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Serneholt Estate, one of the leading names in the Costa del Sol real estate industry, is thrilled to announce further expansion with the opening of its latest franchise in Mallorca. This latest development highlights Serneholt Estate’s dedication to bringing exceptional real estate services across Spain.

The new franchise in Mallorca will be led by Jani and Susanne, a dynamic duo with extensive business experience and a deep passion for real estate. The couple relocated from Sweden to Mallorca in the autumn of 2016 with their two young children and have since thrown themselves in the local community, gaining invaluable insights into the local culture and community.

Mallorca’s diverse landscape and excellent connectivity to Europe made it the ideal choice for Jani and Susanne. “We love that the island is so diverse and hosts a fascinating mix of people,” said Jani. The family enjoys hiking in the mountains of Fornalutx and indulging in local delicacies, such as Pa amb Oli, in picturesque village squares.

Before partnering with Serneholt Estate, Jani and Susanne accumulated extensive experience in the real estate sector and developed a deep understanding of the Mallorca property market. Their decision to join Serneholt Estate was driven by the company’s clear goals, strong brand reputation, and exceptional leadership.

“We had very clear criteria about what we wanted, and Serneholt Estate fulfilled them all,” Susanne explained. “Right from the outset, we felt a deep trust in Fredrik and Fia. They listened very carefully and understood what we wanted. Together, we have come up with a strong plan on how to make Serneholt Estate succeed in Mallorca.”

Initially, the franchise will consist of Jani, Susanne, and two additional brokers, with plans to expand as demand increases. Covering the entire island, the team is committed to helping clients find their dream homes in Mallorca.

In the short term, Jani and Susanne aim to establish a robust presence with their office and team of brokers. Long-term goals include opening multiple offices across the island to better serve the community. “With approximately 15,000 properties sold in Mallorca in 2023, there is ample opportunity for growth and success,” asserts Jani.

About Serneholt Estate

Serneholt Estate is a young, dynamic real estate company with a mission to lead and innovate in the property market. With a strong brand and a team of talented professionals, Serneholt Estate is dedicated to providing exceptional service and achieving outstanding results for their clients.

This new chapter for Serneholt Estate promises to bring exceptional real estate services to Mallorca, offering clients the opportunity to find their dream homes in one of Europe’s most desirable locations.

For more information about Serneholt Estate and their new real estate agent in Mallorca , please visit www.serneholtestate.com or contact:

The Costa del Sol, Spain’s sun-drenched southern coastline, is renowned for its golden beaches, luxurious resorts, and vibrant nightlife. Unless you are a local though, you may not know that one of the area’s most captivating attractions is the Feria season, a time when towns and cities across the region come alive with colour, music, dance, and tradition. Feria, or fair, is a quintessentially Spanish celebration that offers a deep dive into the country’s rich cultural heritage. Here’s how you can indulge yourself in the festive atmosphere of the Feria season on the Costa del Sol.

A Tradition Rooted in History

Feria dates back to the Middle Ages when these fairs were primarily agricultural and livestock markets. Over time, they have evolved into grand cultural festivals that reflect the unique identity of each town. The Feria season typically begins in April with the famous Feria de Abril in Seville and continues through the summer months, bringing festivity along the Costa del Sol.

Malaga Feria: The Jewel of the Season

One of the most famous Ferias on the Costa del Sol is the Málaga Feria, held in August. This week-long event is a spectacular showcase of Andalucian culture. The festivities kick off with a grand fireworks display, followed by an opening speech known as the “Pregón.” The city’s streets are adorned with colourful lanterns, and the atmosphere is electric with the sounds of traditional music and laughter.

During the day, the Feria takes place in the city centre, where locals and tourists alike enjoy horse parades, flamenco performances, and tapas tasting. The evening festivities move to the fairground, or “Real de la Feria,” where attractions include amusement rides, games, and casetas (small tent-like structures) that host lively parties featuring music, dancing, and traditional cuisine.

Feria de Marbella: Glamour and Tradition

Marbella, known for its luxurious lifestyle, also hosts a vibrant Feria in June, the Feria de San Bernabé. This event blends Marbella’s glamorous appeal with deep-rooted traditions. The week-long celebration includes a pilgrimage, or “Romería,” to the city’s patron saint, followed by concerts, and street performances. The evenings come alive at the fairground with live music, dancing, and an array of food stalls offering delectable Spanish dishes.

Smaller Ferias: Seek out Local Festivals on the Costa del Sol

While the larger Ferias in Málaga and Marbella draw significant attention, the smaller towns along the Costa del Sol also host charming Ferias worth exploring. Estepona, Fuengirola, and Torremolinos, for instance, each offer unique interpretations of this festive tradition. These smaller Ferias provide an intimate glimpse into local customs and may be less crowded, allowing for a more relaxed and personal experience.

Experiencing the Feria: Tips for Visitors

To fully immerse yourself in the Feria experience, consider the following tips:

1. Dress the Part: Many locals dress in traditional attire, with women donning flamenco dresses and men wearing short jackets and trousers. While not mandatory, embracing the local dress code is fun and immersive.
2. Learn Some Flamenco: Flamenco is at the heart of Feria celebrations. Taking a beginner’s flamenco class can help you appreciate the performances and even join in the dancing.
3. Try the Local Cuisine: Ferias are a gastronomic delight. Sample traditional dishes such as paella, tapas, churros with chocolate, and local wines and sherries.
4. Join the Parades: Parades and processions are integral to Ferias. Participate in or watch these colourful spectacles to feel the community spirit.
5. Pace Yourself: Ferias are known for their intensity and long hours, often stretching from midday to the early hours of the morning. Take breaks and stay hydrated to enjoy the festivities to the fullest.

Feria season on the Costa del Sol is a magical time that offers a unique opportunity to immerse yourself in Spanish culture. Whether you’re revelling in the grandeur of the Málaga Feria or enjoying the intimate charm of a smaller town’s celebration, the spirit of Feria is infectious. Embrace the music, dance, food, and traditions of Andalusia, and create unforgettable memories during this vibrant season.

Whether you’re looking to buy a home and become a local, seeking a holiday property or to make a sound investment, our insider knowledge will help you find just the right residence for your needs.

Benalmádena, located on the Costa del Sol in southern Spain, is an exceptional place to buy and invest in property. With its stunning Mediterranean coastline, intriguing cultural heritage, and laid-back lifestyle, Benalmádena has something to offer everyone.

From its picturesque beaches and bustling marina to its charming old town and modern amenities, this appealing coastal resort is attracting investors from around the globe.

Where to Buy in Benalmádena

Benalmádena is divided into three main areas: Benalmádena Costa, Arroyo de la Miel, and Benalmádena Pueblo. Each area has its own unique charm:

• Benalmádena Costa: Known for its beautiful beaches, vibrant nightlife, and the Puerto Marina. The marina boasts various restaurants, bars, shops, and luxury yachts, making it a hub of activity day and night.
• Arroyo de la Miel: This bustling town centre offers a more local atmosphere with numerous shops, cafes, and restaurants. It’s also the starting point for the Benalmádena cable car, which provides breathtaking views of the coast.
• Benalmádena Pueblo: The old town, with its narrow streets, whitewashed houses, and historic buildings, offers a glimpse into traditional Andalucían life. The Pueblo is perched on a hillside, providing stunning views of the Mediterranean Sea.

Higuerón: A Premium Development

One of the most exciting developments in Benalmádena is the Higuerón Resort. This upscale community offers a range of luxury properties, from apartments and penthouses to villas, all designed with contemporary style and high-quality finishes. The resort is renowned for its world-class amenities, including multiple swimming pools, a state-of-the-art fitness centre, a spa, and fine dining options. It also features tennis and paddle courts, making it a haven for sports enthusiasts.

The Higuerón Resort is perfectly situated, offering easy access to both Benalmádena and Fuengirola, as well as being a short drive from Málaga International Airport. This prime location makes it an ideal choice for both holiday homes and permanent residences.

Higuerón Beach Club

Adding to the Higuerón Resort’s many attractions is the brand-new Higuerón Beach Club, which opens on May 31^st2024. This exclusive beach club is set to become one of the most sought-after destinations on the Costa del Sol, offering a luxurious setting with stunning views of the Mediterranean. The beach club features a chic restaurant and bar, a large infinity pool, sun loungers, and VIP areas for a truly indulgent experience.

The opening of the Higuerón Beach Club adds further value to properties in the Higuerón Resort, providing residents with direct access to premium beachfront amenities and enhancing the overall lifestyle offering.

Investment Potential

Benalmádena’s real estate market is thriving, driven by its desirable location, excellent infrastructure, and high quality of life. Property values in the area have shown steady growth, making it a solid investment choice. The ongoing development of luxury projects like the Higuerón Resort and the new beach club further boosts the attractiveness of investing in this region.

Additionally, the demand for holiday rentals in Benalmádena is strong, thanks to its popularity as a tourist destination. Investing in a property here not only offers the potential for capital appreciation but also provides the opportunity for rental income.

Want to find out more? Why not call our office and speak to one of our knowledgeable real estate experts.

