Contact

News & Insights

Make Sure You Receive Financial Advice Before Investing in a Tourism Property

What about investing in property to create a tourism or leisure business?

In 2018, according to the National Statistics Institute (INE), 82.8 million people visited Spain, and their average spend increased from that of 2017.* The tourist arrival figures broke records for the sixth year in a row, so against this background you would think investing in the industry would be a no-brainer.

However, the truth is rather more complex, as, unless you know the lie of the land, your long-dreamed-of cooking, yoga, writing or detox retreat, may struggle to turn a meaningful profit. This is not to say that you should not invest, only that you should perhaps discuss your plans with a wealth manager to see whether there might be better ways to utilise your investing power.

Property and Wealth Tax

It is important to remember that if property ownership results in the total value of your assets exceeding €700,000 (Spanish-only assets for non-residents, worldwide for residents) you will be liable for wealth tax of between 0.2% and 3.5%.

Although there is €300,000 main home allowance, any additional homes you own in the UK or elsewhere could mean that there is little financial sense in also investing in Spanish holiday let property.

Quite simply, property ownership in Spain may not be the most flexible and tax efficient way to manage your wealth. Instead, you should speak with a local and bilingual financial adviser in Spain about the best way to realise your financial goals.

Financial Advice in Spain

Blacktower Financial Management (International) Ltd. has more than thirty years’ experience helping its clients achieve their financial and retirement goals.

From our offices in Spain we are able to help our expat clients successfully manage their wealth and cross-border tax affairs.

For more information contact us today.

* elpais.com

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

NEWS WRAP – Regulated Advice Crucial to Expats in Spain

ConfusedIncreasing numbers of British expats in Spain are looking for advice and direction in relation to their Post-Brexit futures, the Guardian reports*, with many expressing their disappointment at the level of communication offered by British and Spanish officials.

This impression is supported by the findings of Karen O’Reilly, a sociology professor at Loughborough University, who recently published the results of an 18-month long research project which documents the considerable levels of “uncertainty and worry” among expats.**

Read More

Former Chancellor’s comments on French residency spark expat indignation

As an expat financial services specialist, Blacktower is always keen to hear about Britons who are making the decision to live permanently abroad, but one recent news story has left us, like many others, feeling a little perplexed, to say the least.

Permanent expats in France will soon be able to count leading Brexiteer Nigel Lawson amongst their number as the former UK chancellor of the exchequer has applied for his carte de séjour (permanent residency card).

The former Conservative cabinet member and one-time chair of the “Vote Leave” campaign has been branded a hypocrite by many in the British media, as he seeks full resident’s rights while he lives, as he has done so for many years, in his Gascony mansion in south-west France.

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information: