SHARE
COPY LINK
PROPERTY

PROPERTY

Prince’s Costa del Sol villa could be yours for just €5.3m

The late and great music star Prince’s former mansion on the Costa del Sol is still on the market years after being put up for sale.

Prince's Costa del Sol villa could be yours for just €5.3m
Left: Prince's former villa in Marbella (Engel & Völkers). Right: The late music icon Prince (KEVORK DJANSEZIAN / GETTY IMAGES NORTH AMERICA / AFP.

International real estate agency Engels & Völkers reported after the death of the great musical icon last week that his former home in Marbella, Andalusia is still up for sale years later.

The “completely renovated stunning villa” by the name of Adorna Tierra is on the market for a mere €5.3 million ($5.9 million), according to the agency.

A spokeswoman from Engel & Völkers Marbella West told The Local that there has been a bit more interest in the home since his death, from clients who know about its past with The Purple One, as well as those who don't. But the current owner isn't in that much of a hurry to sell.

“The current owner likes the location, likes the house, and likes the fact that it was connected to Prince,” the spokeswoman explained.

Photo: Engel & Völkers.

It was a performance in the Costa del Sol town that first enchanted the music legend with the area, the agency said.

“The flamboyant composer, who had given a concert in Marbella in 1990, was captivated by the charms of the Costa del Sol, where traffic jams were caused by Rolls Royce and Ferraris and the rivers were Bollinger and Dom Perignon,” the agency wrote in a blog post commemorating his death.

“He decided to do a wedding gift to his future wife, and it could be nothing more than a Palace. A Palace for a Princess, which can not be in another place, that is not a paradise. Prince located a perfect plot in an area called, precisely, El Paraíso. It sounds like a fairy tale, but Prince made it reality.”

The company's local spokeswoman told The Local that Prince bought the estate in 1998 as a wedding gift for his then wife, dancer Mayte Garcia, with whom he had a son who died shortly after birth of a rare genetic disorder known as Pfeiffer syndrome.

“The property served Prince at the time as a great source of inspiration for his artistic output. The villa still conveys this special creative charm to this day,” Engels & Völkers wrote in a listing.

Photo: Engel & Völkers.

The musician decorated the home with his signature style, including painting rooms in his favourite colour purple and inscribing a wardrobe of crystal, wood and gold with his trademark symbol, the company spokeswoman told The Local.

His former purple office is now a bedroom in the house, and the wardrobe still remains as well.

But Prince and Garcia divorced in 2000 and Garcia put the property up for sale in 2006.

After passing through another owner, the villa was put on the market once again two years ago for €5.6 million and has had no luck since in finding any takers.

This may be because of the artist's unique style of decoration, explained the Engel & Völkers spokeswoman.

“Right now the fashion is more contemporary and the home is more classical, but also very special, very 'Prince',” she said. “When he bought it, he gave it a touch of Prince.”

Photo: Engel & Völkers

The more than 7,500-square-foot mansion is nestled in the hills of El Paraiso, west of Marbella and “enjoys impressive sea, mountains, valley and golf views,” including “breathtaking panoramic views over the valley and sparkling blue Mediterranean Sea,” according to the listing.

It has six bedrooms and six marble bathrooms, a pool, tennis court, private drive and the estate encompasses 1.45 acres.

The sprawling home seems to cater well to fancy parties, as Engels & Völkers touts its grand entry way and extensive terraces, “perfect for those evening soirees”.

“Visitors are greeted with an enormous colonial style double staircase with white marble balustrades sweeping down to the grand, chandeliered entrance hall,” the agency states.

El Paraíso is home to many luxury residences and an 18-hole golf course, making it a haven for wealthy residents seeking privacy and an “ease of life”.

Photo: Engel & Völkers.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

PROPERTY

Is it better for landlords in Spain to rent to temporary or long-term tenants?

If you own property in Spain that you don’t live in yourself, it’s likely that you’ll be renting it out, but is it best to rent it out on a temporary or long-term contract?

Is it better for landlords in Spain to rent to temporary or long-term tenants?

Your decision to rent out to temporary or long-term renters will of course be influenced by whether or not you intend to use your property yourself during parts of the year, but if not, it’s worth keeping in mind what the differences are. 

Besides the duration of the contract, the laws that govern each situation are different and the tax implications differ too.

READ ALSO: What are the requirements for landlords to rent out a property in Spain?

