Frequently Asked Questions
Spain, particularly the Costa del Sol, is a very attractive country to invest in properties: prices are relatively cheap and on the rise, rental demand is booming, very attractive destination for worldwide tourists for its climatic and cultural appeal. Number of tourists coming to visit and buy properties in Costa del Sol has increased an average of 15% year on year since 2009 .
In addition, by buying a home, not only you are protecting and grow your wealth, but you might also have your own base for holidays and escapes in the sun, while enjoying the extra income we generate for you, for a better present and future retirement.
Investments in rental housing in Spain and Europe has increased because the properties investment is a long -term safe-haven against financial crisis and inflation.
2024 is a good year to make your investment because rental prices are still on the rise and interest rates are expected to start falling again with inflation.
In Spain, there is a structural small supply of housing for long -term rent: the population is growing in many cities and in Costa del Sol, Marbella and San Pedro de Alcantara have registered an increase of 50% inhabitants in the last 20 years. Many properties are let in touristic platforms like AIRBNB. Therefore, buy to let, has a higher-than-average rental yield especially for studios and small apartments.
You can certainly purchase a property in Spain if you are not resident. We will advise on all aspects needed to formalize your paperwork in Spain to complete your purchase.
The main difference between mortgages for non-residents or foreigners to domestic ones is usually on the total loan-to-value. While a bank would finance up to 80% of the mortgage for a Spanish resident, non-residents or foreigners do not usually exceed 60/70%. As a result, the initial contribution for the total investment (including works and fees) should be at least 40-50%. Our personal advisor can help you find the best financing solution for you.
One of the most worrying aspects when applying for a mortgage for non-residents or foreigners is the documentation to be provided. The bank will ask us for the following documents:
- Photocopy of the NIE, ID or passport.
- Certificate stating that you are not a resident.
- Copy of the employment contract.
- Copy of the last payrolls of your country of residence.
- The bank statement of the last year of the account in which the payroll is entered.
- The certificate of tax residence.
- The tax return.
- The last three receipts of having canceled the outstanding debts.
- The contract for the house purchase (or the deposit contract in case you do not yet have the contract of purchase and sale).
- Perhaps they will also ask us to translate the documentation (depending on the entity and the language).
Like for any other type of investment, financial or real, there are many things to consider when calculating taxes for a properties investment. In Holox Invest, we can help you assessing your personal situation, offering solutions like setting up a limited company in Spain to run your investments to optimise and manage easily your finances.
Your time and effort to follow your project is entirely up to you. Our experts are locals and follow all aspects with diligent care. Generally, we advise you to visit the apartments before deciding which one you want to invest in.
In addition, for some administrative process, physical presence could be needed. We can try to minimize that, as such that some of our investors have purchased their properties entirely remotely, with no need to travel.
The time to scout, analyse, negotiate and complete purchase for a property investment depends on the size of the project, its complexity and market conditions at the time.
On average, it can take around 2 months to complete for 1 apartment in a urban area.
For reforms and redesign, time is really project depending, from a few weeks to up to 6 months for large reforms.
Investing in international properties for buy to let or second home is inevitably growing year by year in Europe and in the world.
The process for non-residents might seems particularly complex, not only for geographical distance, but also for local culture and rules.
At Holox Invest our aim is to provide a solution to this by bringing local presence and expertise to global investors. You will always be in control and in contact just by clicking a button or opening our APP.
The advantage of delegating your investment project to Holox Invest is that we take care of everything, from the search to the management of the rental. Your personal adviser work with experts from all sectors (brokers, notaries, lawyers and tax specialists) so any issues is covered with the highest local expertise.
Make an appointment with an advisor to start the project that best fits you.
After our adviser has created your investment profile, we start searching and scouting for those properties that fits your requirements in the defined area. We need a mandate for starting this, which is not binding or exclusive. You don't have to pay in advance, and we only charge a success fee. We analyse any single available property using our algorithms which involve supply/demand factors in the area, historic evolution of long -term and shot-term rents, projected costs and returns according to location, size, potential reform revaluation etc. All relevant information to analyse professionally your investment project from A to Z.
Holox Invest only charges when you purchase your property 3%+IVA of the purchase price.