Buying Land and Building

[pigletParticipant]

Hi

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.

[Mark 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.

[SurveySpainParticipant]

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.

[Author]

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