#bcnproperty

With the advent of social media and the Internet a whole new platform has opened up for rental landlords to contact new clients. This also opens up a new area that has to be regulated. Recently the director General of tourism in Madrid said that this area will now be regulated more closely. It is possible that the push to regulate Spanish tourist rentals more closely comes from the influential hotel owners who see private tourist rentals as a threat to their business. The authorities want to insure that the industry remains fair across the board and that those renting holiday rentals have no unfair advantage over hotels and other regular holiday accommodation businesses.

Holiday Rentals in Barcelona

Barcelona has restrictive regulations governing private tourist rentals. Firstly there is a moratorium on the issuing of any new short-term tourist rental licenses. Only homeowners who already have a property with a rental license can rent or those who purchase a property which com with a rental license. The rental license applies to the property not the landlord so when the property is sold the license reverts to the new owner. In addition the Barcelona municipality requires strict conditions to be abide by to insure that residents in the neighborhood are not negatively affected by tourist rentals and that neither tourist not landlords suffers any loss or damages as a result of low quality accommodation or bad contracts. 

This beautiful family home in Barcelona’s Sant Cugat del Valles area is perfect for stylish families who want lots of space, a perfect location and top quality building. The house was only constructed in 2010 and created with the best building materials available. The house was designed by a leading architect. This Sant Cugat home has 4 bedrooms and 3 bathrooms and is built 550m² on a plot of 1335m².

The single family home has a unique design on a hill side in the residential estate of Can Cortes which is only 10 minutes from downtown Barcelona. The house is surrounded by greenery and natural countryside and because of its elevated location there are spectacular views where ever you look.

The house has three floors; all the bedrooms have built-in wardrobes; the bathroom has a free standing bath and a wall of grey marble. The house has large windows letting in a lot of natural light. Throughout the house there are beautiful parquet floors and tiled floors plus sleek architectural features. Of the 4 bedrooms 2 of them are suites and have their own dressing area and bathroom.

With the result of the Brexit referendum and the eminent exit of Britain from the European Union the dream of moving to a home in the sun in Spain has taken on a new angle. At present there are approximately 1,700,000 Brits living in Spain. British PM Theresa May is set to put Article 50 into action by March 2017. Only once Article 50 (the official mechanism which allows a country to leave the EU) has been activated will the clock start ticking down two years until the final British exit from the EU must be completed. In those two years the terms of the exit will be negotiated. This means that Britain will most likely only leave the EU in the summer of 2019 leaving plenty of time for British home owners in Spain and new property buyers time to get their affairs in order.

Once you have bought your home in the sun you will need to pay the necessary maintenance expenses and taxes each year. Here is a brief outline on what it will cost you to have your property in Barcelona.

Taxes

Municipal Added Value Tax: Plus Valia – Based on the municipal index value of the land from prior vendor’s purchase to present sale.

Rates or Annual Property Tax: IBI

Wealth Tax: Impuesto de Patrimonio - Based on total net assets.

Income Tax: Impuesto sobre la Renta – If you reside in Spain for more than 184 days a year then you are a Fiscal Resident and must declare income annually just like residents. Non-residents pay two kinds of income tax (IRNR) on income received through ownership of Spanish property – income gained from property rental and derived benefit of own use of property. Different income tax may apply depending on source of income.

Capital Gains Tax: Impuesto sobre Ganancias Patrimoniales Inmobilliarias – Tax on the sale of property.

Maintenance and Ongoing Expenses

Fixed Phone-line: Cost varies according to region and equipment installed.

Cleaning Service: You may need a full time cleaner or someone paid by an hourly rate. The hourly rate is about €10-15.

Electricity: Paid monthly or bimonthly depending on the city. There is a minimum rate whether you are using electricity or not residing in the house at all. If the house stands empty the electricity bill is calculated according to the potential use with all power turned on. Electricity could cost you €40-150 a month depending on the property.

London Apartment Costs the Same as Barcelona Apartment Block

In Barcelona real estate news today there is the story of a British family which sold up their London apartment and with the profits bought an entire apartment building in Barcelona. The apartment building has four floors and is located on Hospital Road in the Raval neighborhood. The building was constructed more than a hundred years ago and so need repair and renovation. However it is still a four storey property in the heart of Barcelona for the price of one London apartment – whichever way you look at it! The family intends to do the necessary renovations and then rent out the apartments on all four of the floors. Thanks to the rising price of Barcelona property the family will be able to make a tidy turn over if they simply wait a few years and then sell. This is what is called in the investment world – a sure thing!

Investing in Barcelona has always been a good idea but now is actually the perfect time to buy a Barcelona property whether it is for buy-to-rent; as an investment or as a second home. A Barcelona property could provide buyers, especially foreign buyers with an income when they retire or even a retirement home for themselves. The city is currently attracting a lot of interest from property investors; the Barcelona property market is on the cusp between being reasonably priced and being extremely valuable. Property prices are climbing but have not reached great heights. If those “in the know” are putting their money into Barcelona property then shouldn’t you?

Property Trends

There is a trend for investors to buy cheap, renovate and sell. Others o the same but they hang on to the properties to use as rental units either for long term or short term (if the property has a tourist rental license). If you are not a major investor but are looking for just one property then you need to move fast as those with a lot of money and experience are gobbling up available low cost homes in the downtown area to renovation, resale or rent. The savvy investors are already buying up both small and large properties for this purpose and the trend looks like it will continue as Barcelona has more built properties than vacant land.