Advice on renovating an old place in Ibiza?

W

Warren D

Active Member
My fiance and I are seriously thinking about moving down to Ibiza. One idea is to buy a place that needs renovating at the right price so that it could be renovated and then sold on as a means of getting some sort of income.
I imagine there could be a lot of red tape involved? Any idea how long it would take to get permission to go ahead on a renovation project?
Also, I read something here about noise pollution from construction work being controlled during the summer months. Would this affect a renovation job on a house or apartment in town? How about out of town?

btw, fantastic board! I've been reading it since just before our last trip to Ibiza at the end of Aug and checked it out often while over there and since getting back.
 
you wouldn't need any permission for 'renovation' but you might if you were extending the place. noise restrictions only apply to heavy machinery in the summer months in holiday areas. as a foreigner you would pay a very large amount of capital gains tax when you sold on. (ditto if you are resident but sell within 3 years ish of buying)

how's that?
 
Hello Stephen, thanks for replying.
We found this
Capital Gains Tax (CGT) in Spain for residents is a maximum of 15%, calculated as part of their Spanish income tax. As of January 1st 2007, Capital Gains Tax for non-residents has been reduced from 35% to 18%. 3% of the declared value of the property will be retained at the Notary on the day contracts are signed. The remaining amount is deductible with the subsequent year's tax return. Any expenses incurred during the property sale (ie., Notary and solicitor's fees) can be offset against this. Up to 31 dec 1996 residents & non-residents could deduct 11.11% p.a. from their profits after the first two years of ownership and pay no tax at all after 10 years of ownership but this has ended...
Click to expand...
http://www.homeespana.co.uk/legal-cgt.asp
The tax isn't as high as it was, so that's good.
 
18% is still very high. in britain you don't pay any cgt on your property! why it should be higher here i don't know.
 
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