+34 952 63 88 15

fuengirola@serneholtestate.com

Welcome to all our readers, we are delighted to announce the summer publication of our Serneholt Estate Magazine. It’s full of fascinating lifestyle features, insider tips and hints on where to go and what to do, as well as in-depth coverage of the Spanish real estate market.

In this edition, we delve into the latest developments and hidden gems across Spain’s stunning coastal regions. Whether you’re in search of your dream home, a smart investment, or simply looking to be inspired by the enviable lifestyle on offer on the Costa del Sol, Costa Blanca and Gran Canaria, our magazine has something for everyone.

Highlights of the Summer 2024 edition include:

• Lifestyle Features: From designer vineyards to hidden beaches, we show you why Spain is the best place to live, work and holiday.
• Market Insights: Gain valuable knowledge from industry experts on the current real estate trends and predictions for the coming months.
• Expert Advice: Our extensive network of real estate, legal and financial professionals are on hand to offer their expert guidance on aspects of buying and selling property in Spain.
• Introducing… Meet our rental department and let us introduce you to the newest member of our Serneholt Estate family in Costa Blanca.
• Featured Properties: Explore a curated selection of the most exquisite homes currently on the market, from modern beachfront villas to charming countryside estates.

Our team at Serneholt Estate is committed to providing you with the highest quality service and information. We understand that buying a property is not just a transaction but a journey towards finding a place to call home. This magazine is part of our ongoing effort to keep you informed and inspired throughout this journey.

We invite you to dive into the Summer 2024 edition of Serneholt Estate Magazine and discover the endless possibilities that await you. The magazine is now available online and at all our offices. Whether you’re a prospective buyer, a current homeowner, or simply someone who loves beautiful homes and inspiring stories, this edition is crafted for you.

Thank you for being a part of the Serneholt Estate community. We look forward to continuing to serve you with dedication and excellence. Enjoy the read!

Visit our website to read the full magazine: Serneholt Estate Magazine Summer 2024

The scenic shores of Spain’s Costa Blanca have welcomed a new addition to their community with the opening of the latest Serneholt Estate franchise. This expansion, steered by Anders Zanton, a seasoned Swedish entrepreneur with 30-years of experience in retail, signifies a fresh chapter for both Anders and the esteemed real estate brand.

Anders, originally from Gothenburg, where he managed an extensive chain of optical stores, decided to embark on this new venture with his wife, drawn by the stunning coast and cultural vibrancy of the Costa Blanca. His choice to settle in Torre de la Horadada, swapping from Barcelona where he previously had a holiday home, was motivated by the area’s perfect balance of accessibility and scenic beauty. From its sprawling sandy beaches to the nearby Sierra mountains, the region offers a year-round invitation for both relaxation and adventure.

Serneholt Estates, known for its deep knowledge of the Spanish housing market and a familial approach to business, presented the ideal partnership for Anders. His vision for the Costa Blanca franchise is to cultivate a local presence that stands out for its expertise and multilingual service, creating a welcoming and proficient atmosphere for international and local clients alike.

The new office in Costa Blanca not only amplifies Serneholt Estate’s footprint but also enhances the property buying experience by integrating local insights with global reach. This strategic expansion brings a tailored approach to real estate, characterised by a deep understanding of the unique lifestyle the area offers.

Anders is excited to be starting on this journey with Serneholt Estates Costa Blanca and hopes to set a new standard in Costa Blanca real estate. He understands that for many, a home here promises not just a property but a gateway to a dream lifestyle, backed by a team that’s passionate about delivering exceptional service and deep market insight. This venture is more than a business move; it’s a commitment to fostering community ties and enhancing the fabric of local life.

With Anders at the helm, the promise of Serneholt Estates to redefine real estate in the Costa Blanca is well underway. If you’re considering a home on the Costa Blanca, get in touch with Serneholt Estates for the gateway to a new lifestyle.

Fuengirola, Spain – Serneholt Estate is pleased to announce that Johan Thorsell will take over as the new CEO of its Fuengirola franchise, effective April 30, 2024. Johan brings extensive experience from the property industry, having operated a successful construction and development firm in Stockholm for over 30 years.

His deep knowledge of the real estate sector includes significant projects such as the development of Högfjällshotellet i Sälen a prominent Swedish ski resort. Now transitioning from the snow of Sweden to the sun and beaches of the Costa del Sol, Johan is prepared to lead the Fuengirola office into its next phase of growth. Relishing the new challenge and the chance for an exciting lifestyle change, Johan will be joined by his wife Malin who will take on office administration duties.

Our loyal customers will be delighted to learn that continuity will be assured, as the existing team will remain in place to support Johan and Malin as they step up to the challenge of their new roles.

 Johan already has impressive plans for the future, with a mooted expansion of the Fuengirola franchise on the horizon, although the first task at hand is to build on the success of the current office.

“We are confident that Johan’s leadership will greatly benefit our Fuengirola presence. His track record in real estate and his proactive approach to business are assets that will enhance our service delivery and client satisfaction,” said Fredrik, CEO of Serneholt Estate.

Johan is enthusiastic about his new role, stating, “My wife and I are excited about this new challenge and the opportunity to contribute to Serneholt Estate’s reputable operations. We are impressed by the company’s ethos, family roots and the solid foundation laid by its leadership.”

About Serneholt Estate

Serneholt Estate is a prominent real estate agency with offices on the Costa del Sol, Gran Canaria and the Costa Blanca and is renowned for its commitment to high standards and client-focused services.

At Serneholt Estate, we understand that buying property abroad can be both exciting and daunting. For those considering the sunny shores of Spain, there’s an important update you need to be aware of regarding the Spanish Golden Visa – a change that might accelerate your buying decision.

What’s Changing with the Golden Visa?

Spain’s Golden Visa program has been a great advantage for non-EU citizens, offering them a residency permit in exchange for a significant real estate investment. Recently, however, the Spanish government has begun the process of eliminating the scheme. As a result, if you’ve been pondering a property investment in Spain to qualify for this visa, now is the time to act! At Serneholt Estate, we recommend securing your investment before the changes come into effect.

Why Act Now?

1. Secure Your Investment at Current Rates: By acting now, you can lock in your property purchase under the current investment requirements, ensuring your pathway to Spanish residency remains straightforward and as anticipated.
2. Capitalise on Market Conditions: Spain’s real estate market continues to offer compelling opportunities. By moving swiftly, you can take advantage of the current market conditions before any changes potentially alter the landscape.
3. Plan for the Future with Confidence: With your Golden Visa, you not only secure a beautiful property in Spain but also gain the freedom to travel within the Schengen Zone, which can be an invaluable asset for both personal and professional reasons.

How We Can Help

At Serneholt Estate, we’re not just about selling properties; we’re about making your dreams of living in Spain a reality. Here’s how we can assist you:

• Wide Range of Properties: From stunning beachfront homes to charming villas in peaceful locations, our portfolio includes properties that meet diverse needs and investment levels. Browse our selections at Serneholt Estate and find your dream Spanish home today!
• Personalised Service: We believe every client’s needs are unique. We take the time to understand your preferences and requirements, ensuring that we find a property that perfectly matches your aspirations.

Some Interesting Golden Visa Statistics

According to a Spanish government press release issued in April, they say the reason for abolishing the Golden Visa Scheme is due to a massive spike in applications.

The housing minister said “A speculation that, as we have seen, has increased these visas exponentially for a couple of years: x2,017 visas in 2022, x3,273 in 2023 and x424 in February of this 2024. That is when the alarm went off for us. In the last two years, Golden Visa concessions and foreign investment have doubled.”

She also went on to say that by abolishing the scheme they should then be able to achieve affordable housing for people in Spain, which seems to contradict the price point of general sales versus Golden Visa purchased properties.

From the start of the scheme in 2013 until 2023 a total of 14,576 Golden Visas were issued in Spain. The main nationalities who were granted visas were China, Russia, the United Kingdom, the United States, Ukraine, Iran, Venezuela and Mexico.

In Marbella in 2023, the press release stated that 7.1% of all sales were for Golden Visas, which is not an insignificant number.

Stay Ahead of the Curve

Policy changes, such as those affecting the Golden Visa, occur regularly. It’s important to stay informed about these developments to navigate potential shifts successfully. We’re committed to keeping up-to-date with the latest updates to help ensure your property investment journey in Spain remains positive.

Remember, our team at Serneholt Estate is here to help you, from initial inquiry to handing over the keys to your new property. Contact us today to start your journey to owning a home in Spain.

When selling a property it’s important to ensure all the steps are taken to make the best sale.

The process of  selling a property in Spain

In Spain the transfer of ownership of a property usually goes through a Spanish notary. Knowing what to expect when selling a property is the first step to a successful deal. Working together with the right agent will ensure the process of finding potential buyers, a much easier task. This is why you need to feel confident about the agency’s brokerage skills, how the agent promotes their properties, the language areas they market in, and the  online presence they have in the market. At Serneholt Estate we always offer a comprehensive marketing plan upon taking up a new assignment. This bespoke service isn’t commonplace in the Spanish housing market. We, at Serneholt Estate, always prioritise you, the customer, and we will always keep you informed and updated  throughout the whole process. To make it easier for you as a seller we have compiled this sales guide. So here is how it works – all the way up to the last meeting with the notary.

