Spain Tax Experts
Comprehensive Report — Property Purchase/Sale (Sample)
Target address: Calle de las Margaritas 12, Madrid (sample) · 2BR/1BA · 68 m²
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Illustrative image. In the final report it is replaced with the real photo and sketch.
1) Executive summary
Operation oriented to a non-resident investor with a reasonable purchase range of €218–230k, recommended closing at €224k. The micro-area combines stable rental demand due to proximity to universities and strong metro connectivity. Low tax risk with proper planning of Form 210 and handling of the 3% withholding (211) on a future sale.
Strengths
- Stable rental demand with low structural vacancy (<4%).
- Light upgrade potential (capex ~€6,000) to lift rent and appeal.
- Resale liquidity: sub-€250k ticket in a consolidated area.
Weaknesses / controls
- Walk-up building (2nd floor): impacts demand base.
- Recommended review of electrics/soil stacks condition.
- Yield compression risk if closing price > €240k.
2) Neighbourhood & surroundings
Medium-density residential area with 1960s–80s buildings and gradual refurbishments. Accessibility relies on metro/bus lines with short headways and direct links to the city centre. Amenities include chain supermarkets and traditional commerce (bakeries, greengrocers, municipal market). Education spans public and charter schools and proximity to university campuses (Complutense/Polytechnic), driving demand from students and young professionals. Healthcare covered by a referral hospital (~12 min by car) and local clinics.
| Service | Distance/time |
|---|---|
| Complutense University | 16 min metro |
| Polytechnic University | 18 min metro |
| Public/charter schools | 6–10 min walk |
| Hospital Clínico | 12 min drive |
| Supermarket + market | 3–5 min walk |
| Metro station (Lx) | 7 min walk |
| Park & sports centre | 5–9 min walk |
Approximate map. Final report fixes exact coordinates and analysis radii (400/800/1600 m).
3) Comparables — sale & rent
For demonstration, comparables below are plausible and structured like an appraisal; in the paid report they are replaced with real witnesses with source, date, and evidence (photos/links).
Sale — witnesses (800 m)
| Ref./Street | m² | €/m² | Condition | Floor | Dist. |
|---|---|---|---|---|---|
| Margaritas 8, 3A | 66 | 3,600 | Refurbished | 3rd (no lift) | 250 m |
| Flor de Lis 22, 2B | 70 | 3,250 | Good | 2nd (no lift) | 480 m |
| Clavel 4, 1C | 64 | 2,900 | To update | 1st (no lift) | 320 m |
| Azalea 15, 4 | 68 | 3,150 | Good | 4th (no lift) | 700 m |
| Dalias 3, 2D | 72 | 3,050 | To update | 2nd (no lift) | 620 m |
| Petunia 19, 2 | 67 | 3,300 | Good | 2nd (no lift) | 540 m |
Rent — witnesses (800 m)
| Ref./Street | m² | €/mo | €/m² | Condition | Dist. |
|---|---|---|---|---|---|
| Jacintos 6 | 66 | 1,050 | 15.9 | Good | 300 m |
| Lilas 21 | 70 | 1,090 | 15.6 | Good | 520 m |
| Rosas 2 | 64 | 980 | 15.3 | To update | 400 m |
| Olmos 14 | 68 | 1,120 | 16.5 | Refurbished | 760 m |
| Pinos 7 | 62 | 990 | 16.0 | Good | 610 m |
| Castaños 9 | 69 | 1,060 | 15.4 | Good | 680 m |
4) Methodology & valuation
4.1. Approaches
- Market comparison: adjustments for size, condition, floor, lift, micro-location and observation date.
- Income/capitalisation: NOI estimate using market rent and recurring costs.
- Cost (reference): less applicable for this typology/age; used as a cross-check.
