Tips on Buying a Spanish Property

By: Neil Ebsworth

When deciding on buying a property or any other property, there are two major factors that you must look into: what to buy and where to buy, in this case, the place would be Spain.

You have to ask yourself if the Spanish property is something that not only you would be interested in but other people would like as well. You also have to consider on how you'll make money in the future for the property---will you have it rented out or will it also be possible for you to resell it?

In short, you will need to think of the return on investment as well as the location. You should do careful analysis of all the factors to help you in making the right decision.

In terms of location, aside from looking into the weather and the scenery in the Spanish property you are interested in, you also have to gain knowledge on whether or not there are recreational places nearby such as shopping malls, beaches, bars, golf courses, etc. You also need to get information if the property is close to commercial centers, airports, etc. Ask also if there are hotels built near the place as well as conference centers, and a lot more. The property should also be close to hospitals and food shops for your own convenience.

In buying a Spanish property, you also have to look into accessibility not only at present but also after 3 to 5 years. Ask the following questions: 3 or 5 years time.

Are airports being developed?
Are there new roads being constructed?

It is advisable to hire a lawyer based in the area of the Spanish property you are planning to buy. This is because that purchasing laws differ from area to area and country to country so you would need someone who is an expert to help you with your purchase.

Also take note that in the event that you are buying an off plan property, you have to be aware of the lead time before developers actually build the property. Most of the time, developers would have to sell at least 70% of the property first before starting construction so if you are one of the early buyers, expect that completing the property and turning them over to you would not be that soon. Remember though that the pricing will be cheaper as compared to a property that is already in construction or already ready for occupancy.

In the event that you are buying the Spanish property as an investment wherein you would want it rented out, consider the tax implications and assess thoroughly how much the rental returns would be. Rentals are something that are not really guaranteed so make sure that in the months that nobody rents out your property you have funds to pay for it and not struggle in making payments for your Spanish property.

If you are planning to sell the property at a higher price than its cost, consider the capital gains tax which is normally 35% if you are a non-resident of Spain. Looking into the capital gains situation would help ensure whether buying and then selling the property is a good idea or not.

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