All Forum Posts by: Erwin Groenendijk

For everybody who is investing in Spain and especially flipping properties, have the following changes in the profit tax in mind.

Where before profits above €200.000 was taxed at 25%, this year this is rising. 

2022:

€0-€6.000 at 19%

€6.000-€50.000 at 21%

€50.000-€200.000 at 23%

>€200.000 at 25%

In 2023:

€0-€6.000 at 19%

€6.000-€50.000 at 21%

€50.000-€200.000 at 23%

€200.000-€300.000 at 27%

>€300.000 at 28%

The higher profits are being taxed more.

Hi @Jose Alberto González,

Where are you based in Spain and where are you investing?

If this is close to Barcelona and/or Valencia, let's meet up. We are doing quite some projects in both cities. 

Also you can have a look at all the previous posts where we are talking about a lot of topics in Spain. 

We are in Barcelona and also a lot in Valencia so we should meet. Will send a DM.

In which neighbourhood in Valencia is this deal?

Hi @PJ Boxel, cool to be reading through your deal. This is making us both Dutch people liking and investing in Spain 👍

In which city are you investing?

And how are you doing the calculations for the total ROI to get to the 30,61%?

@Kendrick Perry @Mike Lambert Exactly, what Mike is saying. There are always exceptions based on your track record or relation with a specific bank in another country, however expect higher interest rates as they see an international investment as something riskier. 

The good thing is that you would be able to obtain financing as a foreigner/non-resident as easy as me in Spain based on the risk check that they would do. 

Could you explain more about what your plan/target purchase is? We might be able to put you in contact with people of your interest as we have been doing the same thing for years already

Hi Kendrick, you're making the right decision. 

As a non-resident you could get financing as easily as residents, the only thing that changes is that as a non-resident your first and second properties will be financed until 70% LTV. Residents like me will receive 80%.

You could speak to several mortgage brokers to get the best deal for your situation.

Quote from @Colleen F.:

@Erwin Groenendijk Are they anti touristy or anti-STR ? Because there is a difference. There is always a struggle when you have vacation renters and full time residents. Living in a beach town I know it well. But there are valid points of residents living next to your places. in a city neighborhood you don't expect basically a hotel next door. I' m seeing that now in another area with a neighbor who wasn't upfront and isnt neighborly about his STR.

The thing is that STR is associated with tourists and vice versa. A lot of STR don't give problems at all, but it is the fear of people living in the neighbourhoods of problems, drunk people, etc that normally is not happening at all. Also, which doesn't help, is that there are quite some STR licences handed out and therefore tourist rentals everywhere where you can look in Barcelona. That is the reason why the local government is not handing out these licenses anymore. 

We are doing the same by the way in Valencia, requesting tourist licenses on apartments, because there it is still available if you know what you are doing. The ambience there is a lot less going against tourism in comparison to what we have been seeing a lot in for example the Gracia area where we live with a lot of graffiti on the walls. 

Quote from @Carolyn Fuller:

Quote from @Colleen F.:

@Carolyn Fuller My post was offering the opinion that the fall off in bookings is going to be in smaller rather than larger STR and for shorter term bookings because economically that is where it makes the most sense. I did not say they would die off and you may in fact keep them in business. Right now you may fill in MTR with STR bookings outside of Boston just fine and you may prefer to stay in STR but that doesn't mean that is the case for everyone. We rarely find it makes sense to book 1-2 days in a STR over a hotel in urban areas. For short stays, I don't want to fix dinner in a city I am visiting with lots of good food so the kitchen is of no benefit and I don't have kids that need naps so we are out most of the time. People like you and your spouse may keep some STR in place but for short stays I don't see alot of advantages over hotels. There is always room for different opinions.

I also now get to live next to a STR and I do think some people should shape up their neighbor relations if they hope for STRs to survive and thrive. I don't expect people to walk on eggshells but they could do a better job helping the tenants respect quiet hours and turn off the all night lights...

I agree totally with you. I know that my travel preferences are not the norm and our 2 person listings, that have no TV, no parking and are sometimes more expensive than the nearby hotels, are not for everyone. AND I certainly know about neighbor relations, especially urban residents. One of the reasons I won't stay in an Airbnb in Barcelona is because of how much the city's residents hate the Airbnbs they feel are reducing LTR inventory and driving up monthly rents.

But what I do love about many Airbnbs, B&Bs and boutique hotels is that they often offer a product that is unique and geared toward a smaller target audience, not necessarily a mass audience. 

It indeed is a pity to be seeing quite a lot of these anti-tourist signs in Barcelona. We are living there ourselves and it doesn't give a nice feeling at all.

@Grant Shipman Common has just merged with Habyt. Why did they fail? 

And others that have been going bankrupt like Starcity were more because of COVID and ending in cashflow problems because of the decreased occupancies. 

I'm not following your reasoning here to be honest.

And btw, there are some specific coliving property management softwares: booking ninja, resharmonics, housemonk, etc. 

Being a coliving provider, is it not best to just focus on being a good coliving provider instead of setting up your own software? Being a coliving provider already brings enough work. This is just some thinking out of my head

Hi Andres, no there isn't any legal obstacle to doing coliving in Spain. In other countries such as the UK you would need an HMO license, but in Spain basically everyone in every apartment could choose to rent out per room.

Yes the premium student rentals is a market that has been seeing quite some investments in Spain last year after recovering from covid. Residencies have been acquired and/or are being built from the ground up and they are now also moving big on cities such as Granada, Malaga, Bilbao, etc.