What are branded residences in Spain and what types are there?

What are Branded Residences in Spain? Why are BRSs a growing trend in the Spanish real estate market? How are Branded Residences operations regulated? At Gentile Law, experts in real estate transactions such as Branded Residences in Spain, we explain everything in the following article.

What are Branded Residences?

What are Branded Residences? Why are Branded Residences on the rise in the Spanish real estate sector? The BRS are a trend in growth in the Spanish real estate market that offer a combination of luxury hotel services and private residences in privileged places, becoming in an attractive option for buyers and investors that seek an exclusive lifestyle. In Gentile Law, expert lawyers in the real estate sector, we offer legal advice specialized in this type of real estate transactions for guarantee a safe, satisfactory and complete investment in commercial, fiscal and migratory topics that these residences can bring.

What are the types of Branded Residences in Spain? BRS

What do Branded Residences in Spain consist of? There are two types of BRS: residential and hotel use:

• Residential use: Residentials designed for satisfying the necessity of habitual housing of the owner or tenant, offering residential lodging units with the design of a luxury hotel brand. These properties are part of a community of owners that have common facilities managed by the hotel operator, like gym, SPA, leisure area, work area, pool or laundry, among others.

• Hotel use: Lodging units integrated in a hotel complex in which the owner acquire the property and cedes his use to the hotel operator for his operation during all or part of the touristic season in exchange of a rent. These properties usually have the category of villas or suites and have the same services and amenities that the hotel.

How are Branded Residences real estate operations regulated in Spain?

How are Branded Residences regulated in Spain? What is required for a branded residence operation? To carry out the construction and operation of a BRS, it is necessary to comply with a series of legal obligations, both for owners and hotel operators. What legal obligations do Branded Residences have to comply with?

Among others, it is necessary to comply with the regulations of horizontal property, which establish the rules of coexistence and the legal regime applicable to owners of a community of neighbors. Additionally, it is necessary to comply with tourism and territorial planning regulations, which establish the requirements for the construction and operation of tourist establishments in a particular area.

Regarding tax obligations, it is important to bear in mind that Branded Residences are subject to taxes such as VAT, Non-Resident Income Tax, or Personal Income Tax, depending on the situation of each owner.

On the other hand, it is important to take into account that in order to carry out operations of this nature, it will be necessary to prepare different types of contracts between the real estate developer and the hotel operator, depending on the stage of the project, among these contracts are; technical and design services contracts and license commercialization contracts.

What are the advantages of obtaining a Golden Visa?

What is a Golden Visa in Spain? What are the advantages of obtaining a Golden Visa in Spain? In Spain, obtaining a Golden Visa is also a relevant topic in the field of residence and citizenship for foreign investors seeking to establish themselves in the country. The Spanish Golden Visa is granted to those investors who make a significant investment in the country, whether through the purchase of real estate, bank deposits, business or capital investments.

Among the options available to obtain a Golden Visa in Spain, the purchase of a real estate property is one of the most popular. BRS can be an attractive option for those investors looking to invest in high quality real estate and obtain a Golden Visa in the process, the investment required to qualify for the visa will depend on the characteristics of each of the BRS and the investment for them. In addition, the collaboration between the real estate developer and the hotel operator in the management of these residences ensures the quality and profitability of the project in the long term.

Do you want to know more about what is a Golden Visa? How does the Golden Visa of Spain differ from the Golden Visa of Portugal and what benefits do they have? What are the benefits of the Golden Visa? How much does it cost to get a Golden Visa? How does the Golden Visa work? You can read about it in the following article: "What is the difference between the Golden Visa of Spain and the Golden Visa of Portugal?

Our focus in the recent years has being, among others, assisting real estate companies and their clients with all legal, tax and immigration issues that may arise in any real estate transaction. Therefore, at Gentile Law, expert lawyers in real estate operations such as Branded Residences in Spain, we accompany you throughout the process and tell you everything you need to know about What are branded residences in Spain and what types exist?