There are several ways to buy a property in Spain, from the typical sale to rent-to-own schemes, allowing the tenant to purchase the property they occupy after paying a monthly rent for a specific period. This option requires a contract that regulates the operation's conditions, such as the term, the price, the payment method, the premium and the discount percentage.
If you're interested in buying a house through rent to buy in Spain, don't miss out on this selection of properties. The prices vary to suit all budgets, starting from €180 per month.
How does the rent-to-buy system work in Spain?
Rent-to-buy consists of signing a rental agreement with the option of buying the property at the end of the established term, usually between two and five years. The purchase price is fixed in advance, and the monthly rent is deducted.
This option is interesting for people who do not have enough savings to pay a mortgage deposit but want to secure a home for the future. Moreover, this option lets you know the state and location of the house before you buy it, as well as avoiding other expenses involved in a purchase, such as notary fees, registration fees and taxes.
However, a rent-to-own agreement also implies paying an initial premium to the owner, which is not returned if you do not choose to buy, and the risk that the price of the property may vary during the rental period.
Benefits of rent-to-own in Spain
This method has several advantages for both the tenant and the landlord. As far as the tenant is concerned, they can:
- Rent the property they like while they save up to buy it
- Benefit from tax credits for renting if they meet the requirements.
- Forgo buying if they change their mind or their personal or financial situation changes.
- Require less financing to buy since they have already paid part of the price.
For the owner, the advantages are:
- Guaranteeing the sale of their property in the future, with a price agreed in advance.
- Obtaining a monthly income from the rent, which can be deducted from personal income tax.
- Avoid maintenance and repair costs, as the tenant pays them.
- Charge an initial premium to the tenant, which is not returned if the tenant does not buy the property.
Examples of rent-to-own properties
One example of a rent-to-own property in Spain is this semi-detached house for rent in El Carpio de Tajo, also in Toledo, for €350 per month.
The house has a living room, kitchen, three bedrooms with fitted wardrobes, two bathrooms, a toilet, garage and loft, all in 150 m2 of constructed area.
The buy-to-rent option is as follows: During the first three years, the tenant must pay €350 per month, plus €4,500 once a year. At the end of this period, 100% of the amount paid will be deducted from the property price, which is currently €102,000.
Another option is this this top-floor apartment for rent in Santa Pola, in the province of Alicante, for €900 per month.
It is an 80 m2 property with an unfurnished equipped kitchen, living room, two bedrooms, two bathrooms, a terrace and a balcony. It has fitted wardrobes and individual heating.
The sale price is €170,000, and is only available as rent-to-buy. If a down payment of €40,000 is made, the interest can be written off in three years, the period for the purchase stipulated by the seller.