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Tagged: Buying land, Prefab, Tax
- This topic has 2 replies, 3 voices, and was last updated 6 years ago by SurveySpain.
February 21, 2017 at 6:41 pm #195439pigletParticipant
I am planning to move to Spain.
I wish to purchase 3 plots of land in the Pinoso area. Each Plot is 10,000 m2 all have water and Electricity ready to connect. Each Plot is 21,000 Euros.
I have found a company that supply and build Prefab Homes called Casa Mundiales
it is 55,000Euros per building plus the additional cost of a pool per building..
I have several questions,
What Tax/Vat would I pay and charges for the land purchase and the build.
What would be the resale situation of the villas as they are Prefab can a Mortgage be obtained on Prefab buildings or if I sale would it have to be to a Cash Buyer.
I would be Renting 2 of the Villas out and living in one. These will be Modern Style Villas, the one I am looking at on the Casa Mundiales Site is the Prefab Homes Torremolinos 3 Bed 2 Bathroom Villa and I would be renting ;on a short term rent basis to holiday makers for around 90 Euros a night or £80.00 English Sterling a night.
What Tax Rate would I pay on my earnings which if I rent each villa for a minimal 20weeks per year would be 25,200 Euros a year. I know that the running costs are tax deductible and that this would be about 3,000 Euros per villa per year.
February 28, 2017 at 11:29 am #196024Mark StücklinKeymaster
In Alicante you would pay 10% ITP tax on buying the land, and 21% VAT on the build.
I don’t know if you can get mortgages on prefab homes. However, I don’t see why not, so long as they are legally registered as dwellings. Easy enough to find out, just ask a mortgage broker or a try a few banks.
As a resident I think you would pay 19% tax on net rental income, but you’ll have to check that with a tax specialist.
March 7, 2017 at 12:30 pm #196377SurveySpainParticipant
Some prefab homes (Timber Kit Houses) are treated as moveable as they are only sitting on the ground and not built into it. So you only get a mortgage on the land, concrete foundations and infrastructure, but not the house.
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