bubble1970

Hi
I am planning to move to Spain.
I wish to purchase 3 plots of land. 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..
at 12,000 Euros per pool.
I have several questions, The Villas would be in the Alicante area.

1. What Tax/Vat would I pay and charges for the land purchase and the build. What are the Tax Rates for these i.e. 10% cost of licences

2. 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.

3. Is 12,000 Euros per pool a reasonable price? could I ask for a Deal if they are building me 3 pools ?

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.

4. 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.

I have taken in to account all the setting up costs, furniture etc.. but I have not yet priced Satellite TV or Internet are these very expensive?

5. Can I just have a Telephone Line for the Satellite TV and the Internet?

many thanks

Emma

pwwm

Find a good lawyer that knows Spanish law, forum members cannot give you all this information, get it from the horses mouth so to speak, Have to say the land sounds awfully cheap for dwellings.

TeamSpirit

Hi Emma,
I do realise you have to try and sort as much out as you can from the UK, but do you have any possibility to fly out and deal with your questions in your chosen locality? It's hard to believe until you've been here a while, but it is the only way you can be sure of anything - and even getting there involves a lot of hurdles. You can pay a "gestor" to help you, but nevertheless, being present yourself is often safest. Good luck!

mikelincs

They may have water and electricity ready to connect, BUT do they have building permission? You do need, as has already been suggested, a solicitor before signung anything, beware of unscrupulous sellers. DO NOT USE ANY SOLICITORS SUGGESTED BY THE LAND OWNERS, they will, almost certainly, be more of a friend to the landowners and be working for them, not you. The whole thing sounds a bit, well more than a bit, suspicious to me, so tread very, very carefully.

Rosemary

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary

TeamSpirit

Hello Rosemary,
nice to meet you and thank you for your offer of assistance. I am already finding my experience with BE to be very helpful and enriching. My husband and I are not of the "born networker" generation but we are willing to learn, and BE does feel genuine to us, rather than the virtual world superficiality we had been a little concerned about.

Rotor

I`d say you are stepping into a minefield and you wont walk out unscathed , you seem to be assuming building / planning is as straight forward as the UK , its not , you cant just throw up pre fab houses or any other kind , it can take years to get planning permission and a shed load of cash , the land prices you are quoting are about right if for agricultural use, were PP possible the would fetch a lot more and I`m sure the current owner knows that.
Get an out of town lawyer before you part with a cent .

Rotor

Rotor

I`d recommend against getting a gestor , they are not lawyers by any stretch and many are incompetent , a lawyer is the only way with this kind of project and as has been mentioned dont use one the vendor recommends , pick your own and ideally not a local one.

scot47

How will you check that the persons selling the plots has valid legal title ? I think you have to be physically present in Spain to do this. Be careful.

Rotor

All work that a lawyer will do for you , try and do it yourself at your own peril.

lurchio

Woah Tiger! With the utmost of respect, You sound very similar to my UK Expat friend locally, who started a similar process six years ago. He's now still living in a caravan on the 'site' and cannot now afford to develop anything as all his cash was taken up in legal costs to 'legalise' all the land and proposals, Its still going on, and on and on. So, the Vendor was lying, the Town Hall Mayor was lying, the Local Solicitor was lying and the Architect was lying.... get the picture? Some Spanish have ZERO conscience where money is involved, the phrase 'not worth the paper its written on' was invented here!' I do not want to burst your bubble, but things can get pretty ugly around 'land deals' etc. in Spain. Because you are not Spanish, if it is 'hookey' and you try to resolve it the only recompense you could get is the famous shoulder shrug and a stomach ulcer.


Check and double check using a Lawyer / Architect or whatever from well OUTSIDE the area. Escrituras? Catastral references? etc. etc. And keep going back over things as matters progress, its the only way.


Alternatively, spend your hard earned on a long term established. legal and ready made property / area.


Good luck with whatever you decide.............. please be careful, that's all.

Rotor

FranE

All good advice above, with which I fully concur. My eyebrows went up as soon as I read "all with water and electricity ready to connect". Who told you that? The Estate Agent ?? We've had estate agents tell us that about agricultural land with no prospect whatsoever of ever getting permission to build. The agent told us "in Spain you can build on any land so long as it is at least 10,000 m2". They will tell you ANYTHING.


Just think, Emma - if you were doing this in the UK would you even contemplate it without having first instructed a lawyer?


Get a lawyer FIRST and DON'T part with any money to the estate agent, under any circumstances. Don't believe it when estate agents say you don't need a lawyer, or that the Notary will do it all. None of that is true.

ned flanders

Well Emma that's 264,000 Euros that you can put back in your pocket. Lucky you.