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Spanish Property Investment
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'Buying Off Plan', 'resales', 'new constructions'; there seem to be a never-ending number of different property types available to buy in Spain. Despite this, it is likely choosing a property that presents the most difficult stage of the buying process. We will look into the most popular types of properties available and the buying process associated with each, starting with those looking to buy a property within the next 3-6 months.
The Quick Route To Buying A Property
If you don't want to wait and want to buy Spanish as soon as possible, generally speaking you will be purchasing a resale property, or buying a property from a constructor that hasn't been sold yet. Alternatively, you may be buying from a person that invested in a property off-plan, and that property is now reaching completion.
Generally speaking you may have to pay upfront deposits and stage payments, then proceed as normal. If you\'re buying from someone who previously bought off-plan, you will likely be buying a contract and this process works in much the same way as purchasing a resale property (similar to how this works in the UK).
Of course, as is often the case in the UK, the taxman will be involved at some point along the transaction. In Spain, VAT (known as 'IVA') is charged at 7%, however if buying a contract, if the value of the property bought at plan stage by the contract seller was less than that being asked now, it may be possible to arrange to declare a value less than the actual price. You should, as always, seek professional advice on such matters.
Buying Off-Plan
Buying off-plan has been much publicised recently as a relatively easy way of increasing your equity by risking capital on a plan for a development before it has reached the construction stage. Very often, the price of an off-plan contract can increase towards completion stage as the building takes shape, utilities are built, trees and swimming pools are developed, and the overall development starts to take the form of the intial plan.
The drawback with buying off-plan in Spain is that it can take a number of months for the property to complete, and so if you are wanting to get a property immediately, off-plan might not be for you. However, it is often an excellent way to obtain a property cheaper than what you might pay for it once fully constructed. It also makes it a prospectively excellent investment vehicle.
The Spanish Property Partnership offer a number of off-plan property developments for sale, including Elegance in Denia, as well as Gata Residential and Laguna Beach. We also have a number of golfing properties available on new developments - please if you would like full brochures for any of these new developments. |
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