Thousands of wealthy foreign investors acquire housing in Europe. Most of them choose Spain as the most profitable and interesting destination.
In this country, the real estate market has become truly international because Germans, Englishmen and residents of other European countries buy homes here. Rent is also a popular option for those who cannot afford to maintain real estate.
Subsequently, some of those tenants buy a home on mortgage. In this article we will talk about real estate in Seville. Apartments and houses for sale in Seville are in the same demand as in Valencia or Barcelona.
For this reason, it is necessary to gather important information about real estate in Seville.
The overview of the city of Seville
The city of Seville occupies the southwestern part of Spain. This beneficial location with perfect weather conditions makes up the capital of the autonomous community of Andalusia. Territorially Seville is located in the Guadalquivir Delta. It is a river in the south-west of the country.
Seville has the largest river port on the Iberian Peninsula. The city holds a rich historical heritage and has many architectural monuments. Therefore, there are many tourists who come here every year to see the sights and take part in incendiary festivals.
The climate is characterized as Mediterranean subtropical, but Seville’s summers are hotter and drier than the rest of Spain. Summer temperatures often exceed 35 degrees Celsius. In the winter the temperature stays at 5-15 degrees Celsius and the humidity increases.
The state of the real estate market in Seville
The development of the tourist sphere in the city is tightly connected with the state of the real estate market. Foreign investors prefer to invest in Spanish properties due to their high liquidity and significant profit.
Real estate experts explain that the average purchase price of a standard 90 square meters in Spain in the last six months was €166,500 (€1,850 per sq m) and the average monthly rent of €875.70.
Thus, the average owner received a total of 10,500 euros a year in profit. That is, the net return on the asset is 6.31 percent. A detailed catalog of comfortable housing in Seville is available on the website Spain-Real.Estate.
High quality pictures along with the descriptions are represented as well to give the complete understanding of the unit.
Taxes on the purchase and maintenance of real estate
The government of Spain set a quite beneficial tax system for foreigners. Still, as with any unknown legislation, it may seem complicated and inconvenient.
There are all sorts of fees and taxes that a person must pay when buying or selling a home. Let’s take a brief look at these fees.
Acquisition of real estate in Seville
One of the most important characteristics of an apartment or house for sale is whether it has belonged to anyone or it is an object under construction. This feature will influence the tax payment.
In addition, the payment of taxes and fees depends on whether the property is residential or commercial. Different rules apply if you buy a garage. Stamp duty and IVA must be paid when buying a primary residence.
In Seville the stamp duty values are 1.5 percent. IVA is a VAT levied on transactions made, in accordance with current legislation. The amount of IVA is 10 percent of the property price.
It is not difficult to calculate that if you purchase an apartment worth €250,000, you will pay an IVA of €25,000 and Stamp duty of €3,750. That is, the amount of additional taxes will be €28,750.
When buying a secondary property, the buyer must pay ITP (Property Transfer Tax). This tax depends on the amount of the transaction, and varies as shown below.
The price of the property up to:
- €400,000 – ITP is equal to 8 percent of the amount;
- €400,000-700,000 – 9 percent;
- €700,000-1250,000 – 10 percent.
If you buy a commercial property or a plot of land in Seville, you also have to pay stamp duty and IVA. Only in the case of commercial real estate, the IVA is 21 percent, not 10. Stamp duty has the same value as in the case of residential real estate.
Selling of real estate in Seville
Income tax on the sale of real estate in Seville is calculated as follows. If you bought the property for €100,000 and you sell it for €150,000, then from €50,000 will be taken a tax of 21 percent. This is the income tax.
But if you renovated or improved the property, these costs are deducted from the profit.
Naturally, these costs have to be documented. For example, you did repairs in the apartment for €15,000, so this €15,000 will be deducted from the profits of €50,000. And the income tax will be taxed only the remaining €35,000.
There is also extremely important information for non-residents of Spain. When selling real estate in Seville, which belongs to foreign nationals, an amount equal to 3 percent of the transaction value is withheld from them.
Then checks the absence of debts of all kinds of payments related to the property. If all payments have been made on time and there are no debts, the amount withheld will be returned to the seller’s bank account.
Comfortable climate and impressive architecture
Seville in Spain boasts not only a comfortable climate and impressive architectural landmarks, but affordable real estate as well.
Foreigners from all over the world visit the region to invest in cozy homes on the bank of the river. They are attracted by an immense number of advantages and high income of more than 6 percent annually.
Purchase of real estate in Seville is a conscious choice of forward-thinking buyers. Moreover, the Spanish government facilitates the process of a deal and guarantees its transparency and reliability to attract more foreign capital to the country’s economy.
So, do not hesitate to buy spacious houses in Seville and enjoy the resort lifestyle.