[Finance] Property on Spanish Golf Resort

[Tim Over Whelmed]

I'm looking at properties in Spain, preferably on a golf resort. The idea being to use it, occasionally, September to May, and rent to family and friends June, July & August to pay for, or contribute to it, for the rest of the year. Preference is more of a golfing ex-pat community.

Property wise it'll be 2/3 bed 1/2 bathroom and, as I've said on a resort. I just wondered if anyone's done this and where the best place is, other than NSC, for research. Not concerned about property and handover etc but more on maintenance costs and green fees etc, guessing if you pick the wrong resort you're bu99ered!

I guess airport location is fairly essential to consider also, any help very much appreciated.

 

[Triggaaar]

I'm looking at properties in Spain, preferably on a golf resort. The idea being to use it, occasionally, September to May, and rent to family and friends June, July & August to pay for, or contribute to it, for the rest of the year.

Do you think your family and friends will want to rent it off you very often?

 

[Carlos BC]

There is someone called Simon Conn, have met him a few times at networking events, an Albion season ticket holder. He arranges overseas mortgages but his website also has alot of guides and help for people wanting to buy abroad. Website is here https://www.simonconn.com/services/

 

[Cheshire Cat]

 

[timbha]

There is someone called Simon Conn, have met him a few times at networking events, an Albion season ticket holder. He arranges overseas mortgages but his website also has alot of guides and help for people wanting to buy abroad. Website is here https://www.simonconn.com/services/

Simon Conn you say?

 

[Stephen Seagull]

Use a company called Engel & Volkers to get an idea.

There are places on the Catalan PGA courses that are for sale and Engel&Volkers have tourist licenses for airbnb and the like (which is a requirement in Spain)

PM me if you want more info

 

[Tim Over Whelmed]

There is someone called Simon Conn, have met him a few times at networking events, an Albion season ticket holder. He arranges overseas mortgages but his website also has alot of guides and help for people wanting to buy abroad. Website is here https://www.simonconn.com/services/

Thank you, that's great, not looking to finance but the guides will be useful.

 

[Tim Over Whelmed]

Do you think your family and friends will want to rent it off you very often?

No, not really, it's merely to contribute towards maintenance and green fees. I'd rather only close family and friends, if that's two weeks a year good, if it's six or seven weeks brilliant.

 

[AmexRuislip]

I'm looking at properties in Spain, preferably on a golf resort. The idea being to use it, occasionally, September to May, and rent to family and friends June, July & August to pay for, or contribute to it, for the rest of the year. Preference is more of a golfing ex-pat community.

Property wise it'll be 2/3 bed 1/2 bathroom and, as I've said on a resort. I just wondered if anyone's done this and where the best place is, other than NSC, for research. Not concerned about property and handover etc but more on maintenance costs and green fees etc, guessing if you pick the wrong resort you're bu99ered!

I guess airport location is fairly essential to consider also, any help very much appreciated.

@Cadiz Seagull might be of help.

 

[Tim Over Whelmed]

Use a company called Engel & Volkers to get an idea.

There are places on the Catalan PGA courses that are for sale and Engel&Volkers have tourist licenses for airbnb and the like (which is a requirement in Spain)

PM me if you want more info

Thank you, from that it may be easier for the Wife and I to just use it.

 

[Official Old Man]

Most important is the 90 day rule. You can only live there for 90 days within 180 days. NOT 180 days there 180 here but a strict 90 days from the first day you step foot in Europe. I use rightmove who give 100's of homes.

 

[Cotton Socks]

I was going to suggest that it's going to cost a fortune in maintenance for broken windows as I skim read it as 'course' not 'resort'.
Be careful renting it to friends and family. From my experience some family members will set their 'own' discount packages on their view of how 'close' you are to them. You'll let elderly Aunt Ada stay there for a week for £50 that you see once a year, then cousin James on the other side of the family will want it for £50 a week and fill the house up with their family or guests for a cheap holiday, as you see him 3 times a year. Once you've let 'some' friends or family use it, you're in danger of being be put in a position that you feel to guilty to say no to others. My experience is based on a family member having a holiday home, not myself, it caused them nothing but stress renting it to friends & family and even led to arguments that haven't been reconciled 6 years later!

 

[Tim Over Whelmed]

I was going to suggest that it's going to cost a fortune in maintenance for broken windows as I skim read it as 'course' not 'resort'.
Be careful renting it to friends and family. From my experience some family members will set their 'own' discount packages on their view of how 'close' you are to them. You'll let elderly Aunt Ada stay there for a week for £50 that you see once a year, then cousin James on the other side of the family will want it for £50 a week and fill the house up with their family or guests for a cheap holiday, as you see him 3 times a year. Once you've let 'some' friends or family use it, you're in danger of being be put in a position that you feel to guilty to say no to others. My experience is based on a family member having a holiday home, not myself, it caused them nothing but stress renting it to friends & family and even led to arguments that haven't been reconciled 6 years later!

Yes, rethought the family and friends idea!

 

[papachris]

I have had a small Spanish home for five years. As a rule I let family stay for free and friends pay a very low rate.
A couple of things to be aware of, if the Spanish authorities are aware you are renting out for money you will be liable for tax. Allow about 13% extra on top of your purchase cost. This is 10% to the govt and around 3% legal costs.
You will have bills to pay there all year around whether you are there are not, including SUMA (rubbish collection etc).
However, good luck and I hope you find something for yourself that you love as much as I do our little place in the sun.
The fact I can just pop over there whenever I want, with virtually zero luggage as I have everything there is still something I really enjoy.
Made some really good friends in Spain that I enjoy meeting up with as well.