Timeline of the selling process

1. Preparations

The first step in the sales
process is to gather all the necessary information about your property. Every property has a unique selling point and with this, we can lay the foundation for a successful sale.

Market value

The next step is an assessment of the value must be made. References from current sales of similar properties are obtained, including data from asking prices and sales from previous years. We also gather references from similar houses or apartments that have been sold recently to keep as up to date with the current market trends. Here at Serneholt Estate, we have full access to all databases and can quickly find reference prices in most areas.

Agreement with the agent

Before starting the sales process, we draw up an agreement between you and us, i.e. Serneholt Estate. This agreement regulates the sales assignment. This is normally “non-exclusive”, i.e. you can still sell through other agents, but you are obligated to pay us our commission if one of the clients we introduce buys your property. It can also be “exclusive”, i.e. you appoint us as the only agent to represent and sell your property.

Finance

What are the actual operating costs of the home you want to sell? What repairs need to be made in the future and at what cost? If the apartment or house you want to sell is part of a Community of Owners (CO), how big is the CO fee (comunidad)?

Energy certificate

As a seller, you are required to provide a declaration of the energy performance of the property in question. This will then be submitted to the buyer in connection with the sale. We at Serneholt Estate will, of course, help with this, as we have many competent partners who draw up energy

performance declarations.

The seller has to provide complete documentation about the property, namely:

Nota simple – Document confirming
legal status of the property

Escritura – Title deeds 

Water and electricity contracts or bills

Basura – Payment receipt for refuse collection

Last IBI receipt – The annual local property tax

CO fee – Membership in housing association 

2. Marketing

Prepping the property for sale

The first step in marketing is to make it as neutral as possible, in that we mean making it less personalised, this allows clients to easily imagine what they would do with the property. It should be presentable, clean and with no obvious repairs. Try and arrange the furniture to create a warm and inviting environment.

Photographing

Our experienced and competent photographer will assist you in taking professional photos of your property with a focus on making it look as welcoming as possible.

Marketing

We then add the property to our website. This is translated into seven different languages to attract a wide target group. Not only that, we work with several portals, social media sites and have a weekly newsletter, whilst collaborating with other agents to make the sale as quick as possible.

3. Viewings & Bidding

This is when it really hap-pens. You are now ready to show potential buyers around your property and search for the highest bidder. 

Viewings

One of the most important factors for a successful viewing is having a well-prepared agent. So, for us, finding out as much as possible before a viewing is a must. We will have done our homework on your property so that the potential buyer feels they are getting all the information they need to feel comfortable, welcome and in good hands. 

Auction / Reservation

In Spain, auctions are relatively uncommon, instead, the seller chooses the first buyer who is prepared to pay the asking price. The final price of the property is often directly negotiated between the buyer and seller.

4. Contract

As a seller, it’s not necessary to be present during the sale. If you are un-able to be there through the final stages we can help put together the necessary documentation so that we handle the entire process for you.

Reservation

When the buyer and seller have agreed on a price, a reservation contract is drawn up. This means that the buyer pays a reservation fee to reserve the property so it’s taken off the market. The buyer is responsible for inspecting the property carefully before the sales contract is signed. The premise is that the property is sold in its existing condition, taking into account its age, price and use.

Contract

The next step in the sales process is to sign a contract of sale, called the “Arras”, or “Option de Compras”. At this point the buyer pays 10% (including the reservation fee already paid) of the total purchase price to the seller. This contract is prepared by the buyer’s legal representative.

Ownership title

On the completion date, you and the buyer meet with the agent and the legal representatives at the notary’s office. It’s the buyer’s representative who chooses the notary and who is responsible for booking the appointment. The notary checks both the buyer’s and the seller’s identification to confirm the property’s legal status. And it’s also here that the buyer receives the ownership title, the “Escritura pública de compraventa.”

Payment

The notary receives the payment, and after paying the taxes and fees, he distributes the final balance to you. If you, as the seller, are a resident of a country other than Spain, you receive only 97% of the purchase price at the time of the sale. The buyer pays the remaining 3% to the Spanish tax office. This acts as a security to ensure that you fulfil your tax duties and declare any capital gains from your sale in Spain. When you have then met all the official requirements, the 3% will be refunded. Your legal representative will help you get your payment back, but it can take up to a year before your refund comes through. A preliminary estimation of taxes can be made by the agent, but the seller is responsible for the final declaration. This applies to property taxes, CO fees, capital gains, and agent fees.

Access

You hand over the keys to the buyer who, after the meeting with the notary, then has access to the property. As the seller, you are responsible for leaving the property in the agreed condition (legally and physically) and with the installations and licences stated in the sales contract.

Capital gains tax 

Non-residents pay 19% on the profit. Residents pay between 19-23% of the profit. You have the right to deduct costs and taxes that you incur against improvements to the property. You must be able to present the bill, as receipts are not accepted by the tax agency. You also have the right to deduct costs you have incurred in buying and selling the property.

Selling a property from the legal point of view

When you buy a property with a Spanish company as an investment, i.e. with the aim of buying, refurbishing and selling the property within 5 years, you only pay 2% in transfer tax. This does not apply to new builds, as they attract VAT instead. If you don’t sell within 5 years, you need to pay the difference in the tax you should have paid from the start, i.e. 8-10% + 50% infinancial penalties. 

For the first two years after incurring a profit, you pay 15% in tax on the profit and for the subsequent years you pay 25% tax on the profit. You need to remember that the tax on dividends between shareholders is dependent on where the person is registered for tax.

The information in our sales guide is for guidance only as it’s subject to change. Ask your representative for the latest details.

Various costs occur during a sale:

3% of the purchase price – paid to the tax agency by non-residents in Spain. If there is no profit from the sale, you are entitled to request this sum back.

#  Plusvalia – Capital gains tax on the land

#  Lawyer’s fee

#  Estate agent’s fee

# And if you have a mortgage on the property – The cost of redeeming it

Buying a property can be one of the biggest commitments in your life. Therefore, it’s important to find out as much information about the process as possible. And, of course, choosing an agent you can trust.

The process of  buying a property in Spain

Buying a property is one of the biggest commitments you will make in your life. Therefore, it’s important to find out as much information about the process as possible and choosing an agent you can trust is the first step. 

The transfer of ownership of a property in Spain goes through a Spanish notary. Doing your homework and knowing what to expect when buying a property is the first step to a successful deal. The next step is choosing your agent. It’s important to trust the agent’s ability and expertise to find you the right property. You need to feel that they are the best people to represent you and your interests. Don’t be afraid to ask questions. Ask about their brokerage skills, how the agency works compared to others and how they are going to find you your dream home.

At Serneholt Estate we always offer clear, on-hand  communication throughout the time we work with you and our biggest focus is on you, the customer, at all times. It goes without saying that we will keep you informed and updated throughout the whole process. You will find that this is not so common in the Spanish housing market. To make it easier for you as a buyer we have compiled this buyer’s guide. So here is how it works – all the way up to the last meeting with the notary.

Timeline  of the Buying Process

1. Preparations

The first steps in the buying process are the preparations. Such as financing, choosing the right legal representation and organising an NIE number.

Financing

What options do you have when investing in a home in Spain? Before actively looking for your dream home, you need to be sure how you’re going to finance it by doing all necessary calculations first. You may then need to apply for a mortgage offer from your home country or a Spanish bank. This will allow you to act fast when the right home  comes along. You can usually borrow up to 70% of the  property’s market value from a Spanish bank. As part of  our service we can help put you in touch with the right  people to help with this.

NIE number

To own a property in Spain you will need a Spanish tax ID number, known as an NIE number. You will need this to take over ownership of the property when you register your title. Your lawyer can help you get one when you have found the right home or you can apply for one at a number of different places; the Spanish embassy or at some Spanish police stations.

Finding a property

Once you’ve got everything ready, you can start the process of viewing properties in Spain. As a company, we can make all the difference in making this as stress free as possible. Send us your wish list and we’ll find the best of what the market has to offer for you. We will also plan your viewings so that you get to see the best options during your visit.

2. Viewings

This step of the buying process is all about viewing property in the search for your dream home.

Viewings

A successful viewing comes down to the commitment your agent takes in finding you the right property. As agents,  we focus intently on your particular wishes. In this way, you only view the properties that we know definitely ticks all the right boxes. During a viewing it’s paramount that a full inspection of the property is carried out as carefully as possible. This is because all property in Spain is sold in its existing condition and it’s very difficult to dispute any defects once you’ve signed the contract. If this is something you are unfamiliar with it’s recommended to contract a surveyor to conduct a survey. Your lawyer will always conduct the legal enquiries and due diligence on the property.

3. Bidding  & Contract

Bidding on and reserving the property you want. Contract and moving into your property. 

As a buyer, you don’t have to be present during the purchase. If you are unable to be there during these final stages, we can help put together the necessary documentation so that we can handle the entire process for you.

