Taking Aifos to Court

As it is already well known, since 23rd of July the AIFOS Bankruptcy has initiated a new chapter in this creepy story. The situation was foreseeable as the reputation of this company was well known. Aifos commercialized developments at very competitive prices and had very good marketing strategies. They did not have building licenses, sometimes they were not even owners of the land, and in the majority of the occasions they did not grant the bank guarantees ordered by law nor did they deposit the monies received in a special bank account as established by law. How could they keep this behavior for years should be a matter of a deep and serious study. The financial crisis and the sudden end of the property market boom provoked this predictable end.

Annual taxes Spain

Up to 2008 all property owners in Spain were liable for two separate taxes every year, income tax and wealth tax. The good news is that the Wealth tax has been suppressed this year and therefore from 2009 on, both residents and non residents just have to pay income tax. In effect, any non-resident individual with a property in his/her name is subject to an Income Tax of 24% of 2 percent (or 1.1% if the cadastral value has been revised after 1994) of the valor catastral, the official rated value of their property.

Purchase process


These are the three main stages of the purchase process in Spain:

1- Reservation agreement. Once that you have decided to buy a specific property in Spain, it is important to reserve it in your name, this way you will take it off the market and also freeze the price. The amount normally required is 6.000€, which will be deducted from the final payment.