Any experts here with regard to buy to let a property in Spain? - HotUKDeals
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Any experts here with regard to buy to let a property in Spain?

chocci Avatar
2y, 2m agoPosted 2 years, 2 months ago
We are thinking of buying an apartment or villa in Spain for our own use in winter and letting it out during the rest of the year.

Anybody know some decent websites / forums that discuss the legal aspects, property management, tax implications etc etc?

Initially we think the area around Malaga or Barcelona would be best due to the cheap flights and area popularity.

Thanks in advance
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chocci Avatar
2y, 2m agoPosted 2 years, 2 months ago
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#1
I own a property at La Manga Club, Murcia, furthest South East tip of Spain, I don't rent out the property but I do know that the Spanish tax on properties that are rented is horrendous. The Spanish tax system is very complicated and My solicitors deal with all the legal Government forms on my behalf (especially as they only come in Spanish).
The best place in the UK to attend a seminar or similar on buying and renting abroad especially Spain is to attend 'The Place in the Sun' Show held at Earls Court usually at the beginning of the year. Jasmine, Amanda or Jonny do the hour long talks together with specialist lawyers etc with questions taken at the end. Tickets are in conjunction with the Daily Mail but free entrance vouchers can usually be found nearer the date.
Expatforum.com would be good place to sign up and look through threads
#2
Toptrumpet
I own a property at La Manga Club, Murcia, furthest South East tip of Spain, I don't rent out the property but I do know that the Spanish tax on properties that are rented is horrendous. The Spanish tax system is very complicated and My solicitors deal with all the legal Government forms on my behalf (especially as they only come in Spanish).
The best place in the UK to attend a seminar or similar on buying and renting abroad especially Spain is to attend 'The Place in the Sun' Show held at Earls Court usually at the beginning of the year. Jasmine, Amanda or Jonny do the hour long talks together with specialist lawyers etc with questions taken at the end. Tickets are in conjunction with the Daily Mail but free entrance vouchers can usually be found nearer the date.
Expatforum.com would be good place to sign up and look through threads
Brilliant tips. Thanks TT.
#3
Avoid Malaga area, it is the pits.

Alicante region is far better, but be prepared to lose money on your investment, property prices in Spain are only going down rapidly.
#4
You really need to actually visit the areas you're interested in, afterall you'll be living there and if you can rent it see that part as a bonus rather than buying a property to rent out and one you can also live in. Alicante area is a main tourist hub and there are plenty of properties to choose from, however you want the property to be hassle free and also a good investment. Properties such as Polaris World have been bad investments and yes there are plenty of half built complexes but I would recommend a lock up and leave property on a well established complex with it's own security.
#5
Inactive
Avoid Malaga area, it is the pits.

Alicante region is far better, but be prepared to lose money on your investment, property prices in Spain are only going down rapidly.
I thought the market had bottomed out now, Guess I will research that area some more. Although you can get 2 bed 2 bathroom apartments for the same price as you would get a studio flat in the roughest council area where I live oO

Some parts are the pits but I like Fuengirola, Mijas Costa and Nerja. You could also say some parts of Alicante are the pits (Benidorm ;) )

Quite liked Calpe though for a one off holiday but wouldnt go back again.

Edited By: chocci on Jul 05, 2014 16:56
#6
Toptrumpet
You really need to actually visit the areas you're interested in, afterall you'll be living there and if you can rent it see that part as a bonus rather than buying a property to rent out and one you can also live in. Alicante area is a main tourist hub and there are plenty of properties to choose from, however you want the property to be hassle free and also a good investment. Properties such as Polaris World have been bad investments and yes there are plenty of half built complexes but I would recommend a lock up and leave property on a well established complex with it's own security.
Thanks again. We plan to visit a few times before deciding where and have been many times to Spain. Having seen they charge 24% on any rental income profit for non-residents, may well just have it for our own use (and friends etc).
#7
http://www.rightmove.co.uk/overseas-property/property-45922976.html

I have been dreaming about buying a place in spain,

The prices seem very low.
#8
allowed
http://www.rightmove.co.uk/overseas-property/property-45922976.html

