Tips to keep in mind while investing in Costa Del Sol property

Costa Del Sol is an ideal place for property investment
because of the scenic beauty, excellent transportation and
good resale value for the properties. Although land prices
are high here, one can obtain low priced homes and plots
before construction work begins. Things to look out for
while buying property in Costa Del Sol

The prospect of a Costa Del Sol property is enticing to
many visitors and they may get quickly enamored by the vast
choices and lucrative options available.

However, there are certain things one needs to keep in mind
while investing in the place:

Various taxes to be paid – Before you purchase any Costa
Del Sol property, you need to understand what are the
various taxes to be paid.

VAT and Stamp duty: These need to be paid if you are
purchasing a new house or property from a developer. The
VAT usually ranges between 7 to 16 percent, while stamp
duty is around 1 percent of the property value. If you make
an initial deposit before the purchase, then also VAT and
stamp duty will apply to this deposit.

Transfer tax: This needs to be paid if you are purchasing a
property or a home from an individual owner who is
reselling the home or plot. This tax ranges from 6 to 7
percent, is inclusive of stamp tax and if you are making an
initial deposit this deposit won't be subject to transfer
tax.

Income tax: This will be applicable if you are purchasing
from a non Spanish person, residing in Spain. Then you will
need to keep aside 5% of the value of the property or home,
to pay to Income Tax department.

Property evaluation – It is strongly recommended that you
get the Costa Del Sol property evaluated from a recognized
property inspector. This helps to ascertain the true value
of the property and prevents any kind of loss from the
buyer's perspective. This also is a prerequisite to qualify
for a mortgage loan.

Mortgage loans – You need to apply for a mortgage loan to
meet the expenses of the Costa Del Sol property. To do
this, you will firstly need to qualify for the loan and
also meet associated costs once the loan gets funded. There
may be a deposit of 10 to 15 percent depending on the
mortgage lender and the type of property.

Ownership costs – If you are planning to buy a property or
a house in Costa Del Sol, there will be many associated
costs such as property ownership tax, annual wealth tax and
personal income tax.

Seek legal assistance – This is essential if you are
planning to purchase any Costa Del Sol property. The reason
being hiring a lawyer can help you save a lot of the
hassles in reviewing contracts, performing all due
diligence checks etc. A lawyer will also assist you in
negotiating the terms of the contract between you and the
seller. The fees charged by a lawyer will differ based on
the services you require and the reputation of the lawyer
as well.

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Steve Magill is the author of numerous articles on the
topic of Spanish real estate. He is a partner in
http://www.buyspain.co.uk and a Fellow in the British
Association of Entrepreneurs (FBAE). He is also an
internationally renowned Spanish property expert.