Tell me more ×
Personal Finance & Money Stack Exchange is a question and answer site for people who want to be financially literate. It's 100% free, no registration required.
up vote 0 down vote favorite

I am considering investing in a Spanish property to let in a tourist area. I would be interested to know what people would consider are the risk factors. Here are some:

  1. Anti-foreign sentiment in Spain resulting in higher taxes on foreign investors? Is this likely? What is general sentiment amongst Spanish as regards foreigners buying properties?
  2. Political risks. Eg a political shift to the left could result in higher property taxes? But does membership of EC provide some protection against this?
  3. Interest rates rise? How likely is this over next five years?
  4. Tough rental market? We would need some income from the property while we pay it off. I assume people are still going on holidays? Anyone any experience of the Spanish property letting market - around Marbella.
  5. Legal. How arcane or otherwise is Spanish legal system?

Any other risks or considerations I have missed?

share|improve this question
1  
There are too many questions in one question. You probably would need to break it down into smaller questions. Some are probably out of context for this forum i.e. legal. political. – DumbCoder Mar 4 at 9:27
@user619818 At the present economic climate risks are probably quite high, southern european countries are in grave financial difficulty. I know a lot of people from Northern European countries had problems with so called "Land Grab" issues in the past as well. That said i'm sure there are many many people who are doing what you wish to do. Good Luck – Simon Mar 4 at 13:37
Why don't you incorporate a local company in Spain and then buy the property on that company's name. That way since its a local company you would save on taxes and then also all local laws apply to the property. – Bhavin Mar 5 at 7:18

Know someone who can answer? Share a link to this question via email, Google+, Twitter, or Facebook.

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Browse other questions tagged or ask your own question.