buying an apartment in spain
Discussion
Can't help you whether you should drop 0.5m or not, but save yourself a world of pain and don't open a Spanish bank account.
Despite what lawyers and any other 'officials' might tell you, an account with a Spanish bank is not necessary either to buy a property or manage ongoing bills.
Just open a Euro account with Wise (other similar banks are available) and route all direct debits to that account.
I was a customer of Santander (the Spanish one, not UK) for over 20 years and was abused by their obscene monthly charges, freezing of the account every couple of years pending updating of my non-resi status and embargoes that get placed on the account for various reasons. I closed the account and moved to Wise over 2 years ago and haven't looked back.
Despite what lawyers and any other 'officials' might tell you, an account with a Spanish bank is not necessary either to buy a property or manage ongoing bills.
Just open a Euro account with Wise (other similar banks are available) and route all direct debits to that account.
I was a customer of Santander (the Spanish one, not UK) for over 20 years and was abused by their obscene monthly charges, freezing of the account every couple of years pending updating of my non-resi status and embargoes that get placed on the account for various reasons. I closed the account and moved to Wise over 2 years ago and haven't looked back.
recordman said:
Can't help you whether you should drop 0.5m or not, but save yourself a world of pain and don't open a Spanish bank account.
Despite what lawyers and any other 'officials' might tell you, an account with a Spanish bank is not necessary either to buy a property or manage ongoing bills.
Just open a Euro account with Wise (other similar banks are available) and route all direct debits to that account.
I was a customer of Santander (the Spanish one, not UK) for over 20 years and was abused by their obscene monthly charges, freezing of the account every couple of years pending updating of my non-resi status and embargoes that get placed on the account for various reasons. I closed the account and moved to Wise over 2 years ago and haven't looked back.
We only got our Portuguese mortgage if we opened a BPI current account and also insured the property through them. Yes, it’s like pulling teeth sometimes but it seems to work ok mostly. I use Wise for moving money - I’m a big fan - if we can clear the mortgage I’d be doing exactly what you’ve done.Despite what lawyers and any other 'officials' might tell you, an account with a Spanish bank is not necessary either to buy a property or manage ongoing bills.
Just open a Euro account with Wise (other similar banks are available) and route all direct debits to that account.
I was a customer of Santander (the Spanish one, not UK) for over 20 years and was abused by their obscene monthly charges, freezing of the account every couple of years pending updating of my non-resi status and embargoes that get placed on the account for various reasons. I closed the account and moved to Wise over 2 years ago and haven't looked back.
If a mortgage is involved do get a broker. We’d have been on the hook for hundreds of euros a month life insurance IIRC which got into the mortgage contract ‘by mistake’ and was only picked up by the broker.
recordman said:
Can't help you whether you should drop 0.5m or not, but save yourself a world of pain and don't open a Spanish bank account.
Despite what lawyers and any other 'officials' might tell you, an account with a Spanish bank is not necessary either to buy a property or manage ongoing bills.
Just open a Euro account with Wise (other similar banks are available) and route all direct debits to that account.
I was a customer of Santander (the Spanish one, not UK) for over 20 years and was abused by their obscene monthly charges, freezing of the account every couple of years pending updating of my non-resi status and embargoes that get placed on the account for various reasons. I closed the account and moved to Wise over 2 years ago and haven't looked back.
100% agree. I moved to Wise a couple of years ago due to the same issues with La Caixa bank. They were an expensive and bureaucratic nightmare to deal with. Despite what lawyers and any other 'officials' might tell you, an account with a Spanish bank is not necessary either to buy a property or manage ongoing bills.
Just open a Euro account with Wise (other similar banks are available) and route all direct debits to that account.
I was a customer of Santander (the Spanish one, not UK) for over 20 years and was abused by their obscene monthly charges, freezing of the account every couple of years pending updating of my non-resi status and embargoes that get placed on the account for various reasons. I closed the account and moved to Wise over 2 years ago and haven't looked back.
Riff Raff said:
That's what we did (for both buying and selling). The power of attorney has to be signed in front of a Notary Public though, so you can't organise that remotely. ISTR anyway. I'll never forget the experience. How could you forget someone called Don Filiberto Carrillo de Albornoz Fisac? Proper old money.
Correct, you have to be there with the person who is being authorised under the POA when it is made out. We did one last October, just over 100€ for the Notary to validate everything. Helped us out no end with getting water, electricity connected once we'd bought the house, Apologies for the thread revival, maybe not the best place to ask, not sure?
I am looking at the pros and cons of taking on a flat in Almeria province vs selling it and have a few questions, mainly tax related. Does anyone know an accountant who specialises in this sort of thing? Mainly, I want to understand the tax liability in Spain as I'm not resident and therefore whether it's even feasible to break even.
I would be viewing it as a long term investment, not seeking to take an income from it, but I don't want really want it to be costing me money. It's currently on a long term let with a tenant but the rent is €450 a month, by the time the tax liabilities and bills are covered, I don't see how it's going to be feasible. Unless we go back to holiday lets?
Any suggestions/thoughts welcome!
