Complimentary tax on bargain properties ...up to five years after purchase.

[fifi]

http://www.eyeonspain.com/spain-magazine/complementary-tax-purchased-property.aspx

[denboy]

buying property in spain seems to be a legal minefield.when we eventually make the move to fuerte,i think we will rent out our properties in england and use the proceeds to rent over there.i seem to remember this was what you advised when i spoke to you about it fifi.are your thoughts still the same?

[fifi]

Hi Denboy, I think renting makes sense for a number of reasons. 1. Property is still depreciating. 2. No taxes, IBI, Basuras or Community fees to pay.  3. No maintenance fees 4. No charge for replacing electrical items. 5. No keyholding or cleaning fees. 5. No worries  about inheritance taxes and if a spouse or family members could afford to actually pay them inorder to inherit their share of the property. 6. No  worries  about the freezing of a joint bank account if one spouse dies. 7. If you dont like the neighbours or location you can pack your bags and go. 8. If you are lucky you may even have your tv, electricity and water included in your rent.




My opinion hasnt changed as you can see Denboy.

[MinRich]

Renting appears to be the sensible option for us too. Too many pitfalls when buying your own place. We have heard a balanced argument from both happy and unhappy buyers and decided not to buy at all .

Why does Spain make it so difficult to do anything ?

[fifi]

Sorry Minrich, I just saw your post. I dont think that it is a case of Spain making things difficult necessarily. Without fluency in the language things are more difficult and also more expensive, but some of the laws are similar enough to our own. For example ,sadly a member of my family died recently and the the inheritance tax on the house has to be paid immediately even though the house has not yet been sold and there is a penalty if it is not paid immediately.

The Spanish Government to give them their due, do actually make things transparent on their website and all the ammendments to the laws appear daily .....but they sure do change things a lot and it takes a bit of patience to keep up to speed with what is going on.


I advised a couple of friends to rent out their properties in their home countries and one was very successful with holiday rentals. It is worth looking into what kind of return you could get from renting out either on a holiday basis or long term where you are currently living. I would imagine that you would make a lot more than what you would pay for a long term rental property on the Island....bearing in mind that you can get one bedroomed bungalows from €375 including all bills and two bedroomed from €450 to €600.



It is lovely to have your own place....but I believe now that you can have the same feeling of being "home" in a long term rental without all of the extra expense and worry.

[potash]

I agree with fifi the feel good factor has long since gone owning a property in Spain or its islands. I have friends who rent from  November to march every year and  they get better deals every year this year under 400 euro per month all in for smart two bed. 

ps in  central Caleta no need for car hire

[PremierBluebird]

This is a really interesting thread, it certainly makes you think about the pros and cons of renting/buying.

[butchbuildersinc]

Hi Denboy, I think renting makes sense for a number of reasons. 1. Property is still depreciating. 2. No taxes, IBI, Basuras or Community fees to pay.  3. No maintenance fees 4. No charge for replacing electrical items. 5. No keyholding or cleaning fees. 5. No worries  about inheritance taxes and if a spouse or family members could afford to actually pay them inorder to inherit their share of the property. 6. No  worries  about the freezing of a joint bank account if one spouse dies. 7. If you dont like the neighbours or location you can pack your bags and go. 8. If you are lucky you may even have your tv, electricity and water included in your rent.




My opinion hasnt changed as you can see Denboy.

absolutely agree fifi 100 percent.