Flourishing Law Firm Since 2003

Greenfields Law Firm was established in 2003, in Elviria, Marbella, to specialise in the provision of legal and conveyancing services to non-residents.

Introduction

Greenfields Law Firm was established in 2003, in Elviria, Marbella, to specialise in the provision of legal and conveyancing services to non-residents.

Michael Heathfield, the senior partner of Greenfields, was one of the co-founders. Michael was educated at Borden Grammar School, Sittingbourne, Kent and then attended the University of Newcastle Upon Tyne, where he obtained an upper second honours degree in Civil Engineering.

Having worked for one year as a civil engineer he decided to switch professions to practice law and qualify as a solicitor. After attending Guildford Law School and serving his two years Articles of Clerkship in a large Newcastle Law firm he was admitted as a Solicitor

In 2002 Michael decided to move to Spain and joined a large and prestigious law firm in Marbella where he gained experience and an in-depth knowledge of the Spanish Conveyancing system. Michael has continued to work and practice locally since co-founding the firm.

Due to the complexity of the Spanish conveyancing system, it is vital that a client is able to communicate with his lawyer clearly and without ambiguity to explain the process. It is also very helpful that your lawyer can explain and compare the differences between the Spanish legal system and the system that the client is used to.

In 2002 Michael decided to move to Spain and joined a large and prestigious law firm in Marbella where he gained experience and an in-depth knowledge of the Spanish Conveyancing system. Michael has continued to work and practice locally since co-founding the firm.

Due to the complexity of the Spanish conveyancing system, it is vital that a client is able to communicate with his lawyer clearly and without ambiguity to explain the process. It is also very helpful that your lawyer can explain and compare the differences between the Spanish legal system and the system that the client is used to.

Greenfields Law specialises in the provision of Spanish legal and conveyancing services for non-nationals and understands the concerns of purchasing property in a foreign country. Our aim is to provide an efficient, comprehensive and professional service to a standard you would expect to receive in your home country.

We believe that our extensive knowledge of different legal systems and the ability to negotiate these in tandem is beneficial to the client. This provides a truly comprehensive service to help and guide the client through the entire process as smoothly as possible from making the initial offer to purchase or to sell, through to completing the transaction and on-going home ownership.

Services

At Greenfields Law, your case will be handled by a team comprising of a Case Manager and one of our bi-lingual Spanish Lawyers who work together on your case. This means that a detailed knowledge of your case or transaction is shared by more than one person, ensuring that there should always be somebody available to deal with any communication or query and to move the transaction forward, ensuring that it is dealt with efficiently and professionally.

The main legal services that we provide are:

  • Property conveyancing.
  • Wills, Probate and the administration of estates
  • Company and commercial matters
  • Leases, both residential and commercial
  • Litigation
  • Tax matters for non-Residents

For example, once you have purchased your property Greenfields can help and advise on the on-going home ownership issues including the completion of tax forms and the payment of the yearly property taxes (Imputed or actual Property Income tax and Wealth tax (Impuesto Sobre la Renta and Impuesto Extraordinario del Patrimonio).

Greenfields also advises all property owners to execute a Spanish Will which is essential to efficiently deal with your Spanish assets.

For example, once you have purchased your property Greenfields can help and advise on the on-going home ownership issues including the completion of tax forms and the payment of the yearly property taxes (Imputed or actual Property Income tax and Wealth tax (Impuesto Sobre la Renta and Impuesto Extraordinario del Patrimonio).

Greenfields also advises all property owners to execute a Spanish Will which is essential to efficiently deal with your Spanish assets.

Also, as part of our purchasing service we can arrange to open a Spanish bank account, set up Direct Debits for ongoing services relating to the property such as water, electricity, community charges and council taxes (IBI and Basura).

We are also able to advise on and arrange property and contents insurance and assist with any mortgage funding that may be required.

When selling a property Greenfields Law can assist and arrange the repatriation of your funds to your own country and currency if necessary.

Frequently Asked Questions

As a rule of thumb, on a resale property, buyers should allow 10% of the actual price to cater for property transfer tax, legal fees, Notary fees, Land registry fees and service connection fees when buying a resale property. Transfer tax on a resale property is 7% although this can be altered by the tax authorities. With a brand-new property (off-plan) VAT is charged at 10% and in addition stamp duty is payable at 1.2% of the purchase price which makes the costs of buying a new property roughly 13.5% of the purchase price. Greenfields will give you a full detailed breakdown and cost estimate as soon as the full details are known.

Mortgages are available from Spanish banks and financial institutions for non-Spanish residents providing the applicant satisfies the financial criteria and the property value is correct. For non-residents the maximum amount that is normally available is 70% of the valuation figure or the purchase price, whichever is the lesser.

The most expensive part of selling a property is normally the Estate Agents fee which is usually 5% (plus VAT of 21% of the fee). Other expenses can be Capital Gains Tax, if sold at a profit, Plus Valia Tax and legal fees normally 1% (plus VAT). Once again Greenfields will provide a full and detailed breakdown as soon as the full details are known. Please note that for a non-resident seller, 3% of the selling price is paid to the Spanish tax office on account of any potential Capital Gains Tax. This sum, or part of it, can be reclaimed if the retention payment is more than the actual CGT due provided the seller’s yearly taxes are up to date. Capital Gains Tax currently charged at 19% of the net profit.

