Experts say that when considering buying an apartment by the sea, most often residents of Russia, Ukraine, Belarus, and Kazakhstan choose between the six most popular countries - Georgia, Spain, Greece, Bulgaria, Thailand, and Turkey. Each country has its own nuances, so you need to weigh all the pros and cons carefully before buying real estate.
This overview of the most popular markets and conditions for the purchase of resort real estate will help potential buyers to make a choice.
In Spain, in addition to the cost of the apartment, the buyer must pay a tax on the purchase of the real estate, it is called a tax on the transfer of ownership. According to the portal PRIAN the amount of tax on secondary real estate ranges from 6-10%, depending on the region, the national average is 8% of the cost of the apartment. When buying a new home from a construction company, the future owner pays the value-added tax, for residential real estate its size is fixed-10%. All registration and notary expenses also fall on the buyer – their total amount will be about 5% of the cost of housing.
The process of buying an apartment and registration of property rights in Spain is quite complex, it will take at least 3-3.5 months to complete all the stages.
The annual tax on property ownership in Spain is 0.4%-1.1% of the total cadastral value of the object.
The average cost per square meter in the country according to the www.geoln.com in 2018 was €1,697. Moreover, prices are rising – within year prices have risen by 9.2%.
According to the site, GEOLN.COM utilities in Spain consist of an annual fee for connecting to electricity and water supply systems - €60, plus payment for real consumption of resources by the meter. Water in Spain is not expensive, but the price of electricity is three times higher than Russian tariffs. Gas costs €0.09 euros / kWh. In addition, the owners of housing pay for the services of the management company for the maintenance of the communal area. This costs for residents between €200 and €1,000 a year. The annual cost of housing maintenance also includes real estate insurance -about €350. The cost of telephone, television and unlimited Internet is still around €500 per year.
The experts of GEOLN.COM reports that according to the laws of Spain, the annual tax on income from renting real estate is 24%. To this is added an annual tax from individuals on real estate in the amount of 2% of the cadastral value of housing.
The process of purchasing real estate in Greece involves a long list of additional costs. In addition to the cost of the apartment, the buyer must pay the lawyer's fee, which must accompany the transaction (usually 1.5% of the cost of housing), notary expenses (usually also 1.5%), real estate agency fees (up to 2% of the transaction amount) and state registration fees (0.6% of the cost of the apartment).
The buyer also pays a tax on the transfer of ownership, and the situation here is very interesting – in 2017, two tax rates were set. When buying real estate from a developer who received a construction permit before 1.01.2006, as well as any objects from private owners, regardless of the date of issuance of the permit-the tax rate is 3.09%. For the same real estate objects, the construction permit for which was issued after 1.01.2006, the tax rate increases by 8 times – up to 24%.
It will take approximately 1-2 months to complete the entire procedure of buying and registering real estate as a property.
The average cost of 1 square meter of housing in Greece, according to the GEOLN.COM is about €1,000 - €1,400.
As for the cost of utilities in Greece, according to the GEOLN.COM one of the cheapest electricity tariffs in Europe. The cost of 1 kWh is €0.0946 when consuming less than 2000 kWh in four months. Payment for water supply for a family of three people is about €60 - €250 per year, gas costs €140 - €400 per year, depending on consumption. Phone and Internet charges are €180 - €600 per year, depending on the volume of services. Thus, monthly utility payments on average are about €150-200.
All property owners in Greece pay an annual tax to the state, it is calculated for each apartment individually by the tax authorities. According to the GEOLN.COM the average tax rate is between €3 and €15 per 1 square meter per year. The amount depends on such factors as square footage and the year it was built, location and etc. Additionally annual membership payment to the condominium for the common areas. Its size is about €200-400 per year for medium-sized residential complexes.
In Greece, there is a progressive tax on the rental of real estate. If the owner's annual income does not exceed €12,000, the tax is 15%. If the amount of income is between €12,000 and €35,000, the tax amount increases to 35%. If the annual rental income exceeds €35,000, the tax amount is 45%.
