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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

Other News

Expat Campaigners Close in on Frozen Pension Change

BubblePensions, whether private, workplace or state, are essential to the retirement planning of UK expats all over the world, whether they live as close to the UK as the Netherlands or Norway or as far away as Grand Cayman or the Grand Canyon.

However, around half a million British expats suffer a pensions shortfall of as much as £4,000 a year simply because they have chosen to live in a country or region without a reciprocal agreement with the UK and their pensions have been frozen.

Many of them feel it is unfair that they have no choice but to live on a lesser income or to take steps to redress the situation by consulting their expat financial advisers for inventive solutions. But, things may be about to change as MPs have created a parliamentary alliance to change the expat pensions law.

Read More

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