2023-12-18 15:38:01
Home prices for sale have been increasing month after month for years. And in November, the average price stood at 2,172 euros per square meter, which represents an increase of 6.2% compared to a year ago, according to data published by the real estate portal Fotocasa. So, is it possible to buy houses for one euro?
There are three main reasons why houses or even castles are sold for one euro. Homeowners who decide to put a home up for sale at a “giveaway” price do so to avoid the cost of maintaining and preserving certain types of properties.
The second reason is to fight against the depopulation that exists in Spain or even in Italy. In the latter country, “this initiative arose in 2018, when “houses for 1 euro” were put on sale in almost unpopulated areas to attract new inhabitants,” explains the real estate portal.
Selling houses for one euro may also be because they need a comprehensive renovation or because the current owners or heirs of the home cannot afford it.
The town councils are the ones that have the largest offer of houses for one euro to attract new inhabitants to their towns and avoid the risk of depopulation. As a general rule, there is no limit on assets or income to acquire these homes.
Most houses that sell for one euro need comprehensive renovation or very expensive maintenance. In addition to this financial outlay, the expenses and taxes that must be paid when purchasing a property must also be taken into account:
Property Transfer Tax as it is a second-hand property. Notary fees and copy of the deed. Management fees. Property Registry fees.
The cadastral value of the home
The cadastral value of the home must also be taken into account. The real estate portal asserts that “this is the objective value that the Administration grants to a home based on several aspects, such as its location, size, year of construction, market conditions, etc. And obviously, this will never be 1 euro” .
In the case of selling or buying a house for one euro, the Treasury may interpret that part of the property is being paid in black money and open an inspection. Therefore, you must justify that you are buying a home for one euro legally and explain how it was done.
As a general rule, houses should not be sold below their cadastral value, however, in extraordinary cases like this it can be done. In this sense, Civil Law contemplates the will of the parties when negotiating the price of a property. However, Fotocasa explains that it will be necessary for the sale to be declared for the minimum tax value established by each autonomous community, since otherwise, the seller and the buyer may face a judicial procedure.
“To all this, we must add the expenses involved in owning a home, such as paying the IBI and the garbage tax, community expenses and possible spills, home insurance, and supply expenses. Some of these, such as the IBI, will be calculated based on the cadastral value”, maintains the real estate portal.
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