Another popular country in terms of buying real estate on the beach is Bulgaria. According to the GEOLN.COM additional expenses when buying an apartment in Bulgaria consist of notary fees (about 1.5% of the purchase amount), tax for registration of documents (2-4% depending on the municipality), the cost of registration, notary fee, the cost of translation services (collectively about 1 %). Also, the buyer must pay for the services of a lawyer who prepares documents for the transaction, the fee for registration in the register by BULSTAT and the tax service, usually the total amount of these costs is about €300-350.
The procedure for buying real estate in Bulgaria is quite simple, the time of registration of the apartment takes from 3 to 10 days.
Experts say that the cost of real estate in Bulgaria is one of the most affordable in Europe. According to the GEOLN.COM the average cost of 1 sq. m. on the coast is €400-450.
GEOLNCOM informs that the maintenance of real estate in Bulgaria consists of payment of two taxes - real estate tax (0.15% of the cadastral price of housing), and municipal tax (from 0.15% to 0.3%, depending on the municipality). In addition, the services of the management organization are paid (€5-15 per 1 sq. m. of housing per year) and utilities (according to meters).
According to the portal GEOLN.COM the cost of electricity is from €0.10 to €0.065 per kWh (day and night rates), the price of 1 cubic meter of water is equal to €0.75-1.5 (cold and hot), the tariff for heat supply is from €50 per Gcal. Internet costs from €3 to €13 per month, cable or satellite TV costs €7-15 per month.
The market of rented housing in Bulgaria is not controlled by the state separately, there are no strict conditions in the country. The lease agreement is concluded directly between two persons on almost any terms. At the same time, the tax rate for renting out real estate is fixed, and is 10% of the rental amount.
The process of buying a property in Thailand is simple and affordable. To make a deal you do not need a notary or a lawyer – all the registration of the transaction takes over the real estate agency.
According to GEOLN.COM when buying an apartment and obtaining ownership, the buyer pays a tax of 6.3% of the estimated value of the apartment, and sometimes the developer takes the payment of 4%. When buying primary real estate, the buyer must pay a one-time contribution to the depreciation fund of the house, the average amount is $12-24 per 1 sq. m. , as well as pay for the installation of water and electricity meters within $380. When buying an apartment in the secondary market, the last two points of expenditure are excluded. Website zagranitsa.com pays attention that when buying a home on the secondary market, you must pay a tax of 5% of the amount if the seller has owned the apartment for more than 5 years, and 10% if less than 5 years. Usually, this tax is paid in half by the buyer and the seller.
The entire process of registration of real estate in Thailand takes about 10-30 days for self-purchase and 3-5 working days in the case of cooperation with a real estate agency.
There is no annual property tax in Thailand.
According to the site phuket.thai-sale.com the cost of housing maintenance in Thailand consists of payment for the services of a condominium ($1.6 per 1 sq. m. area), which in addition to the maintenance of the local area includes maintenance of the elevator, gyms, swimming pools, security, free Internet and parking. Only utilities are paid separately – according to the meters. According to the data published on the GEOLN.COM 1 cubic meter of water costs $0.6-0.9, electricity - $0.16 per kW.
Housing in Thailand is very expensive. As reported GEOLN.COM according to the Global Property Guide, the average cost of 1 sq. m. in Bangkok by the end of 2018 was $3,640. At the same time, housing prices are growing – at the end of 2018, the growth was 5.13%.
The GEOLN.COM informs that according to the tax code of the Kingdom of Thailand, the tax on income from renting real estate is charged at a progressive rate. Annual income up to $4,700 is not taxed, from $4,701 to $15,700 is 10%, from $15,701 to 31,500 is 20%, income from $31,501 to $126,000 is 30%, over this amount is 37%. At the same time, only 70% of the received income falls under the taxable amount, from which an additional $945 is deducted.
According to GEOLN.COM additional costs for buying real estate in Turkey will be lower than in most European countries. In most cases, they do not exceed 5-7% of the market price of the apartment. The buyer must pay the property registration tax (4% of the cadastral value of the object), as well as the cadastral fee for the issuance of a certificate of ownership and the mandatory services of a state translator (in total about €300). Most often, the buyer pays for the services of a realtor – 3% of the price of the object. Please note that when purchasing through a property search engine GEOLN.COM there is no payment for realtor services, since you purchase real estate in Turkey directly from the developer or owner and only if necessary, order an additional service - a transaction support from GEOLN.COM
If you purchase real estate in a new building, you need to make an individual technical passport for real estate. This will cost €300-1, 000 depending on the characteristics of the apartment. In addition, in Turkey, housing insurance against earthquakes and natural disasters is mandatory, the cost of the policy is €15-150, depending on the package. Registration of subscriptions for utilities will cost €200-300, in case of purchase of secondary housing renewal of contracts for another owner will be 30-50% cheaper.
