In the real estate market, particularly in areas like San Javier, it’s relatively common to come across cases where the buyer and seller decide to underdeclare the value of a property during a sale. This practice, while seemingly tempting due to the potential short-term tax savings, comes with significant legal and financial consequences for both the buyer and the seller. As a real estate agency with over 20 years of experience, we want to warn you about the risks associated with this practice and explain why it’s crucial to stay within the bounds of the law. What Does It Mean to Underdeclare a Property's Value? Underdeclaring a property’s value means that the official price recorded in the sales deed is lower than the actual amount paid for the property. For example, if a home is sold for €200,000 but the declared price in the deed is only €170,000, the remaining €30,000 is paid “under the table” to avoid paying taxes on that amount. While this may seem attractive in the short term—both the buyer and the seller think they’ll save on taxes like the Transfer Tax (ITP) or the Stamp Duty (AJD)—this is actually a form of tax evasion that exposes both parties to serious financial and legal risks. Legal and Financial Consequences for the Buyer Higher Tax Burden in the Future: If, in the future, you decide to sell the property, you’ll have to declare the capital gain based on the value recorded in the deed. If you underdeclared the value, the difference between the purchase and sale price will be much higher on paper, leading to a hefty tax bill on capital gains through the Personal Income Tax (IRPF). What may seem like a tax saving now could cost you much more in the future. Difficulty Obtaining Financing: If the official recorded value of the property is lower than its actual value, it may not match the cadastral value or market price. If you later want to apply for a mortgage for renovations or refinancing, the bank will base their loan offer on the official value, not the real market value. This can limit your financing options. Risk of Contract Nullification: In extreme cases, the authorities may deem the transaction fraudulent, leading to the nullification of the sales contract. This means that you would be forced to return the property to the seller and potentially lose the money you’ve already invested. Legal and Financial Consequences for the Seller Tax Fraud: Declaring a lower sale price than the actual amount paid can be considered a form of tax fraud. The penalties for such actions include financial fines, which vary depending on the amount evaded, and in serious cases, could result in criminal charges. Distrust from Future Buyers: If it becomes known that you underdeclared the sale price in a previous transaction, future buyers may be wary of dealing with you. This can harm your reputation in future real estate transactions. Problems with the Tax Authorities: Spain’s Tax Office (Hacienda) has sophisticated tools to detect discrepancies between declared values and market prices. If they uncover such a difference, you could face an investigation, which will likely lead to not only paying the owed taxes but also interest on late payments and additional penalties. Consequences for Both Buyer and Seller Tax Inspections: The Spanish tax authorities (Hacienda) have advanced systems for conducting value checks. If they determine that the declared value is significantly below the market value, they will initiate an investigation. This will not only result in paying taxes based on the real value but also additional late payment interest and penalties. Legal Uncertainty: Underdeclaring a property’s value puts the legal security of the transaction at risk. Both parties expose themselves to potential legal issues in the future, including contract nullification, financing difficulties, and a variety of penalties. Why Is It Not Worth the Risk? While underdeclaring a property’s value may seem like a way to save on taxes, the long-term consequences can be much more expensive than the taxes you aimed to avoid. As a real estate agency in San Javier, we always advise our clients to act within the law and declare the true value of the transaction. This ensures not only compliance but also the legal security of the transaction. Conclusion Underdeclaring the value of a property is a risky practice with serious legal and financial consequences. Both buyers and sellers should be aware that what may appear as a short-term tax saving can turn into substantial long-term losses, both financially and legally. If you’re considering buying a home in San Javier or elsewhere, we recommend consulting with professional real estate agents who can guide you through the entire process. At Boreal, we’ve been helping clients safely and efficiently navigate real estate transactions for over 20 years. If you have any questions or need advice on this issue, feel free to contact us.

