Malaga

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Legal and Administrative Processes

Sections

1. Renting a Property in Málaga

Rental Agreements

  • Legal Framework: Rental agreements in Spain are governed by the Ley de Arrendamientos Urbanos (LAU), or Urban Leases Act.
  • Key Features of Rental Contracts:
    • Duration: Standard contracts are for 1 year, with automatic renewal up to 5 years (or 7 years if the landlord is a company), unless otherwise agreed.
    • Deposit: A mandatory deposit equivalent to 1 month’s rent for residential leases (2 months for commercial leases). Additional guarantees may be requested.
    • Rent Increases: Rent can only be increased annually and must align with the Consumer Price Index (CPI) unless otherwise specified in the contract.
    • Termination: Tenants can terminate the lease after 6 months with 30 days' notice, though penalties may apply if specified in the contract.

Required Documentation for Renting:

  • For Tenants:
    • Passport or NIE (Número de Identidad de Extranjero, Foreigners’ Identification Number).
    • Proof of income (e.g., employment contract, recent payslips, or tax returns).
    • Bank account details (for direct debit payments).
    • References from previous landlords (optional but helpful).
  • For Landlords:
    • Proof of property ownership.
    • Energy Performance Certificate (Certificado de Eficiencia Energética).

Costs:

  • Agency Fees: If using a real estate agency, expect to pay a fee equivalent to 1 month’s rent.
  • Utilities: Tenants are typically responsible for utilities (electricity, water, gas, internet). Ensure the contract specifies who pays for what.
  • Insurance: Tenants are encouraged to get renter’s insurance, which costs around €100–€200 per year.

Timeline:

  • Finding a property can take 1–4 weeks, depending on availability and your requirements.
  • Signing the contract and moving in can usually be completed within 1–2 weeks after agreeing on terms.

Local Tips:

  • Neighborhoods: Popular areas in Málaga include the historic center, Soho, El Palo, and Pedregalejo. Research neighborhoods to find one that suits your lifestyle and budget.
  • Language Barrier: Many landlords and agencies may not speak English fluently. Consider hiring a bilingual lawyer or translator to review contracts.
  • Inspection: Always inspect the property before signing the contract. Take photos of any pre-existing damage to avoid disputes later.

2. Tenant Rights in Málaga

  • Right to Privacy: Landlords cannot enter the property without prior notice and tenant consent.
  • Repairs and Maintenance: Landlords are responsible for structural repairs and major maintenance. Tenants handle minor repairs and day-to-day upkeep.
  • Eviction Protection: Tenants cannot be evicted without a court order. Non-payment of rent typically allows landlords to initiate eviction proceedings after 2 months of non-payment.
  • Deposit Return: Landlords must return the deposit within 1 month of the lease ending, minus any deductions for damages (if applicable).

3. Buying Property in Málaga

Legal Process for Property Purchase

  1. Property Search:

    • Use real estate agencies, online platforms (e.g., Idealista, Fotocasa), or local contacts.
    • Ensure the property is free of debts or encumbrances by requesting a Nota Simple from the Land Registry (Registro de la Propiedad).

  2. Hire Professionals:

    • Lawyer: Essential for reviewing contracts and ensuring the property is legally sound.
    • Notary: Required for signing the purchase deed (Escritura Pública).
    • Gestor: Optional but helpful for handling administrative tasks.

  3. Make an Offer:

    • Once an offer is accepted, a reservation contract is signed, and a deposit (usually €3,000–€6,000) is paid.

  4. Sign a Private Purchase Contract:

    • This contract outlines the terms of the sale. A down payment of 10% of the purchase price is typically required.

  5. Final Deed and Registration:

    • The final deed is signed before a notary, and the property is registered in your name at the Land Registry.

Required Documentation:

  • Passport or NIE.
  • Proof of funds (bank statements or mortgage approval).
  • Tax Identification Number (NIF/NIE).
  • Bank account in Spain (for payments and taxes).

Costs:

  • Property Price: Varies by location and size. In Málaga, prices average €2,500–€3,500 per square meter in central areas.
  • Taxes:
    • Transfer Tax (ITP): 7%–10% of the purchase price for resale properties.
    • VAT (IVA): 10% for new properties.
    • Stamp Duty (AJD): 1.5% of the purchase price.
  • Notary and Registration Fees: Approximately €1,000–€2,000.
  • Lawyer Fees: Around 1%–1.5% of the purchase price.
  • Mortgage Costs: If applicable, expect additional fees for valuation, arrangement, and registration (around 1%–2% of the loan amount).

Timeline:

  • The entire process typically takes 2–3 months, depending on the complexity of the transaction.

Local Tips:

  • Due Diligence: Always verify the property’s legal status and ensure there are no outstanding debts (e.g., unpaid community fees or utility bills).
  • Bargaining: Negotiation is common, so don’t hesitate to make a lower offer.
  • Golden Visa: Non-EU citizens investing €500,000 or more in property may qualify for a Golden Visa, granting residency in Spain.

4. Taxes Related to Housing

  • Annual Property Tax (IBI): Paid by property owners to the local council. Rates vary but typically range from 0.4%–1.1% of the cadastral value.
  • Wealth Tax (Impuesto sobre el Patrimonio): Applicable to high-value properties. Exemptions apply for properties under €700,000.
  • Rental Income Tax:
    • Residents: Taxed as part of general income.
    • Non-residents: Taxed at 24% (or 19% for EU/EEA citizens) on gross rental income.

5. Registration Requirements

Empadronamiento (Registering at the Local Town Hall)

  • Purpose: Required for accessing public services (e.g., healthcare, schools) and proving residency.
  • Process:
    • Visit the local Ayuntamiento (Town Hall) or Citizen Services Office.
    • Provide the following:
      • Passport or NIE.
      • Rental contract or property deed.
      • Recent utility bill (as proof of address).
    • Complete the registration form.
  • Cost: Free.
  • Timeline: Registration is immediate, and you’ll receive a certificate (Certificado de Empadronamiento) on the spot or within a few days.

6. Additional Local Considerations

  • Community Fees: If buying an apartment, you’ll need to pay monthly community fees (gastos de comunidad) for shared services like elevators, cleaning, and maintenance. These range from €50–€200 per month.
  • Energy Efficiency: Properties must have an Energy Performance Certificate. Ensure this is provided by the landlord or seller.
  • Short-Term Rentals: If planning to rent out your property on platforms like Airbnb, you’ll need a tourist rental license from the Junta de Andalucía.

Conclusion

Navigating housing and accommodation in Málaga involves several legal and administrative steps, but with proper preparation and professional assistance, the process can be smooth. Whether renting or buying, ensure you understand your rights and obligations, budget for additional costs, and seek expert advice when needed. Málaga’s vibrant culture, excellent climate, and high quality of life make it a fantastic place to settle down!