Auction / Reservation

It’s usual that the property owner will accept the first offer from the buyer who is prepared to pay the asking price. The final price of the property then can often be decided through a negotiation between the buyer and seller. When you have found the right home, we will support you in negotiating the price and terms with the seller. This is when a reservation contract is generally drawn up. 

Legal representation

A big difference in Spain is that the buyer – and quite often the seller – is represented by a lawyer. The lawyer will help you through the whole transaction, making sure everything takes place securely and as it should do. Many people choose a lawyer for themselves; however, we can arrange this with one of our trusted partners, if you need help in doing so.

Reservation

A reservation fee (usually 6,000 euro) is also payable at this time either to your lawyer’s client funds account or to our client funds account. When the buyer and the seller have agreed on a price, a reservation contract is drawn up. This means that you, as the buyer, pay a reservation fee to reserve the property so it’s taken off the market. You are then responsible for inspecting the property carefully before the sales contract is signed. This is due to the fact that all property is sold in its existing condition, taking into account its age, price and use.

Contract 

The next step in the buying process is to sign a contract of sale, called the “Arras”, or “Option de Compras”. At this point you, as the buyer, normally pay 10% (including the reservation fee already paid) of the total purchase price to the seller. This contract is prepared by the buyer’s legal representative.

Ownership title

On the completion date, you and the seller meet with the agent and the legal representatives at the notary’s office.  It’s your representative who chooses the notary and who is responsible for booking the appointment. The notary checks both the buyer’s and the seller’s identification to confirm the property’s legal status. And it’s also here that you receive your ownership title, the “Escritura pública de compraventa”.

Payment

The notary receives the payment, and after paying the taxes and fees, he distributes the final balance to the seller. The seller receives 97% of the purchase price. You, as the buyer, pay the remaining 3% to the Spanish tax
office. This acts as a security to ensure that the seller fulfils their tax duties and declares any capital gains from their sale in Spain. When the seller has then met all the official requirements, the 3% will be refunded to them.

Access

You receive the keys from the seller at the meeting with the notary, after which you can move straight into your property. The seller is responsible for leaving the property in the condition (legally and physically) with the installations and licences stated in the sales contract. Remember that the same requirements might not apply in Spain as in your home country, e.g. cleanliness, decoration etc. The property is usually left in its present condition for the new owner, unless otherwise agreed previously between the parties. 

Costs

The normal purchase costs of a Spanish property are estimated to be between 10% and 14% of the purchase price and in most cases are slightly higher for new builds than for existing homes. 

Costs of buying a property in Spain

Transfer tax – A transfer tax is payable on the sale of existing homes, which amounts to between 7% – 10% of the sale price, although this can vary depending on the region. The tax is often higher for more expensive homes. The transfer tax is payable by the buyer.

Value added tax and stamp duty – Value added tax at 10% is payable on homes being sold for the first time, e.g. new builds. In addition to VAT, stamp duty is payable for the issue of the legal documents. This is normally around 0.5% of the purchase price, but can be 1.5% in certain regions. Both taxes are payable by the buyer.

Notary fee and title registration fee – The Spanish government determines the notary fees, the cost of which depends, among other things, on the property’s value and how many pages the sales contract has. In most cases the cost is between €500 and €800 and is usually paid by the buyer. If you have taken out a bank loan to finance the purchase, you will also need to pay the notary fees for the title registration linked to the loan. Title registration fees amount in most cases to between €300 and €500 and are paid by the buyer.

Legal fees and translation fees – Legal fees vary depending on the services included in the purchase and its complexity. Most lawyers charge around 1% plus VAT of the property’s purchase price, although there is normally a minimum fee. The fee is often negotiable for more expensive properties. Some charge by the hour and others offer a set fee.

Mortgages – If you take out a bank loan in Spain to finance buying your home, this home loan will be subject to stamp duty of between 0.5% and 1%, depending on the area the property is in. The bank granting the loan will also require a property valuation to be done. This costs around €300 to €500. Most banks also charge a startup fee of around 1% of the loan amount.

Service connection charges – When you buy a new home, you have to pay for the electricity, gas and water to be connected and a meter to be installed. This is often taken care of by the building company. However, it’s important to check this.

Homeowner costs – Homes in Spain are subject to a local property tax, which is paid regardless of whether the owner permanently resides in the country or not. The tax is between 0.5% and 1.2% of the taxable value. The average cost of the homeowner tax lies between €200 to €1000 a year, but can be higher for more expensive properties. All owners of Spanish property, including those resident abroad, must submit an annual Spanish tax declaration.

Letting costs – Income from letting a property by owners who are not permanent residents pay a set fee of 24.75% of the rental income. However, some deductions can be made. For property owners resident in Spain, the rental income, after certain deductions, is added to other sources of income and the total amount is then subject to Spanish income tax.

Income tax – Non-permanent residents who do not let their homes are also liable for income tax. This tax is charged regardless of whether the property is let or not or whether the owner has actually received any income from it. The tax is based on a theoretical benefit of owning the property and is calculated as a percentage of the taxable value. The cost is usually relatively small for most homes, often a couple of hundred euros or less per year.

Navigating the journey to buy a property in Spain can be complex, but with the right guidance, it can become an exciting adventure toward securing your dream home. At Serneholt Estate, we’re dedicated to providing you with clear communication, expert advice, and personalized service every step of the way. Trust us to make your buying experience smooth and rewarding.

Tourist dwellings, known as VFTs, are properties owned by a private individual who decides to rent them out to tourists for short stays in order to earn additional income and where only an accommodation service is provided in exchange for a price. These properties are advertised through tourism platforms, i.e. travel agencies, companies that arrange or organise tourism services and websites where bookings are made.

The requirements for tourist dwellings are set out in Article 6 of Decree 28/2016, of 2 February, on tourist dwellings, one of which is that the dwelling must have a first occupancy licence.

However, in some cases, the dwelling does not have this licence, either because it was not obtained when the construction was completed, or because the dwelling does not have it due to the age of the construction.

Since the first occupancy permit must be applied for by the developer of the complex – except in the case of a private development, where the permit is applied for by the owner – the permit is applied for and issued for all the dwellings in the complex. It was therefore not possible for a private owner of a property within a complex to apply for a first occupancy licence only for his own property.

However, in view of the massive increase in tourist rentals and the legal vacuum that existed for those properties that did not have a First Occupation Permit due to the age of the residential complex to which they belonged, Marbella, following in the footsteps of other Town Halls such as Malaga, Mijas or Estepona, has recently created a channel to obtain an administrative certificate that equates properties that meet the requirements of the Fifth Transitional Provision of Law 7/2021, of 1 December, to promote the sustainability of the territory of Andalusia, to buildings with planning permission, so that these owners can rent their homes for tourist purposes, even if the complex, due to its age, does not have an occupancy licence.

In order to obtain this administrative certificate, it is necessary to submit with the application the certificate of completion of the works or the certificate of the age of the building, a simple note from the Land Registry or a document accrediting the ownership of the property and a copy of the self-assessment of the corresponding tax.

Due to the recent introduction of this channel by the Marbella Town Council, we recommend that you contact our office for an analysis of your specific case in other to get further advice.

Thank you Gemma Fuentes Romero at Franke de la Fuente, for this great text.

Christmas is perhaps the most traditional, family-oriented celebration in the whole world, and in Spain it lasts until 6th January. Visiting the country between the middle of December and the start of the New Year is a time that’s always full of lovely moments for sharing. We are sharing the top five popular Christmas traditions here in Spain:

1.“El Gordo” Christmas lottery
The Christmas time festivities kick-start in Spain on 22nd December with the National Christmas Lottery. The first prize is popularly known as “El Gordo”. Participation is massive and the draw is closely followed throughout the morning. It has a peculiarity that makes it very special, the winning numbers are sung by children in an unmistakable chant. The prize money is very well spread out and the winners usually celebrate their glory in the street.

2. Meals bursting with Christmas flavours and lots of sweet treats
Christmas is a time to enjoy meals with family and friends. The most special night is 24th December, Christmas Eve, when restaurants and hotels offer extraordinary menus to celebrate it in a big way. The meals normally include several starters, for example, Ibérico ham, seafood and delicious cheeses, followed by dishes such as soups, roast meat, fish or stuffed turkey. And to finish, sweet treats and desserts, the true stars of the Christmas dinner table. Turron, marzipan, Spanish sweets, shortbread and naturally, Epiphany cake are all delicacies not to be missed.

3. Colourful Christmas lights
The festive lights in Spain are a delight for children and adults alike. Cities like Madrid, Barcelona, Malaga and Vigo have perhaps been the most eye-catching in recent years, but from the end of November, it is usual for all towns and cities to light up their streets with colours and Christmas motifs. In fact, a great idea to enjoy Christmas is to take a night-time stroll through the Christmas markets and Nativity scenes, wrapped up warm and with a handful of roast chestnuts from a street vendor.

