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Finally, Luxury That Doesn't Cost a Fortune

Fractional Property Ownership – UK Client Case Study

Client Scenario

A UK family of four has been searching for 2 years for their ideal holiday home in Northern Costa Blanca:

  • Minimum requirements: 3 bedrooms, 2 bathrooms, private pool
  • Preferred location: Coastal, near Calpe or Moraira
  • Budget: €285,000 (inclusive of all taxes and associated purchase costs)

Challenges Identified:

  • Rising property prices in high-demand coastal areas
  • Limited options within budget
  • 90-day EEC rule limiting continuous stay

Option 1 – Conventional Purchase within Budget

Property 1:

  • Type: New-build terraced villa
  • Size: 3 bedrooms, 2 bathrooms, private pool
  • Location: 30 minutes inland from Calpe
  • Market Value: €250,000

Purchase Breakdown:

Item

Calculation

Amount (€)

Property Price

 

    250,000.00

Taxes & Fees (12%)

  250,000 x 12%

    30,000.00

Legal Conveyance (1%)

  250,000 x 1%

    3,025.00

Total Acquisition Cost

 

    283,025.00

Benefits:

  • Sole ownership
  • Complete control over property use and decisions

Negatives:

  • Inland location, away from preferred coastal area
  • Terraced (not detached)

Full responsibility for yearly running costs and maintenance

Option 2 – Fractional Ownership within Same Budget

Property 2:

  • Type: Luxury detached villa with infinity pool
  • Size: 4 bedrooms, 4 bathrooms
  • Location: 10 minutes inland from Moraira
  • Market Value: €1,000,000

Purchase Breakdown:

Item

Calculation

Amount (€)

Property Price

 

     1,000,000.00

Taxes & Fees (12%)

1,000,000 x 12%

     120,000.00

Utilities Set-up (Estimate)

 

     1,000.00

Facilitation Costs
(1.5% + 21% IVA)

1,000,000 x 1.5% = 15,000
+ 21% VAT = 18,150

     18,150.00

Total Acquisition Cost

 

     1,139,150.00

Fractional Share:

  • 25% Ownership = €284,787.50

Benefits:

  • Access to a premium coastal villa well beyond the family’s initial target
  • Detached property with sea and mountain views
  • All annual costs and maintenance shared between 4 owners
  • Year-round usage allocation per fractional agreement

Negatives:

  • Usage schedule determined by co-owners’ agreements

Summary & Client Advantage

With no increase in budget, this UK family can choose:

✅ Option 1: Full ownership of a more modest, inland terraced villa within budget.

✅ Option 2: Fractional ownership (25%) of a €1 million luxury detached villa near the coast, with significantly better specifications and location. 

Key Advantages of Fractional Ownership:

  • The dream property becomes accessible
  • Running and maintenance costs are divided
  • The family enjoys a premium lifestyle in their preferred area
  • No compromise on quality or amenities

Why Fractional Property Ownership is Good for Non-EEC Clients

Non-EEC clients often face significant challenges when buying property in Spain, which can make traditional ownership impractical or unaffordable. Fractional ownership offers an effective alternative that overcomes many of these obstacles.

Key Restrictions for Non-EEC Buyers

1️⃣ Rising Property Prices

  • Spanish property prices are increasing by at least 4.8% per year, making it harder to afford the ideal property outright.
  • Many buyers see their dream slipping further out of reach as prices continue to climb.

2️⃣ Restrictive Residence and Visa Requirements

  • Non-EEC nationals must navigate complex visa regulations and residency applications.
  • Requirements are becoming more stringent, with higher financial thresholds and stricter checks.

3️⃣ The 90-Day Rule

  • Nationals of many non-EEC countries (e.g., UK citizens post-Brexit) can only spend up to 90 days in Spain within any 180-day period without a visa.
  • This limits how often or how long you can enjoy your property.

4️⃣ Personal and Professional Commitments

  • Many buyers have obligations (e.g., employment, family) that make changing tax residency or spending longer periods in Spain impractical.

Advantages of Fractional Property Ownership

✔ Co-ownership Makes Your Budget Go Further

  • Own a share (commonly 25%) of a high-quality property you could not otherwise afford.
  • Enjoy premium features and locations without needing the full purchase budget.

✔ Maximise Usage Without Worrying About Empty Periods

  • Your property isn’t sitting vacant for long stretches due to the 90-day rule or visa constraints.
  • Other co-owners will use the property during periods you can’t, maintaining the home and generating value.

✔ Shared Costs

  • Annual expenses (maintenance, insurance, taxes) are divided among all co-owners, greatly reducing individual costs.

✔ Clear, Agreed Usage Schedule

  • Each owner has guaranteed time allocated each year, removing uncertainty about when you can enjoy your property.

✔ Potential for Capital Appreciation

  • Given strong property price growth in Spain, your share could still increase in value over time.
  • This creates the potential for returns if you decide to sell your share in the future.

✅In Summary:
Fractional property ownership offers non-EEC buyers a practical, cost-effective solution to access Spanish real estate without the burden of full ownership, while still benefiting from lifestyle enjoyment and potential capital growth.

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