comes down to
13:08
again that you how are you expected to
13:09
know all this if you're not an
13:11
experienced surveyor you know you you
13:13
don't necessarily know to look out for a
13:15
little mound of uh of swust where
13:17
they've been borrowing away so it maybe
13:19
something you'd Miss even if even even
13:21
if they hadn't cleaned it up yeah
13:22
sometimes even the surveyor might even
13:25
notice uh and then he will pull the
13:27
alarm system play and say you go and get
13:31
a company to to kill them
13:33
all but sometimes the a probably will
13:36
not even realize as Antonio say
13:38
everything is clean and you never know
13:39
because they're
13:40
hidden um but as I say it's good as
13:46
Antonio said it's good to look around
13:48
very thorough and and look into every
13:50
single thing if you cannot you can hire
13:53
professionals if we're talking about a
13:55
lot of money then it's worth bringing
13:57
companies for example the surveyor what
13:59
extent of the surveyor report is going
14:01
to be done then he will put down all the
14:04
items he will check and whatever he
14:07
missing you might say okay well how
14:09
about this how about that obviously you
14:12
could discuss it with your lawyer uh
14:14
what else can I look and and they do
14:16
with us they say okay what about and I
14:18
said no don't insect the surveyor to
14:20
check the wiring uh the electric you
14:22
need to send an electrician oh really
14:25
because he doesn't know he doesn't know
14:27
I mean he's an Archer
14:29
he could know a little bit more than you
14:31
and me probably obviously but not to the
14:34
extent that you want I mean sometimes is
14:37
an all building and the wires are in
14:40
unless you do a test and do a hole in
14:44
the wall which you will not notice no a
14:47
lot of these places that come out they
14:49
do need rewiring definitely it's been
14:51
long enough but sometimes uh mudy you
14:53
expect that I mean as I was telling to
14:55
telling you 1890 property you expect
14:59
everything old yeah sure you know I
15:01
didn't need a because I knew everything
15:03
is is 1890s yeah but but sometimes when
15:07
it's relatively um well when it's a new
15:10
property you can still have issues as
15:12
well so but but there are guarantees
15:14
with the architect with the archage
15:15
engineer with the developer Etc but when
15:18
they are
15:19
resale I think one simple thing we need
15:21
to look into is how old is is
15:24
property and from there then you can
15:26
start making questions what about the
15:28
plumbing what about the and the
15:31
electric but it's hard it's hard to know
15:34
because you're buying a resell property
15:36
and then if it's 50 years it's 50 years
15:39
I mean yeah you know but probably I
15:42
might recommend depending on the amount
15:44
of money they spending or they're
15:46
accepting these possible hidden defects
15:49
to send their own people of their
15:51
confidence for example the Plummer just
15:53
send the plumber just send but digging
15:57
is difficult that's what they all say
15:59
every time we send a Sur there say well
16:01
I need to dig and you don't want destroy
16:03
property oh I see yeah yeah so the
16:05
foundations you know and I had another
16:08
case a big big thing it was a million
16:11
and a half property and they said that
16:14
the
16:15
plumbing um was not very good was not
16:18
very good and they have to remove all
16:20
that now he had the surveyor report they
16:24
did the but how on Earth you going to
16:27
check behind all the tiles yeah of
16:31
course so there is certain level of
16:35
uncertainty of quality of products or
16:38
how old there are yeah generally I think
16:41
yeah people that would go and inspector
16:42
property bathroom wise they just think
16:44
well I'm changing that oene colored
16:46
suite for a start get rid of that bath
16:48
um what about location does that matter
16:50
because if it's out in the camp or
16:51
somewhere maybe more issues to deal with
16:53
more Critters and damp conditions and
16:55
that sort of thing is there anything
16:56
different there yes of course and also
16:58
the rules for the buildings are not the
17:01
same but what ignio what igno was saying
17:04
is when you are buying a property if it
17:06
is the property is a brand new H Off
17:08
plan new build property then your the
17:10
standard that you can really request
17:12
from that property is rather High you
17:14
are buying something that's brand new so
17:15
you expect not not only everything
17:17
working but also to be in mint or near
17:20
mint condition yeah so everything has to
17:22
work perfectly because again it's brand
17:23
new so no Plum being required to be
17:25
changed and obviously no termites and
17:27
nothing like that has to be well as
17:29
close to perfect as possible but if you
17:31
again if you're buying a resale if
17:33
depends on the age of the of the
17:35
property how big the property is on the
17:36
price then you have to lower your
17:39
standard requ to be realistic about it
17:41
yes that's right you have to be
17:42
realistic because we're not talking
17:43
about some teror unware which may happen
17:46
you have to to Really make the
17:48
difference or know the difference
17:49
between what's a hidden defect something
17:51
that's surprising about the property
17:53
that does lower the value that the
17:55
property has and that it may have
17:57
prevented you from either buying it or
18:00
paying the price that the property was
18:02
offer for if you knew about it that's
18:05
literally the definition of heat and
18:06
defect that against like well yes the
18:10
