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This topic contains 11 replies, has 3 voices, and was last updated by Profile photo of Barbara Ingenbleek, Euro Economics Barbara Ingenbleek, Euro Economics 5 months ago.

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  • #191151
    Profile photo of Carolm
    Carolm
    Participant

    We are in the process of buying a property which had been repossessed by the bank , then sold on to a speculator.  Will we have to pay the higher rate of property tax levied on new property, or will it be deemed as second hand?

  • #191153
    Profile photo of Mark Stücklin
    Mark Stücklin
    Keymaster

    This will be a resale, with ITP transfer tax not VAT at 10% on mainland Spain and the Balearics. (Canaries have a lower rate of VAT).

    ITP varies by region. Where are you buying?

  • #191155
    Profile photo of Carolm
    Carolm
    Participant

    we are buying at Corvera golf, not far from the new airport.  

  • #191170
    Profile photo of Mark Stücklin
    Mark Stücklin
    Keymaster

    Murcia. I think ITP there is now 8% but you’ll need to check all this with your lawyer.

  • #191172
    Profile photo of Carolm
    Carolm
    Participant

    Thank you for your help.

    We were unsure of the tax rate because although it had been sold on by the bank to a speculator, the property has never been lived in, so no certificate of 1st occupation(or whatever it is called these days).

  • #191176
    Profile photo of Mark Stücklin
    Mark Stücklin
    Keymaster

    Hi Carol, it doesn’t matter that it’s never been lived in, what matters is how many times it has changed hands. You only pay 10% VAT when you buy a new home from a developer.

    Covera Golf looked to me to be in a bad way when I was last down there a couple of years ago. I think the developer went bust and the creditors repossessed the development, which didn’t help. Are things improving?

  • #191420
    Profile photo of Carolm
    Carolm
    Participant

    Hi

    Sorry for the delay in replying.  The state of play at Corvera is improving.  Property is selling well there because of the discounted prices.  Having spoken to several residents, the communities seem to be organised and well run, the gardens and pools well kept.  As more people are now moving in , making the area feel more ‘lived in’,  things are improving all the time.

    The golf course is another matter,  I can’t see the situation improving in the near future.  When the new airport does eventually open , perhaps someone will be interested in opening it again.

    Thanks for your advice in your previous messages.

    • #191425
      Profile photo of Mark Stücklin
      Mark Stücklin
      Keymaster

      So is the golf course now closed? It was still open when I last visited.

      Corvera has a good location and it’s a shame the developer was crushed by the crisis.

  • #191440
    Profile photo of Carolm
    Carolm
    Participant

    Yes the golf course has been closed for some time and is overgrown.

    The properties were not selling because of this,  but the low prices the banks are asking now has revitalised interest and are selling well.

    We have spoken to a few people who bought off plan, a penthouse for instance, which had an asking price of 0ver 220.000euros at that time, are now selling for 44,000euros!  Okay, no beautiful golf course view at this moment in time, but hopefully in the future it will be revitalised.  The Urbanisation gardens are well kept and the pools kept clean.

    We felt at these prices it was worth a punt!

    • Best Wishes

     

     

  • #191547
    Profile photo of Mark Stücklin
    Mark Stücklin
    Keymaster

    Thanks for the update. Yes, at those kind of discounted prices it’s hard to resist. I hope you haven’t be caught by the fall in the pound?

  • #191556
    Profile photo of Carolm
    Carolm
    Participant

    Luckily, our funds are already in euros.

  • #191602

    You have to ask the question to the selling company.

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