4. The 12 most festive grapes of the year
This tradition promises luck and an original way to see in the New Year. It consists of eating 12 grapes as the clock strikes 12 on New Year’s Eve. The idea is to eat one grape for each chime to welcome in the New Year. You can follow the chimes of the famous Puerta del Sol clock in Madrid on television, live at the Puerta del Sol or in the iconic landmark where this tradition is celebrated in your destination. Any of these options are perfect for ringing in the New Year Spanish style.

5. A magical night full of excitement
On the night of 6th January the Three Wise Men arrive from the East and bring presents to all the children. It is traditional for every child to write a letter to the Wise Men beforehand telling them how they have behaved all year and requesting gifts. Special mailboxes are placed in shopping centres and leisure spaces for posting these letters and the ‘royal pages’ make frequent appearances to collect them by hand. Finally, on the afternoon of 5th January, the Wise Men arrive in all the cities in fun processions and parades through the streets to the delight of all the children. Then, after an early night and waiting excitedly for the morning to arrive, they finally get to open their presents. Their names are Melchior, Caspar and Balthazar and they magically enter all the houses through the windows, balconies and chimneys during the night.

Why is the world coming to malaga for technology? Not many people know but Malaga opened its Tech Park in 1992 and over the past couple of years Malaga has pushed a huge amount of investment into creating the ‘Tech Hub’ for Europe. And so far it is succeeding.

📲 Firstly, the infrastructure is already there with over 600 technology companies present.

🚍 Transport is great, high speed trains from Malaga to Madrid as well as direct flights all over the world makes travel easy.

👩🏼‍💼 Lifestyle is a massive plus and incentive for foreign employees moving abroad. On top of this, Nomad Visas, Start up and business incentives are taking away barriers to entry for businesses.

🎓 The pool of talent is large as Malaga university has partnered with the initiative to sustain the Tech dream.

Who is coming?

The Americans are coming …
Since Google announced their relocation of Cyber Security to Malaga there has been a huge increase in similar moves. For Americans the last 10 years have been financially very good if you look at exchange rate against the Euro and historically speaking, it is cheap to buy in Spain. With an increase in foreign investment, large corporations and movement of people comes a need for more supply …So what does this mean for the property market on the Costa del Sol and Malaga?

What about Property? Thinkgs are looking up.
Spain and in particular Malaga region has profited from the house price increases over the past 18 months. The key reason house prices have gone up is the high demand and low supply. Despite the interest rate hikes in the EU, UK and US, it is not deferring from certain individuals and corporation from moving to Malaga.

The combination of a strong housing market (foreign investment) an increasingly inpressive tech park and influx of large corporations is making Malaga one of the most sought after cities in the world!

Source: Blue Dawn Development 👉

The housing market in Spain started to cool off during 2022 because the increase in interest rates and inflation effected people’s private economy. However, the slowdown wasn’t as bad as people had anticipated. The experts say it will keep slowing down for a few more months, but it’s unlikely the market will crash as we experienced back in 2008-2013. ( Source )

Let’s shift our focus to the Costa del Sol. How accurate were these predictions for the real estate market and is investing in a property in the south of Spain still a wise choice? Our data reveals a remarkable 27% increase in sales from January to August compared to the same period in 2021. The demand continues to be strong, with prime locations being snapped up very quickly. However, we’ve observed a slight shift in our clientele. In previous years, 80% of our clients were Scandinavian, but this year we have seen a shift, with Scandinavians making up 50% of our client base. 

We have also noticed a change in our clients’ behaviour—they’re more informed and ask us more questions, ranging from power consumption and solar panels to additional costs in Spain. This is a positive trend as it reflects a desire for well-informed decision-making when purchasing a property, discouraging hasty decisions.

However, the real estate market on the Costa del Sol is still thriving. While the trend towards more informed decisions may lengthen the process and demand more from us as agents, we’re delighted to witness our clients making purchases they are unquestionably confident about.

Predictions for 2024 

Acquiring a property in Southern Spain not only represents a sound long-term investment but also offers the advantage of year-round use and enjoyment. When contrasting this with investments in stock, gold or funds, it may prompt you to reconsider your next investment decision. 

The conflict in Ukraine, the ongoing incidents of violence in Scandinavia and various political development continue to impact the daily lives of many individuals. We’ve observed that those with the means to move on from these challenges are increasingly turning their attention to Southern Spain. Demand for properties in the region has reached record high demand, with expanding clientele that extends beyond residents from the UK, Sweden and Norway. 

We will reach the top of inflation and interest in the next few months and upcoming reports will be extremely important to determine whether we will witness the initial shift in interest during the first half of 2024 or if we will need to wait until the latter part of the year. 

We anticipate that this shift will likely occur in the first quarter, prompting more individuals to resume their investments. If you are considering purchasing a property in Spain, you may find that the upcoming months may be an opportunity to secure a good deal, especially when dealing with property owners who have benefited from currency fluctuations over the past year. 

If you bought a property in the last 2-10 years and consider selling, is now a good time? 

The demand for properties remains high, particularly in good locations where transactions continue to be swift. We have confidence in the Euro’s enduring strength in the coming months, making this a perfect opportunity for those contemplating selling their property or converting the proceeds to their local currency. It might also be an ideal moment to explore the purchase of a larger or smaller property but it’s also important to remember that there is still the option and wait until you find an even better opportunity. 

Meet our colleague Björn who’s developed a passion for mountain biking in Spain and explored various routes over the past five years.

What inspired you to start mountain biking and how long have you biking?

“It started when I had to undergo hip surgery and I wasn’t allowed to run which I couldn’t anyway. However, I found that cycling was a more suitable option for me as it didn’t strain my skeletal structure. I have been cycling for over 10 years and it has really benefitted my hip. When I arrived in Spain, I immediately joined a group of cyclists called the ”Sunday bikers.” I was a bit nervous when I set off for the first time, especially with all the ups and downs of the mountains, but I have stuck with them for five years now.”

What’s your favorite trail or route to ride, and why?

“My favorite route is from Fuengirola, where I live, up into the mountains of Mijas. There is a hidden valley with no residential houses and you can ride around the valley and back to Fuengirola. It usually takes around 3.5 hours and covers 40 km. It’s my favorite because you get away from everything and the nature in combination with the view are just stunning.”

Do you have any tips for beginners who want to get into mountain biking?

“Start by renting a bike and going out with someone who knows good biking routes and areas. Then try to find a group to ride with as it’s always better going out in a group for safety reasons and to make the experience more social.”

What’s your favorite piece of equipment or gear that you use when mountain biking, and why?

“Investing in a good pair of cycling shorts is really important, but my favorite device is the sports watch with the heart rate monitor and GPS. With it you can see your current altitude and speed allowing you to compete against yourself.”

How do you stay safe while mountain biking and what precautions do you take to avoid injuries?

“I always use a helmet and I usually bring spare parts because you can be very far away if something happens. Don’t ride the bike when it’s raining; it gets very slippery – I never go out when it’s raining. Ask yourself how much you can manage, take it easy and your group will wait for you.”

Do you prefer riding alone or with a group?

”Always prefer to go with a group and then have a drink together.”

What do you love most about mountain biking, and what keeps you coming back to the trails?

”The freedom of being out in nature, far away from everything is amazing and of course, the physical well-being is an added bonus.”

What advice would you give to someone who is just starting out in mountain biking?

”Find a group that you can go out with. First time rent a bike to make sure you really like it.”

This question is one of the most common questions we receive as Real Estate Agents and there are many answers to this question.

With over two decades of experience in the real estate sector, I have encountered various factors such as crises, inflation, interest rate fluctuations, conflicts, pandemics and financial insolvencies. All of these factors have influenced the Real Estate market. Surprisingly even through many years none of these circumstances have prompted any client to take the opportunity of acquiring a property at an exceptionally low cost, thus securing an extraordinary deal.

I’ve observed the individuals who gain the most significant profits are those who engage in real estate as a long-term investment strategy. These investors continuously buy, rent, and sell properties, going beyond the idea of a single perfect time to buy.

Real Estate stands out as a premier investment avenue. Unlike funds, stocks or traditional savings accounts that yield minimal interest or potentially substantial returns depending on market performance, real estate offers the unique advantage of both personal utilization and rental income generation until a suitable time of sale. This feature is unparalleled among other asset classes.

Even in the least favorable scenario, one would own property in a region that boasts over 300 days of sunshine annually making it viable for personal enjoyment or rental income while waiting for a market resurgence.

A growing awareness of these benefits has engendered a more stable real estate market, defusing the volatility that characterized it in the past. Consequently, investments in real estate have become more secure and predictable.

Keep in mind that our dedicated teams in various offices are available to assist you in locating your dream property. However, an unchanging principle remains paramount for enduring investment success: Location, location, location!

See you in the sun!

Fredrik Serneholt, CEO

The world has been far from normal in recent years, and just as we started to recover from the effects of Covid, the war in Ukraine started, leading to high
inflation, increased interest rates, and a tougher reality for many people. However, it’s often during tough and challenging times opportunities arise,
especially when finances are limited. That’s why I believe there is no time to wait and it’s essential to act now.

