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Guidelines for Off-Plan Property Investors:
New development properties in Puerto Banus and the Costa
del Sol in general are increasingly of special interest to investors.
The reason is the ability to buy a property at the planning stage locks in a significant discount to the market value compared to a similar, finished development.
Buying in a new development that has just begun construction or is being sold off-plan has a staggered payment process.
This is typically a small initial deposit, followed 30 days later by a 30% payment and signing of a private purchase agreement.
Depending on the developer another 20% may be due during the construction process with the balance being paid upon completion.
During this time the property would have hopefully increased in value.
Selling just before completion generates a sizeable tax saving.
These factors of initial discount plus growth potential plus tax saving combined with the low outlay can and are creating huge profits for property investors in Spain.As always you should consult and appoint a Spanish lawyer.