4.2. Hedonic adjustments (sale)
| Variable | Typical adj. | Comment |
|---|---|---|
| Condition (refurb. → good) | -6% to -10% | Mid finishes; recent kitchen/bath penalise less |
| Walk-up floor (2nd → 4th) | -2% per floor | Increasing marginal penalty |
| Micro-location | ±3% to ±6% | Noise, orientation, courtyards, street widths |
| Size (60–75 m²) | ±2% | Moderate elasticity band |
4.3. Value reconciliation
| Approach | Result | Weight |
|---|---|---|
| Comparison | €218–230k | 60% |
| Capitalisation | €220–228k | 35% |
| Cost (cross-check) | – | 5% |
5) Financial model & sensitivities
5.1. Base assumptions (rent)
| Market rent | €1,050 / month |
|---|---|
| Structural vacancy | 4% |
| Fixed costs (IBI/HOA/insurance) | €1,450 / year |
| Maintenance | 1% of value / year |
| Letting/management | 6% of rent |
| Initial capex | €6,000 (light upgrade) |
5.2. Indicators
| Gross yield | 5.6% |
|---|---|
| Net yield (pre-IRNR) | 4.4%–4.7% |
| Capex payback | ~3.5 years |
| Expected annual HPI | 1.5%–2.2% |
5.3. Sensitivities (rent vs. closing price)
| Price \\ Rent | €1,000 | €1,050 | €1,100 | €1,150 |
|---|---|---|---|---|
| €218k | 4.1% | 4.6% | 5.0% | 5.4% |
| €224k | 3.9% | 4.4% | 4.8% | 5.2% |
| €230k | 3.8% | 4.2% | 4.6% | 5.0% |
| €236k | 3.6% | 4.1% | 4.4% | 4.8% |
6) Non-resident tax (IRNR)
6.1. During holding
- Form 210 — imputed income when vacant (time-weighted).
- Form 210 — rental quarterly if rented; EU/EEA residents with exchange may deduct expenses.
- Local obligations: IBI, fees, HOA; keep receipts.
6.2. On disposal
- 3% withholding (Form 211) paid by buyer when seller is non-resident.
- Capital gain in IRNR + municipal gains tax (IIVTNU) as applicable.
- True-up with Form 210 for gains to refund/claim difference vs. withholding.
7) Risks & due diligence
Technical
Inspect soil stacks, panel/rewiring, internal ventilation and damp. Commission a technical report and competing quotes where works are needed.
Legal
Land registry extract and encumbrances, planning constraints, HOA bylaws/minutes (works, STR use), zero-debt certificate.
Market
Rent drop or higher closing price compresses yield; mitigate with selective capex, tenant screening and disciplined negotiation.
8) Indicative timeline
- Week 1 — Offer & reservation subject to technical/legal due diligence.
- Wks 2–3 — Technical inspection, documentation, appraisal if needed.
- Wk 4 — Deposit (arras); notary/agency coordination; tax planning.
- Wk 6 — Completion, taxes, and registration.
- Wks 7–8 — Utilities, light upgrade, listing for rent.
9) Tips for buyers (investors)
- Escalating offer: €221k → €224k with technical review conditions.
- Pre-checklist: electrics, plumbing, ventilation, carpentry.
- Tactical capex: paint, LEDs, vinyl flooring, photo staging.
- Letting strategy: 12-month lease, solvent profile, moderate increases.
9) Tips for sellers (owners)
- 2–3k grooming and technical dossier (EPC, registry extract, HOA status).
- List at €239k; negotiation window €232–236k.
- Positioning: “rent-ready” product aimed at investors with stated yield.
- Closing tax plan: municipal gains tax and IRNR settlement.
10) Annexes
- Technical spec sheet (areas, finishes, certificates).
- Photos and measured sketch.
- Comparable sources (portals, notarial/registry witnesses).
- Templates (deposit/engagement) and document checklist.
The paid report includes real witnesses with evidence (captures, links, dates) filed in the case record.
Want your real report (€60 + VAT)?
Includes real comparables, IRNR tax calculation, annexes and optional representation before AEAT.