davejsy

Hello all,

I'm new, so go easy.

So we have been visiting Asturias and surrounding area's 2-3 times a year for nearly 10 years now, and we love it. In the last year, we've been casually looking at properties online. As often happens expectations get raised, and we've ended up looking at something above our price range (mortgage payments not an issue, just the initial deposit given LtVs for non-residents). Anyway, the very kind gentleman has offered us a 2-year rent to buy option on this place that we have fallen in love with, and that would mean that hypothetically at the end of the 2-year term we could afford the place if we decided to go ahead. Initially having never come across Rent to Buy contracts I was no way, however, now having seen they are common to a degree in Spain and having thought about it I'm onside.

So my two immediate questions are:

• Does anyone have experience of RtB contracts?
• I'm told there is a tax levied on RtB contracts - although I would have thought that was on the landlord (income tax)?
• We intend to initially rent and eventually buy in joint names, although I am still married (not to the person I am renting/buying with) - is this possible and if so does it present any issues at any stage of the process?

Any advice gratefully received!

Thank you,

Dave

Chipmonk

If you are married and buy a property in spain your wife will be by law put on the deed. The same goes for any other assests in Spain. Be careful and go to a proper lawyer who has a thorough grasp of both Spanish and English and the two legal system's

Moses2013

This might help: https://www.idealista.com/en/news/pr...y-ladder-after

davejsy

This is really helpful thank you. I'd read another article on Idealista re rent to buy, but not this one which is bang up to date. So from what I can see we pay ITP tax on the rent, and then on the final purchase - although jargon isn't entirely clear to be able to calculate anything. I don't think we will be required to pay an option premium, and it will just be the rent (and i guess a refundable deposit). Owner is in no rush to sell and doesn't need the money, and I think he knows it might take a while to sell (although I have seen similar properties exchange recently so there is some movement).

davejsy

Well that will certainly speed up the divorce process! I guess for the rental period this won't be an issue hopefully. We have several relatives in Spain, including an architect so they have some experience and will help with the process. I also have several friends I have made over the years in the area, so can always get some local help if required.

Another question, if anyone knows; are they issuing NIE's at the moment? I saw somewhere that this had been put on hold due to COVID?

Chipmonk

NIE is just a number you are given like NI number. They are easily obtained but I think maybe you are confusing it with residencia which is a whole different thing

davejsy

Hi Chipmonk - yes understand what the NIE is, however read an article that they had put the process on hold due to COVID restrictions. However only found the one article and can't see anything else, so maybe misleading. It's just we may come over in next few weeks to view the property to decide if we want to proceed, and we would use this opportunity to obtain NIE numbers.

bfg69bug

I wish that there were more rent-to-buy places in spain, it ould make our house buying alot easier.

You dont say davejsy - do they charge a 10% deposit up there ? thats the "norm" in the south, although there is one in Alhaurin de la Torre.. thats been on the market for YEARS.. its 230,000 - they want a 45k deposit and 1000 / month for 1 year... then the sale :O they wonder why its not selling....

davejsy

Not sure re deposit, he has just mentioned rent of €20k for two years, which will be taken off the purchase price. He is an old guy who doesn't need the money, and probably doesn't want to sell but can't justify keeping it, so as such he seems very relaxed. If we proceed then I'll let you know the end result.

If you read the Idealistsa link kindly mentioned above you will see that BtR may become a bit more common for the near future.