Prices for seaside real estate in Turkey are quite affordable. According to the GEOLN.COM for example, the average cost of 1 sq. m. housing in the primary market starts from €700-900, in the secondary-from €400-500.
According to the GEOLN.COM the cost of utilities in Turkey, depending on the level of consumption, is as follows: electricity - €0.11-0.22 kW / h, water - €0.57-1.26 per 1 cubic meter.
According to GEOLN.COM Turkish law provides for a progressive tax on income from renting out real estate. The tax is not charged at all if the annual amount of profit does not exceed €980 per year. If the amount of income is €3,350, the tax rate is 15%. If you receive income over €28,350, the tax is 35%.
Georgia, Batumi an apartment with sea view.
Unlike all the above countries, buying real estate in Georgia is extremely simple. To purchase an apartment and register ownership of it, you only need to pay the cost of the apartment to the seller and pay in the state register the amount of 106 lari (equivalent to €36). At the same time, if the buyer does not receive income on the territory of Georgia, the property tax is not applied to him. There is no tax on the purchase of real estate in Georgia.
The entire process of buying a home and registering property rights takes 1.5-2 hours.
The average price of an apartment in the primary market is from €445 to €900 per 1 sq. m., depending on the condition of the object and the location.
According to the GEOLN.COM the cost of electricity in Georgia ranges from €0.47 to €0.76 per 1 kWh, depending on the level of consumption. Water costs about €0.11 per 1 cubic meter, gas-about €0.17 per 1 cubic meter. Internet Services cost about €9 per month.
In Georgia everything is very simple - the tax on rental housing is fixed and is 5% per year of the rent received.
How much can you earn through renting an apartment?
This question is most interesting to those who consider the purchase of real estate by the sea as a means of making a profit in the future.
According to the GEOLN.COM renting apartments in Spain can earn from 3% to 7% of the cost of housing per year. Most often, this figure is at the level of 5%. If you are actively engaged in the renting a property and rent an apartment by the day, revenue can reach 10% per year.
The GEOLN.COM reports that, according to international experts, the level of profitability of housing in Greece is one of the highest in Europe – up to 30% per annum. For example, in Athens, if you buy an apartment worth €30,000 euros and invest in the repair of another €5,000-9,000, you can earn about €1,000 a month by renting a house through the Airbnb system.
According to the Global Property Guide, the average yield of houses and apartments in Bulgaria is 4-6% per annum, and in Thailand, the yield of housing exceeds 8.0% per annum.
Investing in real estate in Turkey can bring only about 4% a year, according to GEOLN.COM due to the introduction in 2017 of a law prohibiting individuals to rent apartments for the day. Only specially registered management companies have the right to do this. Now you can earn on the delivery of your home in Turkey only by renting an apartment for long-term rent or through a company.
In Georgia according to GEOLN.COM if you rent a property on your own, the yield can reach 10% per annum. If you rent a house with the help of a management company, the yield is reduced to the level of 6-8% per annum.
Residence permit and citizenship
Most of the above countries provide preferential conditions for obtaining a residence permit (residence permit) and citizenship for foreigners who invest in their real estate market .
Countries of the European Union Greece and Spain are in the Schengen area. To travel to the country, citizens of Russia, Belarus, Kazakhstan need a Schengen visa, citizens of Ukraine do not need it. One of the easiest ways to obtain a residence permit in these European countries is the "Golden visa" program. The program involves obtaining a visa through the purchase of real estate in Spain - in the amount of €500,000, in Greece-in the amount of €250,000.
A sufficient basis for obtaining a residence permit in Turkey is an investment in real estate in the amount of €250,000. The sum of €1 million makes it possible to apply for Turkish citizenship immediately.
