A young 26 -year -old entrepreneur says he does not need a pension when he retires because he expects his properties in Spain to suffer his retirement when he is older and can no longer work. “The property is my pension,” says the girl, who lives with her two -year -old son in Marbella and earns around $ 120,000 a year.
She only seeks to give good use to her savings and, from a good position, organize her retirement so as not to have to depend on a state pension like most people.
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Liv Conlon, 26, lives in Marbella with his son, Cash, from where he organizes his entire real estate empire. From a young age I had an entrepreneur’s soul. With only 16 years he began his first business, practically without planning anything. It was when he tried to help his mother sell his property, at a time when no one had been able to help her, only her, the moment in which she realized that she had found something.
“My mother had a property for sale, which was not sold after three months. People arrived and did not see how they could live there. So I decided The Telegraph. Selling properties is something simple but effective, or so it seems to this young entrepreneur.
“We enter empty properties for sale and furnish them as model houses, so that they can reach a higher price.”
Earns $ 120,000 a year with the sale of properties
Now he has two people working for his full -time project with eight contractors. After seeing the success that his first business had, he decided to start another that also helps women to launch their own Home Staging businesses.
Now Livon gains around $ 120,000 a year with its businesses, although yes, most of its income generates them through its second business, based in Spain. But its heritage does not come only from companies, since it also has investment funds and various properties so that your money is always moving.
LIV has a healthy savings fund, but only keeps it in a bank account and is not sure of the interests you earn. LIV also has two properties: a two -bedroom apartment in Scotland, for which he paid 160,000 pounds and has invested 40,000 pounds in reforms; and a village in Marbella, for which he paid about 840,000 pounds. It owes a total of 435,000 pounds between both properties, and pays about 2,450 pounds per month in mortgage installments.
Your real estate investments will be your pension
Liv has no pension and considers its real estate investments as the basis of its future retirement.
“I would like to buy more properties in Spain as an investment to rent them on Airbnb.”
Of course, being a foreign buying a property in Spain is not so easy. “But the challenge of buying a property in Spain is that foreign buyers need a considerable deposit (between 30 % and 40 % of the property value),” says the young entrepreneur.
If we add to this the Spanish government plans to apply a 100% tax to the purchase of properties by foreign buyers not belonging to the EU, the LIV plan could be complicated. However, he has been living in Spain for seven years and has the residence, which means that he could soon request a passport there. If you succeed, you would not have to pay double for the property.
Liv also wants to know what he can do to give his son a financial advantage, as well as optimize his own financial situation. “I would like to start preparing it for your future, but it is already very expensive!” He adds.
Andalusia has much more favorable tax conditions
Liv lives in Andalusia, a region of Spain with more favorable fiscal conditions than many others. There the assets tax has been abolished, so it would only be subject to the National Solidarity Tax if its net assets exceeds 3 million euros (2.6 million pounds).
In addition, a general deduction of 1 million euros raises the threshold to 4 million euros. This offers a wide margin to increase your assets without generating additional taxes.
He has shown interest in continuing to invest in properties, but he is concerned about the government’s recent proposals to increase the property transmissions tax (equivalent to the tax of documented legal acts of the United Kingdom) at 100 % for buyers from outside the EU. However, as a fiscal resident in Spain, Liv would not be affected.
On the other hand, those who do not belong to the European Union could still buy new construction properties, which are exempt from the transfer tax and subject to a VAT of 10%, a rate that is not expected to change, according to government ads.
Although the Spanish real estate market has always been economically profitable and reliable, the recent political attention to housing access has reduced fiscal and regulatory support for private rental. Therefore, Liv could consider other investment vehicles, especially with its solid savings base.
An option is life insurance linked to units that allows you to invest in selected funds, offering growth and safety of insurance. If you opt for a bonus that complies with Spanish regulations, taxation is postponed and only pays growth in growth by withdrawing funds.
It is an efficient way that her money grows passively while creating a flexible financial mattress for her and her son.
For example, if LIV invests 200,000 euros with an annual profitability of 6%, it could earn 12,000 euros in a year. If you withdraw this surplus value every year, only the growth component, 679 euros in this case, would be taxed at 19%, which represents about 129 euros. If you let the investment be capitalized, over 10 years, the investment could reach 358,489 euros. Starting soon would give Liv a great possibility of comfortable retirement.
Future plans for your child with investments
Bonds that comply with Spanish regulations allow a beneficiary to appoint, and LIV could appoint their child, which would facilitate them quickly access the funds in case of death, without the need for successions or complex procedures. In Andalusia, the tax on donations and successions between kinships of groups I or II (parents, children and spouses) enjoys a fiscal relief of 9%, which effectively eliminates the tax burden.
Finally, LIV quotes Spanish Social Security, as is mandatory for anyone who works or provides local services. This gives access to health, public education for your child and the right to a state pension or disability aid, which provides security and allows you to focus on private investments.