Financial advice

Mortgages and financial advice ...

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If you decide to buy or sell a house you will be confronted with a number of financial matters. For instance the time of sale can determine the percentage of your tax payments, or perhaps you need a mortgage when buying. Maybe you need to exchange money because the purchase or sale is made in a currency other than that in your bank account. Below we give you some business information that may help you follow the proper steps when buying or selling your home.

 


Tax matters ...

If you decide to sell your home or buy one, you should discuss your situation with a local tax advisor. They can give you insight into what you have to pay, and where you can possibly save money by arranging your sale or purchase in a different manner. With sales and purchase there is sometimes the possibility to split the real estate on which a high transfer tax applies, and the movable goods that you have included in the buying price. Sometimes it may be wise to put the property in a company, for which a different tax regime applies. On all these issues, a tax consultant can provide information. Once he knows your situation, he may inform you correctly about the best way forward. We advise you never to buy or sell without having consulted a tax consultant that knows the local situation; only then you know what you really have to pay or will receive net when you sell. Customers who work with our organization can make an appointment with our tax attorney who can give you a prior quotation of the cost of his services. The experience of customers indicates that they think they saved more money because of the knowledge of the tax consultants than if they would have proceeded without using their services.

 


Mortgage ...

Today, the banks are open again for providing a mortgage when purchasing a home. If you are not a resident, and are not permanently living in the country, you can usually receive a mortgage of up to 70% of the value of the property on condition that the monthly amount to be paid does not exceed 40% of your net income, after deduction of your other obligations. If you can comply with these rules you are eligible for a mortgage with normal interest rates and terms. Of course there are exceptions. If you need higher funding, you will soon find out that the interest rates and terms will often be much higher as well. Our experience shows that it is best to talk with a local bank since usually they provide the best conditions and know the market best. Because of the large number of real estate transactions, our company has excellent contacts with local banks and we will advise you which bank can help you best when you want a mortgage.

 


Foreign exchange ...

If you pay or receive money in a currency other than that used in your country, you may need to exchange money. We advise you never to do this directly from or to your checking account without discussing the rate first. If the currency that enters or is transferred from your account is not equal to the currency of your account itself, your bank changes this automatically for you; but certainly not at the best rate. By critically looking around you can save a lot of money. Talk to a company that specializes in currency exchange and ask them a noncommittal quotation of the exchange rate. Our organization has good experience with a number of recognized foreign exchange offices; ask at least two companies to give you a quotation so you know exactly how much you will need to receive or pay in your own currency. Make sure that you always go into business with a reliable and reputable company. Ask our consultant which reliable companies currently offers the best price and conditions.

 


Your foreign bank account ...

If you buy a home in Spain you need a local bank account. We advise you to pay attention when opening a bank account. The fees for bank transactions such as a transfer can be quite different compared to the fees in your own country. Some banks offer foreign account holders very attractive terms, sometimes even a cash back percentage when you pay your bill for water, electricity etc. Cash withdrawals abroad can be very expensive; cases of 10% commission for a small withdrawal from an ATM are not unheard of. If you want to withdraw cash money it is always wise to do this at the bank where you have your account.

 


General issues that deserve attention ...

If you buy a house or property abroad you will have to deal with Internet, telephone connections and other monthly recurring subscriptions. We advise you to ask whether someone has good or bad experiences in your area with the company you intend to sign up with before you sign a contract, regardless of which contract it is. What do you expect from this contract or service, for example do you need this daily or monthly, or maybe only a few months a year? Check the time required to terminate the contract. Especially for mobile phone subscriptions you hear bad to bizarre experiences of people with regards to the termination of a contract; connecting happens in five minutes, but when you have to close or change the contract it can sometimes lead to very annoying situations. You can walk into any phone shop and sign a contract, but try to enter that same shop to terminate the contract and you will soon find out that it is often a time-consuming annoyance. Read the fine print and as important, listen to the experience of people who live there for years, and who can tell you what to do best. Our consultants can often give you some useful tips. The same applies if you buy a car, motorcycle, scooter or boat.

 


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