property is 60 70 years old so probably
18:12
the plumbing is not you know currently
18:15
and again in the what you were saying
18:17
about Inland or country properties that
18:20
H that happens again but the main issue
18:23
with the Inland properties are the
18:24
septic tanks particularly that's a whole
18:27
thing in itself so when you are buying a
18:29
property in the compo probably it's not
18:31
connected to the main sech system of the
18:33
city well come on it's in the Campo
18:36
probably miles away from a big gas
18:38
cylinder there
18:39
and so it was very common in Spain to
18:42
just dig a hole and put uh uh probably
18:45
with a little bit of like uh a dip hole
18:48
in which they could pour all the what
18:49
they call the black Waters right yeah so
18:52
septic Waters in it but if you are
18:55
buying a a property in the camp and you
18:57
request a a new new habitation
18:59
certificate or a second occupation
19:01
license which are requested for getting
19:04
tourist license or for getting the new
19:07
utilities and water electricity change
19:09
to your name then in most towns in Alik
19:12
not every town so this is a town Bytown
19:14
basis you will have to have an updated
19:17
septic tank and that requires one of the
19:19
following two either you got some of
19:22
those that are closed off Seal septic
19:24
tanks that you have to empty once a year
19:27
or once every two years so you know like
19:29
the machine comes in yeah yeah right and
19:31
they change it and cleans it and such or
19:33
you get something that's a little bit
19:35
difficult to say in English I think it's
19:36
called oxidization septic tank and what
19:39
they do this is a machine it is right
19:41
under the land and you put the black
19:43
waters on one side it do process them
19:46
let's not get into details and then it
19:48
drops a little bit at the end which is
19:50
green or you know close to to
19:52
eco-friendly as possible I see so
19:55
there's ways of doing yeah so but I
19:57
think um anything sort of that you add
19:59
these days needs to be sort of
20:01
ecofriendly doesn't it so along those
20:03
lines well the septic tank itself the
20:04
sealed one is eco-friendly according to
20:06
the javat technician they are the
20:08
preferred method of choice for them you
20:11
have to clean it every year every two
20:12
years but obviously it's the most
20:13
ecofriendly way because nothing is
20:15
wasted that waste that they take with
20:17
the with the track with the L you take
20:20
it to a proc to a to a plant in which
20:22
they process it but the thing about
20:23
these septic tanks is if you take a look
20:26
at the property how are you going to
20:29
know what kind of septic tank that it
20:31
has or if it even has one because maybe
20:34
the current owner doesn't even know so
20:38
yeah why maybe they bought it like 20
20:40
years ago and you know they've been
20:41
using the facilities and had even
20:43
thought about it that's right nothing
20:45
has pop over any part of the land and
20:47
they don't know anything about it never
20:49
clean it they just don't know sure so
20:51
that's another thing for which you
20:53
probably need a surveyor it's a classic
20:56
problem in a in a country property that
20:58
you that you are buying that not only
21:00
you know it's not exactly hidden defect
21:02
but definitely a deficiency that the
21:05
property has but can also become a
21:07
problem because regulations current
21:09
regulations require you to have a a
21:12
waste system that's up to date with the
21:14
current requirements yes and probably
21:16
nothing built before 2015 or 2010 meets
21:19
those criteria no right but we'll be
21:22
able on turn to find it out with
21:23
applying with the habitation and license
21:25
yes and then opens the kind of worms
21:28
again and say oh uh they're requesting
21:30
these things and these thing let's check
21:33
and now here comes the issue about
21:34
retaining money who's paying that
21:36
obviously that's important to do before
21:39
so you retain the money from the sale so
21:42
how much is going to cost the whole
21:43
thing I see and then 5,000 okay well out
21:46
of the 300 I retain 5,000 and then we're
21:49
going to put it in place properly to get
21:50
the habitation license Etc there are a
21:53
lot of things on buying and property in
21:54
Spain that you could look into you thing
21:57
we've discovered
21:59
today for just about everything from
22:01
termites to septic tanks and all sorts
22:03
the best best bet is to call the guy
22:05
call or call call your lawyer as well of
22:07
course we didn't even get into the plays
22:10
that will be for a different day Moody
22:12
about the uh I think you call it the
22:14
roots of a tree the pine trees har as
22:17
well has got a lot and getting all the
22:19
roots into your swimming pool and then
22:20
having a case about that but I will
22:22
leave that for next next interview so
22:24
everybody is exciting about the case
22:26
give us something to think about and
22:27
look forward as you say so no webinar
22:29
later but we'll get those back on track
22:30
maybe next week or the week after but
22:32
we'll certainly see um one either of you
22:34
sure in a fortnite's time yeah okay
22:36
thanks so much for your time as always
22:37
we know you're busy I'll let you get on
22:38
to I'm sure there's appointments and all
22:40
sorts to be
22:41
hadio and Antonio from pay radio that
22:44
will do us with this for today then doy
22:46
Mack on the way next here and then Cal
22:48
he's back later on this afternoon he's
22:49
back this
22:51
week you're listening to Bay radio
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