travelling_girl

Lynn R

I bought a town house in Andalucia in 2003, sold it in 2017 and bought an apartment in the same town (because health problems brought accessibility issues with the house, therefore long term implications as we got older, into sharp focus). No regrets, although obviously I wish the property market had not crashed in 2008 or I might have made a profit on the first house instead of just about breaking even! It is seriously expensive to sell one property and buy another here, as you will have paid ITP on the first purchase, plus lawyer and notary fees, then most likely have to pay high estate agent commission (I paid 5%) and plus valia to sell it (I had no CGT to pay as I was investing all the proceeds in another property within 2 years, and had lived in it for at least 3 years as my principal residence). I didn't have 3% retained for potential CGT liability either, as I obtained a certificate of fiscal residence from Hacienda to present to the notary. Then ITP is payable all over again on the purchase of the new property. However, I take into account that even with all these expenses, I end up with a property I could not afford to buy in my country of origin (the UK) and if the property market had not crashed in Spain I couldn't afford it either. I certainly couldn't have afforded it back in 2003.

If you sell when you are 65 or over and have lived in the property as your main residence for at least 3 years then there will be no CGT to pay.

With regard to IHT, though, the position in Andalucia has actually got a lot better since I first bought. Changes introduced in 2018 mean that there is a 99% exemption if a family home is inherited by a spouse or child.

spainrico

Mortgage setup costs were recently reduced (so I understand, I do not have) so make sure you have all the latest costs/figures before you make a decision.

Obviously there are pros and cons like all things in life.

I have just left a rental and bought and feel much happier and secure and I think rental costs will keep going up sharply. But it is a tough decision which everyone needs to consider carefully given their own circumstances/budget etc etc

Will you really go back to Canada?? I left the UK 19 years ago and do not have family here but would never consider returning I feel more at home here and prefer the lifestyle etc.

bfg69bug

Strange.. We cant wait to buy our own place. We have been renting for 3 yeard together, and my girlfriend has been renting since she was 19.. We have spent the best part of 80,000 euros lining random spaniards pockets, rather than investing it into our own house.

Mortgage repayments for the house we are looking at are half of the rent that we pay...

when you think of it like that.. Its scary.

Notdunroamin

Have you thought of buying a park home, not a property in Spanish terms so no lawyers fees etc. either buying or selling, more like buying and stalling a car.