What are the pitfalls of buying property in Fuerteventura?

Whilst property ownership in Fuerteventura offers benefits, it also comes with potential disadvantages such as maintenance costs, market fluctuations, and the need for ongoing property management. One of the key disadvantages of property ownership in Fuerteventura is the significant maintenance costs involved.

Is Fuerteventura a good place to buy property?

Is property in Fuerteventura a good investment? Fuerteventura offers several advantages for buyers who want more than just a holiday escape. Property purchase tax for resale homes is just 6.5%, compared to 10% in mainland regions like Valencia. New builds also benefit from the lowest VAT rate in Spain at 6.5%.

What to avoid in Fuerteventura?

I found the popular tourist resorts such as Caleta and Corralejo to be very touristy. If I return, I'd avoid those particular resorts and head to the west or south of the island to explore more of the beautiful and vast Parque Natural Jandía.

What are the new rules for Brits buying property in Spain?

What's Spain's 100% Tax All About? The proposed 100% property tax means that non-EU buyers, including British nationals, would need to pay a tax equal to the property's purchase price. So, let's say you choose to purchase a villa costing €200,000, you will need to pay an extra €200,000 in taxes.

What is the property tax in Fuerteventura?

6.5% ITP tax (Impuesto sobre Transmisiones Patrimoniales) when buying resale property, or 7% IGIC + 0.75% stamp duty if purchasing a new property. Notary fees. Property registration fee. Expenses of ownership.

Buying a property in Fuerteventura - Main mistakes when buying a property.

What are the tax implications of owning a second home in Spain?

In Spain, the property tax on a second home includes a 2% tax on the cadastral value as part of your personal income tax return. Additionally, you must pay the annual local property tax (IBI). If you rent out your second home, the rental income must be declared in your annual income tax return.

How much money do you need to live in Fuerteventura?

How much does it cost to live in Fuerteventura? A one-bedroom furnished apartment in Fuerteventura costs €600-€1,400/month. Coffee is €1.50, meals €8-€18, and a bus ride €1.50, made cheaper by the Canary Islands' 7% IGIC tax (vs. 21% IVA).

What are the disadvantages of buying a property in Spain?

Spanish property hidden costs

Aside from the property's purchase price, there will be additional costs such as property taxes, registration fees, and notary fees. Make sure you include these expenses in the final cost of your property to reduce the risk of going over budget and putting yourself under financial strain.

How long can I stay in Spain if I own a property there?

If you own property in Spain, you can reside in the country for up to 90 days within a 180-day period without needing a visa. This applies whether you use the property as a vacation home or occasional residence. To stay longer than 90 days, apply for a visa or residence permit.

What are the tax implications of buying a house in Spain?

When buying property in Spain, you should expect to pay between 8% and 11.5% in taxes, but this can differ between new and resale properties. For a new property, you will have to pay 1.5% of the purchase price on stamp duty and VAT (IVA) which is imposed at 10% of the purchase price.

What is the nicest area of Fuerteventura?

The most popular area in Fuerteventura is Corralejo, celebrated for its beautiful beaches, lively atmosphere, and vibrant nightlife. Its proximity to the stunning Corralejo Natural Park and a variety of water sports make it a favourite destination for tourists seeking both relaxation and adventure.

Is Fuerteventura chavvy?

There are a few chavvy looking bars/restaurants in just about every resort on the island but we didn't see many chavs! The most chavy looking resort is Corralejo. Overall Fuerteventura is a safe, polite and peaceful place.

Is Fuerteventura dodgy?

All of Fuerteventura is safe but of course always with caution not to talk or go anywhere with shady people :) In Puerto del Rosario not much to do for tourists though, it's the capital of the island and not a tourist resort.

Which Canary Island is best to buy property?

Tenerife – The Hub of Luxury and Tourism

The island's exceptional natural beauty, combined with its year-round warm climate and diverse offerings, makes it an ideal location for property investment. Top Attractions: Tenerife is home to some of the most stunning landscapes in the Canary Islands.

Can you haggle in Fuerteventura?

Market Etiquette: Haggling is not common in Fuerteventura, but some stallholders at markets may be open to negotiation. Be polite and respectful when discussing prices. 2. Support Local Artisans: Buying directly from local artisans ensures you're getting authentic products while supporting the island's economy.

Are house prices falling in the Canary Islands?

Property prices in the Canary Islands have experienced extraordinary growth over both five and ten-year periods, far outpacing most other Spanish regions. Over the past five years (2019-2024), property prices have increased by 47%, with the average price for a 90-square-meter home rising from €147,029 to €216,038.

Is Spain scrapping the 90-Day rule?

Spain is looking to abandon the 90-day limit for visitors from the UK, permitting them to remain in the country indefinitely. As it stands, non-EU visitors are only allowed to visit countries in the Schengen area for a maximum of 90 days every 180 days.

Does buying a house in Spain give you citizenship?

It's not possible to obtain citizenship through investment alone in Spain. Investment itself can obtain a golden visa, a residency permit, and the right to live full time in Spain. Following 10 years of residency, Spanish citizenship and a Spanish passport can then be applied for.

What are the new rules for buying property in Spain?

The law introduces a new tax exclusively for non-EU residents who purchase property in Spain or acquire real rights over it (life interest, bare ownership, right of use and habitation, etc.). This tax would: Be added to the existing Transfer Tax (ITP).

Is it wise to buy a property in Spain now?

Is buying a house as an investment in Spain a Good idea? The Spanish property market has varied a lot in recent years, but it has been in a recovery phase since its terrible 30% drop between 2008 and 2014. Buying Spanish property is an excellent investment right now.

What is the downside of retiring in Spain?

High taxes.

Tax residents in Spain pay taxes on both global and local income on a progressive scale of 19 to 47%. The maximum rate is higher than in the USA, Canada, or Malta. Residents pay a 19% income tax for the first €6,000 of taxable income. A 47% tax rate applies to income over €300,000.

Can I live in Spain full time if I buy a property?

Can I get residency in Spain if I buy a house? Yes, if you are a non-EU citizen, you can obtain a residence permit in Spain valid for 3 years as long as the property you purchase is valued at over €500,000. This residency is famously called golden visa, and comes with great advantages (which we will explore below).

What is the main income of Fuerteventura?

The economy is dominated by the services sector, especially tourism – 2.8 million people visited the island in 2022 – and the construction sector.

Can I retire to Fuerteventura?

Retiring in Fuerteventura

Fuerteventura is a top choice for retirees, offering lower living costs, great healthcare, and a warm climate.

Which is the best Canary Island to retire to?

Grazi says that Gran Canaria and Tenerife “are the most common retirement places for expats, because they are quite beautiful and laid-back,” and though they are popular with tourists, they have proper cities where locals live and work.