Hi! I’m Pedro, manager of Boreal and dedicated to helping homeowners sell their properties in San Javier and throughout the Murcia region. Today, I want to share some key tips on how to prepare your home for sale. If you’re thinking of selling your property, it’s essential to ensure it looks its best to attract the right buyers. Preparing your home strategically can make the difference between a quick sale and a property that lingers on the market. 1. First Impressions Matter When potential buyers visit your home, first impressions are everything. Make sure the entrance is spotless. A well-maintained garden, a clean front door, and a tidy exterior create a positive image right from the start. As a real estate agency in San Javier, we always recommend our clients pay close attention to these details because they have an immediate impact on buyers. 2. Depersonalize the Space One of the most common mistakes when selling a home is leaving too many personal items on display. Buyers need to imagine themselves living in your home, and that’s hard to do if it’s filled with family photos or specific décor. My advice is to keep things neutral and minimal, allowing visitors to picture themselves in the space. This is crucial when working with people looking to buy a home in San Javier. 3. Make Small Repairs Before putting your house on the market, it’s a good idea to go over any small repairs that can make a big difference. Leaky faucets, broken light switches, or cracked tiles can give a bad impression and affect the sale price. As a real estate agency in San Javier, we’ve seen firsthand how minor improvements can make a property much more attractive to buyers and prevent price negotiations over small defects. 4. Order and Cleanliness: Essential A clean and tidy house shows care and maintenance. It’s essential to deep clean all areas of the home, from bathrooms to the kitchen. One tip we always recommend at our real estate agency is to keep closets and storage spaces as empty as possible. Buyers tend to look everywhere, and if they see overstuffed closets, they might think the house lacks adequate storage. 5. Neutralize Odors Smell plays a significant role in the decision to buy a home. Strong odors from cooking, pets, or tobacco can be off-putting for many buyers. Be sure to air out the house before every visit and consider using candles or subtle air fresheners to create a welcoming atmosphere. This advice is especially important in coastal areas like San Javier, where the climate and humidity can leave lingering smells if the interior is not properly maintained. 6. Lighting: Let the Natural Light In A well-lit home feels more spacious and inviting. Open curtains and blinds to let in natural light, especially in a sunny area like San Javier. Also, check light bulbs and replace any that aren’t working. Good lighting creates a warm, pleasant atmosphere that helps buyers feel comfortable during their visit. 7. Highlight the Best Features of Your Home If your home has a terrace, a garden, or stunning views of the Mar Menor, be sure to showcase it. From our experience as a real estate agency in San Javier, we know these features can be deciding factors for buyers. Arrange and decorate these areas in a way that invites people to imagine enjoying them in their daily lives. 8. Set a Competitive Price Finally, a key aspect of selling a property is setting the right price. This can be challenging, but working with a real estate agency gives you access to a comparative market analysis, especially in areas like San Javier. An incorrectly priced property can stay on the market for too long or attract offers below expectations. We can help you set the best price to sell your home efficiently. Conclusion Selling your home in San Javier can be a smooth and successful experience if you follow these tips and ensure your property is in top condition for potential buyers. If you have any questions or need assistance in preparing your property for sale, don’t hesitate to reach out to our real estate agency. With over 25 years of experience, we’re here to provide the advice you need for a quick and effective sale.

