Buying a property in Haria

Hi and good luck with your purchase.

We rented a house in Tabayesco for a year before buying our forever home in Playa Honda in January (we’re residents). 

Anywhere like Haría will always be cooler than the coast because of the mountains, but this is a big advantage in the summer! I don’t think you’ll have any problems renting.

If you pm me I can give you some contacts re property management in your absence but you’ll definitely need an expert gestora and I recommend Silvia García Hurtado wholeheartedly: you can Google her Lanzarote consultancy.

Best wishes, Kate Harmond

Having lived in the Haria area for over 20 years now, we know the whole area very well. It has to be said that during the winter months it can be much cooler up in the hills than say down in Arrieta. Like you say its a beautiful place but I am afraid it would be something you would have to get used to. But on the other hand during the summer I have known Haria to be one of the hottest places on the island but generally it stays at an all around great temperature. As far as renting is concerned we have friends who own property in Haria and they seem to do very well on the rental market.

Most people would go to the bank re mortgages.

Hi, You need to be careful especially if you are a non EU resident. If you are buying the property with a mortgage you need to build a business plan and work out if you can make any money at all. For non EU residents you pay 24% tax on your gross income with no allowances for expenses. If you employ a property management company they will cost approx 25%/30% of your gross income and then you have electricity, water charges and rates.  You will also need VV licence to rent legally. And then there are your mortgage payments.  The only way around this is to set up a Ltd Company an sl in Spanish. This costs about €3000 and you will probably need an accountant to do your quarterly tax returns. In addition if your income is over €30,000 per year you need to collect I.G.IC. at a rate of 7% from your clients. I suppose all I am saying is research your project well and model your business plan to work out what your weekly rental charge needs to be to make a profit. Then compare this weekly rate against the competition to see if you will have a viable business. Hope this helps.