Investors buy Spanish commercial property for their own use or
investment purposes, whatever the case, both need considerable research and
attention. A number of foreign buyers are opting for commercial property on the
Costa del Sol with an aim to set up a business and diversify their portfolio.
However, buying a commercial property can be a bit more complicated than
a residential one. It involves a variety of legal procedures, area research,
challenges, and risks. In this post, you can get a complete overview of buying
commercial property in Spain. Learn more by reading the detailed guide.
DETERMINE WHETHER TO BUY OR RENT A COMMERCIAL PROPERTY
Buying commercial property has significant advantages, such as no
worries about rent increases, fixed mortgage payments, increased value over
time, risk management, and security standards. Under Spanish tax law, mortgage
interest payments will be tax-deductible in the same manner as the rent case.
If you plan on growing your business size, it would be tedious to sell
and buy other premises, so renting can be a viable decision.
WHAT KIND OF PREMISES TO BUY?
Ask yourself these following questions:
· How many rooms do you need now and foreseeable future?
· Is location a crucial aspect?
· Do you need lots of storage space?
· Do you want a modern building or a traditional one?
· What are your requirements for power and water?
· How much will it cost to repair and improve the building?
Location is equally important for commercial buildings as residential
ones. The price you pay for a building may vary depending on its location. If
you have a requirement to be in a specific place, you can save ample time and
money by selecting a place a few metres away from the prime location, alongside
other benefits like easier access and more parking space.
FINDING THE RIGHT PREMISES
LEGAL PROCEDURE AND DUE DILIGENCE
A contract for the purchase of a commercial building is very likely to
be more complicated than a purchase of a house. There are numerous steps
involved before you sign an agreement, which includes:
· Check property permits and licenses
· Inspect the building to see its structural condition
· Examine whether you will be able to obtain enough electricity, drainage,
water, broadband, telephone, and other services
· Detailed estimates for improvement work, repairs, and décor
· Depending on the intent to use the premises, consult a local real estate
agent to make the investment process straightforward
WHAT’S MORE ECONOMICAL – BUYING OR RENTING?
There is no general rule of thumb to determine whether to buy or rent a
commercial property. It totally depends on your specific case and by evaluating
basic parameters like costs of a mortgage, local expenses, etc. The overall
costs for the first five years would be slightly higher than you would pay for
the rent. For the next five years, the figures would certainly be the same. For
the third five years and beyond, ownership seems to be more economical than rental.
If you wish to invest in the Spanish commercial market, feel free to
contact us to find a reliable property for personal or investment purposes.
1 Bedroom Commercial Property in Calpe
If you wish to receive more information, do not hesitate to contact us.
Phone: +34 966 397 944