Buying an apartment in Spain....need advice

My Dad was going to buy a place in Spain a few years back, but a mate who lived out there warned him against it. Said it was too much hassle there and he was moving to Portugal as they don't bother you at all. Dad ended up buying a 2 bed apartment in Cabanas De Tavira on the Algarve.

Only thing he said he had to pay was a €700 per annum service charge.
 
If you buy in Spain, as an owner you will generally be liable for the following annually:
Rubbish collection charge
Residency fees
Local Council Tax
Central Government Tax
Foreign Resident Owners Tax (Unless you are moving to Spain permanently)

Plus, if the local residents vote to spend money on something like tarmacking the street or adding a pool shower then you will have to stump up your share like everyone else. If you don't pay, the elected President of the local residents committee has the power to auction off your house to pay for it.....
 
This is my concern. My mate did say that most councils seem corrupt and they will tax the bejesus out of you if they can.

That's ********. Property taxes in Spain are lower than here, but it is up to you to pay the relevant charges - if you don't they WILL eventually get around to you and charge you for all the back taxes plus a fine.
The main problem people have been having recently is that they've been living in Spain for years without paying what's due and with the crisis Spain suddenly started taking notice and demanding years of back taxes.

(1) If it's a tourist development check that all relevant permissions are in place for both the land and the development, for this you'll need a local solicitor. If the flat is in a normal residential area it's likely to be fine

(2) At the minimum you'll need to pay the equivalent of the local council tax. For our flat this is less than £40/month. If in a normal area you also have a seperate fee for rubbish collection etc. This might be included in management fees if it's a tourist development.
You should check if the local area has a non-resident tax. For our flat this is about 120 Euros a year.

(3) Be aware that Spanish inheritance law and the taxation of inheritances is VERY different from here. In some areas property automatically passes to children. There can also be taxation on the inheritance - especially if the capital value of the flat has increased and if you only have a UK will then EVERYTHING will need to be translated by a registered transdlator when the time comes. We found that the best solution is to have a Spanish notary draw up a will that's specific to Spanish assets. It can say the same as the UK one, but at least there's no translation required and the process will be a lot smoother when the time comes.

To give you a rough estimate, our 2-bed flat in Menorca runs us £1100 per year all in including electriicity/water charges. That's on a small luxury development 5mins walk from town centre of 18 flats with communal charges for pool, lift and garden maintenqnce included. As mentioned above, charges for other maintenance like painting etc will be settled by an annual residents meeting.


Unless your mum intends to spend a lot of time there (as in, 2 months during winter or suchlike) or your family will use it regularly I'd advise against buying, especially with current exchange rates meaning it's not such a great deal right now.
 
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Yes - Spain is full of thieving little gits.

A friends parents has a large villa just outside of Puerto Banus - they have the grates etc. and what they do is get a car jack, jack them open and then insert kids (can't get done by the po po underage) to rob your house. They have 24/7 security now that will be there in minutes but they're usually in and out before that.

Spain is nice purely for the weather alone. The rest of it is borderline third world and most of the people that go from here certainly don't help that.

£100k won't get you much really, but have you thought of France, southern parts are nice, and unlikely you'll get the above issues although they'll still want to tax the hell out of you.

Also check up the inheritance laws; in France they are awful.

£100k won't get you much in any decent areas of the south of France unless you're willing to buy somewhere very remote (probably not a good idea for an elderly person). And as you say, the taxes are huge, hence why a lot of people rent.
 
Main thing that puts me off buying a holiday house somewhere like Spain is that you end up going there every year. I'd rather go see different places. Sorry not really helpful to you. :)
 
My parents have been trying to sell their house in Spain for a while now. Ideal location in a gated community between Estepona and Puerto Banus, 8 house comunidad. UK buyers were 100% set on completing, then pulled out post Brexit even though they were aware they wouldn't get the deposit back. Now they're taking my parents to court over the deposit.
 
Now they're taking my parents to court over the deposit.

Good luck with that. It's standard Spanish contract practice that the deposit is not refundable.

I will add, for the OP, that £100k seems a lot for what he's describing. I'd be looking around £60-70k max for that type of thing
 
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My parents have been trying to sell their house in Spain for a while now. Ideal location in a gated community between Estepona and Puerto Banus, 8 house comunidad. UK buyers were 100% set on completing, then pulled out post Brexit even though they were aware they wouldn't get the deposit back. Now they're taking my parents to court over the deposit.

Wow, bad move on the buyers part.

How much is this deposit?
 
Will there be any further expenses for owning property out there, when Brexit kicks in properly?
 
I look forward to the thread where your mum gets fleeced in taxes and property taken off her and sold at auction for pennies to the pound. Portugal is even worse. Inheritance, CGT, etc it's all very corrupt in those 2 countries. Its local offices your dealing with. Don't hire the right person to do it all and I've seen people lose their homes in the UK too.

I specialise in the MARD directive. So I have seen it first hand hundreds of times.
 
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