Commercial real estate in Spain: what to know before buying
Spain is an ideal country for spending your holidays. It has excellent resorts, picturesque landscapes, interesting architecture and historical heritage. The state shows good economic growth, the standard of living of the population increases. These factors speak in favor of investing in the country, especially since there is a loyal program of residence permit issuance in exchange for investment. To get a gold visa, you need to purchase objects worth 500 thousand euros. Under such conditions, residential or commercial real estate in Spain shows high growth rates, offering investors good options for investment.
When deciding to buy a property in this country, you should analyze the market to understand what options will give the maximum profit. And if it is quite simple with residential real estate, then commercial real estate requires a more thorough approach. You should understand that you are buying a business that can simultaneously serve as a space for your business, provide services to customers and even be used as a home. Therefore, you do not need to rely only on the cost per square meter of the object, you need to weigh all possible risks and profit.
The first thing you should focus on is the purpose of the acquisition. In case the commercial premise is bought for your own needs, and the option of making profit from the rent is not assumed, then you should not conduct market analysis, but rely only on your own convenience.
According to local legislation, upon receipt of a tax residence, an annual fee is levied on the property or luxury, which is about 3% of the value of the object. Therefore, it will be more convenient to make a purchase as a business asset, but such a procedure has several features.
It is necessary to open a legal entity, which entails additional costs. Support for this status will cost 500-1000 euros per month. Besides, if the controlling bodies suspect that the company is fictitious, they will introduce several more taxes. Therefore, it is more profitable to do some business. The optimal solution in this case would be to buy a hotel or a residential house, where a part can be allocated for own residence, and the rest of the area can be used for commercial purposes.
Buying Spanish property of this type will cost several million euros. Therefore, it is worth studying the market a little to find an object that will serve personal and business purposes, and will fit into your budget.
Prices for real estate in the tourist region of Spain start from 150 thousand euros. If everything allows, you can buy a family hotel or apartments. For mortgage registration you need to pay 40% of the cost, and the remaining 60% is given by the bank at 1.5% per annum.