Golf property spain
The real estate market in Spain is quite good, despite high property rises and a slow GDP growth. However, economists warn that these two factors can result in the property market spiraling downwards very quickly at some future time. At present, though, the opportunities for investing in golf property in Spain are very bright. In fact, a surge of beach-loving and golf-loving tourists heading for Spain provides a fantastic option to rent out your property when you are not residing there.
Important Information to Know
In order to buy and sell property, and to pay your taxes, you will need an identification number, known as N.I.E. (N?mero de Identificaci?n de Extranjero).
Make sure you see the actual title deed of the golf property you are planning to buy before paying a single Euro. If Mr. X?s name is on the deed, only he, and nobody else, can sell you that property as per the laws in Spain. It is to Mr. X alone that you have to hand over the purchase price, and not, say, a family member staying as a tenant on the premises when you go to see the property and claiming to be the seller. So if you get fooled into paying that family member, you could be in deep trouble !
One of the first documents that you will be signing is the preliminary contract after the purchase price has been agreed upon. This contract is known as ?Contrato privado de compraventa?.
? You will autograph the title deed of the golf property in the presence of a notary. This very important document is kept in the safe custody of the land registry.
If you wish to rent out your property during the booming holiday season, you need to find out the legal aspects involved, as also whether you need to pay any tax on the income you earn. It has also been reported that investors need to find out if a license is required to rent out the property, without which you may have to pay very steep fines.
? It is advisable not to sign any documents if it is in a language that you do not understand. Have your lawyer present when signing any documents, and, if necessary, let him be your authorized financial representative as and when required by law.
What are the Payments involved when Buying Golf Property in Spain
In addition to the actual purchase price of the golf property you decide to purchase, there are a lot of taxes and fees that you need to factor into your budget. Other than the real estate agent?s commission, here?s an approximate idea of what you need to pay:
A deposit to ensure that another buyer does not clinch the deal. This deposit may be non-refundable.
The lawyer?s fees
Notary Fees
Stamp Duty
Registration fee of your name on the title deed of the property
IVA Tax (Impuesto sobre el valor a?adido) ? this is similar to the value added tax in other countries. However, this tax is not applicable in all the regions of Spain. Some territories may have another kind of tax, so ask your lawyer.
? Transfer Tax
Once the property is yours, you need to pay:
? Annual IBI (Impuesto sobre Bienes Inmuebles) Tax on your property
? Annual Wealth Tax
? Miscellaneous Fees, such as garbage collection fees, water rates, maintenance fees, etc
Note: The above-mentioned taxes and fees may not be the only ones! Hence, in addition to a lawyer, it is advisable that you appoint a financial advisor conversant with Spanish taxes and one who understands the terminology.
Reasons For Contacting a Lawyer Before Purchasing Golf Property
By now, all this mind-boggling legal and other formalities will make your head reel. That is exactly why the very first step you need to take is contact a reputed lawyer. Don?t restrict yourself to a lawyer recommended / provided by your real estate agent. Get an independent one.
He should not only be knowledgeable about the real estate market in general, but also legally savvy on all Spanish laws vis-?-vis property buying, selling and renting.
He is the one who will make a thorough perusal of all the requisite documents, especially the title deed, and see if there are any loopholes.
It is his job to find out if the seller owes anyone (or the government!) money, something which will create a nightmare for you down the line. He should ensure that all previous taxes have been paid up.
Most important: he is responsible for ensuring that all the agreements between you and the seller are properly enforced by Spanish laws.
Types of Golf Property in Spain
1. One option is to buy property within easy commuting distance or overlooking a golf course.
For example, you can buy a 2-bed + 2-bath + living room in the town of Murcia for about 190,000 Euros.
One of the favorites of investors in golf properties is the town of Costa de Sol, in the southern region of Spain. You can fly down directly to the airport in its capital city, Malaga, from one of many European cities. A 2-bed apartment with terrace near the Mijas Golf course can be yours for little less than 230,000 Euros.
2. Another better option, for those with a larger budget, is to purchase a home on a golf course itself. In this case, the developer will have taken the services of an expert who specializes in designing golf courses, perhaps a professional ex-player.
? An upcoming golf resort is in the region of Murcia, which is home to the San Javier Airport. The town will soon be linked by rail to Barcelona and Madrid. The golf course will be having more than 70 holes and four lakes. Use of the greens will be provided automatically to owners of the residential homes on the golf property. The homes will each have its own landscaped garden and sophisticated security systems will be installed. Prices begin at over 290,000 Euros and goes to over 1,500,000 Euros.
Another proposed golf property would be coming up a few kms from the International Airport of Corvera, located within driving distance of Murcia. The resort will have a 18-hole golf course and a 5-star hotel. You can opt for a 2-bed/2-bath or 3-bed/2-bath apartment, or a 2-bed/2-bath villa, or even for a 3 or 4-bed Villa. Prices start at about 155,000 Euros.
The above-mentioned golf properties have been randomly selected from real estate listings on the Internet. They are merely examples for investment opportunities, and should not be considered as definite sound deals. The rates mentioned are also not actual purchase prices. It is up to the reader to make a wise decision when investing in any golf property in Spain. Moreover, you should ensure you contact 3-4 agents for a wider option and good competitive prices. Your agent should also be knowledgeable about the neighborhood and give you information about local amenities as also the cultural aspects. Do some independent homework yourself, and cruise around the neighborhood on your own. Who knows? You may just find the ideal golf property that you were looking for !
Other Articles