Long term contracts

Renting out long-term is governed under the Urban Leasing Law (LAU), which aims to provide shelter to families permanently and indefinitely.

It is possible to update the rent each year, depending on the price index or specific regulations at the time.

For example, in 2024, there is currently a three percent price cap. This means that you won’t be able to raise the rent on contracts that are already in force above three percent. The rental cap, however, does not apply to new contracts signed, or those signed after 2019.

Long-term contracts have a minimum duration of five years, however, your tenants can leave any time after six months as long as they give 30 days’ notice.

If you decide you need the property for yourself, you must wait until one year has elapsed on the contract and then give your tenants two months to vacate the property.   

If you decide to sell the property on the other hand, your tenant has the right to stay for up to three months or until the property is sold.

READ ALSO – Renting in Spain: When can a landlord legally kick out a tenant?

Temporary contracts

Regarding temporary rental, the law frames it under the label “rental for use other than housing”.

Temporary contracts must be for a minimum of 32 days, any shorter than this and they would be considered tourist rentals. Rentals to tourists are covered under a completely different set of rules and regulations and in many places require a tourist licence too.

READ ALSO: The rules for getting a tourist licence to rent out your Spanish property

Temporary contracts must also not be longer than 11 months. Beyond that time it would be considered a long-term rental and a long-term contract up to five years like above, would need to be issued.                                                                                                 

There is more flexibility when setting rents for temporary contracts. These are typically higher than long-term rents because of various factors, such as the addition of furniture, bills and wi-fi being included and the fact that they’re often rented out in high season. 

It’s worth keeping in mind that a high tenant turnover carries a slightly greater risk than when you rent your property out long-term. You or a management company will need to be more involved too.  

READ ALSO: Why you should consider renting out your property in Spain to students

It’s important to consider taxes when deciding to rent out to temporary or long-term renters. Photo: Andrea Piacquadio / Pexels

Declaring tax on rent from long-term contracts

You must pay taxes on your net income if you rent out long-term.  

This means adding up all the gross income for the year and deducting all the expenses involved with the rental. The following expenses are deductible:

– Waste collection fee
– Real Estate Tax (IBI)
– Insurance in case your tenants can’t pay the rent
– Home Insurance
– Community expenses
– Mortgage interest
– Real estate commissions

As the apartment serves as the tenants’ habitual residence, the tax authorities will also apply a 60 percent bonus on the net income before subjecting it to tax. This means the amount subject to personal income tax is only 40 percent of the net rental income.

These bonuses may be even higher if the conditions of the new Housing Law, introduced in 2023, are met.

Declaring tax on rent from temporary contracts

You must declare the income from all the temporary contracts that occur during the same fiscal year.

Expenses can be deducted just as before, but these may be different such as cleaning services between tenants and household bills, if they’re included.

You are also taxed on your net income, however, there are no bonuses applied like with long-term contacts as it is not considered to be the tenants’ main residence.

This means you will pay tax on 100 percent of the net income and not 40 percent like above.

You will also be charged tax on any time the apartment has been empty. This amount will depend on the cadastral value of the home and the number of days there hasn’t been anyone staying in it.

Declaring tax on rental income as a non-resident

If you’re a non-resident who owns a property in Spain and rents it out, the rules on taxes will be slightly different.

As a non-resident, you must pay income tax on rent earned in Spain as well as local property taxes such as waste tax and IBI.

If you rent your property out temporarily then you will need to submit quarterly tax returns, not just annual ones. You will also be charged tax for the periods when your property was empty. 

Those from the EU will be charged 19 percent, while everyone else will be charged 24 percent.

It’s very important to remember that if you’re from a non-EU country, such as the UK, the US or Canada you will not be allowed to deduct any expenses from your rental income, therefore you will pay tax on the full gross amount you earn.

To find out more, read our guide to non-resident tax in Spain.

Conclusion

The answer as to whether temporary or long-term contracts are best for landlords will completely depend on your situation and your preferences.

Long-term contracts are easier because you won’t have so much turnover and won’t have to be as involved. There are also various bonuses and tax breaks you can benefit from.

You can earn more from temporary contracts, but this means you will also pay more in taxes too and won’t get any bonuses. It will also take up more of your time, however, it’s a good option for those who want to use their property themselves for part of the year. 

SHOW COMMENTS