Spanish Property – How Much Should I Offer Under the Asking Price?

How much should I offer under the asking price?

This is a question we often get asked and there is no simple answer.

Remember, as above, the agent that you are working with is working for you and will want to try and get a sale agreed which means trying to get the best price for you.

Some owners that are very keen to sell will place their property on the market at the lowest price they can accept hoping that they will get lots of viewings and a quick sale. The price may be completely non negotiable but it may well still be an excellent price. Something overpriced to start with may be negotiable by say 25% but that discount may still not make it a good price.

Your agent will guide you on what offer to make and should be able to provide you with comparable prices of properties that have sold in the area to help you decide.

Should I declare the full purchase price?

The buyer pays purchase tax and costs on the official agreed price. The seller’s costs are also calculated on the official price. Therefore, it is of some interest for both parties to under declare the official price.

This however is illegal. It’s something that was very common years ago but the authorities have become very strict on this and it is not advised. Like in most countries, it is possible to split the purchase price of the property from the furniture and fixtures, so a reasonable figure can be agreed to save both parties some costs, but this has to be a reasonable figure based on the purchase price. A two bedroom apartment is unlikely to have €100,000 of furniture whilst a large villa may well have.

Can I rent my property out after buying?

Your lawyer should check that there are no restrictions from the town hall or community but in nearly all cases you should be able to rent the property out. If priced correctly the rental income should easily cover the running costs of the property and provide a surplus of funds to enjoy when you are in Spain and using the property.

In May 2016 Spain introduced some legislation which must be followed for all properties rented out on a short term, holiday basis. The property must be registered with the tourist authorities and it needs to comply with some simple regulations such as adequate fire precautions, provision of a complaint book, getting identification of all guests, ensuring all appliances work and are safe etc etc.

Your lawyer should be able to advise on the exact requirements and obtain the appropriate licence.

Any further questions please feel free to e mail me direct at steve@olgspain.com