I have been dreaming about buying a place in spain,

The prices seem very low.
stupidly low. £25K for a flat with a communal pool in Torrevieja which is meant to be nice oO
#9
Don't forget the monthly community charges which can be quite expensive, especially if there's a pool on the complex.
#10
Don't forget that when you make an offer on any property you have to put down a 10% deposit as a sign of good faith.
Also, do you really need the hassle of renting, we worked out that after tax, agents commission, cleaners, wear and tear, having to fit our time around bookings etc it really wasn't worth the effort and also the thought of turning up and being disappointed with the obvious way other people treat the property would break our hearts.
#11
Torrevieja is aimed at the English, it's got all Irish pubs, cafés serving full english breakfasts, pole dancing clubs etc, everything that the Spanish think the English want is there and is very built up with thousands of apartments, supply outstrips demand and therefore prices are very low. The Spanish builders built everywhere for the English market and obviously with the crash the English have not bought there and thousands of apartments remain unsold. I did hear that to take the burden off the need for social housing the local government were going to rent or buy swathes of apartments by the block and put their own tenants in there.
#12
Toptrumpet
Torrevieja is aimed at the English, it's got all Irish pubs, cafés serving full english breakfasts, pole dancing clubs etc, everything that the Spanish think the English want is there and is very built up with thousands of apartments, supply outstrips demand and therefore prices are very low. The Spanish builders built everywhere for the English market and obviously with the crash the English have not bought there and thousands of apartments remain unsold. I did hear that to take the burden off the need for social housing the local government were going to rent or buy swathes of apartments by the block and put their own tenants in there.
thats torrevieja out then ;)
#13
Toptrumpet
Don't forget that when you make an offer on any property you have to put down a 10% deposit as a sign of good faith.
Also, do you really need the hassle of renting, we worked out that after tax, agents commission, cleaners, wear and tear, having to fit our time around bookings etc it really wasn't worth the effort and also the thought of turning up and being disappointed with the obvious way other people treat the property would break our hearts.
early stages atm but will probably agree that renting isnt really viable on a low value propery
#14
I also believe that there's something called ' Arras '. This is something that is like a deposit but it can be bad, If you agree on the sale and pay Arras if you back out you lose the money you've paid. If the person selling the flat changes his mind they have to give you double what you've paid.
#15
I haven't heard of 'Arras', our property was a bank repossession it was being sold via Sevihabitat which is the real estate subsidiary of La Caixa, one of the biggest banks in Spain, once you have found a region you like look on their website as they are very motivated to get repossessed properties off their books.
Also you have to have what I think is an NIE number which is like a social security number which is issued by the police when you make an offer, when you are really serious about buying find a solicitor who can do all the paperwork for you and get you this number together with finding a notary. You need all the paperwork in place to even make an offer so get that sorted while you're out there viewing properties. The Spanish are sticklers for paperwork and won't make any allowances just because you're english. Opening a Spanish Bank A/C is an obvious thing to do as well.
#16
nandito39
I also believe that there's something called ' Arras '. This is something that is like a deposit but it can be bad, If you agree on the sale and pay Arras if you back out you lose the money you've paid. If the person selling the flat changes his mind they have to give you double what you've paid.
i wish they would implement that in England
#17
Toptrumpet
I haven't heard of 'Arras', our property was a bank repossession it was being sold via Sevihabitat which is the real estate subsidiary of La Caixa, one of the biggest banks in Spain, once you have found a region you like look on their website as they are very motivated to get repossessed properties off their books.
Also you have to have what I think is an NIE number which is like a social security number which is issued by the police when you make an offer, when you are really serious about buying find a solicitor who can do all the paperwork for you and get you this number together with finding a notary. You need all the paperwork in place to even make an offer so get that sorted while you're out there viewing properties. The Spanish are sticklers for paperwork and won't make any allowances just because you're english. Opening a Spanish Bank A/C is an obvious thing to do as well.
even more thanks
#18
TT is on fire in this thread. THE general knowledge provided in this thread is pretty good.
#19
Remember that if you buy a property on a complex, or with any shared facilities, you will have to pay community charges.

My advice is to avoid any shared facilities, and avoid any " Mainly Brit " area's.

