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Buying a new build

Posted: Sun Jun 2, 2024 2:07pm
2 replies3 members subscribed
Benseb

Posts: 3

Location: Costa Teguise

Joined: 2 Jun 2024

Hi

We’re loooing at purchasing a villa, potentially Costa Teguise but nothing confirmed yet. 

Some of the properties we’re looking at are new builds. As we won’t be living there permanently we’re considering letting it for the rest of the time. Not sure yet but it’s an option. 

So obviously New Builds have never had a VV License for letting as a holiday let. 

What’s the current availability of these licenses. I’ve read a lot about this but it seems it’s changing all the time, seemingly a few less obstacles now that the courts have stepped in

We’re not 100% set of letting it out we may just keep it for ourselves but would be nice to know the likelihood of getting one. 

Similarly if a property already has one I understand they are non-transferable upon sale ? But can it be presumed if it’s already had one it’s just some paperwork to apply for a new one (ie easier than a property that’s never had one??)

Many thanks. 
Ben

VillaAntonioLanzarote

Posted: Mon Jun 3, 2024 7:03am

Posts: 91

40 helpful points

Location: Costa Teguise

Joined: 21 Jun 2017

Posted: Mon Jun 3, 2024 7:03am

Ben

Strongly suggest you get professional advice on Vv license 

If you are from the UK , big change after Brexit, we have recently sold our villa

Before Brexit, we were able to deduct all expenses when calculating the Spanish tax liability, and we paid tax at 19% on the profit. Post Brexit, we cannot deduct our rental expenses and we pay tax at 24% on the income , you cannot offset anything eg cannot offset cleaning costs maintenance cost , if you buy a fridge cannot be offset , we found when we run the numbers it just did not make sense

Just our view

Larry

Normando68

Posted: Mon Jun 3, 2024 10:45am

Posts: 19

5 helpful points

Location: Tias

Joined: 13 Oct 2022

Posted: Mon Jun 3, 2024 10:45am

Benseb wrote on Sun Jun 2, 2024 2:07pm:

Hi

We’re loooing at purchasing a villa, potentially Costa Teguise but nothing confirmed yet. 

Some of the properties we’re looking at are new builds. As we won’t be living there permanently we’re considering letting it for the rest of the time. Not sure yet but it’s an option. 

So obviously New Builds have never had a VV License for letting as a holiday let. 

What’s the current availability of these licenses. I’ve read a lot about this but it seems it’s changing all the time, seemingly a few less obstacles now that the courts have stepped in

We’re not 100% set of letting it out we may just keep it for ourselves but would be nice to know the likelihood of getting one. 

Similarly if a property already has one I understand they are non-transferable upon sale ? But can it be presumed if it’s already had one it’s just some paperwork to apply for a new one (ie easier than a property that’s never had one??)

Many thanks. 
Ben

Hi Ben, there has been huge demand recently for VV licenses. Takes maybe 4/6 months.  To be sure it’s done properly you could get the services of a lawyer/solicitor.  You need to be sure that you can legally “holiday let” the property you eventually purchase to avoid future issues. 

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