Buying for the first time in Spain

We're hoping to buy a modest holiday home in the south of Spain this summer. The idea is to let it for income as well as having a place the family can enjoy.  Can anyone suggest websites or a book for good information on the subject please?

I'd agree with johnzx.  There are already a lot of holiday lets in Spain, especially in the South.  The chances of letting are slim.

 Argee - and I would add the morality issue.  If you let you should be absolutely legal and pay all taxes and costs owed.   Very few people who let do this, and it is more and more likely that they will get caught out.    If you want to do it properly, you will find that you can charge high rents over two months in the summer and the rest of the time the rents are pretty low, except in city centres.  

I would agree it is a no no.     Start by looking at something like Kyero property to let and you will see how little rent you are likely to get.   

Certainly do not believe agents - a lot of property agents are managing ilegal lets themselves.

This guide might be of help:

http://issuu.com/mariadecastro/docs/buying_property_in_spain_guider 

I've got to say that on some points I agree but in other ways, this is about the best time there will ever be to buy in Spain If you have found a property to buy through an agents website, then I would be a little sceptical. It depends on where you want to buy. There are some real bargains about that will never get to the open market, it's a case of who you know, not what you know. I work for a lot of estate agents and various companies who deal with distressed sales. The bargains never reach the open market, they are never advertised. There really are some good buys around. If you give more details about where you are looking and what you are looking for, I will try to point you in the right direction

If you want to buy inland then you can get properties for no money at all, if you are looking on some of the golf resorts you can still get a bargain. Wherever you buy don't rely on paying a mortgage with rental income, it won't work. If you are looking to buy a bargain as a long term investment and want to earn a bit of money from  it's rentals in the mean time, then go for it.

 Certainly fantastic bargains.   And I don't know how many times I have said this but if you love Spain and want a place for yourself and family for the long term - go for it.   But don't expect to make a quick buck - either in rentals or in appreciation.

Good advice Roly2. Don't look at making a fast buck, those times are all but gone Buy it to use it, and if you make a little money along thr ways then count it as a bonus

A lot of good advice here but Roly2 I don't agree about the morality issue. Many of us don't rent out our properties through choice but the Spanish government insists on charging income tax on the asumption that we do. Now they are trying to make it difficult \ illegal for people to rent out but they still tax all foreign owners on the assumption they rent out their properties. That is morality Spanish style.

The Spanish don't pay tax if they can get away without doing so. Very few business would survive if they declared all their income. I don't know any that do! If you go down the  "moral" route you'll need deep pockets as the system assumes you will be cheating just like everyone else.

That's all interesting - thank you everyone. Chrisinspain seems to know the scene. I'm looking at places like Frigiliana and Mijas, lovely towns that are near to the coast., but I could be persuaded to look elsewhere. I won't be needing a mortgage, so whatever rental I get will simply help to pay the bills. One property I've been offered apparently already has bookings worth £3,000 for this summer which is certainly a good start!    

Davmunster has a good point about the Spanish making it illegal for us to rent our houses but still taxing us as though we do.  It's something which needs bringing up with the EU.

 You should really, really read other posts.  Despite the whispers and rumours put about, the non-res income tax has nothing to do with renting or non renting your property and is not based on that at all.  Look it up, it is a tax on the benefit you derive from your property, ie using it.  Still, far better to have a good moan about the Spanish having a go at expats than actually finding out about it.

You pay this version of income tax in Spain if the following conditions apply: 1) You do not reside in Spain, 2) You own property in Spain, 3) The property is exclusively for personal use and you do not rent it out, 4) You have no other source of taxable income in Spain. Although you do not earn an income from the property, in the eyes of the Spanish tax authorities you still derive a benefit from owning a property in Spain and therefore have to pay an imputed income tax.

Interesting, johnzx.  I don't have a home in the UK - I rent - so wonder how this affects me.

 Well explained everyone - I was just going to comment  that the reply to me was spoken like a true tax evader.   It is certainly not true that Spanish people do not pay taxes, though certainly true that if you do not pay directly at source (through PAYE for example) people and businesses will seek to minimise tax.

If you do get caught out - then yu have to say 'fair cop' rather than slagging off the Spanish system.

Fair enough Roly - the Spanish do pay tax but it is the norm to pay less than they should. In my experience evereyone from lawyers to builders will want to give you invoice for part of what you owe them and will want cash or a cheque made out to El Portador for the rest. It also seems routine to employee people through the books for 16 hours paying cash for the rest.

Far from being a tax evader I am someone who looked at starting a business in Spain but decided against as it was going to be impossible to make money if I paid all the taxes.

To get back to the thread topic as has already been said it is virtually impossible to rent out your property as a holiday home legally. Most people don't do it legally and it remains to be seen how long they can get away with it