Buying in Spain, Still worth it ??

[darlin]

hi there
I have been told that the yearly running cost for a property is about 2% to 4% of the value of the property which includes property taxes, income tax on the rent, rubbish tax, insurance, standing charges for utilities (electricity, gas, water, telephone)…
So if you buy a house in Barcelona where the return on Investment with rental is less than 4% I am wondering how you people are making money, considering that your flat might remain not rented for a while if the renting is terminated.

I am thinking to buy a property as an investment and rent it but am not sure if I will still have to pay from my pocket for the running costs..

What is your opinion and how are you managing ?

 

[IainDoc]

I am looking at Spain as well and I can see tax obligations taking a big chunk out profits, especially if you borrow highly to buy. I suspect lots of people just don't bother declaring but that's a bad business plan. Read my thread about the post Brexit, zero deductions scenario. Deductions against tax were only permitted recently by a an ECJ ruling, and could be denied again once the Uk is out if the EU. So 25% tax on the gross rent could be making a come back. So far nobody is saying it won't happen and I hope I am wrong.
Where are you looking in Spain?

 

[Chris Tian]

For your query, contact HYPEKEYS. They are the well known Madrid Real Estate Management persons. They can let you know about your area and the rent and the cost structure in detail. Area where you want to purchase property really matters and this also effects the price too so better to have a practical advice.