Although crises often have a bad impact I’m confident that we’ll emerge from this one stronger and more prepared than ever for good times ahead.

Over the past year, I’ve been keeping an eye on property markets across Europe, and I’ve noticed a significant drop in prices and slower market activity in many countries. However, it’s interesting to see that properties along the coast in Spain have experienced a vast spike in demand unlike anything we’ve seen before.

In the past year buyers from different demographics such as Eastern Europe have shown an increased interest in investing in Spain and at the same time, we have found a decreased demand from our traditionally strong markets.

After some research, I have identified several factors that contribute to the stability of the Spanish market. Based on this analysis, I strongly believe that investing in Spain over the next few months is a wise decision, and below I will share some interesting facts.

From 1996 to 2007, Spain’s national average house price rise by 197% (117% inflation-adjusted), one of Europe’s highest house price increases.

Despite the price rises in recent years, nationwide house prices are still about 17% (-36% inflation-adjusted) below peak levels. As a buyer you still have a potential to find properties below market value and as an investor, we can see that there is room to buy, renovate and sell in a short-term relation with a profit.

4 reasons to invest in Real Estate

1. Potential for long-term appreciation: Property values tend to appreciate over time, especially in desirable locations.

2. Cash flow from rental income: Rental properties can provide a steady stream of income through monthly rental payments, which can be used to cover the property’s expenses and generate passive income.

3. Diversification of your investment portfolio: Investing in real estate can diversify your investment portfolio and potentially reduce your overall risk exposure. Real estate investments tend to have a low correlation with other asset classes, such as stocks and bonds, which can help protect your portfolio from market volatility.

4. Control over the investment: Investing in real estate gives you a certain level of control over the investment, such as choosing the location, the type of property, and the rental rates. This level of control can help you make informed decisions and potentially increase your returns.

If you need help with finding your home we can now help you from one of our 8 offices across Spain.

Fredrik Serneholt, Founder Serneholt Estate

Why San Pedro?

San Pedro is only about 3-4 minutes by car from Puerto Banus. It has a population of 35.500 people today with majority being Spanish but we are seeing an increased interest from our international buyers as San Pedro has a lot to offer. The town is built 1-2 km from the beach and the reason for this is that Spanish people don’t like to live by the beach because of the damage the sea, sand and wind can make to a property. San Pedro has in recent years built up their infrastructure and invested into making the town centre pedestrian and cycling only. It has a beautiful beach walk/promenade which connects San Pedro to Puerto Banus and continuing to Marbella town centre – you can easily walk or cycle20 km enjoying fantastic costal views along  the way. The location of the office is absolute key and it took us a long time to find what we were looking for. We have now found the perfect location and work is currently in progress to renovate the current space which used to be a Beauty Salon! We will also  be able to help our client finding suitable properties in and around San Pedro as you as a client get more value for your money. We are also close to our Partner Mariposa Energia who helps our clients to be more energy efficient with energy switch and solar panels to help you save money on your electricity bill. We are happy to make introductions so you can explore the best way for your property to be more energy efficient.

How long have you worked as an agent? 

Around four years

What languages do you speak in the office?

Spanish, English, Swedish, German and Russian

Where are your clients coming from? 

Our clients are coming from all over the world but of course we have many clients from Scandinavia where our roots come from.  

Can you give us a sneak peak of the new office? 

We will try to give it a touch of Scandinavian touch and feel and it made it easier that we found a corner office space with large windows making the office feel very light and airy. We wanted to invest in making the new office feel warm and welcoming to our clients and I think we will achieve exactly that. 

What is important to think about as a client?

• Realistic budget – having a realistic budget in mind and look at properties within this range

• Financing – it’s important to know and understand how you are planning on financing your property purchase either in Spain or your home country

• Act fast – you will need to act fast when you do find a property, as all the good properties goes sometimes before they are officially on the market

• Location, location, location  – Make sure the Urbanisation is well managed and maintained as well as confirming the pool is well managed. 

What additional costs can you expect?

• A community fee if you buy an apartment. Make sure you check what you get for the money i.e. maintenance of the urbanisation, security, heated pool etc. 

• IBI – council tax which is based on the size of the property

• Basura – Rubbish collection 

• Transfer fee (Stamp duty) of 7% which used to be 9%

• Lawyers fee – approx. 1% of cost of purchase

We recommend you count for about 10% of additional costs above the purchase price if it’s a resale property or 13% if it’s a New Production. 

Please drop by our new office and we can talk you through the process of buying or selling a property here in Spain! 

/ Danilo Gonzalez

Partner & Real Estate Agent

There is still no sign of the property market taking a down turn in Spain. We find property prices are still going up and more and more people decide to relocate and take advantage of remote working and at the same time enjoy the many days of sunshine southern Spain has to offer. We have seen a decline in buyers from the Northern part of Europe due to interest rates being hiked up and the usual Swedish majority of buyers have dropped significantly from being in the top three down to tenth place amongst foreign buyers in Spain according to the Spanish registration authority Registradores.

The statistics we see is very clear, the Swedes are no longer the top foreign buyers in Spain. There is a lot of concern and nervousness of increase in interest rates and stock market down turn which supports the current plunge in property prices in Sweden.

After the property boom in 2021 and with the war in Ukraine earlier this year, the general feeling was that the property prices would be likely to stagnate or drop especially after the announcement of increase in interest rates and high inflation across Europe, but instead we have seen an increase in demand for properties on the Costa Del Sol and also rising prices, says Fredrik Serneholt, CEO at Serneholt Estate. He also mentions Serneholt Estate has always had a high activity amongst Scandinavian buyers but have seen the demand shift to Eastern Europeans such as Ukraine, Poland, Rumania, Bulgarien and Estland who has strong rent and purchase power along the Coast. Holland, Belgium, Denmark, France and Italy are other European countries where we have seen an increase in demand.

Increase in Property prices

The increase of property prices and number of completed property purchases across Spain is on the up, according to recent analysis released by Registradores. To share some statistics, 640 082 property completions have been registered in 2022, which is the highest number since 2008, which makes it a yearly increase of 19.8%. We can still see an increase in property prices, however it has stabilised somewhat to 1.59% in the 3^rd quarter and 7.59% on a year-on-year comparison. Looking at the price per square meter, the average is roughly around 2000 Euro per sq m. 

It is still seen as a good time to invest in a property in Spain, there is a high demand in rental properties and can be cost neutral if you rent your property out between 10-15 weeks per year and enjoy your property the rest of the time. If you are looking to sell, your property has most likely increased in value says Fredrik Serneholt.

There is a green energy revolution taking place right in the heart of the seaside town of San Pedro de Alcántara on the Costa de Sol. Born out of the UK, CEO Martin Tye’s passion for the environment and his own experiences in Spain, Mariposa Energía is a company on a mission to help protect the future of our planet, while helping home owners to save money with its green energy mix.

 Launched just over two and a half years ago, the company has gone from strength to strength as its reach has spread from the Costa del Sol initially to right across the entire country. Look out at the rooftops in many of Spain’s popular locations and you will see the shiny solar panels installed by Mariposa Energía, taking in the sunlight and converting it to electricity to power consumers’ homes. Solar panels used to be a rare sight in Spain, which is hard to imagine in a country that can boast more than 300 days of sun per year. This was due to the infamous ‘sun tax’ which was previously levied on those choosing to generate their own solar electricity, but that tax has been abolished and now, thanks to the work of Mariposa Energía, solar-powered homes in Spain are most definitely on the rise.

“We live in the perfect location for solar energy,” Martin Tye explains. “By installing solar panels we can harness this free and plentiful source of energy, generate our own electricity and reduce our carbon footprints by lowering the amount of carbon dioxide that is pumped into our atmosphere.” The effect that global warming is having on our planet and the need to take action was one of the main factors that prompted Martin to launch Mariposa Energía. “Climate change is a very real and immediate problem, which we are all facing. Our planet’s temperature is rising at an alarming rate and the effects can already be seen, with an increase in weather-related disasters across the globe, increased forest fires and flooding and the shrinking of polar ice caps. “It’s vital that we take whatever action we can and by making the simple move to green energy we can make a big difference to the future of our planet.” While many home owners install solar panels to reduce their carbon footprints, there are also many more reasons that are compelling consumers to go solar, as Martin explains: “Home owners and businesses alike can make huge savings and with the recent sharp rise in the wholesale cost of electricity, our clients are finding that their solar installation has paid for itself in just two to three years. “Many also like the freedom that solar power gives them. By generating their own electricity they are no longer at the mercy of fluctuating energy prices and they can use the electricity as they wish throughout the day, without the need to wait until the night time or weekend to run the washing machine, when electricity prices are cheaper. “What’s more, a solar panel installation can increase the resale value of a property, which is a big deciding factor for many people.” As well as offering solar panel installations, Mariposa Energía also offers energy switch and, as you would imagine, all their energy tariffs are 100% green.

