February 22, 2012 at 9:00 pm #56537
We are considering buying a flat in Barcelona and would welcome any advice or views on the subject. The flat would be intended as a permanent home for our daughter who is working there and has been living in rented accommodation in the city for the past 3 years.
We would be able to purchase a small flat for cash but are considering the possibility of my daughter (or ourselves ) borrowing part of the finance either in the UK or Spain.
My wife and I are retired and living in the UK.
We are new to the forum and hope some of the ‘old hands’ out there can offer some valuable advice.
February 22, 2012 at 9:33 pm #107984
Hi cipriano – not sure what the question is? What advice are you looking for?
February 22, 2012 at 10:03 pm #107985
Not having enough background. Please be aware of the following:
a) Your daughter may have a job today however this does not mean she will have it in future. It is nearly impossible to get a job in Spain. My Spanish friends who were with me during my student days are back in London looking for a job in the twilight of their working lives..
b) If the apartment needed to be sold your daughter will be struggling to sell and not to forget the buying/selling cost of say15%.
c) If you take out a mortgage this will also attract additional charges of Notary fee & taxes.
d) Taking funds from UK will be exposing yourself to currency fluctation as it expected that the £ will appreciate against the €, further if Greece leaves the € other currencies will be under the spot light, there will be run on the Banks & where Countries are to exit the € a substancial devaulation will take place of the currencies of those Countries.
e) You are also depleting your nest egg in the UK & in the current climate you may not be able to raise funds if required for health or other reasons.
I feel that filling the landlords pocket is a cheaper, flexible option at present & perhaps for the next five years or so.
February 23, 2012 at 9:02 am #107983
Great advice from Shakeel. I would add one thing. If you must buy as opposed to renting for your daughter and I don’t recommend that, make sure you buy the property in her name otherwise your family will be exposed to large inheritance taxes on your death as well as the annual none resident tax.
February 23, 2012 at 9:52 am #107986
I agree with Logan about the Tax position. However if the daughter leaves Spain to work/live eslewhere. She will lose the benefits that are bestowed onto her by the Taxation laws in Spain.
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