The Spanish people are far better neighbours than most Brits.
#20
I would not want to put you off as living in Spain is brilliant, but it is also fraught with financial danger. Some friends of ours, who are smart savvy people and did all the research they thought was needed, bought a parcel of land to build on. Over 10 years they have developed and built a lovely villa. Along the way they have experienced corruption and dishonesty from everyone that has been involved with the project. Builders, Mayor, Local and regional government, Spanish and Brit neighbours, Architects etc etc. They have tried to avoid bribery, but the reality of the situation, is that is how the system works in Spain. If you try to go a different route obstacles suddenly appear to everything you want to do, or have already done. It is truly shocking. This post is specifically about building on land in Spain, but some of the issues will be relevant to any property ownership over there. Don't be put off, but be aware.
#21
airbus330
I would not want to put you off as living in Spain is brilliant, but it is also fraught with financial danger. Some friends of ours, who are smart savvy people and did all the research they thought was needed, bought a parcel of land to build on. Over 10 years they have developed and built a lovely villa. Along the way they have experienced corruption and dishonesty from everyone that has been involved with the project. Builders, Mayor, Local and regional government, Spanish and Brit neighbours, Architects etc etc. They have tried to avoid bribery, but the reality of the situation, is that is how the system works in Spain. If you try to go a different route obstacles suddenly appear to everything you want to do, or have already done. It is truly shocking. This post is specifically about building on land in Spain, but some of the issues will be relevant to any property ownership over there. Don't be put off, but be aware.
sounds a bit like Greece and Italy ;)

certainly wont be adventurous enough to buy land, though thanks for the advice
#22
Airbus330, I totally agree with you, the Spanish local government seem to make up their own laws on a daily basis and many savvy expats have been caught in horrendous nightmare situations. That's why I recommend buying into a well established community (20+years) housing both Spanish and English. Any property purchase is not hassle free even getting electric reconnected is hard to do especially if there is a language barrier. You need to buy somewhere that you can integrate with the locals as these will become your support network, getting to know the local ironmongers, neighbours etc is essential to even find where to buy everyday essentials and how things are in Spain.
Op, what sort of properly were you thinking of?
I asked my hubby about this 'Arras' and he confirmed that when we paid the 10% deposit to the solicitor the contract stated seller to pay 20% if he pulled out. Could be standard practice or could be regional.
#23
I have to say that I have owned my property in Spain for 14 years, I have never witnessed any of the horror stories portrayed by some on this thread, but then my property is in a " real " Spanish village, not on an urban complex.

Find a good reliable Spanish Lawyer, mine is superb, he has never let me down.

The " Arras " is standard in Spain, it's a great pity that we don't have the Arras in the UK.

Oh and I have found the biggest enemy abroad are some " Brits " who step off of the plane and overnight become instant tradespeople, .. builders...hairdressers etc. etc...... find genuine honest Spanish tradespeople, you will not go far wrong.
#24
Toptrumpet
Airbus330, I totally agree with you, the Spanish local government seem to make up their own laws on a daily basis and many savvy expats have been caught in horrendous nightmare situations. That's why I recommend buying into a well established community (20+years) housing both Spanish and English. Any property purchase is not hassle free even getting electric reconnected is hard to do especially if there is a language barrier. You need to buy somewhere that you can integrate with the locals as these will become your support network, getting to know the local ironmongers, neighbours etc is essential to even find where to buy everyday essentials and how things are in Spain.
Op, what sort of properly were you thinking of?
I asked my hubby about this 'Arras' and he confirmed that when we paid the 10% deposit to the solicitor the contract stated seller to pay 20% if he pulled out. Could be standard practice or could be regional.
got about £100k spare but could push it to 200.
Inactive
I have to say that I have owned my property in Spain for 14 years, I have never witnessed any of the horror stories portrayed by some on this thread, but then my property is in a " real " Spanish village, not on an urban complex.

Find a good reliable Spanish Lawyer, mine is superb, he has never let me down.

The " Arras " is standard in Spain, it's a great pity that we don't have the Arras in the UK.