It was Martin’s own personal experiences with electricity companies when moving to Spain that prompted him to set up this side of the business. “After dealing with the electricity companies when I moved here I decided that I wanted to launch an energy company that not only provided green energy but also provided great customer service and bills that are easy-to-understand. “At Mariposa Energía we have a friendly, multi-lingual team who put the customer first, who answer the phone and who go the extra mile to help our clients.” Mariposa Energía’s energy switch process is incredibly simple. They analyse a recent energy bill and then show the consumer how much they can save if they switch to their 100% green energy tariffs. Once a client decides to go ahead the switch is seamless. There is no need for any new cables or equipment or for any work to be done. In fact, as Martin explains, clients only notice the switch has occurred when they start receiving cheaper energy bills. And, of course as a green energy company, all the bills are sent via email to further help to protect our planet. “We know that prioritising our planet is not always easy, but with our two green energy options, consumers can go green while also saving money,” Martin added. “It really is a win, win situation.”

Serneholt Estate is very excited to partner with Mariposa Energia and by collaborating together, our clients are able to benefit from special rates when signing up to Mariposa Energia’s services. Contact us for more information at www.serneholtestate.com

We at Serneholt Estate with offices across Costa del Sol and Costa Blanca have just launched our new website end of last week!

It’s been in the works for months and we are so excited to present our new website with added functionality such as a newer, better, faster search function to find the dream property our clients are looking for. We hope you enjoy the more user friendly experience our new website has to offer and please do let us know if you have any feedback.

Be sure to click the link to visit our new website and find your dream home. serneholtesate.com

This summer Partido Popular, the Spanish right wing political party, won a historic election. Most notably, it is highly likely that by the end of this year or as 2023 commences, Partido Popular will remove wealth tax.

What does this mean for real estate?

People with the view of moving their assets to Spain will no longer face the hefty cost of wealth tax. In short, there is no better time to invest in property in the Costa Del Sol than now, as prices will inevitably increase. Especially properties with high value will be effected.

This summer has been tremendous and very interesting for us at Serneholt Estate. We have noticed that, because of covid, the needs and the habits of buyers have changed. We have observed that after lockdowns and restrictions all over the world, the demand for a garden or a terrace has been, almost always, a mandatory request.

We have also seen that more and more people have discovered that they can actually work from home, and that has opened up the possibility to buy a new home in Spain and work from there. Before the tendency was to buy vacation homes in Spain but now a high percentage is permanent.

Another interesting change that we have observed is the increase of the desire to own your own home for vacation instead of staying at a hotel.

The buying process this summer has been very different in the sense of the time before deciding about the property. Normally there is time to think if the property is really right or not but this summer it has been different, various clients have lost the opportunity of a property they liked because they took to much of time to think about the property instead of acting as a buyer.

To sum it up, we at Serneholt Estate are so grateful and thankful for the amazing and exciting collaborations this summer, we have learned so much and we are very curious about what the future will hold.

Before buying a property

Financing

Before actively looking for your dream property, it’s worth considering how you’re going to finance it by doing some calculations. You may then need to apply for a mortgage offer from your existing bank or optionally a Spanish bank. This will allow you to act fast when the right property comes along. You can usually borrow up to 75% of the property’s market value from a Spanish bank.

We collaborate with MyBankFriend which specializes in helping non-Spanish clients to find the best loans in Spanish banks. They collaborate with 15 different Spanish banks and can provide a proposal within 24 hours. You can read more about MyBankFriend at www.mybankfriend.com and make an application at about here. 

Legal representation

A big difference in Spain compared to many other countries, is that the buyer – and quite often the seller – is represented by a lawyer. The lawyer will help you through the whole transaction, making sure everything takes place securely and as it should do. You can choose a lawyer yourself to help you through the process or we can put you in touch with one of our partners. 

NIE number

To own a property in Spain you will need a Spanish tax ID number, known as an NIE number. You will need this to take over ownership of the property when you register your title. Your lawyer can help you get one when you have found the right property.

Choose an agent

It is important to look into the agent’s ability to find just the right property for you. Look at the agent’s expertise and commitment in representing the client’s interests. Ask about their brokerage skills, how the agent performs their role in finding your dream property etc. At Serneholt Estate we always offer clear, on-hand communication throughout the time we work with you and our biggest focus is on you, the customer, at all times. It goes without saying that we will keep you informed and updated throughout the whole process. You will find that this is not so common in the Spanish housing market.

During the process

Finding your property 

Once you have got all preparations ready, you can start looking for the property and head off to Spain for some viewings. As a company, we can make a big difference for you. Send us a wish list and we’ll find the best of what the market has to offer. We’ll also plan your viewings so that you get to see the best options during your visit.

Viewing properties

A successful viewing is the result of commitment and sensitivity on the part of the agent. As agents, we focus intently on your particular wishes. In this way, you only get to view the properties that we know definitely meet your wishes. During viewings it’s a good idea to inspect the property as carefully as possible, since all property in Spain is sold in its existing condition and it’s very difficult to claim for any defects once you’ve signed the contract. If you don’t know how to go about inspecting the property you can always contract a surveyor to conduct a survey. Your lawyer will always conduct the legal enquiries and searches on the property.

Auction / Reservation

Auction is not as common in Spain as in other countries. Instead, the seller normally goes with the buyer who’s prepared to pay the asking price. The final price of the property is also often decided through a negotiation between the buyer and seller. When you have found the right property, we’ll help you negotiate the price and terms with the seller, after which a reservation contract is generally drawn up. A reservation fee (usually 6,000 euro) is also payable at this time either to your lawyer’s client funds account or to our client funds account. Around 2-3 weeks later, the private sales contract is drawn up, which is prepared by your lawyer after the legal checks have been done. A deposit of 10% of the purchase price, less the reservation fee, is usually paid at this time.

Payment

The notary receives the payment, and after paying the taxes and fees, he distributes the final balance to the seller. The seller receives 97% of the purchase price. You, as the buyer, pay the remaining 3% to the Spanish tax office. This acts as a security to ensure that the seller fulfils their tax duties and declares any capital gains from their sale in Spain. When the seller has then met all the official requirements, the 3% will be refunded to them.

Last but not least, after completing the buy

Access to the property

You will receive the keys from the seller at the meeting with the notary, after which you can move straight into your new property. The seller is responsible for leaving the property in the condition (legally and physically) and with the installations and licences stated in the sales contract. Remember, that the same requirements might not apply in Spain as in your country, e.g. thoroughly cleaning the property, and the property is usually left in its present condition for the new owner, unless otherwise agreed between the parties. 

The actual costs when buying a property

The normal purchase costs of a Spanish property are estimated at between 10% and 14% of the purchase price and in most cases are slightly higher for new developments than for existing properties. We have summarised the costs linked with buying your home below:

Transfer tax
A transfer tax is payable on the sale of existing properties, which amounts to between 8% and 10% of the sale price, although this can vary depending on the region. The tax is often higher for more expensive properties. The transfer tax is payable by the buyer

Value added tax and stamp duty
Value added tax at 10% is payable on properties being sold for the first time, e.g. new builds. In addition to VAT, stamp duty is payable for the issue of the legal documents. This is normally around 0.5% of the purchase price, but can be 1.5% in certain regions. Both taxes are payable by the buyer.

Notary fee and title registration fee
The Spanish government determines the notary fees, the cost of which depends, among other things, on the property’s value and how many pages the sales contract has. In most cases the cost is between €500 and €800 and is usually paid by the buyer.

Service connection charges
When you buy a new development, you have to pay for the electricity, gas and water to be connected and a meter to be installed. This is often taken care of by the building company. This costs around €300.

Borrowing costs
If you take out a bank loan in Spain to finance buying a property, this loan will be subject to stamp duty of between 0.5% and 1%, depending on the area the property is in. The bank granting the loan will also require a property valuation to be done. This costs around €300 to €500. Most banks also charge a startup fee of around 1% of the loan amount.

Homeowner costs
Properties in Spain are subject to a local property tax, which is paid regardless of whether the owner permanently resides in the country or not. The tax is between 0.5% and 1.2% of the taxable value. The average cost of the homeowner tax lies between €200 to €1000 a year, but can be higher for more expensive properties. All owners of Spanish properties, including those resident abroad, must submit an annual Spanish tax declaration.

Legal fees and translation fees
Legal fees vary depending on the services included in the purchase and its complexity. Most lawyers charge around 1% plus VAT of the property’s purchase price, although there is normally a minimum fee. The fee is often negotiable for more expensive properties. Some charge by the hour and others offer a set fee.

Income tax
The tax is based on a theoretical benefit of owning the property and is calculated as a percentage of the taxable value. The cost is usually relatively small for most properties, often a couple of hundred euro or less per year.

A charismatic hard working project leader with great sales skills and a good listener, dedicated to work and sees Real Estate as a lifestyle and not a job. That is what defines a successful agent in Spain but how is it really to work as an agent?

First of all you will need to be a good listener and you have to be available for your clients when they need you. There is no such thing as 9-5 work being an agent. Normally our clients contact us in their spare time, early mornings, late evenings, weekends and of course during holidays and from the first contact to get an answer we have a maximum of 1 hour before the client contacts someone else. The moment they involve another agent our chances to be successful with the sale decreases a lot.

