Frequently asked questions

It is not essential. With a power of attorney authorising a representative, you can sign the sale and the mortgage without travelling. For a first purchase I recommend at least one visit to the property and to the area: there are things no video call will pick up.

Yes, these are non-resident mortgages. The terms are different: the usual arrangement is to finance around 60-70 % of the appraisal value, with requirements for provable income and documentation that is best prepared in advance. This is the step where most people get stuck.

In Spain the income is declared through the IRNR (non-resident income tax), with quarterly returns and an annual summary. In Germany that same income is included in your tax return and the double taxation treaty applies.

There is imputed income (renta imputada): an annual charge on the cadastral value even if the property generates no income. On top of that, your country of residence may require you to declare assets held abroad. An empty flat is not a flat without costs.

It depends on your situation, on whether you are resident or not and on the deductible expenses you can apply. Rather than give you a generic figure that probably does not fit your case, we calculate it in the consultation using your real numbers.

It depends on the tax rules of your autonomous region (VAT and ITP (property transfer tax) are not equivalent), on the condition of the property and on your tolerance for managing building work. New-build means less refurbishment but higher prices and delivery times that tend to slip.

Gross yield is useful for filtering, but not for deciding. You have to deduct IBI (local property tax), comunidad de propietarios (owners' association), insurance, management, maintenance, void periods between tenants, taxes and the cost of the refurbishment. The figures that matter are net cash flow and the return on the equity you have put in.

There is no general answer: it depends on your budget, on the type of demand you want to attract and on your capacity to manage it. What I can tell you is which signals I use to rule out an area: oversupply, dependence on a single economic activity and prices that already factor in growth that is not guaranteed.

It varies enormously depending on the condition of the property. The most common mistake is budgeting only for the visible part: paint, kitchen and bathroom. It is the electrical and plumbing installations that turn a light refurbishment into a full one.

Yes, with a well-set-up circuit: someone on the ground to deal with incidents, rent-default insurance, clear limits on decision-making and a budget for expenses. What does not work is improvising when the first problem comes up on a Sunday night.

From defining the strategy to having the property let, it usually takes between six and twelve months. The phases that drag on most are finding the right property, mortgage approval and the refurbishment.

That is what the prior analysis phase is for. A wrong purchase in an illiquid asset is corrected either by selling at a loss or by holding for years until the market makes up for it. The best deal is often not to do it.

With both. Some are making their first purchase and need to understand the whole process; others already own several properties and need to bring order to the numbers. The method is the same; the starting point changes.

In Spanish and German. I have lived in Germany for years, so I know the German tax and financial context first-hand, which is where many of my clients' questions come from.