Investing in Spanish property

Member since 09 October 2017

Lans 67Member09 October 2017 10:03:37

Hi,

I am a Dutch man living in Bulgaria. I am looking into diversifying my investments. I am researching the possibilities to buy Spanish property through my Bulgarian company, fix them up where necessary (probably in this case, because of what I am looking for) and then rent them out to tourist, with an aim for the rural/ecological etc. tourist section. Of course selling might be applicable at a point in time.

As I live and work in Bulgaria I need to know whether that is possible at all, or that I should incorporate a company in Spain first. I am NOT looking for tax loopholes or such, I just want to manage my assets from here in Bulgaria.

Any tips, info or remarks are welcomed.

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Rafael Berdaguer Abogados New member

Member since 04 July 2017

Rafael Berdaguer AbogadosNew member09 October 2017 10:31:08

Hello you would need to engage a good lawyer to start with as there are possibilities of needing a Golden Visa depending on circumstances.

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Bhavna Team

Member since 01 June 2015

BhavnaTeam10 October 2017 05:21:10

43034

Hi everyone,

@ Lans 67, i suggest that you contact the professionals recommended in the business directory :

- Financial services in Spain, for accountants etc..

- Legal services in Spain, for lawyers...

all the best,
Bhavna

Guest6982 Guest

Guest6982Guest16 October 2017 08:15:05

Where are you looking? Different parts of Spain are starting to react to the influx of tourism and the impact it has on its citizens. Local governments are changing the regulations for Tourist Licenses daily it seems - so be sure to study the law in the particular area regarding your strategy. This restriction for tourist lets are more a city focused issue.

If you plan to purchase rural property, that comes with another set of challenges to determine what you can build. Usually you are limited to the existing footprint of any structure on the land.

What you want to do can be done, just proceed with caution and make sure you have a solid and trustworthy team of professionals working with you in Spain to help you understand the different challenges and be able to make informed decisions.

rubencito Active member

Member since 22 November 2011

rubencitoActive member16 October 2017 16:17:21

Hello Lans 67

I am a Spanish real estate lawyer and I am Dutch. Maybe I can help you.

puracordoba Member

Member since 29 July 2013

puracordobaMember16 October 2017 17:00:42

Hello Lans, I am Spanish and I live in Andalusia, reading to post, I can do something for you, I have dedicated a lot to real estate in some provinces of Southern Spain, I also want to invest in buying rural tourism accommodations, so I think we are looking for the same ...

PapaLima Contributor

Member since 20 February 2016

PapaLimaContributor17 October 2017 11:19:18

105

From a purely business point of view, of course buying and renting out properties can be a very good business.

From a practical point of view, Spain does have relatively high transaction costs on properties. When you buy, because of the 12-15% taxes and fees added to the purchase price, for every 100,000 euros you invest in property it actually costs you 115,000 euros- so your return on investment cannot be figured on the purchase price, but must take into account all of the other costs.

This lowers your return on investment, of course.

rubencito Active member

Member since 22 November 2011

rubencitoActive member17 October 2017 11:33:42

Keep in mind that the market started to recover 3 years ago. You will not find people desperate to sell. The second home markets in the coasts are completey diferent markets. The bank properties left are located in real bad places inland and have no demand at all.