 

[nicko31]

I have had a small Spanish home for five years. As a rule I let family stay for free and friends pay a very low rate.
A couple of things to be aware of, if the Spanish authorities are aware you are renting out for money you will be liable for tax. Allow about 13% extra on top of your purchase cost. This is 10% to the govt and around 3% legal costs.
You will have bills to pay there all year around whether you are there are not, including SUMA (rubbish collection etc).
However, good luck and I hope you find something for yourself that you love as much as I do our little place in the sun.
The fact I can just pop over there whenever I want, with virtually zero luggage as I have everything there is still something I really enjoy.
Made some really good friends in Spain that I enjoy meeting up with as well.

He will be liable for income tax on profit, but provided he is a UK tax payer it should be able to be ofset this against a UK tax bill.

 

[Herr Tubthumper]

He will be liable for income tax on profit, but provided he is a UK tax payer it should be able to be ofset this against a UK tax bill.

There’s a double-tax treaty with Spain so I presume he will pay tax in Spain and then also declare it in the UK and use the Spain tax as a credit to his tax bill in the UK? Is that how it works with Spain?

 

[Bob!]

I have had a small Spanish home for five years. As a rule I let family stay for free and friends pay a very low rate.
A couple of things to be aware of, if the Spanish authorities are aware you are renting out for money you will be liable for tax. Allow about 13% extra on top of your purchase cost. This is 10% to the govt and around 3% legal costs.
You will have bills to pay there all year around whether you are there are not, including SUMA (rubbish collection etc).
However, good luck and I hope you find something for yourself that you love as much as I do our little place in the sun.
The fact I can just pop over there whenever I want, with virtually zero luggage as I have everything there is still something I really enjoy.
Made some really good friends in Spain that I enjoy meeting up with as well.

You pay a Tax on Spanish properties as a non-resident whether you let the property out or not:

What is Spanish non-resident income tax?​

If you own a property in Spain but do not let it to tenants then you are required to submit an annual return for non resident income tax. If you do let the property to tenants on a temporary basis then you are required to submit quarterly returns declaring the net income received in each quarter, taking into consideration the allowable expenses incurred. If you do not let the property during a particular quarter then you will still need to submit an annual return in relation to the quarters in respect of which you have not yet paid tax.

To the extent that you do not let your property to tenants, you can expect to pay an annual non resident tax that is calculated on the basis of the rateable value of the property. The reality is that the tax payable will usually be very low, most often based on 1.1% of the rateable value, taxed at the rate of 19% (or 24% for those not resident in the EU). So that is 0.209% of the rateable value for EU residents, not a high tax at all.

If you do let your property on a temporary lettings basis then you can expect to pay tax quarterly on the net income earned at a rate of 19% (or 24% for those not resident in the EU), taking into consideration deductible expenses.

Non resident tax In Spain. Get expert legal advice now

If you own property in Spain and you do not live in Spain, you may not be aware that you are liable to pay Spanish non-resident income tax. Find out more.

www.solicitorsinspain.com

 

[papachris]

You pay a Tax on Spanish properties as a non-resident whether you let the property out or not:

What is Spanish non-resident income tax?​

If you own a property in Spain but do not let it to tenants then you are required to submit an annual return for non resident income tax. If you do let the property to tenants on a temporary basis then you are required to submit quarterly returns declaring the net income received in each quarter, taking into consideration the allowable expenses incurred. If you do not let the property during a particular quarter then you will still need to submit an annual return in relation to the quarters in respect of which you have not yet paid tax.

To the extent that you do not let your property to tenants, you can expect to pay an annual non resident tax that is calculated on the basis of the rateable value of the property. The reality is that the tax payable will usually be very low, most often based on 1.1% of the rateable value, taxed at the rate of 19% (or 24% for those not resident in the EU). So that is 0.209% of the rateable value for EU residents, not a high tax at all.

If you do let your property on a temporary lettings basis then you can expect to pay tax quarterly on the net income earned at a rate of 19% (or 24% for those not resident in the EU), taking into consideration deductible expenses.

Non resident tax In Spain. Get expert legal advice now

If you own property in Spain and you do not live in Spain, you may not be aware that you are liable to pay Spanish non-resident income tax. Find out more.

www.solicitorsinspain.com

That's right, I just got my non resident bill. Luckily because I am resident in the EU it is a slightly lower rate

 

[Dave the OAP]

Most important is the 90 day rule. You can only live there for 90 days within 180 days. NOT 180 days there 180 here but a strict 90 days from the first day you step foot in Europe. I use rightmove who give 100's of homes.

Our friend who has a property in the Dordogne fell foul of this brexit benefit!

she went to see the local Mayor and has taken various bits of legal advice and the local authorities will grant longer “ residency” visits if she is seen to be an active member of the village she lives in. That includes her having taken French lessons, getting involved in local community work and being “ active in the community”. She is not 100% resident , but very nearly! The French do seem to be a bit more relaxed about brexit.

certainly we will be looking in the future to buy a property in France.

 

[Icy Gull]

Most important is the 90 day rule. You can only live there for 90 days within 180 days. NOT 180 days there 180 here but a strict 90 days from the first day you step foot in Europe. I use rightmove who give 100's of homes.

Once you have been there 90 days you then have to wait 90 days before you can start again.

The French stamp your passport on arrival and departure so have a record of your days in France. We went to Lanzarote in December and our passports weren’t stamped on arrival or departure though