Thinking of investing but don’t know where to start? Here we leave you the keys of an expert professional so that you can choose the best property and obtain the highest return on your investment.
What profitability can we expect from an investment in Tenerife
The profitability could probably range between 5 and 10%. This percentage can be even higher depending on the property, that is, it is directly proportional to the type of property purchased. The relationship is between the purchase price and the price at which the property can be offered on the rental market. The better the purchase price, the more profitability I can obtain. Currently the prices in the market are stabilizing, and it is undoubtedly a good time to buy.
How much can I earn with an investment?
Undoubtedly, a professional is needed who can carry out a detailed market analysis, which allows us to know how much a specific property can yield, taking its location into account. This is how the calculation is made about how much we can earn with that investment. It is also very important to take into account the cost of the notary, the cost of registering the property and the change of various public services; Adding it all up and making the proper proportion we can calculate the annual yield of the property.
When is it not convenient to make an investment?
Certainly you should not buy a property that will ultimately give us a return of less than 5% gross. That is why we offer our clients this service for free, in order to make a pre-selection of the property, we really calculate if it will be profitable. When we identify the property with a positive return according to our analysis and calculations, we also offer a support service to the buyer, we help him manage the negotiation so that he can get the property at the best market price. We have many years of experience in this field.
What do we have to take into account when buying a property?
When I buy a property in Tenerife obviously I have to have a current account open in Spain to be able to pay the expenses derived from this property, which are for example the condominium, water, electricity, garbage. In order to do so, it is necessary to have a document called NIE, which can be obtained by appointment at the National Police.
If I have a property in Spain, of course I will always have to pay taxes. If I am not a Spanish resident, I will have to pay 19.5% tax on my income. This amount to be paid comes from gross income minus all expenses that are deductible. On the difference, 19.5% is paid, depending on the country of residence, it will be necessary to see if it requires the payment of a balance.
Among other operations that we carry out is the creation and issuance on behalf of the owner of an invoice (relating to the fees of the owner himself) to our apartment management company, which can then be transmitted to the client’s accountant.
Which is the first step?
If you want to invest in Tenerife or already have a property that you would like to take better advantage of, contact us by writing to us here, we will advise you at no cost. We take care of everything while you comfortably obtain the benefits of your investment.