As real estate professionals with over 25 years of experience in the Spanish property market, we understand that both buyers and sellers are increasingly concerned about the energy efficiency of their homes. In today’s property landscape, the Energy Performance Certificate (EPC) has become an essential document for anyone looking to sell or rent a property in Spain. But what exactly is this certificate, and why is it so important? What is an Energy Performance Certificate (EPC)? The EPC is an official document that assesses the energy consumption of a property and the amount of CO₂ emissions it generates under normal usage conditions. Based on this assessment, the property is assigned an energy rating that ranges from A (very efficient) to G (least efficient). If you’ve seen energy labels on household appliances, it’s very similar. Is it mandatory? Yes. Since June 1st, 2013, it has been mandatory in Spain to have an EPC for all properties being sold or rented. Without this certificate, you cannot legally complete the sale or rental process at the notary. Therefore, if you’re considering selling or renting out your property, obtaining this certificate should be one of the first steps. How do you obtain an EPC? To get the certificate, you need to contact a qualified technician who will inspect the property and carry out the necessary calculations. The technician will review various aspects such as heating systems, insulation, windows, and more. The process is straightforward and typically takes just a few days, depending on the size and characteristics of the property. Why does a good energy rating matter? A high energy rating not only enhances your property’s value, but it also signals significant savings on energy bills for future buyers or tenants. Energy-efficient homes require less power to maintain comfortable temperatures year-round, meaning lower energy costs and a reduced environmental footprint—an aspect that is becoming more important to both buyers and renters from the UK and Belgium. Penalties for not having an EPC If you sell or rent a property without an EPC, you risk fines ranging from €300 to €6,000, depending on the seriousness of the infraction. This is why we strongly advise all property owners to ensure they have their certificate in place well before putting their home on the market. How much does an EPC cost? The cost of obtaining an EPC depends on the size and type of property, as well as the technician’s fees. Generally, the price ranges between €100 and €300. This is a small investment considering the potential benefits for both selling and renting out your property. EPCs and the European Buyer It’s important to note that energy efficiency is becoming a key concern for European buyers, particularly those from the UK and Belgium. In fact, many foreign buyers now actively seek properties with high energy ratings as part of their decision-making process. A well-rated property not only helps in lowering ongoing utility costs but also ensures compliance with broader EU energy standards, which are becoming increasingly stringent. Conclusion In short, the Energy Performance Certificate is an essential requirement for any real estate transaction in Spain. Beyond its legal necessity, a good EPC can significantly boost the appeal of your property, making it more attractive to environmentally conscious buyers or renters. If you need any help obtaining your EPC or have questions about how it can impact your property’s marketability, feel free to get in touch with us. Our team of experts is here to guide you through every step of the process, ensuring you comply with all the legal requirements and optimize the sale or rental of your property.

Hi there! I’m Pedro, and for over 20 years, I’ve been helping people find their dream homes here in Spain. Today, I want to talk to you about something that can often get overlooked in the process of buying a property: the necessary documentation. I know this might sound complicated, but don’t worry, I’m here to explain it in a simple and straightforward way. What documents do you need when buying a property in Spain? Buying a home is one of the most important decisions you’ll ever make, and to ensure everything goes smoothly, you’ll need to have all the paperwork in order. Here are the key documents you’ll need to gather: 1. Passport or ID This is the most basic requirement. Whether you're Spanish or a foreign national, you’ll need a valid form of ID. If you're a citizen of the EU, a passport will suffice, but if not, you'll also need to obtain a NIE (Foreigner Identification Number). This is crucial as it will be required at various stages throughout the process. 2. Property Registry Extract (Nota Simple) This document gives you a clear overview of the legal status of the property. The Nota Simple shows the current owner, any debts or mortgages attached to the property, and whether it is registered properly. It’s essential to ensure everything is in good standing before proceeding with the purchase. 3. Reservation Contract (Contrato de Arras) One of the most important documents in the process. When you decide on the property you want to buy, you’ll sign a reservation contract (known as a Contrato de Arras), in which both the buyer and seller agree to complete the sale. Typically, a deposit of 10% of the property price is paid at this stage. 4. Property Deeds (Escritura) The seller must provide you with the property deeds (Escritura Pública), which is the official document proving ownership of the property. This is the document that will be registered with the Land Registry once the sale is complete. 5. Energy Performance Certificate (EPC) We’ve covered this in another article, but it’s worth mentioning again. The Energy Performance Certificate (EPC) is a legal requirement in Spain, and it tells you how energy-efficient the property is. This could influence your future utility costs and is necessary to finalize the sale. 6. Certificate of Occupancy (Cédula de Habitabilidad) While not always mandatory (depending on the region), the Certificate of Occupancy confirms that the property meets the minimum habitability standards. It’s particularly important when purchasing a second-hand property. 7. IBI Tax and Community Fees It’s essential to make sure that the property is up to date with its IBI (Property Tax) payments and any community fees if the property is part of a shared complex. The seller should provide the latest payment receipts to ensure you don’t inherit any outstanding debts. 8. Mortgage and Valuation If you require financing, chances are you’ll need a mortgage from a bank. The bank will request a valuation of the property to ensure its market value aligns with the loan you’re applying for. 9. The Notary Day – The Big Day! Once everything has been reviewed and all conditions are met, you’ll sign the purchase deed in front of a notary. This document outlines all the details of the transaction and the obligations of both parties. It’s the final step before the property officially becomes yours. My advice as a real estate agent My top recommendation is to take it step by step and, above all, get proper advice. Every case is unique, and while these are the most common documents, there may be other requirements depending on your personal situation or the type of property you’re buying. That’s why I’m here—to guide you through the process and make it as simple and transparent as possible. If you're considering buying a property in Spain, feel free to reach out to me. I’d be more than happy to assist you, answer any questions, and ensure you have everything you need to make your dream home a reality!

