Dear all
I'm thinking to invest into a buy-to-let property in Spain and trying to figure out all pro and cons as of today(2016).
Input : 2 bedroom appt, in Marbella - Malaga area, as I heard there are plenty of golf courses and golfers coming whole year around (or even more during the winter), so the season is much longer than just summer time.
Questions:
-Does anyone here own such real estate? What is the real experience of living in CH and renting it out in Spain?
-Is there a legislation of avoiding double taxation between Spain and CH? I don't want to go black but don't want to spend all gains for taxes...
-If I'll take a mortgage in Spain - can I deduct it from my taxes in CH?
-Are there reliable local management companies, who can look after and bear all headache at the cost for sure.
Your feedback is much appreciated.
As a non-resident of Spain, you have to pay 25% tax on the rental income to the authorities on a quarterly basis ... this cannot be avoided.
Plus you are not eligible for any deductions.
Hi,
I'm also thinking about buying an apartment in Spain or Portugal (or somewhere else with a nice weather and winter sun). I would like to rent it for most of the year but also be able to spend there few weeks during the year on my own.
Can anyone recommend any agency who can help to organize it? Doesn't matter in which country - the main condition is winter sun and beach nearby.
Regards,
Alekk
I have a holiday home in Spain.
Before we bought it we ran some figures.
We finally decided renting wasn't worth it.
A lot of people rent out properties in Spain illegally. If you want to go down the legal path, you have to get the appartment inspected and passed. Then when that's done, and the agent has taken a cut and the taxman has taken a cut and you've set aside a rainy day fund for repairs, your return on investment is looking pretty poor.
Sadly, a lot of estate agents appeal to people's greed by bouncing around wildly optimistic figures on rental income while downplaying costs. Unfortunately, it doesn't work like that. There are way too many mediocre overpriced rental properties on the market. So unless you either have a prime top notch location, or are prepared to go right down with the price, you'll struggle to find tenants.
And if you think you can do it ilegally, from the chit chat I'm picking up in Spain, the government is getting stricter on that and fines can be quite hefty.