The first step normally, is that a buyer secures the property by paying a reservation deposit to the agent or lawyer, typically 6,000.00€. This sum removes the property from the market and enables time for the seller’s lawyer to provide property documentation to allow the purchaser’s lawyer to undertake due diligence to ensure that the property legalities and planning issues are all in order. The reservation contract will provide a basic timescale to enter into a full private purchase contract, when the balance of the 10% deposit would be paid, and the timescale for completion of the transaction at the Notary, when the balance of funds is paid and possession of the property handed over.

Whilst it may not be strictly necessary it is most advisable to make a Spanish Will to deal with Spanish assets, this prevents heirs becoming involved in time -consuming and expensive procedures where there is no Spanish Will. If a property owner relies on the Will in his own country, this has to be translated and validated in Spain, often with complicated certificates of law required. A Spanish Will avoids these problems and Greenfields can arrange with you after completion to have Spanish Wills drafted and executed at the Notary.

In the past when, Inheritance tax rates were very high, it was often considered tax efficient to purchase in a form of a company structure, usually involving an offshore holding company, to reduce future Inheritance Tax. However, inheritance tax rates in Andalucía are now very generous allowing every “closely related” beneficiary an Inheritance tax free allowance of up to 1,000,000.00 € making a complicated company structure unnecessary for normal purchases, as opposed perhaps to business related purchases.

Every property owner in Spain has to complete a yearly tax return before the 31st December relating to the preceding year. The tax return relates to Imputed Income Tax and Wealth Tax. Imputed Income tax is charged to non-Spanish residents and is based upon the value of the property as assessed by the local authority (valor catastral). It will normally not exceed a few hundred euro per year. Wealth tax is only applicable if a person owns property worth more than 750,000.00€. Please note that if you actually rent out your property and receive real income, as opposed to imputed income, you have to complete a tax return every quarter, calculate and pay the actual tax due.

This is the Spanish equivalent of Council Tax. It is calculated by reference to the valor catastral and typically for a two bedroomed apartment in the Marbella area will amount to around 800.00€ per year.

This is distinct and separate from Capital Gains Tax. It is paid by the seller. It is levied by the local authority and is calculated by reference to the increase in the value of the land associated with the property since it was last sold or transferred. This is assessed by the local authority. In the past it was charged even if the actual property was being sold at a loss which was of course most unfair. However, as a result of successful court challenges over the years this is not now the case i.e. a property has to be sold at a profit for it to apply. Greenfields will advise you of the Plus Valia applicable on your sale.

Most properties are located in a development comprising of other properties. The development is administered by a community of property owners (Comunidad de Propietrios). These are run in a similar fashion to that of a property management company HOWEVER the community is made up of all of the property owners and each owner has a share of the community assets and is responsible for a proportion of the running costs of the community. The community deals with all common areas and facilities including, in the case of flats, the maintenance and repair of the actual buildings as well. The community votes in a president from one of the owners and the community appoints administrators to effectively administer the community matters and prepare the accounts and budgets etc. Community fees are normal charged 4 times per year in accordance with the budget and forecast prepared by the administrator. Greenfields will check the community and obtain the minutes of the last community meetings to ensure all is in order.

If your home country is in the euro then this is by a simple bank transfer however, if not, Greenfields would normally recommend a money exchange company which gives much better rates than using a bank and saves considerably on fees and commissions.

Testimonials

  • David McCormack, Architect and property developer

    “ I have used Greenfields for all of my personal matters and also refer my clients to them. I have always found them very approachable efficient and practical in dealing with my matters. Nothing is too much trouble”

  • Sara Tye

    “I recently purchased in Elviria and used Greenfields to advise and assist in the whole process my email after completion said – “Thank you so very much. You have been absolutely awesome”. I would highly recommend”

  • Clive McKeag, solicitor and Icelandic Consul.

    “Michael was a fellow lawyer in the UK and when he moved to Spain, I was able to refer clients and indeed instruct Greenfields to deal with my own personal work in Spain. I believe it has been most helpful for clients to be able to use a native English-speaking firm that is able to explain and advise clearly and follow the procedures we are used to in the UK”

  • Jonny Ellis, Property Developer

    “I was recommended to use Greenfields for my Spanish property purchase by both my UK accountant and my UK solicitors independently. I have subsequently used them for two more purchases and all have been handled efficiently and professionally. I use them for all ongoing matters and would highly recommend”

  • Joe , Footballer

    “I was recommended by my UK accountants to Greenfields to assist with my Spanish property management and subsequent sale. It was a great recommendation as the transaction was handled efficiently and smoothly”

  • Nigel Smith, managing partner Ellis Jones Solicitors

    “We have referred clients to Mike and the Greenfields team for any of our clients that were interested in purchasing in Spain since they started in business. It is essential to us that any referral we give apply the same standards that we have to in our own Solicitors practice in England”

  • Harry, Football manager

    “I have used Mike and the team to deal with my Spanish property matters since 2004. The advice and service were always prompt efficient and helpful even when just trying to source the appropriate property”

Location

Contact

Centro Comercial Elviria
Office number 6, first floor
(up the stairs, second door)
29604 Marbella, Málaga, Spain

+34 952 850 109

    GREENFIELDS LAW