I am looking at the pros and cons of taking on a flat in Almeria province vs selling it and have a few questions, mainly tax related. Does anyone know an accountant who specialises in this sort of thing? Mainly, I want to understand the tax liability in Spain as I'm not resident and therefore whether it's even feasible to break even.
I would be viewing it as a long term investment, not seeking to take an income from it, but I don't want really want it to be costing me money. It's currently on a long term let with a tenant but the rent is €450 a month, by the time the tax liabilities and bills are covered, I don't see how it's going to be feasible. Unless we go back to holiday lets?
Any suggestions/thoughts welcome!
My sister and her other half did this to rent out to others. A few years later they sold it on as it was too much hassle. The agents over there are very lazy and if you need to do anything, then it's not a drive down the road. They're glad they're out of it now as it was a waste of money and time.
Of course, YMMV.
Of course, YMMV.
Assume you’ve inherited it?
I’m not 100% sure, but I think you may have to pay the stamp duty just to change the ownership in to your name … c.10% of the properties value… we looked at moving our property from joint ownership to single for tax reasons some years ago, but we would have had to pay the stamp duty to do it.
Round here, you might make be able to make a bit renting if you’ve no mortgage… my place is worth around €500k, and would rent for c.€2k/month on a long term (6 month+) contract.
But I’d have to pay the community fees from that (€400/month), plus general maintenance and income tax, along with property taxes and a cut to the agent if I used one.… I might make a third of the rental income as cash to me… so less than a 2% return on the capital.
I’m not 100% sure, but I think you may have to pay the stamp duty just to change the ownership in to your name … c.10% of the properties value… we looked at moving our property from joint ownership to single for tax reasons some years ago, but we would have had to pay the stamp duty to do it.
Round here, you might make be able to make a bit renting if you’ve no mortgage… my place is worth around €500k, and would rent for c.€2k/month on a long term (6 month+) contract.
But I’d have to pay the community fees from that (€400/month), plus general maintenance and income tax, along with property taxes and a cut to the agent if I used one.… I might make a third of the rental income as cash to me… so less than a 2% return on the capital.
Chris Stott said:
Assume you’ve inherited it?
I’m not 100% sure, but I think you may have to pay the stamp duty just to change the ownership in to your name … c.10% of the properties value… we looked at moving our property from joint ownership to single for tax reasons some years ago, but we would have had to pay the stamp duty to do it.
Round here, you might make be able to make a bit renting if you’ve no mortgage… my place is worth around €500k, and would rent for c.€2k/month on a long term (6 month+) contract.
But I’d have to pay the community fees from that (€400/month), plus general maintenance and income tax, along with property taxes and a cut to the agent if I used one.… I might make a third of the rental income as cash to me… so less than a 2% return on the capital.
Basically, yes.I’m not 100% sure, but I think you may have to pay the stamp duty just to change the ownership in to your name … c.10% of the properties value… we looked at moving our property from joint ownership to single for tax reasons some years ago, but we would have had to pay the stamp duty to do it.
Round here, you might make be able to make a bit renting if you’ve no mortgage… my place is worth around €500k, and would rent for c.€2k/month on a long term (6 month+) contract.
But I’d have to pay the community fees from that (€400/month), plus general maintenance and income tax, along with property taxes and a cut to the agent if I used one.… I might make a third of the rental income as cash to me… so less than a 2% return on the capital.
It's the sort of thing that would be nice to keep on, but there's no sense in doing so if its just going cost money. We wouldn't use it every year, and the rental yield is very low. That said I'm not sure if it would sell for much either, it's not a massively tourist area.
rdjohn said:
Phooey said:
It's been mentioned a few times recently but now looking like the Golden Visa is definitely going to be axed
https://www.surinenglish.com/malaga/unrest-and-concern-the-costa-sol-over-20240409090121-nt.htmlOh, how I wish that I had Irish ancestry.
https://www.bbc.com/news/world-europe-68761491
Picked some friends of friends up from the airport last night.
They were here for a month in January, then went off to SE Asia with my friends for a couple of months.
They were coming here on their way back to Canada… a week specifically just to buy a property and sort their golden visa. Spent the entire car ride back from the airport talking about the various properties and locations they were due to look at.
They are devastated today.
They were here for a month in January, then went off to SE Asia with my friends for a couple of months.
They were coming here on their way back to Canada… a week specifically just to buy a property and sort their golden visa. Spent the entire car ride back from the airport talking about the various properties and locations they were due to look at.
They are devastated today.
The Nomad visa sets a lower rate of tax and you can also live in a rented apartment, so living in Spain while working for say an American tech-giant. So its perhaps open to a 25-year old who has little capital.
The Golden visa was a quick way to obtain residency provided you could afford the entry ticket i.e. asset based, rather than skill based.
The Golden visa was a quick way to obtain residency provided you could afford the entry ticket i.e. asset based, rather than skill based.
Car bon said:
Chris Stott said:
They are devastated today.
It's still available though isn't it ?All the articles seem to say it's coming to an end, or it's planned to end etc.
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