Spain is a beautiful country, many foreigners dream of settling there. You have decided to move there and you have chosen to look for a property in Costa Brava. If you want to invest in the old and renovate, discover everything in this article.
House or apartment to renovate in Spain
Investing in old property consists in acquiring an apartment or a house that is not yet habitable and that needs renovation. The renovation of a property in Spain is the responsibility of the buyer. The aim is to restore the property to its original condition and, if necessary, to improve its energy performance. The advantage of investing in an old property is that the value of the renovated property is much higher than the purchase price of the property, plus the cost of the work.
The tax advantages of investing in old buildings
For the buyers, buying in the old one presents a great fiscal advantage. Once the renovation of a property in Spain is completed, if the property is rented out, the owner subtracts the costs of the work from the rental income. In the end, the result is the land deficit, because the costs incurred in a year are greater than the amount of rent received. This deficit reduces the taxable income for a maximum of 10700 euros annually.
If you want to invest in real estate in Costa Brava, Spain, go for buying old, renovate and rent. However, buy your property close to shops and transportation to attract tenants and thus benefit from the land deficit.