Finding Your Perfect Property
Once you decide you want to buy property, you need to be clear from the beginning if you wish to rent it out as a holiday let or not. Spanish laws mean that you cannot just let out a property. You will need to get a licence to do this and there are restrictions as to where you can actually use the property as a holiday let.
You will need to apply for an NIE number if you haven't already got one and possibly also grant a Power of Attorney, if you are based in the UK
When you find the property you want to buy, you will need your legal representative to make enquiries:
- about who owns the property,
- if there any charges or debts on the property,
- how these debts will be cleared if you buy the property
- whether the property is a legal build
- what the ongoing liabilities will be
This should only take a few days but remember everything works differently here in Lanzarote to the UK
Once you receive this report, you can decide if you want to proceed. You will pay a deposit and then once everything is in order, you will make the payment in full, any tax owed, will be paid and the house put into your name.
This can usually take from 2 to 8 weeks.
Renting a property. Long/short term and Holiday Lets
Always remember that if you own a property in Spain that you get a rental income from, you will legally need to pay tax on it to the Spanish Government. You will also need to ensure that you supply the Guardia with names and passport details of your guests as they arrive(Within 24 hours). Registering for this is relatively easy. Submit this form with Yaiza Guardia Civil
Selling a Property
Find an Estate Agent that you can trust to find you a buyer. Request that they write down their charges and any other charges you will incur. Be wary of offers that seem too low because you may find further along the selling process, there are hidden charges. Get all of that information upfront and in writing.
Remember if the property is not your main residence and you are selling it to buy another property to live in, you will have to pay Capital Gains Tax on completion of the sale. With Brexit this could mean a hefty tax bill. Make sure you get all of the facts before making that final decision to sell.