There is no cost for a buyer to hire a agent

As a buyer you can hire an agent to work for you to find your property. Most of the properties are being sold on the open market and your agent can show you all properties available, even if they are listed with another agency. There is no need to contact different agencies or agents to get the viewings you want. Most important is to find an agent you feel trust in and that will work dedicated to you! The commission to the agent is always paid by the seller.

Talk about financing

One of the most important things that many agents forget to talk to the clients about is financing. They normally spend most of the conversation about the dreams and properties and areas of interest for the client but forget the most important question “Do you have the money to purchase a property, if I can fulfill all your dreams and find you the right property“. With the answer to this question you could save time and really help clients to the next step.

Availability make a big difference

To be available for a client during all times is not always as easy as it sounds. It will affect your private life and you will need to be able to navigate and prioritize all calls and contacts in the best way to learn how to live and breathe Real Estate and still get free time.

The reward for being an active agent with lots of sales is referrals from clients. All people working with sales know how important a referral is in success rate, there is no such lead from any portal compared to this kind of client. Well handled you will sell to 90-100 percent of your referral clients and this is also proof that you are doing not just the expected, you are doing a great work!

Every search for a property is like a unique project

With all the details in place and a trip to Spain is arranged it is time to plan for viewings. High knowledge about areas, properties and your clients will be helpful to prepare for viewings and your goal is to not show your clients everything on the market, just the few units that really match their requirements and needs.

But even with just 5-7 different properties to show, you still have to make a plan, where, when and why are questions we need to answer on each property we visit before going there. A successful agent always has a plan before first viewing what the client will like and what they will sell in the end. A good agent also knows how to handle a client’s needs and requirements and can find properties outside the box and something they did not know before that they really wanted.

Close collaboration with a lawyer

In Spain you are not responsible for the legal matters as an agent. Therefore it is important that you work close to law firms that could help you and your clients to secure a safe deal. The law firm will handle all the contracts, make sure the due diligence is performed on each property and help your client with purchasing a property in Spain in a safe and harmful way. We always recommend our clients to use a lawyer to avoid problems with the purchase but they are also helpful for us as agents before even going on viewings when we can use them to find out if a property is legal or not even before we take a client there.

Last but most important is to have fun, Real Estate is a lifestyle and you have to enjoy it to live it!

How many years of experience as a sales agent do you have?
I have 7 years of experience.

Why did you choose to work as a real estate agent?
I choose to become a real estate agent because I really enjoy to work closely with my clients and help them in the process of finding the dream property. I worked in the hospitality industry for 25 years and I love to exceed the customer expectations.

What is the most difficult situation you have experienced in your profession?
The most difficult situation is by far when you find the dream property for a client and then someone else was faster to reserve. That is always disappointing for the client.

What is the best part of this profession?
The best part is that I get to meet so many interesting clients that I eventually can call my Friends. I like to see myself as a project manager for my clients, and I will help them in every step during and after the sale. Being a real estate agent is More a lifestyle than a job.

How many years of experience as a sales agent do you have?
More than 5 years.

Why did you choose to work as a real estate agent?
A friend of a friend offered me as position as a real estate agent. He believed I would be a good fit. He was right you could say : )

What is the most difficult situation you have experienced in your profession?
When I was with a customer and we found their dream home. We agreed on a price with the owner and everything was in order. Then, when the lawyer starts to review the home, it turns out that the owner has lied about several things. Some renovations were undeclared and not registered. This is not resolved yet so we’ll see how it goes.

What is the best part of this profession?
To see fantastic places and homes and meet interesting people who want to buy a home down here. The job offers a great variety that means you can never get tired of it. Everything from holiday apartments to investors who want to buy houses and businesses. I love it.

In 2014 we decided to relocate our family to Spain to try to live abroad for a year and just a few months later we were on a plane down to Costa del Sol and our house in Sweden was rented out long term.

We realized early in our process that our plan to move abroad would take us to a place with more light and a better climate during winter and it took us just a few minutes to agree that we should look closer at Spain.

For the last decades most of our vacations have been spent in Spain and I probably have more weeks at different Ving Resorts around Gran Canaria than anyone else, but at the end this is something totally different and we decided to look at alternative locations focusing in areas with more activity all year around and with less season based tourism.

We started in Costa Blanca and in just 3 days we visited different areas, properties and the Swedish School there to find out if this was it but we never got the right feeling here and just a week later we went to Costa Del Sol and to Marbella to do the same thing.

It was a cloudy day but I still remember when we passed the Marbella branded bridge and all the palm trees and we both had the feeling of being in Los Angeles and we looked at each other and said, we HAVE to live here! This was even before visiting one single property!

As we both had worked in the Swedish real estate business for many years (since the year 2000), it was natural for us to also work with this in Spain. To work as a real estate agent in Spain is significantly different to Sweden, but one of the main differences is that you work more with the buyers in Spain and it suits us perfectly.

We also noticed that our experience from our work in Sweden was very useful for us, the process to buy and sell properties has so many similar steps and even if the legal part is being handled by lawyers in Spain we still have an important role to make deals go through.

We started to work as employees, but after a few months we felt that we wanted to start our own company. Since Fredrik has been running several real estate offices in Sweden and also has Swedish real estate education, it felt like a natural step for us. We also realized that there was a lot we could implement from Sweden and that would improve the way of selling properties in Spain.

Changing countries with an entire family is a process but certainly not impossible
Step one for us was to travel to Spain and look at different properties where we could feel like home. We had contact with an agent who was committed to look for properties that could suit our wishes. We thought it was very easy to only have one agent to work with. Our agent put himself in our search well and since it is not exclusive here in Spain, the agent showed us the whole market, even if the properties were not part of their company. This makes the Spanish property market more flexible and you can rely on the agent, and trust that they look for what is actually best for you and not only what is available within their company. After two days of viewings, we found our home. This was largely due to the pre work the agent made before we came and we got really inspired by the agent’s way of guiding us to find our home.

When our home was found, step two was to visit schools where the children would love to be, because if the children did not like their new country, it was just to pack up and go home to Sweden again. We decided on the Swedish School in Marbella and it was a success! One of our sons is still there. Of course there are a lot of good international schools in the area but we chose Swedish as we thought we would be in Spain one year and the school follows the Swedish curriculum.

Many things are very different here. An example is after school activities. In Sweden this meant that your kids needed a quick meal before going to a soccer training or other activity and then coming back home for homework when it is completely dark outside.

Here we often go together to pick up the kids from school, bring some picnic and then meet up with other families at the beach. The extra hours of light gives so much extra time to be with the family before going to bed.

Another example that has been an interesting, and fun experience for us is the Children’s birthday parties. Here many children’s birthday parties are at the beach clubs or in a restaurant where children are always welcome. The children are free to run around and thanks to the sound of the beach, the sound level of the happy children is not an issue.

Living in Spain is a dream for many and so for us, of course you miss the family and friends in Sweden, but they come and visit as much as they can. In our experience, us moving here has actually led to more quality time with family and friends. Of course you can see your friends everyday but on the other hand, when we see family and friends, it’s more focused and therefore more quality time. We noticed, when we lived in Stockholm, all the people around us were too busy to even have time to meet once a month. Here in Spain life is easier and you tend to live more spontaneously. For example, on a rainy and cold November day you might not feel that tempted to dress your children and go out for a coffee. Here you just put on some light summer clothes and you can go out and be social.

To sum up, moving to Spain has been life changing for us. Our relationship is stronger than ever and we got ourselves a beautiful daughter just a few years ago to complete our family which we never guessed we would have before moving here.

We also were in a position where we made a career and it was a big risk leaving this behind us to create our own company and start from nothing. But our last years with our company Serneholt Estate have shown us that we are on an extremely successful path at the moment with 5 offices around Spain and almost 30 employees up and running. We are one of the most important and influential agencies at the moment.

With a pandemic that hit the world and put large parts of Europe in a massive lockdown, we have learned new concepts and to live completely differently from before.

Almost immediately there was also speculation about how housing markets would be affected with this impending crisis and quickly the first analyses of declining demand and falling prices and other adjustments we saw a pending market initially.

There was a lot of impacts that should have affected the housing market negative, but this crisis is unlike anything we have seen before.

With an entire population spending more time in their homes than ever before, housing became a high priority and we have seen new trends in demand. Large terraces, gardens and patios combined with good indoor areas to work from home suddenly had a greater impact than the location.

We have also seen workplaces change and most service companies have offered a mobile workplace and given the conditions to be able to work from anywhere in the world. Which, of course, is also positive for the Spanish housing market in particular.

When you can choose, why not live in a country that offers sun 320 days a year and a light that Northern Europe can only dream of during the winter months.

It is easy to understand that this is just the beginning of how people will choose to live their lives and we are absolutely convinced that Spain will be an attractive place to live and work for many years to come.

The introduction of new tax reforms with lower taxation on home purchases for the remaining of 2021 is just another reason to get along with that lifelong dream you have of finding your dream in Spain. We will be here to help you find it!

Fredrik Serneholt
CEO at Serneholt Estate