1. Notary fees (drawing up and notarising the "escritura" (title deed)
2. 7% IVA purchase tax (equivalent of VAT) for homes and apartments (16% for individual land purchases)
3. "Registro" – registering the deed at the Property Registry
4. Electricity hook-up
5. Water hook-up
6. Gas hook-up (if necessary)
7. Legal fees (if necessary)
8. Community fees

Our Apartments are sold with the client paying half of the sales price during the course of construction (the other half being paid to us by a mortgage that has already been granted to us with a local bank.

When the Apartments are completed and the client wishes to take title he can either pay off the bank´s half and thereby have clear ownership of the property OR continue the mortgage with the bank (which is generally for 15 years with the option to extend or cancel it at any time.)

1. The Notario – This is the man who acts on behalf of the Government to make sure that:

1. The seller is who he says he is; and
2. That the Title is clear and if not the Escritura (the written document) will so say what status and what rates of interest are owed.

2. VAT (IVA in Spanish) – Equals 6% of the Escritura´s declared value.

Registering your Title Deed with the Registrar of Deeds in Vera should cost approximately 45.000 Ptas. That price is for a 2 Bedroom Apartment of approximately 75 M2 in size. Naturally a larger Apartment or House would cost more

About 30.000 Ptas. for the standard contract of 3.500 Watts. You pay bi-monthly fees based upon consumption and the amount of watts you have contracted.

Contract is usually 29.215 Ptas and depends on consumption

If you cook with gas the bottles cost 1115 Ptas for a refill. The contract per bottle costs 5000 Ptas.

Lawyer's usually charge about £700 (185.000 Ptas) for over looking the legal paperwork on purchasing a typical two-bedroom apartment. "Gestors" often much less for the same work.

In the past, all the complexes that I have built, I have also owned a substantial amount of Apartments in them for my own rentals, consequently I too want to keep phase and charges for Community ownership as low as possible.

II. YOUR obligations toward THE COMMUNITY of owners.

By law the Community must meet once a year and elect a President, Administrator and a Secretary to care for the daily running and maintenance of the Community. The date for that meeting is inserted into the title deed. If you have a good developer he usually will manage the entire project keeping maintenance costs as low as possible.

A Cost of Electricity and Water depends on consumption. 
Usually a 2 Bedroom Apartment is 4.800 Ptas. for Electricity and 3.800 Ptas. for Water. Rubbish collection for Apartments is approximately 1.500 Ptas. per month.

B Land Taxes on the property ("Contribucion Urbana", or "I.B.I.") for a 
2 Bedroom House would be approximately 15.000 Ptas. per year.

3. EARNING A PROFIT ON YOUR APARTMENT IN SPAIN

Our Company does not take a laissez faire attitude towards renting your property out. We expect our clients to earn a good income on their substantial investment. We do not wait for someone to walk in the front door and plead with us to rent them an apartment. We are aggressively marketing on the Internet to various "activity clubs" to entice them to come to Spain and RENT. Our Company will be soliciting directly to Golf Clubs, Air & Hang Gliding Clubs, Scuba Diving Clubs (3 of Andalucia's 19 Blue Flag Beaches are here in Mojacar for snorkelling and underwater activities), Windsurfing and Sailing Clubs, Golf, Tennis and English Lawn Bowling Clubs, etc.

Let's face it, if we rent out your Apartment for as low as £100 a week in mid-February, you still get £80 profit. If we can bring in the off season visitor you very well could pay your entire community fees for the year. If you want to rent even more you could help yourself by putting up adverts in your home Supermarkets, news agents etc.

The times have changed. Clients coming on holiday expect much more than to wade in the sea and drink sangria. They must be constantly looked after. Our Company will be charging a 20% commission for rentals. This holds multifarious advantages. Because we are in the construction industry, we maintain a full staff of Electricians, Plumbers, Carpenters and cleaning people. Should something go wrong-- we are there. Furthermore, we can take additional care of them to facilitate an enjoyable stay. Our holiday packages can include: airport pickups, car rentals, food packages, and arranging special side trips to other interesting localities.

The Spanish banks are offering mortgage facilities to our clients for 50% of the sales price. While you only paid half the purchase price you then are given time to pay the rest in a mortgage usually over a ten to fifteen year period (you can cancel whenever you want).

Here is how it works:

The average client owes approx. 9.000 Ptas. for every million Pesetas borrowed. Therefore if he bought his place for 10.000.000 million and borrowed 5.000.000 Ptas. his PAY BACK TO THE BANK would be approx. 45.000 Ptas. per month, or 540.000 Ptas. per year.

HOWEVER if the client allowed us to rent his apartment and he received back just 55.000 Ptas clear for the High period of eight weeks in July-August, and one each at Christmas and Easter he will have reaped 550.000 Ptas for ten weeks of rentals! Still leaving the owner some 42 weeks of use or further rentals!