<< Welcome to Paloma Properties S.L. >>

Running costs do vary according to the area you live in. Below is an example of typical annual charges for a two bedroom house in the Alicante area.

Community charge House & contents insurance Town hall rates Local property tax Water/refuse collection Electricity Legal/fiscal representation	£ 200 £ 150 £ 150 £ 200 £ 150 £ 200 £ 100

Total per annun	£ 1,150

The above is intended as a guideline based on average running costs. For example a property may or may not be subject to community charges ie. in the upkeep of green areas in an urbanisation or maintenance of a swimming pool and communal street lighting.
The electricity and water bills are paid every two months and can be paid by direct debit from a spanish bank account.
The local property tax is the main tax for property owners in Spain and is paid yearly to the town hall.
The town hall rates will vary from town to town.
House and Contents insurance will vary according to the size and value of the property. A legal/fiscal representative maybe your spanish lawer who will pay your bills and taxes on your behalf, if you are not in Spain.

Spanish Bank Account

A part of our service in Spain will be introduce you to a local bank once you have signed your purchase contract. You will be required to transfer monies from the UK into your Spanish bank account in order to complete the purchase. To open a bank account you will need two forms of identification (current passport and driving licence will be sufficient). A payment should be made upon opening the account, please be aware that funds being sent from overseas can take more than 5 working days.

Applying for a spanish mortgage

When applying for a Spanish mortgage, the bank will normally ask to see proof of income. For an employed person: 2xP60’s, 6 months wage slips and two months bank statements. Income may be measured on a joint income for married couples so, ensure that you also have details of your spouses income if he/she is working. Proof of identity will also be required again, a passport and driving license will be fine.

If you are self employed, then the bank will normally accept two years audited accounts as proof of income, plus yout last tax statement. Our clients may be able to apply for a mortgage up to 50% of the property’s valuation. Generally the upper age limit is 70 years of age and repayment periods are usually between 5 to 20 years. Full details are available whilst you are over in Spain. As a guideline, mortgage interest rates in Spain are currently between 4 to 5%.