Oh and I have found the biggest enemy abroad are some " Brits " who step off of the plane and overnight become instant tradespeople, .. builders...hairdressers etc. etc...... find genuine honest Spanish tradespeople, you will not go far wrong.
what is this village called?
#25
Well, I'm at La Manga Club which is a well established sport resort about 25 years old, it's about the size of Monaco and property starts around £80k up to multi million £ villas. The properties are overwhelmingly owned by English, 3 doors down from me is Gordon Strachans villa and across the golf course is Kenny Dalgliesh. It has a 5* hotel and shops such as hairdressers, small supermarket, bars etc, it really is a mini country within Spain with it's own security. There are 3 championship golf courses and a professional tennis centre. During the winter all the international football teams such as Dortmund, Barcelona etc go there for training camps. Rental is very good as it is a year round resort, the local airport is Murcia and Alicante is about 50 mins away. Seve Ballesteros had is family home there and it's where he started as a caddy and learnt to play. Properties range from studio apartments to huge villas and I just heard Dennis Waterman has bought a 2 bed place there. Upmarket resort with a down to earth feel catering for all ages and interests. I'm just waiting to retire there.
#26
Toptrumpet
Well, I'm at La Manga Club which is a well established sport resort about 25 years old, it's about the size of Monaco and property starts around £80k up to multi million £ villas. The properties are overwhelmingly owned by English, 3 doors down from me is Gordon Strachans villa and across the golf course is Kenny Dalgliesh. It has a 5* hotel and shops such as hairdressers, small supermarket, bars etc, it really is a mini country within Spain with it's own security. There are 3 championship golf courses and a professional tennis centre. During the winter all the international football teams such as Dortmund, Barcelona etc go there for training camps. Rental is very good as it is a year round resort, the local airport is Murcia and Alicante is about 50 mins away. Seve Ballesteros had is family home there and it's where he started as a caddy and learnt to play. Properties range from studio apartments to huge villas and I just heard Dennis Waterman has bought a 2 bed place there. Upmarket resort with a down to earth feel catering for all ages and interests. I'm just waiting to retire there.
La Manga area does look very impressive.
#27
Chocci do you live very far from Birmingham NEC? The Place in the Sun expo is on between 5th and 8th October and I have been sent free e tickets. I've already been to the one at Olympia. Do you want the tickets?
#28
redhot999
Chocci do you live very far from Birmingham NEC? The Place in the Sun expo is on between 5th and 8th October and I have been sent free e tickets. I've already been to the one at Olympia. Do you want the tickets?
thanks fir the kind offer but i live 180 miles away
#29
chocci
redhot999
Chocci do you live very far from Birmingham NEC? The Place in the Sun expo is on between 5th and 8th October and I have been sent free e tickets. I've already been to the one at Olympia. Do you want the tickets?
thanks fir the kind offer but i live 180 miles away


Take up the offer chocci, make a weekend of it. Can't go more exotic than brum..
#30
EN1GMA
chocci
redhot999
Chocci do you live very far from Birmingham NEC? The Place in the Sun expo is on between 5th and 8th October and I have been sent free e tickets. I've already been to the one at Olympia. Do you want the tickets?
thanks fir the kind offer but i live 180 miles away

Take up the offer chocci, make a weekend of it. Can't go more exotic than brum..
LOL oO
#31
chocci
EN1GMA
chocci
redhot999
Chocci do you live very far from Birmingham NEC? The Place in the Sun expo is on between 5th and 8th October and I have been sent free e tickets. I've already been to the one at Olympia. Do you want the tickets?
thanks fir the kind offer but i live 180 miles away

Take up the offer chocci, make a weekend of it. Can't go more exotic than brum..
LOL oO

I didnt mean with redhot999 by the way....:p
#32
EN1GMA
chocci
EN1GMA
chocci
redhot999
Chocci do you live very far from Birmingham NEC? The Place in the Sun expo is on between 5th and 8th October and I have been sent free e tickets. I've already been to the one at Olympia. Do you want the tickets?
thanks fir the kind offer but i live 180 miles away

Take up the offer chocci, make a weekend of it. Can't go more exotic than brum..
LOL oO

I didnt mean with redhot999 by the way....:p
Damn. I was getting all excited too ;)

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