purchasing for holiday home/ short term let

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This topic contains 8 replies, has 6 voices, and was last updated by Profile photo of inbarcelona inbarcelona 1 year, 11 months ago.

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  • #183987
    Profile photo of PAUL WILLS
    PAUL WILLS
    Participant

    Hello. we are a london based couple looking to purchase a property in Barcelona, central Eixample. Mainly to be used as a holiday home but also as a short term rental property. We are not looking to turn a profit but to cover a mortgage, which we also need to apply for. Where can we find the best advice to begin this adventure…….

  • #184361
    Profile photo of MikeD
    MikeD
    Participant

    Hi Paul,

    If you have specific questions or need advice on certain areas I can try to help.

    Just one point to note regarding your plan. There is currently a freeze on granting new short term rental licenses. Therefore the minimum time you could rent an apartment in Barcelona without a license is 30 days. It is possible to buy property with a pre-existing rental license but they are in high demand and the purchase price would be a lot higher.

    Kind regards,

    Mike.

  • #184368
    Profile photo of inbarcelona
    inbarcelona
    Participant

    Hi Paul. If you go ahead with your plan let me know if you need anyone to organise changeover days if you let it out.
    I am a British guy just recently moved to Barcelona.
    I have to say…I think Barcelona is a screaming buy at the present time.
    Let me know if you would like the names of some good estate agents with quality properties on their books….

  • #184384
    Profile photo of Mark Stücklin
    Mark Stücklin
    Keymaster

    I also think Barcelona is a “screaming buy” now.

    I’m currently doing a lot of market analysis for fund investors. There is an acute shortage of new/refurbished property in Barcelona, foreign demand is rising fast, and prices are at the bottom of the cycle. I wouldn’t be surprised if Barcelona was one of the hottest urban markets in Europe in 2015.

    I see it as almost a one-way-bet, which is why I bought a 200 sqm flat in the Eixample Dreta last Friday

  • #184386
    Profile photo of inbarcelona
    inbarcelona
    Participant

    Paul…Are you set on Eixample?…Very nice area…but have you thought about the Poblenou area?….It could be worth looking at, and still near central Barcelona.

  • #184405

    Hi Mike / Mark,

    I’m also looking to buy in Barcelona but a little unnerved by the changes in the tourist license laws. I’ve been told it’s still a good time to invest in a rental flat if you’re prepared to only take tourists for rental periods over 30 days. People have suggested language students for example might be interested in a 3-month rental? If I go down this route would I still need a permit for periods beyond 30 days and have to register with the local authorities? I want to do everything legally so I’d also be interested to know if I can get insurance for tenants coming in and out every couple of months?

    I suspect a property lawyer might be my first port of call but would be great to hear any insights you might have. Many thanks.

  • #184410
    Profile photo of inbarcelona
    inbarcelona
    Participant

    Hi…As far as I know, renting for periods over 1 month isn’t considered as a tourist rental. The only requirement is that you declare the income to the Spanish authorities….although few would do so in reality.
    If you are residing in another country and let out your flat, I can provide a changeover service…i.e. cleaning and preparing the flat for the next occupant..handing over the keys…laundry services etc..
    Let me know if interested.
    I am a British guy recently moved to Barcelona having retired from a professional job in the UK.

    inbarcelona901@gmail.com

    Paul.

  • #184443
    Profile photo of Cristian Selected
    Cristian Selected
    Participant

    Hi Paul,
    I will consider only return of investment numbers on medium and long term rentals. Barcelona is not giving any new licenses for short term,and old ones are going to be reviewed.
    The pressure from hotels and neighbors is extremely high. The police have been visiting properties this summer and fines are quite considerable.
    In any case you have to consider community fees, yearly municipal taxes and of course a 24% tax on income.
    It´s a good moment to make an investment, depending on location.

  • #184446
    Profile photo of inbarcelona
    inbarcelona
    Participant

    Yes….I rented an apartment in Barceloneta a few months ago and I had the local Council and Police knocking on my door. There is a lot of pressure from the locals in many parts of Barcelona who are either being priced out of neighbourhoods or suffering from noise all through the night.
    I was thinking more of buying to live in….but appreciate that buying costs are relatively high and there is CGT on any gains.
    My reasoning in saying that Barcelona was a screaming buy was that a few years ago aprtment prices seemed to me to be on a par with London. However, since then prices in Barcelona have nearly halved…whilst prices in London have nearly doubled (give or take a little). Hence the relative value.

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