Buying another spanish property

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30 Oct 2023 12:08 PM by TFiLondon Star rating in East Sussex. 29 posts Send private message

I've decided to buy a second Spanish apartment in Malaga that will not be ready until 2025.

Thinking of keeping my current property until 2025 and moving some furniture and belongings to the new one.

I hear selling property can take a long time so am I wasting time now by waiting to market my current property?

Also considering what CGT liabilities might be for these scenarios?

Does anyone have any experience in buying whilst still owning a Spanish property?



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30 Oct 2023 4:04 PM by acer Star rating. 1531 posts Send private message

If you have some spare cash that you don't mid losing losing your intentions seem fine.  I did something similar and bought a second property in a prime location a few years ago.  But we weren't using it enough, so I sold it 3 years later just before Covid struck, which was fortunate! 

Of course this is different to your situation, but committing yourself to a purchase so far in advance seems risky currently - presumably you feel it's a cracking deal?  It's probably also a gamble.

You only pay CGT if you make a profit, so at a basic level that shouldn't be an adverse factor.  A positive move in property prices is well overdue, so...who knows?   Arguably as long as you don't commit too much cash to the venture...Good luck!

Don't argue with an idiot, he will drag you down to his level and beat you with experience.

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30 Oct 2023 5:22 PM by Kavanagh Star rating in Oil Drum Lane Newcas.... 1314 posts Send private message

Kavanagh´s avatar

It may all depend on how you are financing your new purchase in 2025.

There is enough in the world for everyone, but not enough for the greedy!

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30 Oct 2023 6:04 PM by mariedav Star rating in Ciudad Quesada. 1221 posts Send private message

Depends on whether it is your main home, that is, you are a permanent resident in Spain. If so then the main home exemption comes into play. If the new property costs more than what you get in total for your other property then there is no  CGT to pay. This will apply if you sell the previous property within 2 years of acquiring your new one.

To claim the exemption, you must be moving from a main home to a main home and the property is anywhere in the EU.

You can also claim expenses such as solicitors fees, notary fees, transfer tax and other taxes if you are a resident.

If you are a non resident then you will have 3% retention kept back to pay any taxes as CGT wukk be due and you cannot claim expenses on the sale. 

ETA. Oh, and if you're over 65 and have had the property as your main home for more than 3 years then there is no CGT to pay. 

This message was last edited by mariedav on 10/30/2023.

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01 Nov 2023 7:12 PM by TFiLondon Star rating in East Sussex. 29 posts Send private message

Hi Kavanagh, I am not reliant on the proceeds from my current property to complete the new purchase in 2025, kind regards

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01 Nov 2023 7:29 PM by TFiLondon Star rating in East Sussex. 29 posts Send private message

Hi Acer.  many thanks for your message..     wouldn't say we have spare cash we don't mind losing... but we do like what has been achieved in Estepona town and as we are now in 60s and hope to enjoy more time in Spain and we will enjoy this location more.  Newly built properties in this central, town centre location are not the norm, so hopefully it will have some premium when finished and hedge against any unforeseen mistakes in our judgement.  The CGT has been indicated as 3% on sales price of current property by a Spanish lawyer, (with no allowances for fees, etc (I'm non-resident)).  I am still hoping to get further clarification. 

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01 Nov 2023 7:31 PM by TFiLondon Star rating in East Sussex. 29 posts Send private message

Hi Mariedav... thank you for your message which very much reiterates some information I have also now received for a Spanish lawyer...  your reply is somewhat reassuring to read this from another source, so thanks again. kind regards

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02 Nov 2023 8:27 AM by windtalker Star rating. 1938 posts Send private message

TFi London as a  none resident you can still buy  and sell or own as many properties as you like ..  when you buy or sell they will be assessed by the relevant authorities individually for CGT when you sell as a none resident you will beTaxed at 24% on the profit made 3% retention is also paid on top of this is and normally paid back to you within 6 months less any outstanding bills that you didn't pay before selling... as a none resident if you intend owning multiple properties you will be charged none residents Tax on each individual property none residents Tax is based on what the Spanish government has assessed the resale value at as for properties taking a long time to sell this all depends on the location and desirability and a appropriate asking price.. I have recently sold 2 properties in Oriella Costa  and they sold straight away and took approximately 8 weeks for completion of the sale.. if the new property you intend buying is brand new the purchase Tax is less than a resale property .

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02 Nov 2023 8:21 PM by TFiLondon Star rating in East Sussex. 29 posts Send private message

Hi Windtaker, thank you for your message and for sharing your experience and advice.

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