Holiday Home in Spain

[PurpleFlower1983]

Has anyone bought a property in Spain? We have had some inheritance and are considering it as an option. We have some friends who have one who we will be speaking to more after lockdown is lifted but I was wondering what experiences people have had.

I would as we live here, my DD is Spanish and at school here, but had my DH not been Spanish, no. I wouldn't. It's hard these days here. They are really stamping down. NHS equivalent will be impossible for you to get.

The house is in my name, DH has the 'usofructo' this means basically, that he has the right to live there until he dies, but it is my house and I won't therefore pay HUGE amounts of inheritance tax if he dies before me. (He is 18 years older than me, although I am far less fit!)

You might want to look into that. If you both own it, one of you will pay inheritance tax. In Spain, you, as a wife or DH will automatically by law inherit half to 3/4 of the house. The rest goes to DC's. It is nothing like the UK and also depends upon where you live. You have no say in this. (which is some ways is good)

I would have it in one name, good idea, with you as 'usofructo' ie the right to live there till you die. You will inherit either half or 3/4 anyway, DC's or other relatives the rest. It is all complicated and obvs you would see a lawyer.

What province are you in? (I am in Valencia where inheritance tax is awful)

Basically, you would have to make a will anyway, so check out the situation in the province you want to buy in. Ask questions (horrible) like 'if I die first and it's in DH/DW's name and I have usofructo what will happen? Seem like you know about this from the get go.

I have read horror stories about a DH having to pay huge amounts to pay tax on the DW's share of the house and barely being able to afford to. As it was in both names.

All of this changes all the time and also from province to province so check, check, check! Also make sure you trust your lawyer a lot. What I am saying could all change tomorrow and I am no lawyer. This is part of my insecurity living here. Every lawyer tells you something different.

On the whole, good to have it in one persons name IMO. You as usofucto, you can never be thrown out and will inherit anyway, I'd just ask about inheritance tax. All I have said applies to where I live, at the moment!

One other thing is that our Solicitor has warned us that if we are non EU our tax bills etc may be a lot higher than if we still were in The EU
If we get confirmation of that we may put the property solely into DH name as he has dual UK/EU nationality.

@HoppingGreen I’ve read that tax for rentals is set at 19% for EU nationals buy 24% elsewhere. I also have concerns about the UK leaving the EU as I read the Spanish government could basically impose whatever taxes they wanted on holiday homes etc. I also read that Spain have been one of the first counties to step forward in saying anything too draconian would be unlikely as parts of Spain rely heavily on foreign investment/tourism.

@PurpleFlower1983, I was thinking about you today as I am moving in two days!

Have you looked online at fotocasa and idealista? I think you asked earlier about bank repossessions etc. Do look on there, this is where the Spanish look and you'll get a better idea on prices (which will be inflated for your benefit otherwise!)

200k will buy you a mansion.

@BillieEilish I’ll have a look thanks! In the area we’re looking property is quite expensive but we’re hoping to get a good deal if we go ahead!

Make sure you get yourself a good Spanish lawyer. We have two wills, an English will and a Spanish will. We where advised to do this.
Our running costs are approx £3,000. Biggest overall cost is service charges £100 per month.
We dont rent out our apartment.
We are mainland Spain, Costa del Sol which is where you are looking at.

There are plenty of Norwegians who own in Spain, they also are non EU.

@Potionqueen Thanks, I’ve been reading all sorts and two wills was one of the things that kept coming up. I’ve been using the Place in the Sun website as it’s got what seems to be a lot of good info. on there and a few recommended companies. I will ask our friends who are out there which lawyer they use too. The estate agent contact I’ve been talking to said the increase in buyers from Scandinavia is what has pushed the prices up where we are looking so I’m not overly concerned about not being part of the EU. What does worry me though is the exchange rate. No idea if the pound will drop massively or strengthen. Probably the former but a big consideration.

La Cala is a lovely area but I would probably look at Riviera too, a bit cheaper and less burglaries IMO.

It would cost a lot less to just rent an apartment for €400-€800 per week all summer than the cost of running the apartment over the year (electric/IBI/basura/non resident tax/insurance/community fees) plus the costs involved with buying and also selling (10-15% taxes/fees on buying plus another 10-15% taxes/fees on selling when you sell) but that is the price you pay to have your own home from home.

Break ins are a problem in the area. Another thing to consider is most complexes within walking distance to the beach (unless a villa complex) are beyond rammed during the summer holidays so you are actually better to buy somewhere like mid-upper riviera if using for the school holidays but you'll need a car. I sold my old apartment because the complex was so busy during the holidays it was not possible to use the pool.

@cookiemonstressa That’s really interesting to know. We have never been in the school holidays as the owner’s of the apartment go then, I was on maternity leave when we went. I think they had had been burgled once actually. We have found an apartment for sale on a nice complex with a security guard.

I know the taxes are crazy! We have factored that into budget. I will look at Riviera. Thanks

We managed to chat to our friends last night who said they would share contact details for their lawyer and accountant in Spain so that’s a step in the right direction.

@PurpleFlower1983
Hi I know this is a really old thread but just wondered if you eventually bought a place in Spain and any problems with the buying process. We’re considering doing this in the next couple of years.

I have bought a place in Spain, and happy to talk to you through the process if need be.

We bought one a couple of years ago.
Currently we fly out a couple of times a year and rent it to Spanish people 8 weeks a year.
Fortunately the estate agents we bought it from manage the bookings and cleaning.
We don't make a huge amount of money but it helps with the tax we have to pay.
Our long term plan is a permanent move in 18 months time, my dh has an Irish passport and I can get one from him.

@Linning Hey thanks we’re looking in the next couple of years. We know where we want to buy as we have friends there and we wouldn’t be renting it out. We would go for 90 days per time. So maybe in the future I may pick your brains. Thank you