If you're thinking about selling your home, one of the most important decisions you need to make is whether to manage the sale yourself or entrust it to a real estate agency. Within that choice, there’s a key option that can make a big difference: working exclusively with one agency. In my 20+ years as a real estate agent, I’ve seen how this approach not only speeds up sales but also offers some very clear benefits for homeowners. Today, I want to explain why working with a real estate agency on an exclusive basis is the smart choice for you. 1. Total Commitment to Your Property When a real estate agency takes on the sale of your property exclusively, it becomes their number one priority. The entire team will be 100% committed to marketing your home, dedicating time and resources to ensure it sells as quickly as possible and for the best price. Rather than splitting efforts between multiple agencies, all attention is focused on your property, resulting in a much more effective process. 2. Tailored Marketing Plan Exclusivity allows the agency to create a personalized marketing plan for your home. This includes professional photography, virtual tours, promotional videos, and a detailed strategy for listing your property on specialized websites and social media. When an agency has exclusivity, they invest more in advertising and promotion, ensuring your home reaches the widest possible audience of potential buyers. 3. More Accurate Pricing Working with an exclusive real estate agency guarantees a thorough market analysis and accurate valuation of your property. With a dedicated agent handling your sale, you can be sure the price is set realistically and competitively. You’ll avoid the typical "up and down" pricing fluctuations that can happen when multiple agencies compete to sell at the best offer. 4. More Control and Transparency With just one agency managing the sale, you’ll have more direct control over how the process is being handled. The agent will keep you informed about every step, every visit, and every offer. This allows for a closer, more trusting relationship, making communication clearer and more transparent. You’ll be kept in the loop at all times without the confusion of multiple intermediaries. 5. Saves Time and Reduces Stress Selling a house can be a stressful process, especially if you’re dealing with several agencies or trying to do it yourself. By opting for an exclusive real estate agency, you simplify everything. All tasks are centralized with one point of contact, who manages the visits, negotiates on your behalf, and handles the paperwork. This saves you time and significantly reduces the stress of having to monitor every detail yourself. 6. More Effective Negotiation When the agency works exclusively for you, they are fully committed to securing the best terms possible. With their experience and market knowledge, they can negotiate with buyers more effectively, always defending your interests. An exclusive agent is motivated to close the deal on terms that are most favorable to you, as their success directly depends on the outcome. 7. Increased Buyer Confidence Another major advantage of working exclusively with one real estate agency is that buyers tend to feel more confident in these transactions. They know the property is being managed professionally, with all the documentation in order and a price that reflects the market value. It also avoids awkward situations where buyers receive different information or prices from various agencies. 8. Better Post-Sale Service An agency's work doesn’t end when the sale is complete. With an exclusive contract, you can count on a more detailed and personalized post-sale service, as the agency will support you through the final steps of the process and help with any questions or issues that may arise after the sale. Conclusion In the end, working with a real estate agency on an exclusive basis not only provides a more personalized and professional service, but also guarantees a faster sale, at the best price, without the complications that could arise when working with multiple agencies. If you're looking to sell your property without stress and with the highest guarantees, exclusivity is, without a doubt, the best option. If you have any questions or would like to learn more about how we can help you sell your property exclusively, don’t hesitate to get in touch with us. We’re here to make the sales process a positive and hassle-free experience!