BUYING A VILLA IN JAVEA. ANDREW & WERONIKA’S STORY
“We couldn’t have moved to Spain so smoothly without Sun Lawyers.”
Serious cyclist Andrew had long dreamt of turning his passion for bike touring into a business. He and his wife Weronika are now making that happen in the Costa Blanca, thanks to the team at Sun Lawyers.
The couple from mid Essex had worked 12-hour days in Canary Wharf and decided it was time for a change. “We wanted to do something outside the corporate world and I’ve always loved cycling, which Spain is perfect for,” says Andrew, in his sixties.
“But even though we both come from an investment banking background we had no idea how finances and taxes work in Spain – or how to buy a home there.”
He jokes about the fact that what he thought was a casual discussion with the vendor’s estate agent using ‘vague numbers’ was in her eyes an offer on the five-bedroom villa in Javea.
IT PAYS TO APPOINT YOUR LAWYER BEFORE YOU ACTUALLY NEED THEM
Luckily the couple had made contact with Sun Lawyers a few months before, having clocked their strong presence in the area, and done their due diligence on the company.
“We had started chats with Aimee [Smith Stokes] early on as we knew we had to use a good lawyer for any home purchase to represent our own interests. This was good because when I told her what happened she was able to intervene and steer us away from making a potentially disastrous mistake.”
He explains that if they had accepted the vendor’s offer of paying a separate (substantial) sum for the furniture, they would be paying a lower purchase price and given themselves a capital gains tax shock down the line.
Aimee confirms that this practice should be avoided as it is tax evasion. “In the long run that will come back to bite you as you will be subject to higher capital gains later on, but also both buyer and seller would be subject to tax on any second-hand furniture deal.”
Aimee was at the end of a phone to steer them through the buying process and also spared them being left with several rooms’ worth of furniture they did not require, by itemising the inventory and stipulating what was to be removed in the contract.
“Aimee was very much involved in the whole process thankfully, and after that it was super smooth – much more so than buying in the UK,” says Andrew. “She saved us a lot of time, money and headaches.”
Alongside this, the couple had also been in talks with Aimee’s colleague Mark McMillan in Sun Lawyers’ Relocation department. Weronika has Polish British dual citizenship, so Andrew is able to piggy-back on her EU passport – but applying for their Spanish residency is not completely straightforward.
“From the start, Mark drilled it into us about the importance of timelines and when to become tax resident in Spain. It was great having him tag-tail with Aimee to coordinate the different aspects of our move.”
The couple drove over from the UK in October with their two dogs and are awaiting their residencia. “Mark warned us to document our entry into Spain – with credit card transactions if a customs stamp is not possible – to anticipate any queries from Spanish immigration.”
“I can stay in Spain for over 90 days as my spouse has an EU passport but I cannot leave Spain until my residencia comes through,” says Andrew. “Like Aimee, Mark was brilliant at hand-holding and reassuring us when we got into a panic about something.”
Sun Lawyers has also helped the couple set up an SL company for their new cycling business. “Aimee was invaluable in advising on the most tax-efficient ways to make purchases for our business set-up, and our tax obligations.”
Aimee says the couple did everything right by planning early and getting a position to buy – and move – when they needed to. Sun Lawyers will be advising on succession planning and doing their quarterly tax returns for their new business.
“All they had to do was choose the company name. With Power of Attorney we were able to set up a bank account, register the company, do their forms for the tax office and get a CIF (tax ID number),” she says.
The couple are able to relax and devote their time to building their business as they have their first lycra-clad clients in March – and some different types of mountains to climb. “It wouldn’t have been such a smooth ride without Aimee, Mark and their teams. Sun Lawyers has really been a one-stop shop for our move.”
Buying in Javea? Contact us.