Property in Spain is a fantastic investment opportunity as Kevin Birtles, Managing Partner, of Private Client Consultancy explains to George Banns
Property is a key asset in any investment portfolio, however when purchasing abroad, it's important to be aware of individual countries' regulations and Spain is no exception. The first factor to be aware of, is that regional governments in Spain can put rules in place that specifically impact foreigners looking to buy-to-let. Kevin Birtles explains: “By using a Wealth Manager, individuals can develop an effective strategy for choosing where to buy, as we understand the rules of different jurisdictions.”
It's also vital to have a will in place. If an expatriate in Spain dies without a will and owns assets of any kind, a tedious process may follow. Those who are seeking to either handle or claim the deceased’s estate, will need to apply for a grant of probate. This requires a significant amount of documentation, much of which must be translated and notarised. Additionally, the inheritance process must be concluded within six months. Having a will in place will prevent your loved ones from wading through a trail of unnecessary legal paperwork.
When drawing up a will, you must also consider forced heirship in Spain. Currently, children and/or next of kin are entitled to a certain percentage of the deceased person’s assets. However, some of these laws conflict with British inheritance rules. A professional will help bridge that gap between the countries’ discrepancies.
Kevin explains: “Ultimately, Private Client Consultancy is here to streamline your property purchase. We facilitate the process and help you avoid common pitfalls. For example, buyers often overlook purchase tax. Knowing the difference between the property’s market price and its rateable value is imperative. If the rateable value is higher, then you should pay purchase tax as a percentage of that value rather than the purchase price. If the Spanish tax agency discovers that you have underpaid, even if accidentally, they may penalise you.”
When selling property in Spain, you must also be aware of the capital gains tax (CGT). If you earn €50,000 or more on the sale of your home, you will pay up to 23% CGT. However, there are ways to reduce CGT, if you are purchasing an additional property, for example. Kevin adds: “A Wealth Manager will assist with this. They will also provide guidance when purchasing off-plan properties to ensure that what you are buying is properly registered and built legally.
As Abode’s ‘in-house’ private wealth expert in Spain, Private Client Consultancy is committed to maintaining, preserving, and growing your assets.
For enquiries regarding property investments, please email:private@pccwealth.com.
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