Today, to get a residence permit in Bulgaria, you need to buy a property worth €300,000. The Bulgarian Parliament failed to finally adopt the amendments to the law on foreigners submitted for consideration in 2016, which provide for a reduction of the amount to €51,000.
In Thailand, the purchase of real estate does not give the right to get a residence permit or citizenship, investors are subject to the General visa regime.
The most favorable situation in Georgia is that any foreigner who owns real estate worth more than $ 35,000 can apply for a residence permit. Read more about the procedure for obtaining a residence permit in the publication of the residence permit of Georgia.
What should I prefer?
In order to make a final decision on which country is better to invest money through the purchase of real estate, it is also necessary to take into account the information about the tourist attractiveness of these countries. This directly affects the profitability of the apartment and the possibility of trouble-free renting it out.
According to the statistical offices of the respective countries, 82.6 million foreigners visited Spain in 2018, which is 0.9% more than in the previous year. At the same time, the population of Spain is 46.5 million people.
33 million tourists came to Greece, and there is also a steady and strong growth trend – since 2014, the number of tourists has increased by 35%. The population of Greece is equal to 10.7 million people – thus, the number of tourists is three times higher than the population of the country.
Bulgaria in 2018 received a record number of foreign tourists-9.3 million people. At the same time, the population of the country is 7.1 million people.
Thailand is also increasing the tourist flow – in 2018, the country was visited by a total of more than 38.27 million foreign tourists, which is 7.5% more than a year earlier. The Kingdom is home to about 69 million people.
The flow of tourists to Turkey is also impressive-according to GEOLN.COM in 2018, the country was visited by 39.5 million tourists, which is 21.8% more than in 2017. At the same time, the population of Turkey is 79.8 million people.
Georgia is beating records in the number of tourists – in 2018, the country received 8.7 million foreign citizens, which is 14.9% more than in 2017. This is a new national record, the trend to increase the tourist flow in Georgia is demonstrated annually. About 3.7 million people live in Georgia, so the tourist flow is twice the population of the country.
Given the totality of all factors, experts of https://geoln.com/ recommend far-sighted investors to pay attention to Georgia as the most profitable and promising direction for investment in real estate by the sea.
This is a beautiful hospitable country, with a well-developed infrastructure and a large number of real estate options for every taste and budget. The main part of the sea coast is located in the Autonomous Republic of Adjara – a unique corner of Georgia, where you can combine a beach holiday with a ski resort.
In 2015, the high-mountain resort of Goderdzi was opened in Adjara, located in a picturesque Alpine zone. It is located at a distance of only 100 km from Batumi. The proximity to the sea creates a humid climate with abundant precipitation, so Goderdzi has the largest snow cover in all of Georgia. Currently, the resort is actively developing, today the height of skiing reaches 2,400 m, and the length of the ski slopes is 13 km.
The world-famous Georgian wine and authentic national cuisine is another reason to purchase real estate in this country. The unique Ajarian khachapuri is recognized as a cultural heritage monument, but there are still many delicious dishes in Georgia. Affordable prices in restaurants allow tourists to relax here with any budget. An average bill in a restaurant for a three-course dinner for two people will be about €17.
Advantages of purchasing real estate in Georgia
- Affordable real estate prices - prices for apartments start from $500 per 1 sq. m.
- Ease of registration of ownership - the procedure takes no more than 2 hours.
- The lowest investment threshold for obtaining a residence permit is only $35,000.
- A high level of profitability from renting out real estate - up to 10% per annum.
- The low rate of state tax on rental housing is only 5% of income.
- High quality construction of residential complexes and well-developed infrastructure.
- The absence of a visa regime for citizens of Ukraine, Russia, Belarus and Kazakhstan.
- No language barrier – most Georgians speak at least a little Russian.
Summary data for 6 countries
According to the national Public registry agency of Georgia http://napr.gov.ge/ in 2017, the number of registrations of transactions in the real estate market of Georgia increased by 220,659 units compared to the previous year, and amounted to 867,776 units. Шn percentage terms, the annual growth was 34.1%.
Official data for 2018 are in the process of processing, but experts unanimously argue that the trend of growth in demand for housing in Georgia will continue. The real estate market of Georgia shows growth for the fourth year in a row, the country has confidently entered the headliners of the European real estate markets.